CH-3 The Legal Environment: Equal Employment Opportunity and Safety – Human Resource Management : Book Guide

Chapter 03 - The Legal Environment: Equal Employment Opportunity and Safety Please click here to access the new HRM Failures case associated with this chapter. HRM Failures features real-life situations in which an HR conflict ended up in court. Each case includes a discussion questions and possible answers for easy use in the classroom. HRM Failures are not included in the text so that you can provide your students with additional real-life content that helps engrain chapter concepts. Chapter Summary The legal environment is one of the critical environmental factors that affects the management of people. This chapter first describes the U.S. legal system, including the legislative bodies, regulatory agencies, and judi¬cial bodies whose decisions affect the legality of HRM practices. Major laws and executive orders, particularly those pertaining to elements of discrimination, are then reviewed. Three theories of discrimination are presented along with court case examples. Next, sexual harassment and the Americans with Disabilities Act are discussed. Finally, the chapter reviews what policies and practices employers may develop regarding employee safety. Learning Objectives After studying this chapter, the student should be able to: 1. Identify the three branches of government and the role each plays in influencing the legal environment of human resource management. 2. List the major federal laws that require equal employment opportunity and the protections provided by each of these laws. 3. Discuss the roles, responsibilities, and requirements of the federal agencies responsible for enforcing equal employment opportunity laws. 4. Identify the three theories of discrimination under Title VII of the Civil Rights Act and apply these theories to different discrimination situations. 5. Discuss the legal issues involved with preferential treatment programs. 6. Identify behavior that constitutes sexual harassment and list things that an organization can do to eliminate or minimize it. 7. Identify the major provisions of the Occupational Safety and Health Act (1970) and the rights of employees that are guaranteed by this act. Extended Chapter Outline Note: Key terms appear in boldface and are listed in the "Chapter Vocabulary" section. Opening Vignette: Wal-Mart’s Legal Problems One of the largest discrimination lawsuits in the history of U.S. employment law is making its way through the court system. In March of 2011, the Supreme Court heard arguments whether or not the plaintiffs in a suit, which alleges that Wal-Mart discouraged the promotion of women store employees to managerial positions, (Dukes vs. Wal-Mart) can file a class action suit representing all women who had worked at Wal-Mart. Wal-Mart contends, however, that the alleged victims, who worked in 170 job classifications across 3400 stores do not have enough in common to qualify as a single class action. Discussion Question 1. If you were a female employee at Wal-Mart, what would your reaction be to the question about whether or not you could be included in a class action lawsuit against the company? Answer: Student responses, of course, can vary. Look for evidence that students understand what class action means, what discrimination means, and look for evidence that they reasoned and carefully arrived at their responses. As a female employee at Wal-Mart, I would consider participating in a class action lawsuit if I felt that gender discrimination affected my career opportunities or treatment. My decision would be based on evaluating the evidence of discrimination and the potential impact on improving workplace conditions. I would seek advice from legal experts and support from colleagues before taking any action. I. Introduction Understanding the legal environment of business, particularly the laws affecting the management of people, prepares a manager to manage people while staying within the legal constraints. II. The Legal System in the United States A. The U.S. Constitution sets forth the foundation of our system. It affects HRM in two ways: It delineates a citizen’s constitutional rights, on which the government cannot impinge. 2. The Constitution established three major governing bodies: the legislative, executive, and judicial branches. It defines the roles and responsibilities of each of these branches. B. The legislative branch of the federal government consists of the House of Representatives and the Senate. These bodies enact laws that govern many HR activities. Example: Congress enacted Title VII of the Civil Rights Act, which ensured minority groups’ equal opportunity in a number of areas. C. The executive branch consists of the president of the United States and the regulatory agencies the president oversees. 1. The president can propose bills to Congress, which, if passed, become law. 2. The president has veto power over bills passed by Congress. 3. Regulatory agencies, under the authority of the president, have responsibility for enforcing the law. 4. The president can issue executive orders that regulate the activ¬ities of organizations that have contracts with the federal government. 5. The president can influence the Supreme Court through the arguments of the attorney general. 6. The president appoints all judges in the federal judicial system, subject to legislative branch approval. (The current president has the opportunity to appoint a large number of judges, potentially changing the predominant judicial philosophy.) D. The judicial branch consists of the federal court system, which is made up of three levels. 1. The first level consists of the U.S. district courts and quasi judi¬cial administrative agencies. Example: The National Labor Relations Board hears cases regarding disputes between unions and management. 2. The U.S. Court of Appeals hears appeals from the district courts. 3. The Supreme Court serves as the court of final appeal; its deci¬sions may be overturned only through legislation. Competing Through Globalization: I-Working Conditions Hon Hai Precision Industry Co., also known as Foxconn, is a major supplier of components to Apple for their various i-products (i-pods, i-phones, etc.). Hon Hai had 14 of its employees either attempt to or successfully commit suicide by jumping from company buildings. The reason for these events was attributed to long working hours. While the rate of suicide in this instance was not different from the rate among China’s general population, the company’s initial response was a bit out of line – they installed nets to catch would-be jumpers. Eventually, audits revealed that the company was in violation of Apple’s workplace standards and policies as well as China’s employment laws. Eventually, the company made changes to the working conditions and provided employees with higher wages, a cap on overtime hours, mental health counseling services, recreational facilities, and training courses. These changes have resulted in drastic cost increases and decreases in profit margin. This case illustrates some of the challenges companies face through globalization. Discussion Question 1. Explain why multinational companies need to be mindful of treatment of employees in other regains of the world. Do you think that monitoring the HR practices of suppliers is justified? Answer: Student responses might vary, but responses generally should include the observation that what is normally acceptable and/or legal in other countries might not line up with what is legal or acceptable in the home country. Additionally, those practices might vary from company policies and accepted practices. There is a multitude of ramifications to this issue – for example, think about the public relations fallout experienced by various clothing manufacturers when the child labor scandals broke out. Multinational companies must be mindful of employee treatment globally to uphold ethical standards, avoid reputational damage, and comply with diverse labor laws. Monitoring HR practices of suppliers is justified to ensure fair labor practices and maintain consistency with the company's values and legal obligations. This helps in mitigating risks and promoting ethical business practices. III. Equal employment opportunity refers to the government's attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex, or national origin (see Table 3.1 in the text for a summary of EEO laws). A. Constitutional Amendments 1. The Thirteenth Amendment of the Constitution abolished slavery in the United States. 2. The Fourteenth Amendment forbids the state to take life, liberty, or property without due process of law and prevents the states from denying the equal protections of the law. This has been applied recently in a reverse discrimination case, Bakke v. California Board of Regents. The court ruled in favor of Bakke; a white applicant to the University of California at Davis medical school. A quota system had precluded Bakke from being considered for 16 spaces held specifically for members of racial minority groups. B. Congressional Legislation 1. The Reconstruction Civil Rights Acts (1866 and 1871) granted all persons the same property rights as white citizens, as well as other rights such as that of entering into and enforcing contracts. Courts have interpreted one section of these laws as granting individuals the right to make and enforce employment contracts. 2. The Equal Pay Act of 1963 requires that men and women in the same organization who are doing equal work must be paid equally. If pay differences are a function of merit, seniority, and so forth, then the differences are allowable. 3. Title VII of the Civil Rights Act of 1964 is the major piece of legislation regulating EEO in the United States. Title VII makes it illegal for an employer to "fail or refuse to hire or discharge any individual, or otherwise discriminate against them, with respect to his compensation, terms, conditions, or privileges of employment because of the individual's race, color, religion, sex, or national origin." The Age Discrimination in Employment Act (ADEA) of 1967 prohibits discrimination against employees over the age of 40. (See Figure 3.1 in text). The Vocational Rehabilitation Act of 1973 covers federal contractors and requires them to engage in affirmative action for disabled individuals. The Vietnam Era Veteran's Readjustment Act of 1974 requires federal contractors to take affirmative action toward employing Vietnam veterans. Pregnancy Discrimination Act: An amendment to Title VII of the Civil Rights Act, it makes illegal discrimination on the basis of pregnancy, childbirth, or related medical conditions as a form of unlawful sex discrimination. The Civil Rights Act of 1991 amends Title VII of the 1964 Civil Rights Act, the Americans with Disabilities Act, and the ADEA. This act was written in response to five 1989 Supreme Court cases. The CRA allows compensatory and punitive damages when discrimination has been intentional or reckless, although damage limits are imposed. (See Table 3.2 in the text) The Americans with Disabilities Act (ADA) of 1990 protects individuals with disabilities from being discriminated against in the workplace by prohibiting discrimination in all employment practices. It requires that "reasonable accommodations" be made as long as they do not present an "undue burden" upon the employer. B. Executive Orders are directives issued and amended unilaterally by the president. Two affect HRM practice: 1. Executive Order 11246 prohibits government contractors from discrimination based on race, color, religion, sex, and national origin. Affirmative action must be taken. 2. Executive Order 11478 requires the federal government to base all its employment policies on merit and fitness and specifies that race, color, sex, religion, and national origin should not be considered. IV. Enforcement of Equal Employment Opportunity The Equal Employment Opportunity Commission (EEOC) is a division of the Department of Justice responsible for enforcing most of the LEO laws. Following, its three major responsibilities are detailed: Investigation and Resolution—After the filing of a complaint, the EEOC has 60 days to investigate. Dismissal or reconciliation are the two possible outcomes. The complainant may sue in federal court if not satisfied. Information Gathering—EEOC monitors hiring practices by reviewing EEO 1 reports filed annually by firms. 3. Issuance of Guidelines—EEOC determines and issues guide¬lines that help employers comply with the law. Example: The Uniform Guidelines on Employee Selection Procedures were issued jointly by EEOC, Departments of Labor and Justice, and the U.S. Civil Service Commission. B. The Office of Federal Contract Compliance Procedures (OFCCP) is responsible for enforcing executive orders that cover companies that have federal government contracts. Businesses with more than $10,000 in contracts must have affirmative action plans. The three components are listed below: Utilization analysis is a comparison of the race, sex, and ethnic composition of the employer's work force with that of the avail¬able labor supply (by job group). 2. The goals and timetables are the part of a written affirmative action plan that specifies the percentage of women and minorities that an employer seeks to have in each job group and the date by which that percentage is to be attained. 3. Action steps are the written affirmative plan that specifies what an employer plans to do to reduce underutilization of protected groups. 4. The OFCCP annually audits government contractors to ensure compliance. Debarment (canceling or suspending contracts) is the strongest enforcement penalty. V. Types of Discrimination—Legal scholars have identified three theories of discrimination. (See Table 3.3 in the text) A. Disparate Treatment exists when individuals in similar situations are treated differently and when the different treatment is based upon the individual's race, color, religion, sex, national origin, age, or disability status. 1. The plaintiff has the burden of proof and must show that the plaintiff belongs to a protected group, the plaintiff applied for and was qualified for the job, the plaintiff was rejected, and the position remained open or was filled by someone with similar qualifications. 2. The defendant’s rebuttal – Once the plaintiff has made a prima facie case for discrimination, the burden shifts to the defendant to produce some nondiscriminatory reason for not hiring the plaintiff, as listed below: a. Better qualifications. b. Bona fide occupational qualifications (BFOQ)—A charac¬teristic that is necessary, rather than preferred, for a job. 3. If the defendant provides a legitimate, nondiscriminatory reason for its employment decision, the burden shifts back to the plaintiff (statistical evidence of a pattern may be used here). a. McDonnell Douglas Corp. v. Green delineated the four criteria for a prima facie case of discrimination. 4. In a mixed motive case the defendant acknowledges that some discriminatory motive existed but argues that the same hiring decision would have been reached even without the discrimina¬tory motive. An example is the Hopkins v. Price Waterhouse case. Gender stereotypes and performance were both claimed as reasons for denial of partnership. B. Disparate impact occurs when a facially neutral employment practice disproportionately excludes a protected group from employment opportunities (facially neutral means that it lacks obvious discriminatory content yet affects one group to a greater extent than other groups). The Supreme Court inferred disparate impact in Griggs v. Duke Power. 1. The burden of proof rests on the plaintiff to establish a prima facie case by showing that the questionable employment prac¬tice disproportionately affects a protected group relative to a majority group. a. The four fifths rule says that a test has disparate impact if the hiring rate for the minority group is less than four fifths (80 percent) of the hiring rate for the majority group. b. The standard deviation rule uses actual probability distrib¬utions to determine adverse impact. This analysis uses the difference between the expected hiring rates for minority groups and the actual hiring rate to determine whether the difference between these two values is greater than would occur by chance. c. The Wards Cove Packing Co. v. Antonio case involved a statistical analysis of utilization rates in cannery and noncannery jobs (pay rates for the types of jobs were quite different). CRA 1991 requires that once the prima facie case has been met, the burden of proof falls on the defendant. 2. The defendant's rebuttal must show that the employment practice is a "business necessity." This can be accomplished by showing that the practice bears a relationship to some legiti¬mate employer goal. 3. If the employer shows that the employment practice is the result of some business necessity, the plaintiff’s last resort is to argue that other employment practices could sufficiently meet the employer’s goal without adverse impact. Under such circumstances, the defendant can be found guilty. a. In Griggs v. Duke Power, it was shown that the employer required either a high school diploma or passing scores on two nationally developed tests. However, the company had not studied the relationship of these selection devices to ability to do the job. Employees already on the job without high school degrees were performing satisfactorily. Thus, Duke Power lost the case. C. Reasonable Accommodation—places a special obligation on an employer to affirmatively do something to accommodate an individual’s disability or religion. Religion and Accommodation—Individuals who hold strong religious beliefs find that some of the observations and practices of their religion come into contact with work duties. (See Figure 3.2 in the text) Disability and Accommodation—Employers are not only to refrain from discrimination (ADA) but they are also obligated to take affirmative steps to accommodate individuals who are protected under the act. Evidence-Based HR People with disabilities no longer have to struggle with technology, as there is a proliferation of assistive technologies that adapt computers for disabled individuals. These technologies include screen magnifiers, speech recognition software, video captioning, and screen readers. However, a study conducted by researchers at the Employment and Disability Institute at Cornell University discovered that out of 10 jobs boards and 31 corporate e-cruiting web sites, none of them met the standards for Bobby. Bobby is a software program designed to check for errors that cause accessibility concerns. Phase 2 of this study discovered that only 1 in 10 members of the Society for Human Resource Management (SHRM) said they knew that their firm had evaluated their websites for accessibility for people with disabilities. Retaliation for Participation and Opposition—Title VII states that employers cannot retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding,” related to an alleged illegal employment practice. Opposition refers to expressing to someone through proper channels that you believe that an illegal act has taken place. Participation refers to actually testifying in an investigation, hearing, or court proceeding regarding an illegal employment act. However, there is no unlimited right to present one's employer as racist or sexist, particularly if an employee goes outside of the appropriate channels. VI. Current Issues Regarding Diversity and Equal Employment Opportunity—Organizational demography is changing, and therefore issues regarding diversity are increasingly important. Sexual Harassment—The Clarence Thomas Supreme Court confir¬mation hearings increased the visibility of the issue of sexual harass¬ment. Sexual harassment refers to unwanted sexual advances (see in the text Table 3.4 and Figure 3.3 for the number of sexual harassment complaints filed with the EEOC). Quid pro quo harassment occurs when some type of benefit or punishment is made contingent upon the employee submitting to sexual advances. Example: The Bundy v. Jackson case facts showed that the plaintiff repeatedly received sexual propositions from her fellow employees and supervisor. She rejected these advances and was eventually passed over for promotion without reason. 2. A hostile working environment occurs when someone's behavior in the workplace creates an environment that makes it difficult for someone of a particular sex to work. Example: Ron Clark Ford of Amarillo, Texas recently agreed to pay $140,000 to six male plaintiffs who alleged that they and others were subjected to a sexually hostile work environment and different treatment because of their gender by male managers. 3. There are three critical conditions in these cases: The plaintiff cannot have "invited or incited" the advances. b. Harassment must have been severe. c. The court must determine the liability of the organization for actions of its employees. 4. Preventative steps for firms include development of a policy statement, training in inappropriate behaviors, development of a reporting mechanism, and disciplinary policy. B. Affirmative Action and Reverse Discrimination—Affirmative Action was conceived of as a way of taking extra effort to attract and retain minority employees. Imposed quota programs are negotiated with the EEOC and hold a certain number of positions for minorities or women. The entire debate over affirmative action continues to invoke attention. Many people do not support the idea of quotas or preferential treatment. This issue was an important topic in the 1996 presidential campaigns. C. Outcomes of the Americans with Disabilities Act—Under the ADA, a firm must make "reasonable accommodation" to a physically or mentally disabled individual unless doing so would impose "undue hardship." While this was a laudable goal, the impact of the act is not necessarily what was intended. (See Table 3.5 in the text) 1. There has been increased litigation. 2. The kinds of cases being filed do not reflect Congressional intent: 52 percent of the claims deal with firings rather than allegations of discrimination in hiring. 3. Although the act was passed to protect people with major disabilities such as blindness or paralysis, these types of disabil¬ities account for less than 4 percent of the disabilities claimed. 4. The law has not resulted in a major increase in the proportion of people with disabilities who are working. Competing through Sustainability: Protecting Workers in the Apparel Industry Organizations today face tough decisions when it comes to manufacturing costs. Many organizations, especially those in the apparel industry, can save tremendous amounts of money by hiring third party contractors to run plants overseas – in some cases, enabling the company to hire workers for as little as $37 per month.. However, many of these third party contractors do not appear concerned for issues like worker safety. In Bangladesh for example, a January 2013 factory fire killed 7 workers, and fire 2 months earlier killed 112. Some companies are taking a proactive stance to protect those individuals who are working for these third party contractors. Gap, Inc. announced in October 2012 that it would roll out a comprehensive building and fire safety plan to achieve just that. This plan included features such as Chief Fire Safety Inspectors who will conduct fire safety inspections, a Worker Support Program providing up to $2 million to help workers displaced by their fire safety remediation program, and providing these vendors accelerated access to funding to enhance fire and building safety. Discussion Question What are the benefits to the implementation and maintenance of a building and fire safety program like the one Gap, Inc. developed? What are the challenges? Answer: The primary benefit of these programs is the assurance that workers who are providing services to the organization have the same or similar types of safety in their workplace as is expected in domestic plants. However, the challenges could include enforcement of the standards, governmental interference, and monitoring progress. VII. Employee Safety—Regulated by both federal and state law. A. The Occupational Safety and Health Act (OSHA) of 1970 is the most comprehensive legislation regarding worker safety. OSHA gave authority to the federal government to establish and enforce occu¬pational safety and health standards for all places of employment affecting interstate commerce. The Department of Health is respon¬sible for conducting research to determine specific codes of safety for specific operations. The Department of Labor can authorize indi¬vidual states to substitute their own standards irk their states. 1. Employee Rights under OSHA—These include the general duty clause, which states that an employer has the duty to furnish employees with a place of employment free from recognized hazards that cause or are likely to cause death or serious phys¬ical harm. Table 3.6 in the text contains other employee rights under the act. 2. OSHA Inspections—These may be instigated by employee request, by the Department of Labor as part of its targeted industry program, or as a randomly selected firm. Compliance officers make unannounced visits. 3. Citations and Penalties—If a compliance officer finds a viola¬tion, a citation is issued and a fine is assessed as well. The employer may contest the citation within 15 days. OSHA has been successful in raising the level of awareness of occupational safety. However, occupational illnesses have risen fivefold between 1985 and 1990. Standards are restrictive, enforcement is uneven, and fines are low. Safe employee behavior is an important element of outcomes. 4. The effect of OSHA—OSHA has been unquestionably successful in raising the level of awareness of occupational safety. Yet, because legislation alone does not necessarily guarantee safety, many employers go beyond the letter of the law. Table 3.7 shows some of the most recent statistics regarding workplace illnesses and injuries. B. Safety awareness programs are employer programs that attempt to instill symbolic and substantive changes in the organization’s emphasis on safety. There are three primary components of a safety awareness program: Identifying and Communicating Job Hazards—Several tech¬niques are useful in identifying specific elements of a job that are hazardous. The job hazard analysis technique breaks jobs down into basic elements that are then rated for their potential for harm. Technic of Operations Review (TOR) focuses on past accidents and their causes. Job hazards must be communicated to those at risk; supervisory contact is important, while written memos provide documentation. 2. Reinforcing Safe Practices—The reinforcement of safe practices may be accomplished by using a safety incentive program. Focusing on awareness of specific injuries may be a more effi-cient way of handling safety and may limit the number of employees affected. (See Table 3.8 in the text for a ten step program for reducing eye related injuries.) 3. Promoting Safety Internationally—Depending on the cultural characteristics of given countries, differing approaches to safety in the workplace may need to be developed by U.S. multina¬tional firms. Bottom up or top down programs will fit one culture better than another based upon whether they are indi¬vidualistic or collectivist. Competing Through Technology: Undercovers Work Today’s fast paced work environment can get ahead of workers. Many people today are taking their work to bed with them in order to keep up. A recent poll conducted by Good Technology revealed that half of their respondents read and replied to emails in bed, while a British study showed 20% or Brits spend between 2 and 10 hours work working from bed. Sounds like we are very dedicated to our work, but such dedication comes at a cost. Potential drawbacks to these behaviors can include workers potentially taking more time at work to do their personal online business (shopping, Facebook updates, etc.), insomnia, and generating feelings of guilt for turning devices off. Even bedding manufacturers are capitalizing on this trend. Bedmaker E.S. Klust offers a giant 7 x 7 foot bed that allows for room to spread paperwork out while in bed, and Reverie offers a split zone bed allowing 1 person to lay horizontally while the other is propped up to work. Discussion Question To what extent do you think that workers working from bed is a value-added for employers (i.e. what are the benefits to the employer?). What are the costs or drawbacks? Is it worth it? Answer: Student answers can vary. Look for evidence that students understand the facets of having employees who are dedicated to their jobs, but not a personal risk of their health, happiness, or welfare. Allowing workers to work from bed can increase flexibility and job satisfaction, potentially boosting productivity and reducing absenteeism. However, it may also lead to decreased professionalism and possible health issues due to inadequate work environments. Weighing these factors, it’s crucial for employers to balance the benefits of flexibility with maintaining productivity and professional standards. A Look Back The Wal-Mart scenario discusses how Wal-Mart faces legal challenges with regard to potentially discriminating against women in their pay systems. A Wal-Mart spokesman argues that the statistical studies were intended to help identify and eliminate pay disparities. 1. Based on what you read, do you think that Wal-Mart will win or lose the class action pay discrimination case brought against them? Answer: Student answers may vary. Some may say that Wal-Mart will lose because it was aware of the pay discrepancies but did not correct them. Some may say that the company was aware of the sexist culture at the company and that executives overlooked the use of demeaning terms such as “Janie Q.” Based on the scenario, Wal-Mart's outcome in the class action pay discrimination case will hinge on whether they can prove that any pay disparities are not based on gender but are due to other factors. The effectiveness of their efforts to identify and address disparities will be critical. If the plaintiffs demonstrate systematic discrimination, Wal-Mart may face significant legal challenges. 2. Assume that you have taken over the HR function at Wal-Mart and want to make sure that your pay system is fair, so you commission a salary study that reveals pay differences between men and women. If you publicize the data and try to fix it, you open the company to liability for past discrimination. What do you do? Answer: Student answers may vary. A possible suggestion that may avoid legal troubles is not to publicize the data, but fix the pay discrepancies anyway. If faced with this situation, I would transparently address the pay disparities by publicly committing to rectify them and implementing corrective measures while seeking legal counsel to manage potential liabilities. I would also ensure that the adjustments are fair and based on clear, objective criteria. Proactively addressing and fixing the issues could help mitigate future legal risks and demonstrate a commitment to equitable practices. What do you think? Is a statistical disparity proof of discrimination, and if one exists, does that open every member of the protected group up to a remedy, even if they had not individually been discriminated against? Answer: Student answers will most likely vary. This is a very opinion based question and each student has their own moral compass. A statistical disparity alone is not definitive proof of discrimination, as it may reflect various factors beyond bias. However, it does signal the need for further investigation into potential discriminatory practices. If discrimination is found, it can open the door for remedies for the affected group, potentially including those who may not have experienced individual discrimination but are part of the broader pattern of disparity. Chapter Vocabulary Equal employment opportunity Americans with disabilities act (ADA) of 1990 Equal employment opportunity commission (EEOC) Utilization analysis Goals and timetables Action steps Disparate trématent Bona fide occupational qualification (BFOQ) Disparate impact Four fifths rule Standard deviation rule Reasonable accommodation Occupational safety and health act (OSHA) General duty clause Safety awareness program Job hazard analysis technique Technic of operations review (TOR) Discussion Questions 1. Disparate impact theory was originally created by the court in the Griggs case before finally being codified by Congress 20 years later in the Civil Rights Act of 1991. Given the system of law in the United States, from what branch of government should theories of discrimination develop? Answer: Students may respond in at least two ways to this question. In general, it is up to the legislative bodies to make the law. However, depending upon how detailed and clear the language is, the judicial branch of the government may be compelled to interpret and apply the law in specific cases. The development of the disparate theory may be viewed as being done by an inappropriately activist judicial branch or as an appropriate interpretation of the current law. In the U.S., theories of discrimination typically develop through the judicial branch, as courts interpret and apply existing laws to specific cases, such as in the Griggs case. While Congress can codify these theories into law, the judicial branch plays a key role in shaping and evolving legal principles through case law. 2. Disparate impact analysis (the four fifths rule, standard deviation analysis) is used in employment discrimination cases. The National Assessment of Education Progress conducted by the U.S. Department of Education found that among 21 to 25 year olds: (a) 60 percent of whites, 40 percent of Hispanics, and 25 percent of blacks could locate information in a news article or almanac; (b) 25 percent of whites, 7 percent of Hispanics, and 3 percent of blacks could decipher a bus schedule; and (c) 44 percent of whites, 20 percent of Hispanics, and 8 percent of blacks could correctly determine the change they were due from the purchase of a two item restaurant meal. Do these tasks (locating information in a news article, deciphering a bus schedule, or determining correct change) have adverse impact? What are the implications? Answer: First, based upon the four fifths rule, all of these tests have adverse impact. Relative to hiring, however, the next question to ask is if these "tests" are relevant to the job for which a firm is hiring. If these tests predict performance on the job and if no other tests (which have less adverse impact) exist, then the use of the tests would be legal. It may be interesting to talk with students about what kind of jobs would necessitate the skills described in the question (i.e., for what jobs these tests would likely be relevant). Yes, these tasks show disparate impact based on race, as there are significant differences in performance levels among whites, Hispanics, and blacks. This suggests that the tests or criteria used may disproportionately disadvantage certain groups. The implications include the need to evaluate whether these tasks are fair predictors of job performance or if they inadvertently perpetuate inequities, potentially requiring adjustments or alternative assessments. 3. Many companies have dress codes that require men to wear suits and women to wear dresses. Is this discriminatory according to disparate treatment theory? Why or why not? Answer: This question should allow for an interesting discussion among students. In general, this code could be seen as discriminatory. The firm would have to show some business necessity for the code, and they may attempt to claim that these types of clothing are appropriately professional for the jobs involved, given employees who interact with clients. A defense could easily be made that current society has clearly dictated that pants for women are "socially" acceptable. Requiring men to wear suits and women to wear dresses could be discriminatory under disparate treatment theory if it results in unequal treatment or opportunities based on gender. This is because such dress codes may impose different standards on men and women, potentially reinforcing gender stereotypes and creating inequities. To avoid discrimination, dress codes should be gender-neutral and focus on professional appearance rather than specific attire for different genders. 4. Cognitive ability tests seem to be the most valid selection devices available for hiring employees, yet they also have adverse impact against blacks and Hispanics. Given the validity and adverse impact and considering that race norming is illegal under CRA 1991, what would you say in response to a recommendation that such tests be used for hiring? Answer: If, in fact, cognitive ability tests predict job performance, then they certainly are one element of a selection process that could be legally used. It might be helpful if the firm looked at the effectiveness of training programs (is it possible to train someone with lower scores to perform as well as someone with higher scores, and if so, what is the cost?). Additionally, given that few tests predict with high accuracy, broadening the selection criteria might allow for the hiring of a diverse, productive work force. 5. How might the ADA’s reasonable accommodation requirement affect workers such as law enforcement officers and fire fighters? Answer: Given the overwhelming impact of these jobs on the security and safety of society, it will be very important for managers in these fields to carefully examine the essential functions of these jobs. Where disabled individuals can perform the essential functions, they may be hired. However, through job analysis, most aspects of these jobs will most likely be defined as essential (all fire fighters may need to be able to give CPR) and few, if any, as marginal functions. This may decrease the likelihood of disabled individuals working in these jobs, unless their disabilities are minimal. 6. The reasonable woman standard recognizes that women have different ideas of what constitutes appropriate behavior than men have. What are the implications of this distinction? Do you think it is a good or bad idea to make this distinction? Answer: Again, this question should provoke an interesting discussion. Clearly, the implications are that men may act in ways that they deem OK, while women (any reasonable ones) would find the behavior offensive. This creates a problem of equity. However, this distinction pushes society (particularly companies) to educate both men and women about how each sex sees certain types of behavior. If both men and women are to work harmoniously in the workplace, then they need to know how various behaviors are perceived. (For a long time, most men have seen it as inappropriate to tell seriously "off-color" jokes in mixed company, although they have taken pleasure in telling these jokes in male company.) The reasonable woman standard acknowledges that perceptions of appropriate behavior can differ between genders, potentially leading to more equitable handling of harassment claims. This distinction helps address gender-specific experiences but may also be criticized for reinforcing gender stereotypes. Overall, it can be a good idea if it ensures fairness and sensitivity to diverse experiences, but it should be applied carefully to avoid unintended biases. 7. Employers' major complaint about ADA is that the costs of making reasonable accommodations will make them less competitive relative to other businesses (especially foreign ones) that do not face these requirements. Is this a legitimate concern? How should employers and society weigh the costs and benefits of ADA? Answer: Clearly, losing international competitiveness is a legitimate concern in this economy. If these companies can show the size and serious nature of the economic hardship, then the accommodations will not be seen as reasonable. Students can discuss ways to deal with these issues. Should similar codes be established for Canada and Mexico within NAFTA, for instance, in order to level the competition? However, where accommodation costs are small relative to profitability, the argument has less merit. 8. Many have suggested that OSHA penalties are too small and misdirected (i.e., aimed at employers rather than employees) to have any significant impact on employee safety. Do you think that OSHA ¬related sanctions need to be strengthened, or are existing penalties sufficient? Defend you answer. Answer: Given the small size of OSHA penalties, it is no wonder that some companies continue to refuse to make changes in their workplaces. It is likely that in most cases the cost of bringing the workplace into OSHA compliance is significantly more than the potential fines ($10,000). However, students may suggest that because most industrial accidents are a product of unsafe behavior, not unsafe working conditions, higher fines would have only a marginal impact. Self-Assessment Exercise Refer to the self-assessment exercise in the text. Manager’s Hot Seat Exercise: Office Romance: Groping for Answers Please refer to the Asset Gallery on the OLC for Hot Seat videos and notes. I. Introduction The scenario portrayed in this video segment highlights important and realistic challenges faced by managers. This case may be effectively used in a management or organizational behavior course to illustrate problem solving and decision making concepts, interpersonal communication processes, or conflict management. For a course in Human Resource Management, this scenario provides a rich background to discuss the potential risk of sexual harassment and the roles HR and managers need to play if faced with such a situation. Learning Objectives To assess students understanding of the analytical decision making approach and to apply it to a novel scenario. To assess students’ ability to detect communication strengths and weaknesses. To have students identify key issues related to inter-office romances and the legal and managerial implications, therein. III. Scenario Description: Overview: Abbe Wills by and Randall Keene are co-leaders of a 15-employee team in a retail/fashion company. Soon after Randall separated from his wife, the two began an affair… Six months later Abbe breaks off the relationship after hearing rumors that Randall still has an intimate relationship with his wife. She sends an email to the manager, Bill Schule, with complaints of sexual harassment and insists something be done. Abbe contends that her former boyfriend and co-leader is flirtatious, inappropriate and constantly discussing past intimate encounters they’d shared, while they work together. Prompted by the email sent by Abbe, Randall meets with the Manager asking for help with the situation. Profile: Bill Schule has been working in a managerial capacity for over 22 years at various companies. Presently, Bill is a Senior Sales Executive at HypeTec, managing a sales force of 40 people. He has 15 teams, each led by a pair of highly experienced salespeople. Randall Keene has worked for HypeTec for 6 years and has been one of Bill’s team leaders for the past 3 years. Together, he and Abbe Wilsby have excelled at motivating and managing their team, raising the bar for all the sales teams within the department. References: The references included in the DVD are: Concepts in Decision Making (PPT 1-3) Six Steps in Decision Making (PPT 1-5) Components of Active Listening (PPT 1-8) The Communication Process (PPT 1-9) Back History: Unbeknownst to Schule, Willsby and Keene had been engaged in a serious office romance for the past 6 months. Their romance had little effect on the office environment – the pair had gone from productive team leaders to productive team leaders in love, without any disruption……until the affair ended. A week of hostility and anger permeated the Willsby-Keene team, with a huge drop in productivity reported at the end of a 2-week period. Willsby had broken off the affair because Keene was still involved with the wife from whom he had supposedly separated. Willsby was adamant that the breakup was not the problem – she was a professional woman and any woes of heartbreak or betrayal were not going to interrupt her performance in any way. The problem was that Keene was harassing her throughout the workday, with lots of sexual innuendo, reference to their past intimacies, sexually charged emails, and veiled threats that if she didn’t “go back to him”, he would have her tossed out of their department. Willsby sends an email to Keene, cc-ing Schule, that annotates and lists the instances of harassment, excerpts from emails etc… She is insisting that Keene relocates to another team, or she will be filing a suit of sexual harassment against Keene and suit of a hostile environment against Hypetec. Scene Set-up: Keene receives the email before Schule and barges into his office. Scene Location: Schule’s office, Hypetec Wear; Tuesday morning 8.45am The Meeting - Summary: Randall walks into Bill’s office unannounced clearly agitated over the email he just received from Abbe. Randall begins to explain the situation and Bill immediately expresses concern over the use of company email for personal matters. Randall acknowledges this concern but continues to plead his case by expressing that Abbe was being irrational and should be removed from the department. Bill states that he wants to refrain from making any decisions until he has a private discussion with Abbe and talks things over with the Human Resources department. His primary motive is to ensure productivity of the team doesn’t suffer. He indicated strong disappointment with Randall for engaging in the office romance. Afterthoughts – Summary: Bill thinks that it is entirely possible to prevent litigation at this point. He plans to do some more investigation but believes that a solution can be agreed to by all parties. He reinforces his position that he needs to talk to Abbe and get the other side of the story and recommends that Randall not interact with Abbe at all until the situation gets resolved so that it doesn’t get worse. Bill does not feel that it was too soon to mention likely possible outcomes because they were outcomes typically outlined in organization’s policies (e.g., termination, transfer). Bill states that he feels that at a minimum the two leaders will be separated because they cannot continue to work together. Bill’s major concern with email is that it’s not secure and can be sent to many people and not be factual. Dossier: The specific artifacts included in the DVD are: Willsby’s email (August) Photograph showing Randall touching Abbe Randall’s “threatening” email (July) IV. Discussion Questions: The References and related Discussion Questions may be found in PowerPoint slides 1-1 to 1-12 on the Instructor’s side on the text’s Website. Learning Objective #1: To assess students understanding of the analytical decision making approach and to apply it to a novel scenario. Would this situation be an example of programmed or non-programmed decision making? Why? (PPT 1-2 &1-3) Answer: Student’s responses will vary – focus should be on their thought process and justification rather than on which one they picked. It may depend on how often a manager has these situations. While this is probably not a frequent occurrence, the organization should have a lot of information to provide guidance on what to do. The employee handbook, dating policy, sexual harassment policy, etc should help the manager and HR follow the appropriate steps. However, the situation is unpredictable in that it is unclear if this can be resolved peacefully or if Abbe may pursue legal action. Therefore, both the manager and HR have to be very careful and thoughtful how they handle this situation and the solution they come up with. This situation would be an example of non-programmed decision making, as it involves addressing unique or complex issues related to gender discrimination that require judgment and tailored solutions. Unlike programmed decisions, which follow established procedures, non-programmed decisions necessitate a more flexible, case-by-case approach. What would be an example of a satisficing decision in this scenario? What consequences/benefits would this approach have? (PPT 1-2) Answer: Students answers will vary. Any answer that is not mutually agreeable to HR, Abbe, Randall, and Bill could pose serious problems later. For example, a short term solution that minimizes disruption, may not fully address the problem which could arise again.  3. What is Bill’s greatest concern? Productivity. Liability. Morale. Bill seems to be most concerned about productivity and is downplaying the likelihood of a lawsuit. This may be an effective approach to not exacerbate the situation. However, the potential legal liabilities of Randall’s behavior should be made clear to him by either Bill or HR. A satisficing decision might involve addressing the harassment complaint by offering the complainant a temporary change in work assignments rather than a thorough investigation. This approach could quickly resolve the immediate issue but may not fully address the root cause or prevent future incidents, potentially leading to unresolved issues or dissatisfaction. Assume you are Bill and you decide to use an analytical (or rational) decision making strategy to handle this situation (PPT 1-4 & 1-5). Answer: The analytical decision making approach involves the following steps: Recognize need for decision Define the problem Generate alternatives Evaluate alternatives Implement a solution Get feedback Describe in detail the specific actions you would take for each step. Be sure to address the following questions in your answer: Who would you talk to? Where would you go for more information? What relevant policies, procedures, laws are relevant here? Answer: Student’s answers will vary. It is important that they carefully think through all the options after conducting some research and gathering information (e.g., company’s policies, legal implications). They should describe some process for getting feedback that the implemented solution is working so corrective action can be taken, if necessary. To address the issue: a. Talk to employees, HR professionals, and legal advisors to gather diverse perspectives and understand concerns. b. Consult industry best practices, legal guidelines, and case studies on dress codes and gender discrimination for detailed information. c. Review relevant policies like anti-discrimination and workplace dress codes, and familiarize yourself with laws such as Title VII of the Civil Rights Act and Equal Employment Opportunity Commission (EEOC) guidelines. Note: The following “pop-up questions” may be found on PPT 1-6  4. Bill’s first step should be: Call Abbe. Call HR. Document Meeting. Bill plans to call HR first for advice and then discuss the situation with Abbe. HR will probably coach Bill with regard to how to discuss the issue with Abbe. Since Bill manages Abbe, it seems wise to talk to her about the potential of continuing to work together or to make an alternative, mutually agreeable work arrangement. Soliciting her opinions will make her more likely to go along with the final decision.  5. Randall wants to hear Abbe’s side. Bill should: Tell him. Be confidential. Meet as group. Bill should not disclose information he receives from Abbe to Randall. At some point in the future, it might make sense to meet as a group, but currently, the individuals involved are probably too sensitive and emotional for it to be a productive group meeting.  6. Bill is discussing possible outcomes. It’s too early It’s appropriate It’s HR’s job Bill does not feel that it was too soon to mention likely possible outcomes because they were outcomes typically outlined in organization’s policies (e.g., termination, transfer). Because Bill is their manager, he should be the one to own the decision on the outcome. Having HR make the decision, may not be perceived to be in the Sales organizations’ best interest and may not be as accepted as it would be coming from Bill. Learning Objective #2: To assess students’ ability to detect communication strengths and weaknesses. Evaluate Bill and Randall’s active listening and communication skills (“Components of Active Listening” and “The Communication Process”; PPT 1-7 to 1-9). What did each do effectively? How could they have improved? Support your answers with the specific behaviors you observed. Answer: Randall interrupted Bill frequently, indicating that he was not really listening to his point of view. Randall also would not accept the fact that there was another side to the story. Instead of listening, he spent time defending his position and thinking up arguments to refute Bill to ensure he got what he wanted. Bill maintained his composure, was not flustered by Randall’s agitation. He empathized with Randall’s viewpoint without agreeing with it. While noting his dissatisfaction with what had happened, he withheld making a final evaluative judgment until more information was collected.  1. Randall’s agitated. What should Bill do? Stop Meeting. Hear him out. Call Abbe in. Discuss each option in terms of it’s relative effectiveness towards promoting supportive, professional communication. Option B: Hearing him out, while attempting to calm him down would prevent the situation from escalating. Options A and C may serve to create more disruption and tension between the parties. Abbe and Randall chose to communicate about their personal relationship via email. What are the disadvantages of using this communication medium for this purpose? What would have been a more effective way for Abbe and Randall to communicate? (PPT 1-10) Answer: Email should not have been used for personal business according to the company’s policy. This puts the company at risk if email of this nature was distributed to the general public. Tone is hard to convey in emails so it is more likely to result in a miscommunication especially when dealing with a personal, emotional situation such as this. A violation of company policy (office romance) is now documented and tangible evidence exists due to their communication via email. Abbe and Randall probably would have had a more productive communication if they had met face to face so that body language, voice inflection and other non-verbal cues could have helped them interpret each other’s meaning better.  2. What is the concern about email use? It’s not secure. It’s not efficient. Easy to misinterpret. Bill’s major concern is that it is not secure and that the content could be misinterpreted because non-verbal cues are not present. He is also concerned that the email could be received outside of the organization and be damaging to the company’s image. Learning Objective #3: To have students identify key issues related to inter-office romances and the legal and managerial implications, therein. What guidance is HR likely to provide to Bill? What future actions are Bill’s responsibilities? What actions should HR take? (PPT 1-11) Answer: HR should provide guidance in terms of the dating policy the organization has and the sexual harassment policy. Appropriate disciplinary action should be taken if it is written in a policy by Bill as their direct manager. Bill definitely needs to talk to Abbe about her side of the story. Ask her what solution would be amenable to her that preserves the goals of the department. Convey that the interoffice relationship is not condoned and that it threatens the ability of the group to achieve their goals. HR may want to interview Abbe and Randall to diffuse the situation and reinforce the importance of adhering to the organization’s sexual harassment and dating policy. Abbe and Randall were co-leading a team. Does this situation pose the potential for a lawsuit based on quid pro quo or hostile work environment sexual harassment? Why? (PPT 1-11) Answer: Because they did not have a supervisor/subordinate relationship in which one made employment-related decisions (e.g., firing, raises, promotions) that affected the other, this situation would more likely fall under the hostile environment theory of sexual harassment. Abbe would have to demonstrate that Randall’s actions created an abusive working environment. The fact that Abbe had been a willing participant in a prior relationship would make her case tougher to make. Should the fact Abby and Randall were involved in a relationship be reflected on their performance evaluation? Who should be held accountable for the lower productivity of their team? (PPT 1-12) Answer: If disciplinary actions were taken, it is probably not necessary to restate the specifics of the situation in the performance review. At that point, it is more important to focus on how effectively they have met their performance objectives. Therefore, if they are held accountable in their performance planning document for the team’s performance, then their performance evaluation should reflect the fact that the group’s performance declined (assuming the performance of the team didn’t rebound). Exercising Strategy Home Depot’s Bumpy Road to Equality Questions 1. If Home Depot was correct in that it was not discriminating, but simply filling positions consistent with those who applied for them (and very few women were applying for customer service positions), given your reading of this chapter, was the firm guilty of discrimination? If so, under what theory? Answer: Students’ answers may vary, but could include the following. It appears that Home Depot did discriminate against women by not hiring the few that applied for the customer service positions. The theory that it discriminated under may have been disparate impact because the company failed to consider the representation of the minority group. The company may have been just looking for the best qualified people, however, it does have the representation problem. If Home Depot was not discriminating but faced fewer female applicants, the firm might still be considered guilty of discrimination under the disparate impact theory. This theory applies if the hiring practices or job requirements unintentionally disadvantage a protected group, even if there is no intent to discriminate. The firm would need to address why fewer women are applying and whether the hiring practices inadvertently create barriers. 2. How does this case illustrate the application of new technology to solving issues that have never been tied to technology? Can you think of other ways technology might be used to address diversity/EEO/affirmative action issues? Answer: Students’ answers will vary, however, the following could be included in the answers. The case illustrates how a company can use technology to perform the hiring and promotion processes. Since a kiosk is only able to detect whether an applicant is qualified for a position or not, and not able to discriminate by race, sex, religion, etc, the new technology keeps the company from discriminating the applicants. This might also have an effect on the amount of minorities that apply for promotions and higher-level positions because management will not see who is applying and try to discourage them. If technology were to be used to perform the hiring processes for companies who seem to have problems with diversity, EEO, or affirmative action issues, it could reduce the amount of complaints filed against the company. It could also be used to keep track of the numbers of employees to insure the four-fifths rule and/or standard deviation rule. Applicants could apply and go through the interview process on-line by possibly having the initial screening process in a chat room. This case illustrates how technology, such as data analytics and automated systems, can identify and address diversity and EEO issues by analyzing patterns in hiring and applications. Other ways technology could be used include AI-driven resume screening to reduce bias, virtual reality for diversity training, and data dashboards to monitor and address diversity metrics in real-time. Managing People Brown v. Board of Education: A Bittersweet Birthday Questions 1. While segregation of public schools has been outlawed, the article notes that schools are not necessarily “desegregating” (i.e., there are still predominantly minority and predominantly nonminority schools). If students are to work in increasingly diverse workforces, is the current system failing them? Why or why not? Answer: Student answers may vary, and their responses may depend largely on their own experiences in the public school educational system in their area. Some students may argue that schools are not diverse because many neighborhoods are not diverse. Other students may claim that attending a school with limited diversity does not adequately prepare students for college or entering the workforce. Yes, the current system may be failing students if it perpetuates segregation, as it limits their exposure to diverse environments and perspectives. Exposure to diverse peers and experiences is crucial for preparing students to work effectively in increasingly diverse workforces. Addressing these disparities is essential for fostering inclusivity and enhancing future workplace readiness. 2. The black-white gap continues to exist with regard to reading, math, and graduation rates. What are the implications of this on organizations’ selection systems (i.e., disparate impact)? Answer: Student answers may vary. Many organizations perform assessments of applicants’ abilities regarding reading, math, and degrees. If organizations base employment predominantly on such assessments, this may create disparate impact, because it disproportionately excludes African Americans from employment opportunities. The persistent black-white gap in education impacts organizations' selection systems by potentially leading to disparate impact if standardized tests or educational qualifications disproportionately disadvantage minority candidates. This could result in fewer opportunities for qualified individuals from underrepresented groups. Organizations must evaluate and adjust their selection systems to ensure fairness and mitigate unintentional bias. 3. Given the lack of a “diverse” educational experience for a large percentage of black children, and the gap between them and their white counterparts, what must organizations do to leverage diversity as a source of competitive advantage? Answer: Student answers may vary. Many will say that organizations must embody a culture that is diversity-friendly, and this will attract diverse applicants. Organizations could provide employees with diversity training at the beginning of the job, or diversity workshops for current employees. It is important for organizations to stress diverse workforces, because this encourages a wider applicant pool, which is a potential competitive advantage. Organizations must invest in targeted outreach and support programs to build a more diverse talent pipeline, provide mentorship and training to bridge skill gaps, and implement inclusive hiring practices. Leveraging diversity as a competitive advantage involves creating opportunities for diverse individuals, ensuring equitable development, and fostering an inclusive culture that values varied perspectives. Additional Activities Teaching Suggestions Included in this set of activities are four different ways to help the legal aspects of HRM come alive to students, especially those with limited work experience. The debate on affirmative action allows students to investi¬gate the different societal perspectives from which individuals may view a controversial policy. The second discussion exercise takes a disguised, but real, letter that presents one organization's approach to affirmative action and asks students to look at the possible positive and negative impacts of implementing such actions. The third suggested activity provides discussion questions regarding sexual harassment and corporate policy. Finally, suggestions for short research papers are made. This activity makes your students the experts on various court cases and gives them experience in reading and interpreting legal arguments. 1. Affirmative Action Debate: Federal contractors are required by Executive Order 11246 to engage in "affirmative action" in hiring women and minorities. Following are some discussion questions to spark student debate regarding this issue. This works well as an informal debate if the instructor assigns "pro" and "con" designations to several groups of students. Students are expected to find and read several articles, each dealing with affirmative action, prior to the class when the debate will be held. a. What is affirmative action? What exactly do you think of when you hear this term? b. Is it important to promote the diversity of the work force through the hiring and promotion of women and minorities? If so, why? If not, why not? c. How appropriate are each of the following types of affirmative action? Recruiting from minority colleges and universities. Advertising job openings in minority oriented publications. Providing additional training and development opportunities for minorities and women. Having goals for the hiring of women and/or minorities. Hiring a certain "quota" of women and/or minorities. Adjusting test scores (e.g., race norming) to allow for more minorities to be hired. d. What are the positive consequences of having an affirmative action program? What are the negative consequences? e. If a firm does not engage in some type of affirmative action, is it likely that the firm will end up with a diverse work force? Why or why not? 2. As a second part of the discussion/debate on affirmative action, have the students read the letter on the following pages that was distributed by the associate provost of a major university. Ask the students to discuss the content of the letter. Does this letter suggest a positive HRM approach to minority recruitment and retention? Why or why not? The following reading may provide the students with good preparation for this discussion: "The Newest Move in Law Schools' Quota Game" by Michael S. Greve, The Wall Street Journal, October 5, 1992. 3. After students have read the following article, the discussion questions below could be utilized in class: "In Japan, It's See No Evil; Have No Harassment" by Andrew Pollack, The New York Times, May 7, 1996, pp. C1, C5. How should a U.S. corporation deal with the issue of cultural differences and sexual harassment? What sort of policy should they develop? When U.S. female employees are sent to other countries, what preparation might be useful relative to the issue of sexual harassment? Should a company be held responsible for the inappropriate actions of a client towards a female employee? How can a manager deal with a situation in which one of his or her subordinates is being harassed by a client or by another manager? 4. This chapter lends itself to short research paper assignments. Two different assignments might be useful for students. In groups or as individuals, they can be assigned to find in their library and read the actual court decisions that are covered in the chapter and/or articles that analyze the decisions. As each area of the law is discussed, the individual or group of students who have read a given case become the "experts" and provide the rest of the class with a detailed explanation of the case. Students usually find court decisions and legal reasoning quite interesting. Secondly, this same assignment could be given with the requirement that students read and present to the class a case not covered in the book. Topics can be handed out and then the students find a related case. (Make sure that your library has the appropriate materials first!) HRM Failures Top Case 3: Retaliation under Title VII A woman working in an Indiana hospital approached her supervisor with a complaint of sexual harassment. The employee told the supervisor that on two occasions another employee, a male, had deposited himself on her lap and uttered sexually offensive comments. The supervisor subsequently spoke to the male employee about the incident. However, she allegedly never reported back to the employee who had made the complaint. Later, when the employee related her story to the hospital’s general counsel, she also noted that her job was now listed as vacant. The next month, the hospital worker’s job was eliminated. The employee sued the hospital under Title VII of the Civil Rights Act of 1964, claiming the supervisor had retaliated against her for her sexual harassment complaint. The court dismissed the case in favor of the hospital; the plaintiff appealed. The appeals court reversed the lower court’s decision. It held that a reasonable person could find the timing of the worker’s job elimination after her complaints of harassment suspicious. According to the court, once the worker lodged her complaint with her supervisor, her subsequent complaints about the supervisor’s response (or lack of it) were also protected under Title VII. That the supervisor posted the worker’s job as vacant a few days later was, according to the court, “…more than mere suspicious timing. It is sufficient to raise an inference of causation." An employee who loses his or her job within days of registering a complaint to management can show evidence of causation in a lawsuit. Question Imagine you are a supervisor whose employee makes a complaint of sexual harassment. What would you do? Possible answers Investigate the employee’s claim, involving the human resource department for guidance and documentation purposes. Hear the employee out, then encourage her to bring her complaint directly to the HR department for handling. If for any reason an employee’s job is in question at the time he or she makes a complaint, suspend taking any action on the job until the complaint has been resolved and HR staff give you the go-ahead. As a supervisor, I would: 1. Listen and Document: Carefully listen to the employee’s complaint, ensure confidentiality, and document the details accurately. 2. Report: Follow the organization's procedure by reporting the complaint to HR or the designated authority for investigation. 3. Support and Follow Up: Provide support to the employee, ensure they know their rights, and follow up to ensure the issue is addressed and resolved according to company policy and legal requirements. Case: Magyar v St. Joseph Reg’l Med Ctr, 2008 U.S. App. Lexis 19994 (7th Cir Ind Sept 12, 2008). Source: James E. Hall, Mark T. Kobata and Marty Denis, “Retaliation Claim and Timing of Job Loss,” Workforce Management, October 6, 2008, http://www.workforce.com. Solution Manual for Human Resource Management Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright 9780077164126