1. Practice Problem: Adverse Impact
MGT 3513
Chapter 3

2. 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?

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

4. 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.

5. 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

6. 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.

7. 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%

8. 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

9. 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)

10. 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%

11. 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

12. 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%.