Chapter 2 Understanding the Legal and Environmental Context of HRM LEARNING OBJECTIVES After reading this chapter, students should be able to: • Understand the nature of the equal employment opportunity laws and how the courts interpret them. • Understand the nature of affirmative action programs and how they should be implemented. • Describe the impact of cultural diversity on organizations and how it may be successfully managed. • Explain the changing nature of work and how this phenomenon impacts HRM practices. • Describe the impact that the occurrence of mergers and takeovers has on HRM practices. • Understand the causes of downsizing, its potential pitfalls, and how downsizing efforts should be managed. CHAPTER OUTLINE AND LECTURE 2-1 Legal Issues in the Workplace Legal issues permeate almost all aspects of HRM, from the initial recruitment and selection of applicants to their discharge, retirement, or layoff. Legal issues are so pervasive and complex that line managers and HR professionals must clearly understand the current laws and regulations. HRM laws address a variety of issues. Some pertain to specific employment practices; others deal with broader issues such as employment discrimination, safety, privacy, and employees’ rights to due process. 2-1a Equal Employment Opportunity During the 1960s, Congress passed many legislations aimed at ensuring equal employment opportunity (EEO). These laws were specifically designed to eradicate discrimination based on race, color, sex, religion, national origin, age, and disability. EEO legislation affords protection to all protected groups within a protected classification, not just minority groups. The major EEO laws are summarized in Exhibit 2-1 in the text and below. These laws differ from one another primarily in terms of the specific protected classifications covered. • Civil Rights Act of 1964 (Title VII): Prohibits employment discrimination on the basis of race, color, religion, sex, and national origin. It covers most employers who employ 15 or more employees for at least 20 weeks during the year. • Age Discrimination in Employment Act of 1967: Prohibits discrimination based on age. It protects workers 40 years of age and older, and applies to companies of 20 or more employees. The act also prohibits employers from giving preference to individuals within the 40 or older group. • Pregnancy Discrimination Act of 1978: An amendment to the 1964 Civil Rights Act, it prohibits discrimination because of a woman’s pregnancy-related condition. • Immigration Reform and Control Act of 1986: Prohibits employers from knowingly hiring aliens who are not authorized to work in the United States. It also prohibits discrimination based on national origin or citizenship. • Americans with Disabilities Act of 1990: Prohibits discrimination based on an employee’s disability and applies to most organizations employing at least 15 people. An individual who has been denied employment because of a disability can file a suit. They must establish that, with accommodation (if necessary), he or she is qualified to perform the essential functions of the job in question. To defend successfully against such a suit, the employer must demonstrate that, even with reasonable accommodation, the candidate cannot perform the job satisfactorily, or it must demonstrate that the accommodation would impose an undue hardship. • Civil Rights Act of 1991: An amendment to the Civil Rights Act of 1964, it extends the rights of claimants to receive punitive damages. It also provides a detailed description of the evidence needed to prove a discrimination claim. Additionally, the law also addresses the issue of mixed motive cases. Exhibit 2-2 in the text summarizes the main provisions of the Civil Rights Act of 1991. • Genetic Information Nondiscrimination Act of 2008: Prohibits employers from discriminating against an applicant or employee on the basis of genetic information about themselves or an immediate family member. Ask students if they have been discriminated against during hiring, while employed, or discharge. Ask which of the above EEO laws were violated. Let students tell what was done to correct the situation, if any. An employer may not discriminate on the basis of an individual’s protected group membership. To determine whether an EEO law has been violated, one must know how the courts view the concept of discrimination. In actuality, the courts recognize two different types of discrimination: intentional and unintentional. Intentional discrimination or disparate treatment is a form of discrimination in which employers treat people unfairly because of their membership in a protected group or out of personal bias. Unintentional discrimination or disparate impact is a form of employee discrimination in which an employment practice that is not job related has unequal consequences for people of different protected groups. Ultimately, the courts decide whether a specific action of an employer is lawful. When hearing a discrimination case, the courts first require that the plaintiff establish a prima facie case. This means that the plaintiff must be able to demonstrate the merits of the case in order for the court to agree to look into the matter further. To establish a prima facie case for intentional discrimination, the plaintiff should use more than one of the following types of evidence to prove disparate treatment or disparate impact: • Restricted company policy: The plaintiff proves that the company has a formal policy that restricts the selection of an entire protected group. • Discriminatory remarks: Here the plaintiff produces evidence that certain biased remarks were made by an employer regarding the protected group in question. • The McDonnell-Douglas test: Sometimes, plaintiffs do not always have blatant evidence regarding an employer’s intent to discriminate. The McDonnell-Douglas test is used to infer the presence of discriminatory intent when more direct evidence of discrimination is lacking. This test requires the plaintiff to show that (1) He or she belongs to the protected group in question. (2) He or she has applied for and is qualified for the job for which the employer was seeking applicants. (3) He or she was rejected. (4) After rejection, the position remained open or was filled by someone who was not a member of that protected group. In establishing a prima facie case for unintentional discrimination, bias is not an issue. Here, the courts try to determine whether the HR decision being contested differentially impacts the various protected groups. The most common test of this effect is the four-fifths rule. It is calculated by comparing the passing rate of the disadvantaged protected group with the rate of the advantaged group. A prima facie case of discrimination is established when the hiring rate of the former group is less than four-fifths of the latter group. To determine whether the hiring rate of a protected group satisfies the four-fifths rule, an employer should identify the protected group with the highest hiring rate and multiply that rate by .8. The employer must rebut a case that is brought to court. For intentional discrimination, employers attempt to use BFOQ (bona fide occupational qualification) as a defense. When using a BFOQ defense, the employer argues that it purposely discriminated against all members of a protected group for all or nearly all, authenticity, propriety, and safety reasons. They also try to refute the discriminatory remarks and the McDonnell-Douglas test. To refute the McDonnell-Douglas test, the employer must present evidence showing that its employment decision was based on legitimate, nondiscriminatory reasons. To defend itself against a violation of the four-fifths rule under unintentional discrimination, the firm must demonstrate that the procedure in question is a business necessity. Let the class as a whole select one example of intentional discrimination and one example of unintentional discrimination. Divide the class into 4 groups. Two groups will build a case, one for each form, and two will act as employers rebutting a case. Allow cross rebuttal among teams if students really want to get into it. 2-1b Affirmative Action (AA) Affirmative action seeks to remedy both past and present discrimination. EEO initiatives are “color-blind” and affirmative action initiatives are “color-conscious.” This affirmative action approach attempts to ensure that proper minority groups are represented within an organization. At the same time, employers may not give preferential treatment to members of protected groups. To answer the question, “Is affirmative action legally mandated?” we see that it is for federal government contractors and for some employers. Most firms are under no legal obligation to implement affirmative action programs. However, those who do implement them feel that it makes good business sense. Separate the class into two groups. Ask one group to write down all the pros and cons they can think of for affirmative action on the part of employees. The other group will write down the pros and cons of affirmative action on the part of employers. Let students call off their answers while someone writes them on the board. As a class, choose the best 3 of each of the 4 lists. Affirmative action is implemented in two primary steps. First, the organization conducts a utilization analysis to identify the underutilized protected groups within its various job categories. It then develops a remedial plan that targets these underutilized groups. The plan consists of three elements: goals, timetables, and action steps. Employers should proceed very carefully when granting someone preferential treatment. It should not be granted if there is no underutilization. When underutilization exists, an employer should select a strategy in which the degree of preferential treatment is commensurate with the severity of the problem that necessitates it. 2-2 Environmental Issues in the Workplace The environment within which an organization exists can have profound effects on the way it manages its human resources. The issues of cultural diversity, the changing nature of work, mergers and takeovers, and corporate downsizing need to be addressed. 2-2a Cultural Diversity in the Workplace EEO and AA have opened the way for a broader cultural diversity in the workplace. Some current trends include increased ethnic minority share of the workforce, an older workforce, an increase in the number of dual-income families, single-parent families, and families facing the demands of elder care. Increased cultural diversity in a company can result in a better pool of employees and a wider perspective of ideas. When poorly managed, a host of new problems such as high turnover, low morale, and intergroup conflict can occur. To be successful, a firm must meet the needs of these new workers, eliminate barriers, provide diversity training, break the glass ceiling, and meet the needs of older workers and those with special family needs. More and more firms are considering the needs of workers with children and elderly parents. They are allowing employees to engage in telecommuting, flextime, and job sharing. If there are computers in your classroom, allow students to team up and search the Internet for advantages of a culturally diverse workforce in your city. Ask for a spokesperson from each group to supply their best answers. If there are no computer/ Internet, let them finish the assignment out of class and bring the results next time. 2-2b The Changing Nature of Work The changing nature of work in many organizations has been brought about by new technology and the movement of jobs from manufacturing to service sectors. Students need to understand the current trends and their impact on a firm’s HRM practices. Plan ahead on this one. Ask a professional HR manager to speak to the class on this topic. Let the HR person explain what the students can expect and what the organization is doing to cope with the changes. Make it clear what the greatest challenges are at the present time. Technological changes have brought about a new skill set required of employees. Additionally, a shift in the movement of job from manufacturing to service has resulted in millions of blue-collar jobs disappearing and some white-collar jobs being created. Workplace changes signal the need for additional training programs to provide employees with the needed skills and knowledge. Unfortunately, many workers experience difficulty learning these more advanced skills because of deficiencies in their more basic skills. To address this concern, some firms are now offering literacy training in addition to job skills. 2-2c Mergers and Takeovers Merger mania began to sweep through American business in the early 1980s. Some of them were of choice and some were hostile takeovers. One lesson employees have learned is that their jobs may no longer be safe once a merger or takeover occurs. As a result, employee attitude towards employers and company loyalty have substantially changed. This trend has also lead to increased voluntary turnover and organizational conflict. HRM practices that help restore employee loyalty and organizational commitment are becoming increasingly important. Exhibit 2-6 in the text provides more details on the potential impact of mergers and takeovers on organizations. Propose to the students that they anticipate the emotions they would feel if it were just announced at work that a huge merger or hostile takeover was just negotiated by top management. Ask how the emotions would impact their work performance, family and social life, and them personally. 2-2d Corporate Downsizing During the past decade, many organizations have taken steps to reduce the size of their workforces through downsizing. As a result, several people have lost their jobs. There are three core reasons why so many companies are downsizing. One is a decline in business or a crisis in the firm. A second is that technological advances allow more work to be done with fewer people. The last reason is the trend towards organizational restructuring whereby the firm becomes “leaner” by laying off more middle managers. Although layoffs can save money in the short term, two problems may arise because of downsizing. First is poor employee morale. Another is that the economic benefits turn out to be less than expected. Massive layoffs should be the last option. Refer to Exhibit 2-7 for a list of alternatives. If downsizing must be exercised, management must reestablish morale and motivation. One way is to draft a new mission statement that encourages employees to recommit to the company. Employers can also provide services such as outplacement, relocation assistance, and personal and family counseling. KEY TERMS Affirmative action: An approach to eliminating employment discrimination by taking proactive initiatives to ensure proper minority group representation within an organization. Affirmative action plan (AAP): A written statement that specifies how the organization plans to increase the utilization of targeted groups. Age Discrimination in Employment Act (ADEA): A law that protects “older workers” (i.e., ages 40 and over) from age discrimination in the workplace. Americans with Disabilities Act (ADA): A 1990 law that prohibits employment discrimination based on a person’s disability. BFOQ defense: When using a BFOQ defense, the employer argues that it purposely discriminated against all members of a protected group because they lack the bona fide occupational qualifications for the position in question. Civil Rights Act (CRA) of 1964: A law that prohibits employment based on race, color, sex, religion, and national origin. Civil Rights Act (CRA) of 1991: An amendment to the Civil Rights Act of 1964. Its passage made discrimination claims less difficult for employees to substantiate. Disparate impact: A form of employment discrimination in which an employment practice that is not job related has unequal consequences for people of different protected groups. Disparate treatment: A form of employment discrimination in which employers treat people unfairly because of their membership in a protected group. Downsizing: A management action taken to drastically reduce the size of a company’s workforce. Equal employment opportunity (EEO): Providing equal treatment to all applicants and employees regardless of their race, color, sex, religion, national origin, age, or disability. Flextime: A nontraditional work arrangement in which work hours are flexible in that worker must put in their eight hours, but can choose their starting and ending times. Four-fifths rule: A test used by the courts to assess the merits of a prima facie case of disparate impact. It is calculated by comparing the passing rate of the “disadvantaged” protected group with the rate of the “advantaged” group. Genetic Information Nondiscrimination Act (GINA): A 2008 federal law that prohibits employers from discriminating against applicants or employees on the basis of genetic information gleaned from the individual or family members. Glass ceiling: An invisible, yet very real, barrier found in the structure of many organizations that has stymied the advancement of women and other protected groups. Immigration Reform and Control Act (IRCA): A law that prohibits discrimination based on national origin and citizenship. Job sharing: A form of alternate work scheduling in which a full-time job is shared by two people. McDonnell-Douglas test: A test used by the courts to assess the merits of a prima facie case of disparate treatment when “smoking gun” evidence is lacking. Mixed-motive cases: A form of employment discrimination in which an employer bases an employment decision partly on a legitimate motive and partly on a discriminatory one. Organizational restructuring: When a firm modifies its structure to become less hierarchical by cutting out the “layer” of middle management. Preferential treatment: Giving members of underutilized groups some advantage over others in the employment process. Pregnancy Discrimination Act (PDA): A law stating that firms may not discriminate against employees on the basis of pregnancy, childbirth, or related medical conditions. Prima facie case: Established at trial when a complainant has been able to demonstrate the merits of his or her case sufficiently enough for the courts to agree to look into the matter further. Protected classifications: Categories of people (e.g., race, sex) who are legally protected from discrimination in the workplace. Protected groups: Subcategories of people within each protected classification (e.g., male, female). Telecommuting: A nontraditional work arrangement in which employees work at home. Utilization analysis: A statistical procedure used for setting affirmative action goals. It compares the percentage of each protected group for each job category within the organization to that in the available labor market. REVIEW QUESTIONS 1. Which of the following statements regarding the Civil Rights Act of 1991 is true? a. Employers may be charged with punitive and compensatory damages. b. Compared to the Civil Rights Act of 1964, the 1991 act makes discrimination claims more difficult to prove. c. It states that mixed-motive decisions are lawful. d. All of the above. Answer: a Rationale: The 1991 amendment expands the list of remedies that may be awarded in a discrimination case—the employer now has more to lose if found guilty of discrimination. In addition to legal fees and back pay, an employer may now be charged with punitive and compensatory damages. 2. An employer refuses to hire any women for the job of construction worker. Mary Jones’ application is automatically rejected. If Mary were to sue this company for sex discrimination, which approach should she use in order to establish a prima facie case? a. restricted company policy b. discriminatory remarks c. McDonnell Douglas test d. four-fifths rule Answer: a Rationale: A prima facie case of discrimination is automatically established when the plaintiff proves that the company has a formal policy that restricts the selection of an entire protected group. 3. An employer must demonstrate a legitimate, nondiscriminatory reason for its employment decision in order to rebut a prima facie case of discrimination established under the __________ approach. a. company policy b. discriminatory remarks c. McDonnell Douglas test d. four-fifths rule Answer: c Rationale: When a prima facie case has been established on the basis of the McDonnell-Douglas test, the employer’s burden is to present evidence showing that its employment decision was based on legitimate, nondiscriminatory reasons. 4. An employer must demonstrate the business necessity of job-relatedness of its employment decision in order to rebut a prima facie case of discrimination established under the __________ approach. a. company policy b. discriminatory remarks c. McDonnell-Douglas Test d. four-fifths rule Answer: d Rationale: To defend itself against a violation of the four-fifths rule, a firm must demonstrate that the procedure in question is a business necessity. 5. The implementation of affirmative action consists of two steps: __________ and __________. a. EEO review/EEO implementation b. affirmative action analysis/affirmative action implementation c. discriminatory cause/ant discriminatory steps d. utilization analysis/affirmative action plans Answer: d Rationale: Affirmative action implementation consists of two primary steps. First, the organization conducts a utilization analysis to identify the “underutilized” protected groups within its various job categories. It then develops a remedial plan that targets these underutilized groups. 6. __________ training attempts to make employees aware of their biases or stereotyped views regarding various minority groups, and then to teach them ways to overcome these biases in their day-to-day dealings with such individuals. a. Sensitivity b. Affirmative action c. Diversity d. Race relations Answer: c Rationale: Diversity training attempts first to make employees aware of their biases or stereotyped views regarding various minority groups, and then teaches them ways to overcome these biases in their day-to-day dealings with such individuals. 7. Which of the following statements about older workers is true? a. Young managers often feel uncomfortable directing their work. b. One of the skills most affected by the aging process is speed/accuracy of movement. c. Companies can sometimes solve age-related performance problems by placing older workers in jobs that rely less on physical prowess and more on maturity and experience. d. All of the above. Answer: d Rationale: The management of older workers can pose some unique problems. For instance, younger managers often feel uncomfortable directing the work of people who are old enough to be their parents or grandparents. The skills most affected by the aging process are speed and accuracy of movement, the process of translation between perception and action, problem solving, perception, hearing, and vision. In order to accommodate older workers, the company can place workers in jobs that rely less on physical prowess and more on the maturity and experience. 8. “Merger mania” is leading to a. increased voluntary turnover. b. increased employee commitment. c. decreased union representation. d. all of the above. Answer: a Rationale: “Merger mania” began to sweep through American businesses in the early 1980s. In many of the firms in which mergers and takeovers have occurred, individuals who had been loyal, longtime employees learned that their jobs were no longer safe. As a result, this merger mania has substantially changed the way many employees think of their employers and, subsequently, the loyalty that bonded the two parties. 9. Which of the following practices does the chapter recommend in order to reestablish morale following a massive layoff? a. The management team should draft a new corporate mission statement that conveys the organization’s new vision and goals in an optimistic way. b. Management should give the surviving workers a large pay raise, as a show of good faith. c. Management should give the surviving workers more vacation time during the first year following the layoff. d. All of the above. Answer: a Rationale: One of management’s most difficult tasks is to reestablish morale and motivation following layoffs. The management team should draft a new corporate mission statement that conveys the organization’s new vision and goals in an optimistic way, one that encourages employees to recommit to the company. 10. The preferential treatment of a protected group is a. legal under any circumstances. b. legal under any circumstances, but only if given to minorities. c. legal, but only if engaged in as part of a bona fide affirmative action program. d. never legal. Answer: c Rationale: An affirmative action program may actually countenance preference for an individual, based on the individual’s race, sex, or other protected category. DISCUSSION QUESTIONS 1. Define the terms protected classification and protected group. • Protected Classification—categories of people (e.g., race, sex) who are legally protected from discrimination in the workplace. • Protected Groups—subcategories of people within each protected classification (e.g., male, female). 2. In what ways does the CRA of 1991 differ from the CRA of 1964? • The CRA of 1991 expands the list of remedies that may be awarded in a discrimination case; the employer now has more to lose if found guilty of discrimination. • Additionally, the CRA of 1991 adds additional bite to the 1964 law by providing a more detailed description of the evidence needed to prove a discrimination claim, making such claims easier to prove. • Lastly, the CRA of 1991 also differs from the 1964 law by addressing the issue of mixed-motive cases. This type of case is one in which an employment decision, such as hiring or promotion, is based on a “legitimate” motive and partly on a discriminatory one. The CRA of 1991 states that mixed-motive decisions are unlawful. 3. Summarize the major provisions of the following laws: Pregnancy Discrimination Act, Age Discrimination in Employment Act, and Americans with Disabilities Act. • Pregnancy Discrimination Act ○ This act amended the CRA of 1964 by stating that firms may not discriminate against employees on the basis of pregnancy, childbirth, or related medical conditions. It states that employees who are unable to perform their jobs because of a pregnancy-related condition must be treated in the same manner as employees who are temporarily disabled for other reasons. • Age Discrimination in Employment Act ○ Protects “older workers” (i.e., ages 40 and over) from age discrimination in the workplace. The act applies to nearly all employers of 20 or more employees, promotes the employment of older persons based on their ability, rather than age. • Americans with Disabilities Act ○ Prohibits employment discrimination based on a person’s disability. According to the act, an individual is considered disabled if he or she has a physical or mental impairment that substantially limits one or more of the individual’s major life activities such as walking, seeing, hearing, breathing, and learning, as well as the ability to secure or retain employment. 4. Describe the four approaches a plaintiff can take in order to establish a prima facie case of discrimination. • Company Policy ○ A prima facie case is automatically established when the plaintiff proves that the company has a formal policy that restricts the selection of an entire protected group. • Discriminatory Remarks ○ Producing evidence that certain biased remarks were made by an employer (orally or in writing) regarding the protected group in question. • The McDonnell-Douglas Test ○ Requires that the plaintiff show that he or she: • Belongs to the protected group in question. • Has applied for and is qualified for the job for which the employer was seeking applicants. • Was rejected. • After rejection, the position remained open or was filled by someone who was not a member of that protected group. • The Four-Fifths Rule ○ The four-fifths rule helps the courts determine whether between-group differences in hiring rates are large enough to be important. It is calculated by comparing the hiring rate of the “disadvantaged” protected group (i.e., the group claiming discrimination) with the rate of the “advantaged” group. A prima facie case of discrimination is established when the hiring rate of the former group is less than four-fifths of the latter group. 5. For each of the following situations, state the type of prima facie case (i.e., disparate treatment or disparate impact) the plaintiff would try to establish. If a prima facie case were established, how would the employer try to defend itself in each situation? • The Metropolitan Police Department uses a written test for selecting new officers. The test is professionally developed. Eighty percent of the green applicants pass, but only 10 percent of the orange applicants pass. ○ Prima Facie Case: The Four-Fifths Rule ○ Defense: The police department would have to demonstrate the job-relatedness of the written test. • A boss looks at his female secretary and states: “You’re fired because you make lousy coffee.” He then hires another woman to replace her. ○ Prima Facie Case: No prima facie case exists unless the employee can show that woman, but not men, are fired for such ridiculous reasons. ○ Defense: No defense required. • An employee of foreign origin has been passed over for promotion to management because of a poor recommendation from his boss. His performance appraisal ratings have been excellent. In the past 5 years, 15 management positions have been filled; none of the 27 employees of foreign origin eligible for such a promotion has received one. ○ Prima facie Case: There two approaches that could be used: • The McDonnell-Douglas test • The Four-Fifths rule ○ Defense: • The employer needs to show that the employment decision was based on legitimate, nondiscriminatory reasons (i.e., the promoted person was more qualified). • The employer must show that procedure in question (the performance appraisal) is a business necessity and measures the attributes that are important for performing the promoted job. 6. Describe the two steps involved in implementing an affirmative action program. • Utilization Analysis ○ A statistical procedure used for setting affirmative action goals. ○ It compares the percentage of each protected group for each job category within the organization to that in the available labor market. • Affirmative Action Plans (AAP) ○ The second step in implementing affirmative action. ○ A written statement that specifies how the organization plans to increase the utilization of targeted groups. ○ The APP consists of three elements: goals, timetables, and action steps. 7. What is meant by the term glass ceiling? What steps must an organization take to break this ceiling? • Glass Ceiling ○ An invisible, yet very real, barrier found in the structure of many organizations that has stymied the advancement of women and other protected groups. • Breaking the Glass Ceiling ○ Effective diversity training that helps decision makers overcome their biases would certainly help. ○ An organization must also take steps to help minorities and women reach their career goals, such as providing them with training, career counseling, and mentoring. ○ The organization must also implement promotion procedures that are less subject to bias—procedures that ensure that the candidates are chosen solely on the basis of their qualifications. 8. In what ways is the nature of work changing? How does this trend affect the practice of HRM? Technological advances and a major shift in the type of work being performed—from manufacturing to service. These workplace changes signal the need for training programs to provide employees with the skills needed to move into these more technical and/or service-oriented jobs. Additionally some companies are also offering literacy-training programs. 9. What types of problems have been created as a result of the rash of recent mergers and takeovers? • In many of the firms in which mergers and takeovers have occurred, individuals who had been loyal, longtime employees learned (the hard way) that their jobs were no longer safe. • The merger mania has substantially changed the way many employees think of their employers and, subsequently, the loyalty that bonded the two parties. • One consequence of this trend is increased voluntary turnover among employees who once would have been more inclined to spend their future working careers with a single employer. 10. Describe three reasons why so many companies have begun downsizing. • Many organizations have found it necessary to cut the size of their workforce due to a decline or crisis in the firm. • The advent of technological advances, which has enabled many companies to produce more with fewer people. • Organizational restructuring, in which the structure of a firm is modified to become less hierarchical by cutting out the “layer” of middle management. 11. How should an organization manage its downsizing efforts? • Consider alternatives to layoffs before drastic cuts are made. • The firm must manage the workforce reduction very carefully. One of management’s most difficult tasks is to reestablish morale and motivation following layoffs. • The management team should draft a new corporate mission statement that conveys the organization’s new vision and goals in an optimistic way—one that encourages employees to recommit to the company. • To help employees who have lost their jobs, employers can provide services such as outplacement, relocation assistance, and personal and family counseling. EXPERIENTIAL EXERCISES Affirmative Action Debate Overview The class will engage in a debate of the following proposition: Affirmative action is a fair method of achieving equal employment opportunity for minority groups and women. Steps 1. Every student sitting on the left side of the room will take the “pro” position; those sitting on the right side will take the “con” position. 2. Break into groups of four or five students and develop a list of arguments supporting your position. 3. Both the pro and con sides should then develop a master list of arguments supporting their position. Develop the master list by having a representative from each subgroup meet with one another and compare lists. There will thus be two master lists: pro and con. 4. The subgroup representatives from each side will become the debate teams. 5. The debate should be conducted according to the following procedure: Round 1: Each team gets 10 minutes to present its case. All debaters should participate. The pro side goes first. Round 2: Each team gets 5 minutes to rebut the arguments given by the other side and reconstruct or rebuild its own arguments, as needed. The rebuttal should directly address the arguments made by the other side. Its purpose is to cast doubt on those arguments. The con side goes first. (Note: Give your arguments in round 1; do not rebut until round 2.) Round 3: The other class members (i.e., the audience) are given 10 minutes to cross-examine members of either team. The class then votes on which position they hold. CASES Jackson v. Happy-Time Objective: To help students determine the standpoint for establishing a case of discrimination and the grounds on which it can be rebutted. What to do: Analyze this case after discussions on prima facie discrimination. Questions 1. How would Ms. Jackson establish a prima facie case of discrimination? Ms. Jackson would establish a prima facie case by showing that: ○ She is a member of a protected group. ○ She is qualified for the job (was presently working and had satisfactory ratings). ○ She was rejected (she was fired). ○ The position remained open or was filled by someone who was not a member of that protected group. 2. If a prima facie case were established, what defense would the employer use? • The company would have to show that it has a legitimate, non-discriminatory reason for firing Ms. Jackson. ○ Ms. Jackson was fired for “improper isolation of a child,” which was in violation of job rules. • After showing a legitimate, nondiscriminatory reason, Ms. Jackson would try to rebut the employer’s reason by showing pretext and that the real reason for her discharge was her race. ○ Ms. Jackson could do this by showing extenuating circumstances—her violation was not that serious. ○ Similarly situated whites have been treated differently (“better”) than Ms. Jackson. • Betty was not fired for her mistake of dropping off a child without checking to see if the parents were home. • Joanie was fired for improper isolation, but her offence was much more serious than Ms. Jackson’s. 3. If you were the judge, how would you rule? Explain. • Ms. Jackson was able to establish a prima facie case. • Company’s reason for its action is legitimate (unless a valid rebuttal is presented by Ms. Jackson). • There is no evidence to show that the action taken against Ms. Jackson was based on her race. Therefore I rule in favor of Happy-Time Daycare. Student answers may vary. Is Preferential Treatment Warranted? Review the following two situations. Set short-term (i.e., one-year) affirmative action goals and suggest ways these organizations can meet these goals. Is some form of preferential treatment warranted in either case? Objective: To help students determine the conditions under which preferential treatment is legal. What to do: Analyze this case after discussing preferential treatment. Situation 1—What steps would you take to remedy this underutilization? • Recruitment efforts—urge supervisors to nominate more woman subordinates for management positions. • Extra consideration in hiring—if “all else is equal” between a male and female applicant, hire the female applicant. Situation 2—What steps would you take to remedy this underutilization? • Recruitment efforts—increase recruitment efforts for African American police officers. • One-for-one hiring—for every qualified non-African American police officer hired one African American police officer should be hired. CRITICAL THINKING EXERCISES 1. Ask students if any of them have been discriminated against during hiring, while employed, or discharge. Ask which EEO laws were violated. Let students tell what was done to correct the situation, if any. 2. Let the class as a whole select one example of intentional discrimination and one example of unintentional discrimination. Divide the class into 4 groups. Two groups will build a case, one for each example, and two will act as employers rebutting a case. Allow cross rebuttal among teams if students really want to get into it. 3. Separate the class into two groups. Ask one group to write down all the pros and cons they can think of for affirmative action on the part of employees. The other group will write down the pros and cons of affirmative action on the part of employers. Let students call off their answers while someone writes them on the board. As a class, choose the best 3 of each of the 4 lists. 4. If there are computers in your classroom, allow students to team up and search the Internet for advantages of a culturally diverse workforce in your city. Ask for a spokesperson from each group to supply their best answers. If there is no computer/Internet, let them finish the assignment out of class and bring the results in next time. 5. Plan ahead on this one. Ask a professional HR manager to speak to the class about the changing nature of work. Let the HR person explain what the students can expect and what the organization is doing to cope with the changes. Make it clear what the greatest challenges are at the present time. 6. Propose to the students that they anticipate the emotions they would feel if it were just announced at work that a huge merger or hostile takeover was just negotiated by top management. Ask how the emotions would impact their work performance, family and social life, and them personally. ESSAY QUESTIONS 1. Compare and contrast the seven major EEO laws that have been passed since 1964. Here’s a brief comparison of the seven major Equal Employment Opportunity (EEO) laws since 1964: 1. Civil Rights Act of 1964 (Title VII): • Focus: Prohibits discrimination based on race, color, religion, sex, or national origin. • Impact: Established the Equal Employment Opportunity Commission (EEOC) to enforce these provisions. 2. Age Discrimination in Employment Act of 1967 (ADEA): • Focus: Protects individuals aged 40 and older from age discrimination. • Impact: Addresses hiring, firing, and promotion biases based on age. 3. Equal Pay Act of 1963: • Focus: Requires equal pay for equal work regardless of gender. • Impact: Aims to close the wage gap between men and women. 4. Americans with Disabilities Act of 1990 (ADA): • Focus: Prohibits discrimination against individuals with disabilities. • Impact: Mandates reasonable accommodations in the workplace. 5. Genetic Information Nondiscrimination Act of 2008 (GINA): • Focus: Prohibits discrimination based on genetic information. • Impact: Protects individuals from being treated unfairly due to genetic predispositions. 6. Pregnancy Discrimination Act of 1978: • Focus: Prohibits discrimination based on pregnancy, childbirth, or related medical conditions. • Impact: Ensures pregnant employees receive the same treatment as others with similar abilities. 7. Diversity and Inclusion Executive Orders (various): • Focus: Promote diversity and prevent discrimination in federal employment. • Impact: Establishes policies to enhance representation and inclusion in the workforce. Comparison: • Similarities: All laws aim to eliminate discrimination and promote fairness in the workplace. • Differences: They target different forms of discrimination (e.g., race, age, disability) and have distinct enforcement mechanisms and scopes. These laws collectively strengthen workplace equality and promote a diverse workforce. 2. How do the courts view disparate treatment and disparate impact? The courts differentiate between disparate treatment and disparate impact as follows: 1. Disparate Treatment: • Definition: Occurs when an individual is treated less favorably than others because of a protected characteristic (e.g., race, gender). • Court View: Courts typically require proof of intentional discrimination. Plaintiffs must demonstrate that discriminatory motives influenced employment decisions. 2. Disparate Impact: • Definition: Involves policies or practices that appear neutral but disproportionately affect a protected group. • Court View: Courts focus on statistical evidence showing adverse effects. Employers can defend against claims by proving that the practice is job-related and necessary for business. Summary: • Disparate treatment emphasizes intent and individual cases, while disparate impact highlights the effects of policies on groups, regardless of intent. 3. Explain three things plaintiffs can do to strengthen their cases in establishing a prima facie case of intentional discrimination. To strengthen their cases in establishing a prima facie case of intentional discrimination, plaintiffs can: 1. Gather Evidence of Discriminatory Intent: • Collect direct evidence (e.g., emails, comments) that indicates bias or discriminatory motives from decision-makers. 2. Show Comparative Treatment: • Present evidence comparing their treatment with similarly situated employees of a different protected characteristic who were treated more favorably. 3. Document Pattern of Discrimination: • Compile statistics or examples demonstrating a consistent pattern of discriminatory practices within the organization, highlighting broader issues rather than isolated incidents. These strategies help create a stronger foundation for proving intentional discrimination. 4. How does the four-fifths rule help plaintiffs establish cases under unintentional discrimination? The four-fifths rule helps plaintiffs establish cases of unintentional discrimination by providing a statistical benchmark. It states that a selection rate for a protected group must be at least 80% (four-fifths) of the rate for the group with the highest selection rate. How It Works: 1. Statistical Comparison: If the selection rate for a protected group falls below 80% of the highest group, it may indicate potential discrimination. 2. Establishing Disparity: This rule helps demonstrate a significant disparity in treatment or outcomes, supporting claims of adverse impact. 3. Burden Shift: If the rule is violated, it shifts the burden to the employer to justify the selection criteria as necessary for business purposes. Overall, the four-fifths rule serves as a crucial tool for plaintiffs to identify and substantiate claims of unintentional discrimination. 5. You are a business manager for Holt Industries, Inc. You have been accused of intentional discrimination against a protected group. Outline a case for your defense and the defense of Holt Industries. Defense Outline for Holt Industries, Inc. 1. Lack of Discriminatory Intent: • Evidence: Present documentation showing consistent hiring, promotion, and treatment practices across all employee demographics. • Policies: Highlight established non-discrimination policies and training programs to foster an inclusive workplace. 2. Performance-Based Decisions: • Justification: Emphasize that employment decisions were based on objective performance metrics and qualifications rather than any protected characteristic. • Comparative Analysis: Provide evidence of comparable treatment of all employees in similar roles, demonstrating fairness in evaluations and promotions. 3. Statistical Evidence: • Workforce Composition: Present data showing that the workforce reflects a diverse range of demographics, indicating no systemic bias. • Retention Rates: Show that retention rates for the protected group are comparable to those of other groups. 4. Business Necessity: • Job Relevance: Argue that any challenged practices are necessary for business operations and directly related to job performance and organizational needs. 5. Employee Feedback: • Surveys/Testimonials: Include positive feedback from employees about the workplace environment and management practices, reinforcing the absence of discriminatory behavior. This defense strategy aims to demonstrate that Holt Industries is committed to equality and that any allegations of intentional discrimination are unfounded. 6. For whom is affirmative action legally mandated? How is it implemented? Legally Mandated Recipients of Affirmative Action: 1. Federal Contractors and Subcontractors: Organizations that have contracts with the federal government are required to implement affirmative action plans to promote equal employment opportunities. 2. Public Employers: State and local governments must comply with affirmative action requirements to ensure diversity in hiring and promotion practices. 3. Educational Institutions: Colleges and universities receiving federal funding may also be required to consider affirmative action in their admissions processes to enhance diversity. Implementation: 1. Affirmative Action Plans: Organizations must develop written plans that outline specific goals and timelines for improving diversity and addressing underrepresentation. 2. Outreach and Recruitment: Actively seek out and recruit qualified candidates from underrepresented groups through targeted outreach efforts. 3. Training and Development: Implement programs to support the advancement of minority groups within the organization, including mentorship and training initiatives. 4. Monitoring and Reporting: Regularly assess and report on the effectiveness of affirmative action efforts, making adjustments as necessary to meet established goals. These measures aim to create a more equitable workplace and educational environment by actively promoting the inclusion of historically marginalized groups. 7. What are many firms doing today to manage cultural diversity? Many firms today are taking several proactive steps to manage cultural diversity effectively: 1. Diversity Training Programs: Implementing training to raise awareness about cultural differences and foster inclusive behaviors among employees. 2. Inclusive Recruitment Practices: Actively seeking diverse candidates through targeted outreach and unbiased hiring processes to ensure a varied workforce. 3. Employee Resource Groups (ERGs): Establishing networks for employees from similar backgrounds to support each other, share experiences, and enhance workplace inclusion. 4. Flexible Work Policies: Offering flexible hours and remote work options to accommodate diverse needs and lifestyles. 5. Diversity Metrics and Accountability: Setting specific diversity goals, tracking progress, and holding leadership accountable for meeting these objectives. 6. Cultural Celebrations: Promoting and celebrating various cultural events within the workplace to foster appreciation and understanding among employees. These initiatives help create an inclusive environment that values and leverages cultural diversity for better collaboration and innovation. 8. What effects are telecommuting, flextime, and job sharing having on organizations’ bottom lines? Telecommuting, flextime, and job sharing are having several positive effects on organizations' bottom lines: 1. Increased Productivity: Flexible work arrangements often lead to higher employee satisfaction and motivation, resulting in improved productivity levels. 2. Cost Savings: Organizations can reduce overhead costs related to office space, utilities, and other facilities by allowing remote work and shared positions. 3. Employee Retention: Offering flexible work options helps attract and retain top talent, reducing turnover costs associated with hiring and training new employees. 4. Enhanced Work-Life Balance: These arrangements contribute to better work-life balance, reducing stress and absenteeism, which further boosts overall organizational performance. 5. Broader Talent Pool: Flexibility allows organizations to hire from a wider geographic area, gaining access to diverse skills and expertise that can enhance competitiveness. Overall, these flexible work arrangements contribute to improved efficiency and financial performance for organizations. 9. How has work changed during the last decade? How has it impacted HRM practices? Over the last decade, work has changed significantly due to technological advancements, shifting employee expectations, and the rise of remote and flexible work arrangements. Changes in Work: 1. Remote Work: Widespread adoption of telecommuting, especially accelerated by the COVID-19 pandemic. 2. Flexible Hours: Increased demand for flextime and hybrid work models. 3. Technology Integration: Greater reliance on digital tools and platforms for collaboration and communication. 4. Focus on Well-being: Enhanced emphasis on mental health and work-life balance. Impact on HRM Practices: 1. Recruitment Strategies: Broader talent pools and remote hiring practices are now standard. 2. Employee Engagement: HR focuses more on virtual engagement strategies and maintaining company culture remotely. 3. Performance Management: Shift towards outcome-based evaluations rather than traditional attendance metrics. 4. Training and Development: Increased investment in online training and development programs to upskill employees. These changes necessitate more agile, inclusive, and tech-savvy HR practices to meet the evolving needs of the workforce. 10. Describe the problems organizations are having with downsizing efforts. Tell how they decide when and how to downsize? Problems Organizations Face with Downsizing: 1. Employee Morale: Downsizing can lead to decreased morale and job insecurity among remaining employees, affecting productivity and engagement. 2. Loss of Talent: Valuable skills and institutional knowledge may be lost, creating gaps in expertise and operational capabilities. 3. Public Image: Frequent downsizing can damage the organization’s reputation, making it harder to attract talent in the future. 4. Legal Risks: Potential for lawsuits related to wrongful termination or discrimination if the downsizing process is perceived as unfair. Decision-Making for Downsizing: 1. Assessment of Financial Health: Organizations typically conduct a thorough analysis of financial performance, market conditions, and forecasts to determine the necessity of downsizing. 2. Operational Review: Evaluating business units, workforce productivity, and identifying areas where costs can be reduced without compromising essential functions. 3. Strategic Planning: Deciding on the scope and timeline of downsizing, considering both short-term and long-term impacts on the organization’s goals. 4. Communication Strategy: Developing a clear communication plan to explain the reasons for downsizing and support remaining employees through the transition. These factors guide organizations in making informed decisions about when and how to downsize, aiming to mitigate negative impacts while ensuring business sustainability. OTHER RESOURCES I. Websites www.BusinessandLaw.com. Information on arbitration agreement, employment laws, termination, and discrimination is found here. www.EEOSource.com. Learn about responsibilities as equal opportunity employers and understand the requirements of affirmative action compliance. II. Articles The Changing Face of the Workforce, M. Bolch, Training, December 2000, pp. 73–78. Insight is provided from several industries on both overall and specific changes being encountered in today’s and the future’s workforce. Hold the Line on Salaries and Benefits, R. Todd, Workforce, 2001, 80 (9), 38–42. Here the author gives tips on being firm with employee offers of salaries and benefits to stay within budget and still recruit and promote a quality workforce. Important Steps for Implementing Diversity Training, L. Garden Swartz and A. Rowe, Mosaics, 2002, 8 (3), 3–5. Want to know how to do a thorough and quality job of this topic. Check out Garden Swartz’s and Rowe’s approach. Why Deep Layoffs Hurt Long-Term Recovery, E. Zimmermann, Workforce, 2001, 80 (11), 48–53. Deep layoffs of both management and employees may help the short-term bottom line, but what will they do for your firm in the long haul? Solution Manual for Human Resource Management: A Managerial Tool for Competitive Advantage Lawrence S. Kleiman 9781426649189
Download
Close
Close
