Food Chain Supermarkets Is there evidence of discrimination in promotion decisions? Adverse impact Did practices have disparate impact? Four-fifths rule Disparate treatment Were qualified individuals turned down? What were requirements?

Food Chain Supermarkets

Informal promotion systems must be formalized, with less room for bias Promotion criteria currently based on personality traits, not necessarily job-related factors Job posting Voluntary affirmative action program, given likely under- utilization County labor force is 22% black, 37% of warehouse ees black (46% in 2005, 30% in 2006), 8% of store ees black (5% of store mngrs black) In actual case, District Court found for plaintiffs, Court of Appeals reversed re: adverse impact, remanded re: disparate treatment District Court found disparate treatment on remand

“Women vs. Wal-Mart” Wal-Mart culture built on inspirational leadership, autonomy, trust Bring Ees into org, convert them to principles: respect for individual, customer service, excellence, and imperative to buy and sell at lowest price possible But practices also may create barriers, e.g., job posting Wal-Mart famous for promotion from within – more than two-thirds of managers started as hourly Ees Hourly job posted within stores, but until current suit, Co had never posted openings for mngt training positions Not the Wal-Mart way, thought to be too bureaucratic… Wal-Mart way was to trust that store mngrs will promote those who merit promotion Co now also developing formula for pay increases based on evaluation ratings, experience, and other factors to make raises more uniform Another aspect of culture which may create barrier is willingness to move for the job Single mother Asst Mngr involved in litigation moved nine times in eight years across three states Key for Wal-Mart is making processes fair without losing culture that makes it special Source: Fortune, 7/21/03