Practice Problem: Adverse Impact MGT 3513 Chapter 3

Recently, Bully’s Dawgs hired several new graphic designers Recently, Bully’s Dawgs hired several new graphic designers. The company interviewed 200 job applicants for the position, 80 female and 120 male. The company hired 16 new employees, of those 4 were females and 12 were males. *Did adverse impact occur?  

Create table your table Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males Females Create table your table

Fill your table in with info from the problem. Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 Females 80 Fill your table in with info from the problem.

Males 120 12 Females 80 4 Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 Females 80 4

Calculate selection rates for each group. Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 Females 80 4 = 4/80 Calculate selection rates for each group.

Males 120 12 = 12/120 = 10 % Females 80 4 = 4/80 = 5% Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 = 10 % Females 80 4 = 4/80 = 5%

Identify the selection rate of the majority group Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 = 10 % Females 80 4 = 4/80 = 5% Identify the selection rate of the majority group

Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 = 10 % = 10% x .8 Females 80 4 = 4/80 = 5% Multiple the majority rate by .8 (HINT: in this case, type 10 in your calculator & multiply it by .8)

Males 120 12 = 12/120 = 10 % = 10% x .8 = 8% Females 80 4 = 4/80 = 5% Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 = 10 % = 10% x .8 = 8% Females 80 4 = 4/80 = 5%

Compare threshold with minority group selection rate Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 = 10 % = 10% x .8 = 8% Females 80 4 = 4/80 = 5% Compare threshold with minority group selection rate

Groups Applicants Hires Selection rate = hires/applicants Selection Threshold (minority rate x .8) Males 120 12 = 12/120 = 10 % = 10% x .8 = 8% Females 80 4 = 4/80 = 5% Did adverse impact occur??? Yes, adverse impact occurred because 5% is less than 8%.