NFM7e IM Part1

INSTRUCTORS MANUAL
APPLICATIONS IN HUMAN RESOURCE MANAGEMENT 7E

PART 1
Human Resources Management in Perspective:

Environment and Legal Issues
The HRM Function/Environment
1.
CASE: THE NEW DIRECTOR OF HUMAN RESOURCES
I. OVERVIEW:
This case describes the creation of a human resource department in a young,

rapidly growing company. The human resource director, Joyce Newcombe, faces a
number of issues in developing and implementing human resource policies for the
company's five plants. The major issues include: the role of human resource
management in organizations, interface between human resource and line
managers, integration of human resource policies with business goals and
strategies, organization structure, and termination procedures. This case serves as
an excellent pre-measure of the level of knowledge that the student brings to the
course or as a post-test of the student's knowledge at the completion of the course.
II. OBJECTIVES:
1. To introduce students to the various roles of human resource

management in organizations.
Instructors Manual Part 1
2
2
2. To illustrate potential areas of conflict between human resource and

line managers.
3. To demonstrate the linkage between human resource policies and
programs and organizational goals and strategies.
III. DISCUSSION:
This case works well as a way of introducing students to the role of human
resource management in organizations. The major issue facing Newcombe is how to
assure consistency in the implementation of the company's human resource
philosophy and policies throughout its plants. The problem will become
compounded in the future as Mount Ridge expands geographically. To effectively
analyze the case, the students should view both the short-term and long-term
dimensions of the problem. In the short-term Newcombe must determine how to
respond to the call from Johnson. The Johnson incident underscores the problem of
getting line managers to embrace and implement top management's "human
resource goals." It is clear from the president's statements that the company views
employees as valuable assets critical to company goal attainment. Braxton's
actions and handling of Johnson's request for pay increases and promotions
indicates that perhaps the company's philosophy has not been effectively
communicated to plant management. While it appears that Johnson is quite
qualified and can perform the equipment operator's job, Braxton's behavior
ultimately results in the company losing a good worker. Also it is not clear that
Braxton made any efforts to talk with either corporate personnel or the manager of
plant operations about Johnson's requests. Since the company was growing so
rapidly, students argue that there may have been opportunities for Johnson at one
of the new plants under construction.
Braxton may have indicated an incorrect reason on the termination report

because he did not want to be blamed for the employee's resignation.
Newcombe has several alternatives to consider in handling the short-term

issue. Some of the possible alternatives include: disciplining Braxton for "falsifying
personnel records" if she can substantiate Johnson's allegations; offering Johnson a
job as an equipment operator in one of the new plants under construction; or ask
the manager of plant operations to meet with Braxton to reiterate how the company
wants to manage its employees. For the long-term issues, the company must
develop ways to assure that its human resource policies and programs are
implemented effectively throughout its entire operations. In addition to involving
3
3
line managers in training meetings and stressing the importance of fair and
consistent implementation of the company's policies, there is also a need to
restructure the company to better facilitate the relationship between the plant
managers and human resources. The company should consider the addition of a
human resource generalist at corporate headquarters to handle human resource
needs at the current plant operations. This individual would have to work closely
with both the vice president of corporate human resources and the manager of
plant operations to assure that he/she has the requisite authority to be effective.
The company's alternatives for restructuring are somewhat constrained by the small
size of each plant. It may not be cost effective to have a human resource manager
at each plant (each plant has 45 employees). Students should also discuss the
implications of future growth plans on the structure of human resource operations at
Mount Ridge.
IV. ANSWERS TO CASE QUESTIONS:
1. Discuss the relationship between the corporate human resources

structure and operations at the plant level. What impact, if any, did
it have on the present situation?
As presently designed the organization structure of Mount Ridge may have
contributed to the evident lack of communication between corporate human
resources and plant management. The plant managers report directly to the
manager of plant operations and even though Newcombe is at the vice president
level, her position is not in the "direct chain of command". As currently structured it
may be viewed more as a "staff" function reporting to the executive vice president.
In order for the design to work, there would have to be strong communication flow
between Newcombe and the manager of plant operations. Additionally, at the time
of the incident, a great deal of Newcombe's time may have been consumed by
managing the human resource needs at corporate headquarters resulting in a good
deal of autonomy for the plant managers in handling human resource matters. Top
management needs to clarify the role of human resources in the organization and
train managers in implementing human resource policies in their plants. The
company should consider restructuring the human resource operations. One
proposal might be to create a new position to assist Newcombe in overseeing
personnel operations at the plants. This individual would be in a position to make
regular visits to each plant and update and train managers on the firm's policies
and programs, etc. The final structure should allow human resources to fulfill its
three basic roles in organizations: (1) offering advice and service to line managers
(advisory role); (2) ensuring that human resource policies and practices are

consistent and fair across the organization (control role); and (3) develop
policies/programs to support organization objectives and strategies (policy
formulation role).
4
4
2. How should Joyce Newcombe have handled this situation?

Newcombe should have to assure Johnson that she would have his personnel
records corrected and that she would meet with Braxton to review his case. If
Johnson had a good record, she could have asked him to consider a position in
another plant facility. She also needed to explain to Braxton the importance of
maintaining accurate personnel records.
3. What, if any, disciplinary action should have been taken against the
plants superintendent at the time of the incident?
Disciplinary action may have been "counterproductive." However,
Newcombe should have investigated the allegations made by Johnson. If these
allegations were true, then an oral warning might have been appropriate. In any
case, Newcombe should have met with the manager of plant operations and all
plant superintendents and supervisors to emphasize the need to follow human
resource policies and to consult with corporate on any employee problems or issues
related to the implementation of company human resource policies.
4. If Johnson's allegations were true, what are the legal ramifications

of Braxton's behavior?
The falsification of an employee's reasons for leaving a job may violate
requirements under federal and state unemployment insurance regulations.
Individuals may be disqualified from receiving unemployment insurance benefits if
he/she left the last job voluntarily without good cause attributable to the employer.
Perhaps this was Braxton's motive for indicating that "Johnson had left to take
another job." The notice of termination form completed by Braxton even stresses
the importance of factual information -- "the exact reasons for termination are
extremely important."
5. Describe Mount Ridges business strategy. What is the relationship

between its business strategy and its human resource practices?
5
5
Mount Ridge pursues a cost leadership strategy, meaning it aims to offer the
lowest prices on its product as compared to its competitors. Because it is not
charging premium prices to earn high profits, it must keep its operating expenses
low. To achieve this, Mount Ridge operates nonunion plants, offering competitive but
not high salaries with good benefits but no profit-sharing plan.
6. What strategic human resource issues will Newcombe likely face as
the company expands to the Northeast? How might this expansion
affect the structure of the organization and its human resource
department?
Newcombe will face several issues as the company expands. Present human
resource policies and procedures will have to be evaluated to assess their
appropriateness for a new region of the country. For example, different state laws
and regulations may affect areas like salary administration and benefits differently.
Additionally, the external environment of the northeast may be quite different from
that of the southeast. Wage rates will have to be made competitive with region
requirements and also the pressure from labor unions will be greater in the
northeast. As the company expands in the northeast the structure of the human
resource operations may have to change again to include a human resource
generalist to handle the northeast regions.

2.
CASE: THE HUMAN RESOURCE FUNCTION OF HARRISON BROTHERS

CORPORATION
6
6
I. OVERVIEW:
This case consists of a description of the human resource function of a large

department store. It centers on an interview with the human resource manager at
its largest store, Westpark. The manager describes how the major human resource
management functions are designed and implemented in the store. The case allows
students to focus on the interface between business strategies and human resource
strategy. The case is particularly useful in talking about the inherent problems of
employee recruitment and retention in the retail industry. The case also allows
students to discuss the changing role of human resources in organizations. This
case provides an excellent format for discussing the changing role of human
resources management in organizations. The case can be used as part of a final
examination to test students' comprehensive knowledge of human resources
management.
II. OBJECTIVES:
1. The major objective of this case is to introduce students to the roles

and functions of human resource departments.
III. DISCUSSION:
The major issue in the case revolves around McCain's view of her role and its
appropriateness given Harrison's strategic goals. You should point out to students
that McCain is only indicative of a general problem within the company. The
company is definitely targeting the middle-class, fashion conscious customer and
need sales staff to effectively service the type of customer it wants to attract. To
carry out its strategy, Harrison will need selling professionals who can offer
personalized customer service. McCain and other human resource managers are
presently operating in a reactive mode spending most of their time on maintaining
day-to-day human resource operations. For example, McCain has little time for
innovation or for developing policies to move the human resource operation
forward. She seems to be unaware of the interdependent relationships among the
7
7
various human resource functions. Her answer to the recruitment problem seems to
be to do more recruiting. She needs to examine how practices in salary, training,
and performance evaluation may contribute to turnover. While we have no detailed
job descriptions for the two human resource assistants, the ratio of human resource
staff to number of employees seems to be adequate. What is needed is better
delegation on the part of McCain to the staff in her department. From her
comments in the case, she seems to be relying on a high-task oriented style. For
example, she states, ...I like to observe their (employees) work habits regularly."
She needs to delegate some of her duties (especially those relating to recruiting
and staffing) to the human resource assistants. McCain is presently spending a
good deal of her workweek on interviewing job applicants. The results of the survey
presented in Exhibit 1.5 indicate significant differences in the perceptions of human
resource managers compared to store managers about the role and responsibilities
of human resources in the organization. HR managers are not aware of her role in
meeting the needs of the business and managing change. It suggests they still hold
a very traditional view of the role of human resource professionals in organizations.
In addition, to prescribing changes in the overall role of human resources in the
company, students should suggest specific changes needed in each of the major
functional areas discussed in the case (see question number 5 below). See student
answer to this case on page vii of this manual.
1. How does McCain view her role as human resource manager?

Based on her comments she seems to view her role as basically one of
providing service to line managers. She spends a great deal of her time on
recruiting and staffing and is too involved in administering discipline. Today with
the growing awareness of the strategic importance of human resources to
organizational outcomes, more and more human resource professionals realize the
importance of developing and exploring innovative solutions to human resource
problems and issues. McCain asserts that "there is a lot more we need to do here in
human resources, but we are constrained by cost considerations and the realities of
the retail industry." She seems to be unaware of how to overcome this situation.
The comments by the line manager also indicate that perhaps the human resource
department is over-involved in day-to-day operations (especially the discipline
process).
2. What is Harrisons business strategy?
8
8
Harrison seems to have a two-pronged business strategy. Emphasis appears

to be on a quality strategy and a cost efficiency strategy. Management is correct to
view the quality of their sales associates and buyers as key to implementing their
business strategy.
3. What is the structure and staffing of HR?

Right now the company appears to have a very traditional, functional human
resource structure. Much of the emphasis is on what could be labeled as
transactional human resource activities. Very little attention is being paid to
managing change or strategic human resource management. Another indicator of
the traditional mode of human resources is the housing of payroll within the human
resource department.
4. Analyze the data in Exhibit 1.4. What are its implications?

The data reveal a gap in the perceptions of the role of human resources at
Harrison Brothers. Store managers expect human resources to have knowledge of
the business and to be an active player in managing change. The human resource
managers gave th9s very low importance in how they viewed their responsibilities.
This implies that human resources in the company are not providing store managers
with what they need to run their stores and to meet the companys strategic goals.
The survey also explains McCains restricted understanding of her role in the
company.
5. Given the organization's size and strategic goals, evaluate the

development of the human resource function at Harrison Brothers.
What problems do you see? How could its major functions be
improved?
Basically, all of the functions described seem to be carried out in a reactive
fashion. It does not appear that Harrison has made any efforts to explore ways to
better align its human resource policies/activities with its long-term goals.
9
9
Recruiting and Staffing: The human resource department is currently relying

on newspaper ads and word-of-mouth as their major recruiting sources. Given the
high turnover at Harrison and the perception of retail as an unattractive job site,
efforts should be made to explore creative ways to attract the needed staff.
Additionally, efforts should be made to evaluate the effectiveness of each source.
McCain indicates that they rely solely upon the interview in making hiring decisions
and place little weight on education and references. It is not clear whether or not
Harrison's has completed a job analysis to determine the requisite skills, abilities,
and knowledge needed for each position. The selection criteria used should depend
on the results of the job analysis. She might also investigate the use of aptitude
tests to predict an applicant's sales performance.
Training: The length of the training program is not clear from the description
provided. However, one gets the impression that the training focuses on the
technical aspects of being a salesperson (e. g. handling the cash register) with
minimal attention on sales techniques and customer interaction. The training
function focuses primarily on getting the employee ready to perform the present
job. Harrison's needs to extend its view of training to include employee
development. Training and development should be a proactive on-going effort to
increase employee productivity and to advance career development. Research has
indicated that offering career information and education to employees can
contribute to job satisfaction and job performance. Several retail organizations
have been working on ways to improve the attractiveness of sales positions. As
Harrison's continues to grow, management might consider developing career paths
for the sales staff. For example, the organization structure could be changed to
include four levels of sales positions: sales assistant, sales associate, senior sales
associate and sales consultant. This would help to attract employees who want a
career in sales versus those who are seeking employment "while they are inbetween jobs." These promotional lines could be tied into a sales development
program with training that emphasizes interpersonal skills and fashion
consciousness.
Compensation: The current incentive system being used for the sales staff
seems to be counterproductive. The break-even point rises as the person meets
his/her goal. The reward factor may appear to be a moving target to the typical
sales person. Additionally, McCain notes that she is not "sure that the system helps
us to retain employees." Again no efforts have been made to evaluate the
effectiveness of the incentive system. This would simply involve tracking sales
performance over time and also could involve asking employees about the system
during an exit interview. Harrison's might also consider some form of profit sharing
or other group incentive system. In recent years, many retailers like J. C. Penney

and Dayton Hudson have begun looking to gain sharing plans for increasing
productivity on the sales floor. Nordstroms might be another example of
innovativeness in motivating sales staff. McCain should explore alternative plans
such as team bonuses based on sales increases and other pay for performance
systems.
10
10
Performance evaluation: While the company has instituted some new ideas
here, no efforts have been made to follow through on the implementation of the
new procedures. Additionally, line managers may be reluctant to discuss the
employee's career opportunities when they may actually be limited. The
professional assessment program needs to be tied into training and development
activities at the company and the creation of real career paths.
As a general comment, McCain and all of the human resource managers at

Harrison need to be aware of the interdependency among the human resource
functions. Decisions and programs developed in one area will impact on the design
and the effectiveness of programs and policies in other areas. For example, the
level of pay and commission system will impact upon recruitment effectiveness.
11
11
3.
EXERCISE: DEVELOPING ENVIRONMENTALLY FRIENDLY HR POLICIES AT

CITY UNIVERSITY
I. OBJECTIVES:
1. To understand the critical role HR can play in an organizations

green initiatives to ensure and support sustainability goals.
2. To identify environmentally friendly HR policies and initiatives within
the key HR functions.
II. OUT-OF-CLASS PREPARATION TIME: 1 hour
III. IN-CLASS TIME SUGGESTED: 45 minutes
IV. INSTRUCTIONS:
Read the entire exercise before class. Students may want to conduct some
research before class on environmental responsibility and sustainability. They can
also visit the following Web sites:
www.carbonfootprint.com
www.greenatwork.com
The class should be divided into groups of four. The groups should be given
20 minutes to brainstorm ideas for green initiatives that fall within HRs
responsibility. Each group should complete Form 1.1.
The instructor should then ask each group to present their list to the rest of
the class. After the first group shares its list, the rest of the groups should only add
things that are new or different.
12
12
If time permits, the entire class should discuss the following questions: 1)
What is HRs role in building a greener organization? 2) What are the potential
benefits in terms of attracting and retaining talent? 3) How should Alice proceed in
order to develop an overall strategy for greening the HR functions at the
university?
V. POSSIBLE SOLUTION/DISCUSSION
First, Alice needs to develop an overall plan for how she is going to approach
this draft proposal. A good departure point will be to conduct a thorough audit of all
the main HR activities/functions in order to determine which of these activities have
the greatest environmental impact. This way Alice will be able to focus and prioritize
the HR initiatives. Alice would also have to include all the relevant HR staff when
developing the green initiatives as the people who do the tasks daily will have more
knowledge regarding the impact and what can be done.
Then Alice and the staff can brainstorm to come up with specific HR Green
Initiatives for each of the main HR functional areas. Including all the employees in
the planning process will also lead to them being more willing to take ownership of
the plan.
Possible HR Green Initiatives in six different HR functional areas are shown on Form
1.1.
FORM 1.1
HR Green Initiatives
HR Functional Area
Possible Green Initiatives and

Policies
Potential Benefit(s)
1. Recruitment and Staffing.
Include the environmental stance

of the university as part of the
sales pitch to potential
employees. This will help to
attract eco-friendly employees
that are motivated to make a
More employees who are

eco-friendly and willing to
make a contribution
towards environmental
sustainability and a
culture that values the
13
13
HR Functional Area

Policies
contribution, and it will also help

to build a culture that cares about
the environment. Make use of
recruitment methods that are
environmentally friendly, for
example making use of online job
applications instead of hard copy
application forms. The internet
and teleconferencing can also be
used to cut down on business
travel.
environment. Decreased
paper footprint and
traveling expenses.
Include training and information

with regard to the environmental
policies and green initiatives of
the university in the orientation
process. Make all the information
available on the intranet of the
university.
New employees will be

aware of how high the
organization values the
environment.
3. Compensation and
Benefits.
The green initiatives of

individuals should be linked to
their compensation and benefit
packages.
Employees will be
rewarded for showing the
desired effort to sustain
the environment, which
will help to motivate them
and enforce the desired
behavior.
4. Work Practices and

Policies.
Develop and implement

environmental policies and
practices. These policies and the
importance and benefits thereof
should also be effectively
communicated to the employees.
Sustainability should become a
rule not an exception. For
example a recycling program can
be implemented to decrease the
paper usage in the department or
switching off the lights of offices
and lecture halls when leaving
the venue. Sustainability should
become one of the core values of
Employees will be more

aware of the impact they
have on the environment
and will limit the waste of
electricity and paper.
Making the green efforts
mandatory will also
ensure compliance.
2. Orientation.
Employees will have

access to all the
important information
without the need for
printed booklets.
14
14
HR Functional Area

Policies
the organization.
5. Performance
Management.
6. Reward Systems.
The green initiatives of

employees should be linked to
their performance management.
Green performance standards
and indicators should be included
in the Performance Management
Appraisals. Managers and
employees should set green
targets, goals and responsibilities
during the performance
interviews and penalties should
be charged for non-compliance
with the targets.
People who are making a

contribution will receive
better performance
appraisals and feel more
appreciated and rewarded
for their contribution.
Link the green initiatives as

identified during performance
management to the reward
system. The people who are
making a contribution need to be
rewarded in order to promote
green initiatives.
Employees will be more

motivated to make a
contribution and meet
their green targets
because they get
rewarded for it.
Employees not achieving

targets will receive
penalties to motivate
them to achieve their
targets.
Tailor packages can be developed

to reward green skills acquisition
for example monetary-based
rewards (bonuses, pay for
outcomes achieved), nonmonetary based rewards
(recognition, gifts, and leave),
negative reinforcement (criticism,
warnings), green tax breaks,
departmental competitions, etc.
7. Employee Cafeteria.
8. Employee
Communications.
Recycling all disposable cups,

plates and napkins. Choosing the
least amount of packaging in the
cafeteria. Replace plastic and
paper containers with real plates
and cups. HR department can
specifically start to bring their
own coffee cups to work.
Select green ambassadors to
spread the news about turning of
Limited use of disposable

cups and packaging that
lead to pollution.
Having ambassadors will

help to let employees
15
15
HR Functional Area

Policies
lights, shutting down all

electronic equipment not in use,
reducing paper footprint (printing
more selectively, recycling paper,
reducing the page count of
printed documents, making
double sided prints). Put up signs
to remind co-workers about their
green choices. Communicate
green progress in weekly
meetings and reports.
have a better
understanding of how
their actions effect the
environment and that
they will make more of an
effort to do their share.
Indicate Higher Priority Concerns: 1. 2. 3. etc.
For more information please visit the following websites:
http://www.scribd.com/doc/12703119/The-Greening-of-HR-Survey [Viewed: 13-082010].

http://www.dmst.aueb.gr/nikolaou/Blogs/GreenHR.pdf [Downloaded 13-09-2010].
http://findarticles.com/p/articles/mi_m3495/is_6_53/ai_n27889475/ [Downloaded:
13-09-2010].
http://www.slideshare.net/beeshields/creating-a-sustainable-hr-function-for-thefuture-1364822 [Downloaded: 13-08-2010].
http://dx.doi.org/10.1080/09585190802479389 [Downloaded: 13-08-2010].
http://findarticles.com/p/articles-/mi_m3495/is_6_53/ai_n27889475/ [Downloaded:
13-08-2010].

4. EXERCISE: HUMAN RESOURCE CHALLENGES DURING MERGERS
16
16
I. OBJECTIVES:
1. To sensitize students to the actual and potential human resource

challenges facing organizations contemplating or implementing a
merger.
2. To familiarize students with various human resource strategies and
tactics for managing a successful merger process.
II. OUT-OF-CLASS PREPARATION TIME: 30 minutes
IV. INSTRUCTIONS:
In groups of 3-5 students, read the Situation in the Exercise as well as the
merger challenges listed on Form 1.2.
Each group will be assigned one or more of the merger challenges listed on
Form 1.2. Search various web sites to identify one or more human resource
strategies and tactics to address each of your assigned merger challenges.
One person from each group will present the strategies and tactics developed
to address their assigned merger challenges.
V. POSSIBLE SOLUTION/DISCUSSION
Possible solutions for each of the eleven challenges are shown on Form 1.2.
17
FORM 1.2
Potential Human Resources Challenges Facing the Merged Organization
Potential Challenges/Problem
Appropriate Strategies/Tactics
1. Rumors, misinformation and

inadequate information.
Develop a merger communication strategy
Small group meetings with employees
Briefings for managers and supervisors

2. Conflicting corporate cultures
Creating merger project teams
Conducting team-building activities
Use training to merger two cultures

3. Existing state government civil
services rules and union contracts.
Careful negotiation of new policies
Renegotiate union contracts
Modify civil service rules

4. Neither organization fully aware of the
skills, knowledge, and abilities of the
others management or staff
Communicate how human resources can

enhance new corporate objectives
Maintain and study current management

team and corporate structure initially.
5. Likely staff reconfiguration,
reassignments, and layoffs
Develop retention criteria
Involve employees on task forces
17
18
18
Negotiate terms and conditions of personnel
changes
6. Determination of which human

resources practices to retain
Eliminate low-value work
Evaluate existing practices
Evaluate job performance of all position

incumbents
7. Management of staff morale and stress
levels
Focus on potential merger benefits

8. Turnover of valued employees
Commit to retention of key employees
Communicate a positive vision of those

employees roles in the new organization
9. Unclear job assignments and reporting
relationships
Address in merger project work teams
Redo job descriptions as needed

10. Lack of understanding of new policies
and procedures
Implement a merger communication strategy

11. Overall strategy to market her
Departments role and potential value to
the C.E.O.
Quantify potential benefits of HR to merged

organization
Propose HR policies to alleviate merger

problems
Indicate Higher Priority Concerns: 1. Rumors, misinformation, and inadequate

information; 2. Conflicting corporate cultures; 3. Likely staff reconfigurations, etc.

5.
EXERCISE: SCANNING THE CONTEMPORARY WORK ENVIRONMENT:
19
19
SHIFTING DEMOGRAPHICS
I. OBJECTIVES:
The purpose of this exercise is to help students understand the potential

influence of trends and changes in the external environment on the design and
implementation of human resource management practices.
II. OUT-OF-CLASS PREPARATION TIME: None
III. IN-CLASS TIME SUGGESTED: 20 - 30 minutes
IV. PROCEDURES: See Text
V. SOLUTION:
This exercise provides an excellent format for discussing how changes in the
external environment affect personnel/human resource management practices. It is
also a helpful tool for discussing the changing demographics of the labor force. An
excellent source for updating labor force projections is an U. S. Department of
Labor, Bureau of Labor Statistics. See especially the Monthly Labor Review. The
Society for Human Resource Management has excellent on-line white papers and
reports focusing on workforce demographics and trends.
In general, total employment is projected to increase by 15.3 million, or

10.1 percent, during the 2008-18 period, the U.S. Bureau of Labor Statistics
reported today. The projections show an aging and more racially and ethnically
diverse labor force.

The answers given here are only suggestions:
20
20
1. Aging of the labor force

This trend is a direct result of the baby boom generation growing older. The
median age of the labor force was 37.8 by 1995 compared to 35 in 1982. According
to the Bureau of Labor Statistics, the number of persons age 55 years and older in
the labor force is expected to increase by 12.0 million, or 43.0 percent, during the
2008-18 period. Persons in the 55 years and older age group are projected to make
up nearly one-quarter of the labor force in 2018. The US Department of Health and
Human Services Administration on Aging estimates that by 2030, there will be
about 71.5 million older persons in the overall population. This shift has to do with
the aging of the baby boom generation. Life expectancy for the U S population
reached a record high of 76.9 years in 2000. The rapid aging of the labor force has
several implications for the design of promotion systems and career advancement.
As corporations grow leaner, upward mobility becomes less and less available.
Human resource managers will have to redesign promotion systems to include
growth opportunities through lateral and radial moves through the organization.
More people may desire to stay in the labor force longer and this will put pressure
on costs of benefits, especially medical and pension plan costs. There will be
greater demand for alternative and creative retirement plans and more use of
"cafeteria" approaches to benefits. An interesting development related to the aging
of the work force is the increasing number of employees caring for elderly relatives.
As employees face these demands, we may witness a need for parent-care centers
in addition to child care centers. Several companies are already assisting employees
with adult care needs.
2. Increase in knowledge workers

It is important in discussing this trend to make sure students understand
what is meant by a knowledge worker. Knowledge workers are defined as those
whose responsibilities extend beyond the physical execution of work to including
planning, decision-making, and problem solving (Bohlander & Snell, 2006). 1 One of
the major human resource challenges in managing knowledge workers is retention.
Not only is there local competition for the best knowledge workers but greater
global competition for the highest skilled knowledge worker is increasing. Research
suggests that professional knowledge workers are extremely mobile and are willing
to relocate to ensure continued job challenge and remuneration benefits. Research
1
Bohlander, G. & Snell, S. (2007). Managing human resources. Mason, OH: Thomson Publishing.
21
21
shows that participating in high-visibility projects and receiving recognition for

contributions are important. Thus, HR strategies that link workers to people,
professional opportunities and accomplishments are important for retention. The
working environment is also important to the retention of knowledge workers. For
example, human resource management practices that address a combination of
skill growth, personal growth, l autonomy, task achievement and financial reward
are organizational factors supportive of knowledge workers. If one combines the
shortage of knowledge workers to meet demand, attention should be paid to
continuing the participation of knowledge workers in the workforce during different
life stages. Hence a one size fits all recruitment and retention strategy may not be
feasible. Special strategies may have to be designed for knowledge workers,
especially in those industries that rely heavily on this group of workers. For
example, the changing needs of knowledge workers make it necessary to offer more
customized employment and benefit packages.
3. Increase in outsourcing, offshoring and employee leasing

Offshoring is one way businesses are responding to skills shortages and the
use of offshoring continues to grow according to the Society for Human Resource
Management. This trend is occurring in BRIC countries (Brazil, Russia, India and
China) and other parts of Eastern Europe, South America and Asia. One of the
major implications of this trend is that HR professionals will continue to be involved
in the decision to offshore and managing operations or monitoring supplier human
resource management practices in these types of operations. Many companies are
developing a global sourcing strategy. See the Gartner Report for good information
on the issues associated with a global sourcing strategy.
4. Increasing diversity of the USA labor force (e.g.number of women

and minority workers in the labor force
According to the Bureau of Labor Statistics, the labor force in 2018 will be
more diverse. As a result of higher population growth among minorities--due to
higher birth rates and increased immigration, along with higher labor force
participation rates by Hispanics and Asians--the share of the labor force held by
minorities is projected to increase significantly. Whites will remain the largest race
group in the labor force in 2018 (79.4 percent) despite growing by just 5.5 percent
between 2008 and 2018. The Asian group is projected to increase by 29.8 percent
and the number of blacks by 14.1 percent. In 2018, Asians are projected to
comprise 5.6 percent of the labor force and blacks to make up 12.1 percent.
Hispanics (who can be of any race) will join the labor force in greater numbers than
22
22
non-Hispanics. They are projected to grow by 7.3 million or 33.1 percent. Their
share of the labor force will expand from 14.3 percent in 2008 to 17.6 percent in
2018. In contrast, the number of persons in the labor force not of Hispanic origin is
expected to grow by 4.0 percent, and their share of the labor force to decline to
82.4 percent. There are several important implications of these projected changes.
Human resource management programs will generally have to be more responsive
to meeting diverse needs. Perhaps there will be a need to develop training
programs to manage cultural diversity in the workplace and to minimize ethnic
group differences in educational preparation. There will be a need to review and
restructure affirmative action programs.
Almost sixty percent of women are in the labor force. Women represent 47.8
percent of the workforce and this will reach 50 percent by 2020. This trend is
expected to continue into the next decade. Approximately 80 percent of women
with school-age children are employed in some capacity. This trend will affect the
benefit area the most. The educational attainment of women is also increasing
relative to men. Employers who want to attract the talent women can bring to the
workplace will have to review HR policies to ensure they are women friendly. There
will be greater pressure upon organizations to provide childcare (perhaps even
subsidized), to provide both maternity and paternity leaves, and greater
opportunities for flexible work schedules. Additionally, women may also apply
pressure for reproductive rights in the work place to protect against hazards or risks
during pregnancy.
In sum, the workforce of the future will be more diverse -- ethnic background,
gender, lifestyles, and age. Human resource management programs and practices
will need to be designed to better match these environmental changes. Practices
developed for a society of male breadwinners and female homemakers will not
suffice. More flexible schedules, work/life balance interventions, and talent
management will be key to harnessing and valuing diversity.
5. Multigenerational workforce
The workforce makeup will be increasingly comprised of what is known as a

multigenerational workforce. Persons in the 55 years and older age group are
projected to make up nearly one-quarter of the labor force in 2018. Young people
(age 16-24) are expected to account for 12.7 percent of the labor force in 2018, and
23
23
persons in the prime-age working group (age 25 to 54) to account for 63.5 percent
of the 2018 labor force.
Typically, the different generations are described as (see :
Generation Name
Traditionalists
Born 1922-1945
Assets in the Workplace

Hard working, stable, loyal, thorough, detail
oriented, focused, emotional maturity
Ages 63-86
Baby Boomers
Born 1946-1964
Team perspective, dedicated, experienced,

service-oriented
Ages 44-62
Generation X
Born 1965-1980
Ages 26-43
Millennials
Born 1981-2000
Independent, adaptable, creative, techno-literate,

willing to challenge the status quo
Optimistic, able to multitask, tenacious,
technologically savvy, driven to learn and
grow, team-oriented, socially responsible.
Ages 8-27
Source: SHRM Research Quarterly (First Quarter, 2009). The Multigenerational Workforce:
Opportunity for Competitive Success. Washington, DC.
The instructor may wish to discuss how researchers describe the attitudes
and expectations of the different generations. The HR implications are that
companies will have to increasingly be sensitive to how the different generations
expectations may differ in terms of the psychological contract (expectations) as well
as how they communicate and use technology. However, research by the Center for
Creative Leadership suggests there is more similarity among the generations in
terms of what they desire in employment.

6. Increasing use of social networks
24
24
The popularity of social networks such as Facebook, LinkedIn has skyrocketed

in the last few years. It is estimated that Facebook has 500 million active users.
According to a recent survey from the Forrester Research group, more than four in
five U.S. online adults use social media at least once a month. It is estimated that
almost 80 percent of job recruiters and hiring managers in the United States have
reviewed online information posted to social-networking sites and blogs to screen
job candidates. Social networking is here to stay and HR managers need to learn to
use it effectively in terms of recruitment. These sites can have several benefits
from a company perspective: allowing employees to network and collaborate on
line across borders, get answers to work related problems and to find prospective
customers. HR should ensure that the company has a social networking policy as a
means to protect the company against the risks presented by social media.
7. Increasing number of foreign born workers
Immigration has been a major source of ethnic diversity in the labor force.
There are two major sources of immigrant employees. Some foreign born
employees are highly skilled immigrants from less developed economies with large
numbers of educated individuals of working age; while others are low skilled
immigrants who often enter the U.S. illegally. Since the September 11 attacks on
the United States, homeland security objectives has led to attitudinal and policy
changes towards foreigners entering the U. S. However, U. S. businesses are
increasing relying on these two groups of labor. In the former case, many of these
are highly desirable given current shortages faced by many companies for
professional staff with technical and engineering skills. The issue for this group is
dealing with immigration laws and the complexity of gaining visas and work permits
for such employees. It has become increasingly more difficult to employ foreignborn employees and the human resources department will have to plan well in
advance if there is a need to employ such workers. In the case of illegal
immigrants, some industries rely on this labor pool given the low unemployment
rate in the United States and the hesitance of native born workers to work in jobs
with low wages and poor working conditions. Since 2000 an estimated 850 000
unauthorized immigrants have entered the United States each year. In response to
this growing number, the US congress and Senate passed legislation in 2005 and
2006 to better control the flow and employment of illegal immigrants into the U. S.
(These laws are: Border Protection Anti-terrorism and Illegal Immigration Control Act
of 2005 and The Comprehensive Immigration Reform Act of 2006). These laws
25
25
place greater responsibility on human resource departments to validate the status

of job applicants through I-9 processes. Both laws increase fines and penalties to
businesses that violate the regulations. Another important HR implication of the
increasing number of foreign-born employees is verification and evaluation of
educational credentials (from foreign universities) during the recruitment and
selection phase as well as strategies for managing diversity as the workforce in the
organization becomes more diverse. Also there may be a greater need for English
as a second language training programs.
8. Global warming and growing environmental awareness
This issue has become pervasive in the last few years because of a number of
global declarations and agreements. See SHRMs 2008 Executive Roundtable
Symposium on Sustainability and Human Resource Management Strategy. The
report offered a number of implications of these issues for HRM. Sustainability of
the planet has become a huge issue in the recruitment and engagement of
employees. People are concerned about the future of planet and want their
companies to also be concerned. More and more employees want to work for firms
that have a greening strategy to protect the environment, especially younger
workers. Thus these issues affect the brand of an organization in terms of being an
employer of choice. The HR function has to be creative in decreasing its carbon
footprint in all of the activities it undertakes. The roundtable report found that most
HR departments are not prepared to address the ways in which HR needs to
respond to these challenges. There are a number of websites that can be helpful in
discussing this issue: www.carbonfootprint.com and www.greenatwork.com. There
will also be a greater need for stakeholder engagement and management. More
resources will be needed for developing training programs on sustainability and
greening.
9. Rapid globalization
The world is more interconnected than ever before and this trend will not
abate given continuing improvements in communications technology. This creates a
number of issues that HR should be aware: global talent management, political
unrest in different regions of the world, spread of communicable diseases, need for
cross-cultural understanding and diversity management, increased labor mobility,
compensation of expatriates, growing sense of nationalism in the world (e.g.
restrictions on work permits), increasing urbanization globally, pressures for

adoption of global labor standards, and just designing HR practices for a
multinational workforce. Talent management remains one of the top issues for
global firms. The United States government has become much more stringent in
granting work permits to foreign expatriates.
26
26
10. Stagnant economic growth
With the recession that hit the USA in 2009, this issue has been at the top of
the list of all companies. The recovery has not yet manifested and some
economists foresee a slow recovery and a period of slow economic growth for the
USA and the world. The high cost of health care is an issue many HR professionals
are particularly concerned with as well as high unemployment. They also bring up
the decline in the value of the dollar as well as the stress under which the middle
class has been placed. All of these developments have significant implications for
HR. Planning of HR needs to be much more flexible especially in identifying critical
skills. Policies on layoffs must be carefully designed to ensure needed skills are
retained. HR managers also have to be attentive to morale problems among staff
who may be experiencing financial stress. Economic uncertainties affect employee
general satisfaction and motivation. Pension funds have also been put under
stress.
NOTE: The instructor may also wish to lead a general discussion on environmental
scanning as a planning tool. Students should also be made aware of the difficulty of
projecting the impact of forecasted changes in a relatively complex environment. It
is important for each organization to focus on the implications of the changes in the
context of its business objectives and strategies.

6. EXERCISE: EVALUATING THE FINANCIAL IMPACT OF HUMAN RESOURCE
MANAGEMENT ACTIVITIES: REDUCING TURNOVER COSTS
27
27
I. OBJECTIVES:
1. To provide students with practice in analyzing data and drawing

conclusions regarding managerial implications.
2. To make students aware of the potential costs of controllable
dysfunctional turnover and its impact on net income and profit.
3. To make students aware of the potential benefits of human
resources management activities to an organizations bottom
line.
II. OUT-OF-CLASS PREPARATION TIME: 2 hours
IV. PROCEDURES: See text
V. SOLUTION:
A solution to the problem requires that the extra costs above those existing
in base year one be calculated. As a result of adding the extra costs incurred in
years 2, 3, and 4, and then adding them, the total extra costs over the three-year
period are $680,000 (see Exhibit 1.6). Then the annual turnover rates for the four
categories of personnel are shown in Exhibit 1.7 as provided in the book. Exhibit
1.8 shows the average costs of turnover over the four-year period in two ways: (1)
including reduced productivity during the learning period and (2) excluding reduced
productivity during the learning period.
Table 1 shows the reduction in turnover from year one in terms of the number
of persons rounded-off to the nearest whole numbers. Table 2 shows the reduction
in turnover costs relative to year one, both the total savings and the savings
excluding the reduced productivity during the learning period. Table 3 shows the
28
28
calculation of total benefits of higher employee retention (including the reduced

productivity during the learning period) for each of the three years and in total
($1,061,936). This benefit is then compared to the total incremental costs of the
human resources management department budget. The results show a net savings
of $381,936 and a benefit/cost ratio of 1.56.
Table 4 shows the same calculation excluding the savings associated with
reduced productivity during the learning period. This calculation shows different
results. When the productivity factor is excluded from the analysis, the incremental
savings from enhanced employee retention is only $588,778. The result is a net
loss of $91,222 and a benefit/cost ratio of 0.87.
Answers to the questions are as follows:
1. The calculated benefits of reduced turnover are sufficient to justify the

$680,000 in increased costs associated with the expansion of the Human
Resources Management Department only if the reduced productivity of new
replacement employees is included among the benefits of higher employee
retention. If the savings are excluded, then the savings are not sufficient to
justify the higher costs of the department.
2. Other areas of potential economic benefit from having a Human Resources
Department might include higher productivity, higher levels of commitment
to the organization, improved morale, more positive employee attitudes, and
lower absenteeism. In each case, the calculations would require some kind of
an assumption of what the above would be in the absence of a Human
Resources Department. Then the difference would need to be monetarized
so that it could be expressed in dollar terms. A particular human resource
program (i.e., continuous quality improvement) should also specify
quantifiable objectives prior to implementation so that the actual costs and
benefits may be compared.
Exhibit 1.6
29
Human Resource Management Department Budget for Years One Through Four
29
Department Budget per Year
Budget Cost
One
Two
Three
Four
Salaries and Benefits $110,00

0
63% $233,00
0
70% $288,00
0
70% $324,00
0
70%
Equipment and $24,000

Supplies
14% $39,000
12% $48,000
12% $57,000
12%
Communications $41,000
23% $62,000
19% $73,000
18% $81,000
18%
Totals $175,00
0
$334,00
0
$409,00
0
$462,00
0
$159,00
0
$234,00
0
$287,00
0
Extra Cost Above

Base Year One
"Extra" HR Costs Yr 2 $159,00

0
0
0
Total "Extra" HR
Costs
$680,0
00
30
30
Exhibit 1.7
Annual Turnover Rate by Category for Years One Through Four

Percent Turnover per Year
Personnel
Categories
One
Two
Three
Four
Executive
12.8
11.5
9.2
8.3
Physician
18.1
17.6
17.9
15.6
Other Professional
22.6
22.1
18.3
15.6
Non-Professional
29
26.3
27.1
24.3
Weighted Average
Totals
23.8
22.3
21.3
18.8
Exhibit 1.8
Average Costs of Turnover per Individual over the Four-Year Period

Personnel Category
All
Turnover Costs Categori
es
Other
Non-
Executiv Physician Profession Profession

e
al
al
Separation Costs:
Exit Interviews
50.73
62.50
73.00
51.00
38.50
Administrative Costs
119.27
127.00
132.50
116.00
114.50
Separation Pay
348.01
2,254.00
1,034.00
0.00
0.00
518.01
2,443.50
1,239.50
167.00
153.00
31
31
Replacement Costs:
Job Advertisements
1,346.49
1,805.00
2,416.50
1,127.50
953.00
Pre-Employment Admin
353.28
405.00
416.50
386.50
291.00
Entrance Interviews
324.86
486.00
724.50
284.00
148.00
Assessment Testing
271.69
382.50
695.00
214.50
105.00
Staff Time
249.00
417.50
522.00
212.00
126.00
Travel/Moving Expenses
293.68
1,215.50
1,110.50
0.00
0.00
Processing New
Employees
87.50
87.50
87.50
87.50
87.50
Medical Examinations
175.00
175.00
175.00
175.00
175.00
3,101.50
4,974.00
6,147.50
2,487.00
1,885.50
Informational Literature
80.00
80.00
80.00
80.00
80.00
Formal Training
147.53
340.00
516.50
35.00
35.00
On-the-Job Training
68.15
0.00
0.00
212.00
159.50
295.68
420.00
596.50
327.00
274.50
3,133.37
4,000.00
6,500.00
3,452.00
1,215.50
Total $7,048.56 $11,837.5

0
$14,483.5
0
$6,433.00
$3,528.50
Tot. Excluding Prod. $3,915.19 $7,837.50

Svng.
$7,983.50
$2,981.00
$2,313.00
Training Costs:
Reduced Productivity
32
32
Table 1. Reduction in Turnover from Year One
Personnel
Category
Year Two
Rate Person
s
Year Three
Rnd
Rate
Year Four
Person Rnd
s
Rate
Person Rnd
s
Executive
12
7
1.30
1.65
3.60
4.57
4.50
5.72
Physician
367
0.50
1.84
0.20
0.73
2.50
9.18
Other
Professional
61
5
0.50
3.08
4.30
27.00
27
7.00
43.05
43
NonProfessional
80
4
2.70
21.71
22
1.90
15.28
15
4.70
37.79
38
All Categories
191
3
1.50
28.70
29
2.50
47.83
48
5.00
95.65
96
Weighted
Averages
Rnd = Number of Persons Rounded Off
Table 2. Reduction in Turnover Costs from Year One
Personnel
Category
Year Two
Year Three
Without
Total
Prod
Svngs
Year Four
Without
Without
Total
Prod
Svngs
Total
Prod
Svngs
Executive
23,675.0
0
15,675.
00
59,187.5
0
39,187.5
0
71,025.0
0
47,025.0
0
Physician
28,967.0
0
15,967.0
0
14,483.5
0
7,983.5
0
130,351.5
0
71,851.5
0
19,299.0
8,943.
173,691.0
80,487.0
276,619.0
128,183.0
Other
Profession
33
33
al
00
NonProfession
al
77,627.0
0
50,886.
00
52,927.5
0
34,695.0
0
134,083.0
0
87,894.0
0
TOTAL
$149,568.0
0
$91,471.
00
$300,289.5
0
$162,353.0
0
$612,078.5
0
$334,953.5
0
Table 3. Total Financial Benefits of Higher Employee Retention Using a Base of Year
One
Personnel Savings Year Savings Year Savings Year

Total Savings
Category
Two
Three
Four
Executive
23,675.00
59,187.50
71,025.00
153,887.50
Physician
28,967.00
14,483.50
130,351.50
173,802.00
Other Professional
19,299.00
173,691.00
276,619.00
469,609.00
Non-Professional
77,627.00
52,927.50
134,083.00
264,637.50
All Categories
$149,568.00
$300,289.50
$612,078.50
$1,061,936.00
1. Total
Incremental
Savings:
$1,061,936.0
0
2. Total
Incremental
Costs:
680,000.00
NET SAVINGS
$381,936.00
Benefit/Cost Ratio
(1)/(2)=
156%

7. INCIDENT: HUMAN RESOURCE INFORMATION SYSTEMS DATA BREACH
34
34
I. OVERVIEW
Sweets, Inc., a manufacturer of a line of candy, is finalizing the

implementation of a comprehensive human resource information data system
covering its 400 plus employees. Up until yesterday everything had gone smoothly.
Then, a major problem developed that turned everything upside down. A laptop
computer containing sensitive data was missing from one of the HR offices. So,
what action should the firm take?
If one listens to TV news programs or reads the newspapers, one can find
reports of sensitive computer data being compromised at many large corporations.
This case depicts an all too common situation.
II.OBJECTIVES:
1. To familiarize students with the problems that can occur if human resource
data is compromised.
2. To make students aware of steps firms can take to secure its human
resource
data.
III. ANSWERS TO QUESTIONS
1. What actions should Sweets, Inc. take now? Explain your

reasoning.
Since the firm is still not totally sure whether the computer has been stolen or
whether it is just missing, the firm needs to conduct a more thorough search for it.
This entails looking through drawers and talking with everyone who might have
knowledge regarding it. It is particularly important to talk with the last person who
used the machine or, if the machine is assigned to one person, to talk with that
person. Although it has happened at some firms, most employees would not leave
a computer containing sensitive just sitting on a desk or in a drawer where someone
else could easily pick it up. If the firm has a security department, they could be
35
35
asked to help with this search. In addition, the firm may want to report the theft to
the local Police Department and ask for their suggestions.
If the laptop can not be found, the firm then needs to try to determine exactly
what information was saved on the machine. Those who use the computer would
be in the best position to know. In addition, the Head of Computer Operations and
others in that department need to be asked how difficult it would be for someone to
retrieve the sensitive information. The case says that a hacker might know how to
do this but how easy would it be? What encryption technology/firewalls does the
firm use?
In all likelihood the firm will need to communicate to all employees that a
laptop is missing that contains sensitive data and that they should be aware that
they may become a victim of identity theft. The firm may also want to suggest
what precautionary steps employees should take.
Most firms are reluctant to admit that a computer breach has occurred but
since this deals with employee privacy issues, it is important to be honest with
employees, and the sooner the better.
If it becomes clear that an employee was negligent in securing the missing

computer, then the firm may want to take disciplinary action against that employee.
2. What steps can the firm take to prevent this problem from
occurring in the future?
If this was a simple question to answer, we would not be hearing about so

many cases of computer breaches on the news. It seems that regardless of what
firms do, they cant solve this security problem.
Undoubtedly, the firm needs to develop policy and procedure guidelines for
securing computers and communicating these to employees. The Computer
Operations Department would probably be in the best position to develop these
policies, perhaps with the help of outside security professionals. If the firm has not
36
36
already done so, it may want to examine a different way individuals can access
computer systems. Identification cards? Smart cards? Biometric systems (such as
thumbprints)? Longer passwords requiring letters, numbers, and characters? In
addition, it could require employees to take on-line security certification training
every year.
3. What additional information needs to be gathered before any

decisions are made or action taken?
As stated above, the firm needs to determine what information is contained

on the missing laptop and how sensitive it is? They also need to determine how
difficult it would be for someone to retrieve the data on the laptop. Ultimately, the
firm needs to determine how the laptop could have been taken, assuming it was
stolen.
37
37
Diversity Issues
8.
CASE: MANAGING DIVERSITY: JOHNSON CHEMICAL INTERNATIONAL
I. OVERVIEW:
This case focuses on the difficult issue of workplace diversity. The facts in the
case include a derogatory e-mail that was sent throughout the companys Haverford
Plant. The e-mail was offensive, rude, and insulted both women and minority
employees. Initially, management appears to be stunned by the incident.
II. OBJECTIVES:
1. To introduce students to the complex issues surrounding the

management of diversity in a large organization.
2. To help students understand the different experiences of women
and minorities in the workplace.
3. To assist students in understanding the difference between equal
employment opportunity and managing diversity.
III. DISCUSSION:
The e-mail appears to have caught Johnson management off guard. They
seem to feel that Johnson had made significant progress in recruiting women and
minorities in the last few years. It also seems they are prepared to get at the root
causes of the issues. Further investigation by the Vice President of Human
Resources reveals serious concerns among all employees. Focus group sessions
with different employee groups indicate a number of issues centered on gender,
race, and ethnicity. Additionally, there appear to be problems with levels of
satisfaction among the different employee groups. The major problem facing top
management is how to proceed to manage the growing diversity within the
company. Each identity group has very different perceptions about the Johnson
workplace and its environment for employees. In the short-term, they are also faced

with mitigating the lasting effects of the e-mail. The instructor should point out to
students that it is not unusual for employee groups to have vastly different
perceptions of their treatment and status in a company.
38
38
One of the causes of Johnsons current situation may be that while the company
has focused on advancing equal employment opportunity in the company, they
failed to realize that just adding numbers of women and minority is not sufficient to
creating a workplace that values all employees. In fact, the e-mail may be
symptomatic of backlash against the attention being paid to equal employment
opportunity and affirmative action in the company. There is good theory to suggest
an increasing percentage of women and minorities in a traditionally White male
organizational environment can lead to negative feelings towards those groups.
Proponents of managing diversity go into great detail to explain the difference
between equal employment opportunity and managing diversity. Basically,
affirmative/action is a special legally mandated program focusing on increasing the
numbers of women in minorities.
Managing diversity is a more inclusive,
organization wide strategy to respond to and take advantage of the value of a
diverse group of employees (see the following articles for a discussion of HRM
strategies and diversity paradigms: Thomas, D.A., & Ely, R.D. (1996). Making
differences matter: A new paradigm for managing diversity, Harvard Business
Review, Sept-Oct., 79-90; Kossek, E;, Lobel, S. A. & Brown, J. (2006). Human
resource strategies to manage workforce diversity. In Konrad, A., Prasad, P., Pringle,
J. Eds (2006).
Handbook of Workforce Diversity.
Thousand Oaks:
Sage
Publications.)
The solution for the case should focus on the steps to be taken to managing
diversity versus equal employment opportunity. In many ways, Johnson Chemical
has already undertaken a major step. They have held focus groups to get at the
essential diversity issues in the company. Top management must realize that
managing diversity is not a program nor is it an isolated training program. It will
involve an organization wide change effort. The essential steps of such an approach
involve: (1) Top management commitment to valuing diversity; (2) Creation of a
committee or team to spearhead the effort. The committee should report directly to
the President; (3) Systematic diversity awareness training for all employees
especially managerial level employees; (4) Changing human resource policies and
practices so that they are inclusive of the companys diverse workforce; (5) Holding
managers accountable for diversity management in the company; and (6)
Continuous attention to the creating an organization culture that values diversity.

39
39
1. Evaluate Johnsons actions in dealing with the e-mail.

Management appears to have moved quickly to mitigate the damages done
by the e-mail. The CEO has made it clear that the perpetrator will be disciplined.
His letter to all employees is very effective and quite direct. It should send a clear
message to all employees that the company will not tolerate offensive behaviors.
They also seemed to have responded quickly to inquiries from the media. Under
the circumstances, management seems to have done all of the right things.
Perhaps on a long-term note, there should be some restrictions on who has access
to the public drives. The drives should only be accessible to top management and
used for company-wide directives.
2. Examine the data contained in Exhibits 1.10 and 1.12-1.17. What

seem to be the most significant diversity issues at Johnson?
The data collected from the different employee groups point to a number of
issues. First, employees have vastly different perceptions of their treatment based
on their gender, race and/or ethnicity. The women are very concerned about sex
role stereotyping. They feel these negative stereotypes hinder their advancement
in the company. The women also believe they are confined to staff positions and hit
a glass ceiling. Interestingly, the women feel that affirmative action stigmatizes
them and does not help them. While African-Americans feel they are also
stereotyped, they also have some issues that the women did not express. They feel
recruitment has been inadequate and that the company does not hire interns from
historically Black schools. However, African-Americans did not raise the issue about
affirmative action. Asian employees feel they are stereotyped as having excellent
technical skills. While this may appear to be positive, they feel it keeps them from
obtaining management positions. Regardless of the group, there seems to be some
major problems with potential rating process used for promotion. The process
seems to allow stereotyping to occur and appears to be highly subjective. The
white men feel overly defensive and unprepared to deal with employees who are
different from them. They also feel that White men are stereotyped as racist and
sexist. From their point of few, affirmative action excludes and even hurts their
progress.
40
40
The data in Exhibit 1.10 reveals interesting information. The company has
been growing in the last few years. Asian employees have made the greatest gains.
Even though there has been an increase in both women and African-American
employees, their representation in management/supervisory positions has been
relatively stagnant. Both of the highest-ranking women and minority managers are
in staff positions. The Vice President and Deputy Counsel is a woman and the Vice
President for Equal Opportunity and Employee Relations is an African-American.
The employee survey shows that African-American and women employees

are the least satisfied with a number of aspects of the company. They are
particularly less satisfied with their opportunity for promotion. They also seem to
feel they get less performance feedback from their managers. While most of the
employees have a favorable attitude about the work they do, the data in Exhibit
1.18 suggest that there are major problems with the management and supervision
they receive.
3. What is the cost to the organization of these problems? What will

happen if they are not addressed?
There are a number of costs associated with not managing diversity. The
data indicate that turnover is high among women and minority employees.
Turnover is expensive and is costing the company money and time. Although not
easy to compute, the lower levels of satisfaction can lead to productivity losses if
workers decrease their inputs. The less than pleasant work environment can lead to
stress and high anxiety among employees. The tone of the focus group results
suggests high levels of frustration among all employee groups.
Another way to think about the cost to the organization is to look at the loss
of the benefits associated with managing and valuing diversity. In an article by
Dechant and Robinson (1997), they cite the following as benefits of diversity: (1)
Being perceived as an employer of choice. Organizations that manage diversity can
attract and retain the best and have greater employee selectivity; (2) Improved
profitability resulting from having an employee base that mirrors the companys
market for products and services; (3) Fewer discrimination lawsuits; (4) Higher
employee morale and satisfaction; and (5) Creativity and better teamwork and
problem solving flexibility.
41
41
If the issues are not addressed, the tensions among the groups could
increase. This in turn can lead to further incidents like the e-mail and also higher
turnover and absenteeism. Eventually, the company may experience discrimination
lawsuits or other employee grievances.
4. Where and how do these issues need to be dealt with?

There are many approaches organizations have taken to managing diversity.
However, the key ingredients to an effective effort include:
a. Top management commitment

b. Formulation of a steering committee to guide organizational
efforts (the composition of the steering committee should be
representative of employee groups). Also the committee should
report directly to top management.
c. Diversity awareness training for all employees from the top to
the bottom of the organization. Given the issues raised about
supervisors, the company should also use skills training. This
type of training focuses on giving managers the tools for
interacting with employees from different cultural, gender, and
racial groups. For example, managers could be given help on
providing feedback that is nonbiased and resolving intercultural
conflicts.
d. Review of current human resource policies and practices to
assure they are inclusive and do not hinder any group. This
review may result in new initiatives. For example, mentoring
programs, flexible work schedules, and alternative career paths,
explicit promotion policies to break through the glass ceiling,
telecommuting, and measuring the management of diversity
performance of managers.
While these are listed, it is important to emphasis the need for a
comprehensive change effort. In the end managing diversity is about transforming
a companys culture from one of exclusion to one of full inclusion for all employees.
Students can be asked to discuss in more detail the components of each of

the above diversity strategies. For example, what would they recommend as the
content of any awareness training undertaken.

5. What support, skills, and training do managers need to deal with
these issues?
42
42
As stated in the previous question, managers could benefit from skills training
that could include: communication, giving feedback, stereotyping and how to avoid
it, managing intercultural conflict, and mentoring diverse employee groups.
6. What human resource management systems or policies need to be

examined and possibly modified?
There are two major systems requiring immediate change. First, the
promotion process needs to be changed. The company appears to be relying on
potential ratings given by supervisors. This is quite subjective and allows for
stereotyping and bias. HR should explore the use of more objective systems. This
may include assessment center like models or other processes that provide
information beyond the supervisors potential rating. Second, attention should be
paid to creating career paths with the company. This may assist women and
minorities from being pigeonholed into staff positions. These positions are not in
the path to the top. Second, the internship program needs to be examined closely.
If the company is using interns from historically Black schools but never hires these
interns, they are placing themselves in an exposure situation for charges of
discrimination. HR needs to examine what it can do to assure these interns are
suitable for permanent positions in the company. Finally, there should be an
objective system for selecting participants in the companys training program.
Right now the supervisor makes the recommendations.

9.
INCIDENT: TOO MUCH DIVERSITY?
43
43
I. OVERVIEW:
This incident presents a situation in which Vietnamese assemblers are upset

with Latino supervisors for being mean and rude to them. In addition, distrust and
friction seems to exist between Vietnamese assemblers and Latino assemblers. The
incident seems to suggest that the firm may have too much diversity. But does it?
Or, is it just a case of poor supervision or a lack of communication or some other
problem?
II. OBJECTIVES:
One of the objectives of this incident is to introduce students to the issue of

diversity and both its advantages and shortcomings. Another is to enhance
students problem solving skills by requiring them to determine what the major
problems are in this case. Is the problem cultural diversity? Poor supervision? Lack
of communication? Other?
III. ANSWERS TO INCIDENT QUESTIONS:
1. If you were Bill Baldwin, what actions would you take in response to
Trans request?
One of the major roles of a manager is that of problem solving. This involves
investigating a situation to determine the facts of the case followed by a
determination of the best way to solve the problem. So, in this case, Bill or his
representative needs to meet with the Vietnamese assemblers either individually or
in a group to find out exactly why they are upset. He needs to determine what
specific behaviors others have engaged in that upset them. Then, Bill or his
representative needs to meet with those who have been accused of misbehavior to
hear their side of the story. Finally, he needs to develop a solution to the problem.
44
44
In this case, Bill asked the Operations Manager, who is in charge of the entire
plant operations and who overseas all of the assembly supervisors and workers, to
meet with the entire group. During several heated meetings it was determined that
almost all of the Vietnamese employees complaints were directed at the sister half
of the bother-sister supervisor team. She apparently was abusive and overstepped
her supervisory authority. After the second of these meetings, the sister became
very upset with all of the charges leveled against her and decided to quit.
Immediately, the situation improved, complaints ceased, and the workplace
returned to normal. Several months later, the sister was rehired to work in a
different department as an assembler and she is now an excellent employee. So,
the major problem in this case-the lack of proper supervision, not too much
diversity-was solved.
Some students may suggest that another problem in this firm is that the
Vietnamese and Latino employees do not seem to trust each other and do not eat
and socialize together. They will suggest that the firm offer a diversity training
program to bring the two groups together. The question that needs to be asked
here is whether such a program is really necessary and if it will work. Students
need to be aware that diversity training programs can cause more harm than good.
Also, one could argue that as long as employees work relatively harmoniously
together, that is good enough. Do they really need to eat together and socialize
together and create one big happy family, or is working together without major
conflicts enough?
2. What hiring policy should the firm follow?

In this incident, some students may suggest that the firm needs to change its
hiring policy by not hiring more Latinos or Vietnamese workers. But, whom should
they hire and what goal will that accomplish? The major problem in this case is the
behavior of one poor supervisor, not the hiring of different nationalities. In addition,
if the firm hired employees of a single national origin or only native Californians, it
would have no assurance that these employees would work harmoniously with the
other employees. The situation could get worse. Most importantly, if the firm
changed its hiring policy to only hire native Californians it would be discriminating
under the Civil Rights Act that says firms can't discriminate against applicants on
the basis of national origin. So, when hiring new employees, the firm needs to
continue to hire the best available employee.
3. Does the firm have too diverse a workforce?
45
45
This question is designed to get students to think critically regarding what

constitutes a diverse workforce and what are its advantages and disadvantages.
Many books and company media releases proclaim the benefits of diversity and
never suggest that diversity can also result in problems. They contend that
employees should embrace diversity without even defining diversity or
suggesting what actions employees need to take in order to embrace it. Students
need to be reminded that there are benefits and disadvantages to almost any action
a firm takes, including creating a diverse workplace. In discussing this question, the
instructor may want to cite the definition of diversity given in the textbook and
also present what the textbook mentions as the advantages and disadvantages of
diversity.

10.
INCIDENT: THE CULTURAL DIVERSITY TRAINING PROGRAM
46
46
I. OVERVIEW:
Cultural diversity is a major human resource theme in most organizations

today. This emphasis reflects an increasingly diverse labor force and the
consequent necessity to better utilize a wide range of heretofore underutilized
subgroups including racial and ethnic minorities, women, elderly, handicapped,
foreign-born, religious minorities, and homosexuals.
However, efforts to "sensitize" managers and other employees to diversity

issues have met with mixed success. In some cases diversity training has resulted
in less understanding and higher levels of animosity and conflict. Such programs
may unintentionally promote stereotypes and/or give the appearance of "blaming"
or "bashing" white males.
II. OBJECTIVES:
The first objective is to create sensitivity to the issue of cultural diversity, the
various forms of diversity, and the potential benefits of a successful program for
promoting diversity. The second objective is to create an awareness of some
potential pitfalls in programs established to promote diversity. The third objective is
to help the student identify some effective methods of promoting diversity.
III. DISCUSSION:
The major problem in this case is a poorly designed cultural diversity training
program. The result is a neutral or negative reaction from most employees. A
number of modifications of the program will be necessary if the program is to be
effective in achieving its goals of promoting diversity and mutual understanding.
These are detailed below.
IV. ANSWERS TO INCIDENT QUESTIONS:
47
47
1.
What is cultural diversity?
Diversity refers to all human characteristics which make people different from
one another. Examples of diversity are given in the "overview" above.
2.
Why is cultural diversity an important issue for all organizations?

What are the potential disadvantages of ignoring it as an issue?
What steps should a proactive organization take to respond to this
challenge?
Today's labor force is highly diverse. Such diversity may provide the
organization with a powerful competitive advantage if it is effectively managed.
Specifically, it can enhance problem-solving by offering broader perspectives,
creativity, and flexibility. Ignoring the issue could result in "group think" wherein all
employees agree with one another and ignore beneficial options because of their
lack of diversity. The skills and potential contributions of particular subgroups could
be underutilized, thus adversely affecting the competitive position of the
organization.
A proactive organization needs to address a number of issues related to

diversity. These include top management commitment to diversity; balancing the
rights of white males vs. those of underrepresented groups coping with resistance
to change; promoting group cohesiveness despite diversity within each group;
ensuring open two-way communication; minimizing employee resentment;
maintaining or improving individual and group performance; retaining highlyproductive employees; and maximizing opportunities for all employees.
3.
Evaluate the content and training method used by the university

in this training program. Do you have any suggestions for
improvement? How might such changes be implemented?
This program is deficient in both content and process. The content focused
on too narrow a view of diversity. As noted earlier, the concept of diversity is quite
broad. Yet this program focuses on just one aspect of diversity (i.e., racial). An
exclusive focus on one race is antithetical to the concept of diversity!
48
48
The process was deficient because no employee input was solicited or used in
the program design. In addition, the one-way communication which occurred during
the program was based on the assumption that the "experts" needed to "enlighten"
and "sensitize" the unsophisticated employees. The one consistent theme was the
oppression of all minorities (i.e., people of color) by the white male and female
majority. The atmosphere of intimidation toward non-minority participants was a
consequent problem.
Suggestions for improvement and implementation of an enhanced program

might include the following:
Adopt an inclusive definition of diversity that addresses all kinds of

differences among employees.
Be sure top officials in the University communicate their commitment

regarding diversity and the potential benefits of diversity to all employees.
Involve a wide range of employees, including white males, in designing

the diversity program.
Avoid stereotyping any group of employees and affirm the value of each
person's individual contributions.
Recognize and reward managers who support and promote workforce

diversity.
Incorporate diversity training as one aspect of any ongoing training effort

rather than to provide "one shot" diversity programs.
49
49
The Legal and Regulatory Environment
11.
EXERCISE: INVESTIGATING A SEXUAL HARASSMENT CASE

I.
Objective
The purpose of this exercise is to help you understand the procedures for
investigating an allegation of sexual harassment in the workplace.
II. Out-of-Class Preparation Time
Read the material on sexual harassment in your textbook as well as the
background below before class.
III. In-Class Time Suggested: 2030 minutes
IV. Procedures
A. This exercise should be done in groups of four to five students.
B. Each group should read the scenario and the sexual harassment policy.
C. Each group must develop a sexual harassment investigation plan that
details how they will go about determining if wrongdoing has occurred.
After completion of the group discussion, each group will present its
investigation plan to the rest of the class.
Suggested Answer
In processing the students answers, the focus should be on determining the

thoroughness of their approach and the protection of all employees involved in the
incident. There are no uniform guidelines for investigating sexual harassment
claims. One of the best things any HR manager can do is to be familiar with
landmark cases where the courts illustrate how they consider evidence in
determining whether sexual harassment has occurred. It is important to point out
to students the legal definition of sexual harassment:
50
50
According to federal law, sexual harassment is any behavior that includes

unwelcome sexual advances, requests for sexual favors, making sexual or romantic
advances toward an employee and persisting despite the employee's rejection of
the advances or other verbal or physical conduct of a sexual nature when:
submission to, or rejection of, such conduct is used as the basis for promotions or
other employment decisions;
the conduct unreasonably interferes with an individual's job performance or
creates an intimidating, hostile or offensive work environment.
In terms of the second, hostile work environment, the courts look at the
duration and nature of the harassment using what they call a reasonable woman
standard.
The scenario in the exercise is based on Tess Endres vs. Techneglas, Inc.
heard in the United States District Court for the Middle District of Pennsylvania. In
this case, the court found that the company did not do a proper investigation when
Endres first complained. The found for the plaintiff in terms establishing a sexually
hostile work environment but disparate treatment.
Some of the tips for investigating sexual harassment claims in the workplace
are:
1. Before proceeding with the investigation, a HR manager should consult with

the legal counsel in the organization (if available).
2. All claims must be investigated in a timely fashion. Where the matter entails
on-going abuse or ill treatment, there may be a need to immediately move
the complainant from possible further abuse (e.g. grant leave) or move to
another part of the workplace.
3. Review the company policy on sexual harassment. Most policies specify the
procedure for investigation as well as how they should be resolved.
4. Create a confidential investigation file.
5. Make notes on factual issues (dates, times, time of complainthow complaint
was lodged).
6. Prepare a list of possible witnesses
7. Source documents that may be pertinent to the investigation (work logs, time
sheets, emails, etc.).
8. Ask complaint for a written statement of harassment. If the complaint is
anonymous, encourage the complainer to give his/her name. If the
51
51
complainer is not the victim, encourage them to get the victim to come forth.
It is virtually impossible to follow through on a complaint if the victim does
not cooperate. However, because of the way the law is written (a company
can be liable if they should have known.) then the investigation may have
to proceed without the complainant directly as long as there is a third party
complaint.
9. Interview the parties and witnesses and examine any documentary evidence.
10.When interviewing the complainant, make sure he/she is comfortable and
also if they would like to have another person present (not a lawyer). Do not
make any judgements on what you heard, simply get the factual information
and details. Ask for pertinent details: who, what, when, how and frequency.
Get specific dates and times if possible. Ask the complainant for their
preferred resolution and expectations. This is to show that you are sensitive
to protecting them. Ask if they have spoken to anyone else about the
problem. Ask them to provide potential witnesses or any documentation that
would substantiate their statement. Do not promise absolute confidentiality
since it may be necessary to share the information (legally if the issue goes
further). Meticulous notes should be taken during all interviews. All
interviews should be written up and reviewed by the complainant review for
accuracy.
11.Promptly interview witnesses and get their statements.
12.Interview the alleged harasser and let them know of the allegations. HR will
probably have to disclose the name of the complainant but if the complainant
has asked for confidentiality advice should be sought from the companys
legal counsel before interviewing the harasser. Make notes during the
interview and provide harasser the opportunity to review and verify the
factual content. The alleged harasser should be instructed not have any
further contact with the complainant.
13.Determine if there have been other complaints against the alleged harasser.
Review his/her employment record. Review record of the complainant also
has he/she made similar complaints in the past? If so what, were the
outcomes?
14.The HR investigator should not discuss the investigation with anyone except
an immediate superior or legal counsel. He/she should also instruct the
complainant and alleged harasser to keep the matter confidential and not to
discuss it with anyone.
15.Evaluate the complaint based on the facts obtained and reviewing the
evidence.
16.Determine what action if any should be taken based on the decision as to
whether or not the sexual harassment policy has been violated. Possible
actions are reassignment, warning, suspension, transfer, termination,
demotion, counselling, etc.
17.Analyze all of the information and prepare a report that states factual
findings, rationale for views, and proposed disciplinary action or other
personnel action to be taken. Submit the report to the supervisor/top
management for review and finalization. The general counsel should review
the report before final submission.
18.Meet separately with complainant and accused harasser to discuss the report
and its outcome. If the complainant is found to have knowingly brought a
52
52
false charge, then such a matter should be dealt with in terms of appropriate
discipline.
19.File documents appropriately (all should be stamped confidential).
Alternatively, the instructor may also want to have the students role play an
interview with the complaint in this scenario (Mary Booth) and/or the alleged
harasser (Bob Simonsky).

12.
CASE: ANALYZING PROMOTION DATA: APPLYING THE 80% RULE
53
53
I. OVERVIEW:
While much of the focus has been on dealing with discrimination in initial
selection decisions, in recent years there has been more attention to treatment
discrimination as minorities and women seek advancement to higher positions. This
case focuses on a black employee who accuses the company of bypassing black
employees for promotions in favor of white employees. The case includes both
qualitative and quantitative data for the students to analyze in determining whether
or not discrimination has occurred. Topics covered in the case include: race
discrimination; promotion policies and procedures, and centralized versus
decentralized staffing policies.
II. OBJECTIVES:
This case can be used for several purposes:
1. To illustrate the complexity involved in determining whether or not

race discrimination has occurred.
2. To examine the impact of Title VII on the design and implementation
of promotion systems.
3. To explore methods of assuring equal opportunity in all staffing
decisions.
4. To demonstrate how poor personnel/human resource management
practices contribute to allegations of unlawful discrimination.
III. DISCUSSION:
The major issue facing Rutherford in the case is to determine whether or not
black employees are being discriminated against in promotion decisions. Once a
determination is made, Rutherford faces the problem of changing a basically
informal promotion system to one that is more formal with less chance for bias in
decisions. It is also evident that the promotion criteria are based on personality
traits and not job-related factors. In fact, this may be part of the cause for the black
employees' complaints. Promotion decisions are based largely on a supervisor's
54
54
subjective assessment of employee performance (particularly promotions within the

warehouse). Such a system makes an organization vulnerable to the type of
charges it is presently facing.
As part of their analysis, students should point out the need for a valid, jobrelated promotion process. This would involve Rutherford's office developing job
descriptions, performance standards, a formal job posting system, and a formal
performance evaluation process. Job posting provides equal opportunity for all
employees and creates greater openness in organization promotion decisions. They
need to also re-examine the criterion that an employee had to be on the same shift
and in the same department as the job opening. The rationale for this requirement
is not clear. Since the skills needed to perform the jobs in each department are
probably similar, the company should rely on seniority and job performance as the
major criteria. There is also a need to develop a system where employees can
apply for promotions. The current system of supervisors determining who gets a
chance to get promoted is too restrictive. A key part of the student's analysis
should focus on how Rutherford should go about implementing proposed changes.
He may encounter some resistance to change because of the previous autonomy
enjoyed by supervisors in making promotion decisions. Due to the geographical
dispersion of the company's operations, students will have to propose a method for
monitoring compliance with promotion policies. Supervisors will have to be trained
in how to conduct formal employee evaluations. Finally, Rutherford will also have to
consider the compatibility between the promotion systems for the warehouse and
stores.
The names and dates in this case have been disguised and the facts have
been abbreviated, but, in fact the case is loosely based on an actual court case. In
the actual situation, black employees filed a lawsuit against the company. The
District Court found in favor of the plaintiffs, but the United States Court of Appeals,
Fourth Circuit reversed the lower court stating the "evidence was insufficient to
sustain finding of class-wide discrimination with respect to promotions." The case
was remanded back to the District Court to decide on the merits of each individual
plaintiff's case. Subsequently, the District Court found in favor of the ten black
employees. The standard used was disparate treatment -- each employee's
situation had to be examined individually. An alternative way of presenting this
case is to have a group of students "role-play" the positions in the case. One group
can present the employees' position and the other side can determine how the
company should respond to Jackson's allegations.
55
55
1. Analyze the data in Exhibit 1.20. What conclusions do you reach?

(Is there evidence of discrimination in promotion decisions?).
Students should compare the promotion rates for black and white employees
to determine if the promotion decisions at Food Chain resulted in adverse impact
(disparate impact definition of discrimination). According to the Uniform Guidelines
on Employee Selection, disparate impact occurs when a neutral employment
practice has unequal impact according to race or sex. The following formula should
be used to calculate adverse impact:
Number of blacks promoted
Total number of black employees
Number of whites promoted

Total number of white employees
Unit
Year
Rate Comparison*
Warehouse/Stores
2008
69 percent
Warehouse/Stores
2007
107 percent
Stores
2007
69.8 percent
Stores
2008
67 percent
Warehouse
2007
135 percent
Warehouse
2008
73 percent
*Disparate impact exists if the black promotion rate is less than 4/5 of the white
promotion rate. In two cases, the black promotion rate is actually higher than the
white rate. A major issue here is whether or not the data should be looked at for
individual years or in the aggregate. If the data is combined for the company's
entire operations (warehouse and stores) over the two-year period, the overall black
promotion rate is 86 percent that of the white rate and according to the Uniform
Guidelines on Employee Selection there is no evidence of adverse impact.
56
Overall black rate
48/575 or 8.34 percent
Overall white rate
293/3017 or 9.71 percent
Comparison: 8.34
86 percent
56
9.71
The U. S. Court of Appeals ruled that in employment discrimination suits it is

preferable to examine statistical data for the time period in combined form rather
than year by year. The court further pointed out that a standard deviation analysis
(binomial) should be conducted using the aggregate data to rule out chance as the
cause of any disparity between the two rates. (See Twomey, 1986).
total number of employees promoted
black percentage of the work force
1-p
white percentage of the work force
actual number of black promotions
expected number of black promotions = np
standard deviation = square root of np (1-p)
number of standard deviations = (Q-E/s)
Here, n = 341, p = .1600, 1-p = .8399, Q = 48, E = np = 341 x .16 = 54.56, s =

54.56, (.8399) = 45.8289 = 6.769, and the number of standard deviations = 48 54.56 = .97 6.769
The EEOC requires that the promotion rate for the protected group be within
two standard deviations of the expected rate given their proportion in the work
force. Accordingly, the promotion rate in this situation meets that standard. (The
promotion rate is fewer than two standard deviations below what would be
expected.)
2. Do you believe that Gemson, Thompson, LeBlanc, and Jackson were
discriminated against?
57
57
Since the statistics in Table 1 did not indicate class wide racial discrimination,
students need to evaluate each individual case under a disparate treatment
definition of discrimination. The key issue here is what part did race play in each of
the cases presented? According to the McDonnell Douglas Corp. vs. Green case to
establish a prima facie case the employees would have to show: (1) they were
qualified for the promotion; (2) a vacancy existed; (3) despite their qualifications
they were not promoted; and (4) a white employee was promoted. From the
information gathered it is not clear that direct racial discrimination occurred.
Further, the information is somewhat incomplete to establish the four points above.
Most of the examples given seem to be due to a lack of a written, objective formal
system of promotion and the absence of clearly defined promotion criteria. For
example, in Gemson's case he "asked" about a promotion. There were no written
policies requiring supervisors to follow through on such requests. While Gemson's
total experience may have been greater, his experience at Food Chain was less than
that of Watkins. The existence of vague and subjective criteria cannot by itself
prove discrimination especially since there was no class wide discriminatory impact.
Often students will initially argue that the employees were discriminated against.
The instructor should push the students to more carefully examine the available
facts in the case.
3. What are some of the potential disadvantages of a "word of mouth"

promotion system?
The disadvantages of such systems are evident from the problems Food
Chain faced. A word of mouth system permits favoritism and cronyism. Qualified
employees may not hear about available openings. Word of mouth systems tend to
maintain the status quo.
4. What should Rutherford do now?

Several suggestions were presented earlier. First, he needs to carefully
analyze the data supplied by his assistant. Once he has completed his assessment,
he needs to develop a formal system for promotions in Food Chain. Regardless of
whether black employees were actually being discriminated against, the company
runs the risk of future problems if they continue to use their present promotion
practices. Subjective decision making rules for promotions invite suspicion of
unlawful discrimination and bias. Rutherford might also consider developing a
voluntary affirmative action program. Given the location and relatively large black

labor force in the county, it may be desirable for the company to develop a
voluntary affirmative action program.
58
58
5. What kinds of policies can the company design to better integrate

minorities into management positions?
Answers will vary but should probably include centralizing the promotions
policies, routinely posting job openings internally, creating a formal system of
performance evaluations for all employees, and allowing employees to apply for
open, higher positions, rather than relying on supervisors recommendations.

13.
CASE: BLOWING THE WHISTLE: ACCOUNTING PRACTICES AT GLENFAIR

ELECTRONICS
59
59
I. OVERVIEW
This case centers on how human resource managers should respond to

employee reports of workplace conduct that may violate federal laws. The
employee in the case believes that his supervisors aggressive accounting methods
for forecasting and calculating projected sales revenues is a deliberate attempt to
mislead shareholders and the perceived valuation of the company.
II. OBJECTIVES
The objectives of this case a twofold:
1. To make students familiar with the rights of whistleblowers in the

workplace and relevant legislation.
2. To explore the role of human resource managers in the managing
whistleblowing.
III. DISCUSSION
Students should be encouraged to discuss both the protection of

whistleblowers and the role of human resource managers in such cases. It is
important to point out to students that Anwars statements are only allegations at
this point. However, because he has come forward to share his perceptions with an
official of the company, he is protected under the Sarbanes-Oxley Act of 2002.
President Bush signed the law into effect on July 20, 2002. In light of a slew of
recent corporate fraud violations (e.g. Enron, Tyco), the Act is intended to deter and
punish corporate fraud and corruption by protecting employees who report such
activities.
The Act prohibits publicly traded companies from taking any adverse
employment action against an employee because of his or her whistleblowing

activities. The employee is protected if he or she reasonably believes the action
involves a violation of federal securities laws, the rules or regulations of the
Securities and Exchange Commission or any federal law relating to fraud against
shareholders. The employee is protected even if the allegations are incorrect or
unsubstantiated as long as the employee reasonably believes that the conduct
observed is a violation.
60
60
The Act places a burden upon any person with supervisory authority over the
employee or any other employee working for the company who has authority (e.g.
human resource executive) to investigate, discover, or terminate the misconduct.
This latter requirement should push students to discuss what obligation Bob Schein
has as the Vice President of Human Resources. Obviously, Anwar cannot take the
allegation to Beatty.
IV. ANSWERS TO CASE QUESTIONS
1. If you were Schein, what would you do if anything? Explain.

This is not an easy situation for Bob Schein. Right now Anwar Patel believes
that a violation is taking place. Human resources is clearly a staff position in the
organization. Nevertheless, the Sarbanes Oxley Act has implications for what Schein
must do. First, Bob must inform Anwar of his rights under the Act and assure him
that he is protected. Anwar must be told that he cannot be discharged, demoted,
suspended, threatened, harassed or otherwise discriminated against because
whistleblowing is a protected act. These assurances must be given to Anwar to
allay his fears. Even though Bob is in a staff role, he is nevertheless a member of
the senior management team at Glenfair, a position that carries responsibilities to
both the companys shareholders and employees. Bob must try to determine if the
allegations have any merit. He should find out what illegality could exist and
ascertain the companys exposure to liability. Since accounting practices may be
out of Bobs professional expertise, he probably should have a confidential
discussion with the CEO or the general counsel of Glenfair. He cannot go directly to
the CFO since it may jeopardize the investigation. Either the CEO or the general
counsel could authorize an appropriate audit of the accounting methods to see if
they are within the limits of acceptable practice and/or if they expose the company
to possible fraud allegations.

2. What should Bob do about Patels claim that Beatty has become
hostile towards him?
61
61
In addition to reassuring Anwar that he is protected from retaliation and

harassment by the Sarbanes-Oxley Act, Bob should request Anwar to put the
episodes of hostility in writing indicating the nature of Beattys behavior and its
specific occurrences. Furthermore, the law states that any employee of a public
company that engages in whistleblower discrimination may be found individually
liable to the aggrieved employee.
3. What rights and protections do whistleblowers have in the

workplace today?
Much of the answer to this question can be found in the discussion above.
The Sarbanes-Oxley Act of 2002 greatly increases the protection of whistleblowers.
It also gives whistleblowers the private right of action and even provides for the
potential imposition of criminal penalties (including imprisonment) against
individuals who retaliate against whistleblowers. Companies must review their
human resource policies to prohibit discrimination and retaliation against
whistleblowers. There should also be procedures in place for employees to report
potential securities and accounting fraud. Companies must investigate fully all
claims of whistleblower discrimination and take immediate and appropriate
remedial action necessary to end the discrimination, including discipline.

14.
CASE: LGA INDUSTRIES: EMPLOYING UNDOCUMENTED IMMIGRANTS
62
62
I. OVERVIEW:
This incident gives students an opportunity to discuss the requirements of the

Immigration and Control Act passed by Congress in 1986. At the same time, it
places students in an ethical dilemma in terms of Martins suspicion about the
behavior of the company. Most of the real life situations involving the employment
of undocumented immigrants are quite similar to the one described in the incident.
Too many companies given the pressures of keeping wages down and the scarcity of
unskilled labor have risked hiring illegal immigrants. Prior to 1986, it was not illegal
for employers to use undocumented immigrants. It was only illegal for the
employees themselves to misrepresent their status. However, once the
Immigration Reform and Control Act was passed in 1986, it became illegal for
companies to employ illegal immigrants. Recent legislation passed in 2005 and
2006 have increased employer responsibility for verifying employment eligibility.
II. OBJECTIVES:
1. To familiarize students with the requirements of Immigration and

Control Act of 1986 and more recent legislation.
2. To place students in an ethical dilemma that requires action.
III. DISCUSSION:
Since 2000, an estimated 850 000 unauthorized immigrants have entered the
United States each year. Currently there are estimated to be between 11 and 12
million illegal immigrants living within the United States. Congress has been
involved in fierce debates about how to deal with the flow, most of which
originates from Latin America and Mexico. Two-thirds of arrivals get jobs, many
at low wages. The public view on immigrants is mixed, but polls indicate a
majority believes employers should be penalized for employing illegal
immigrants. President Bush has proposed several pieces of legislation to stem
the tide of immigrants from Mexico. In 2005, House of Representatives passed
the Border Protection Anti-terrorism and Illegal Immigration Control Act of 2005,
which emphasizes enforcement and border security. The Comprehensive
Immigration Reform Act of 2006 passed by the US Senate on May 25, 2006
includes more than just border security. It includes a guest worker program and
employer-based skilled worker provisions. Title III (Section 301) of the Act

makes it unlawful for an employer to hire, or to recruit or refer for a fee, or
continue to employ, an alien for employment in the United States knowing, or
with reckless disregard, that the alien is unauthorized to work.
63
63
Some commentators argue the heavily amended bill that the Senate finally
approved -- one of the most sweeping and comprehensive immigration reform
proposals ever to be passed by either house of Congress -- is a multi-headed
monster, composed of a myriad complex and poorly integrated provisions. To
complicate matters further, several states are considering passing their own
legislation. The states bordering Mexico are in particular keen to strengthen
fines to companies who knowingly employ illegal immigrants. At the time of
preparing this manual, a conference committee was working to reconcile the
differences between the Senate and House bills.
There are, however, common areas in the bills. Both bills require the
establishment of an electronic system to expedite the verification of a new hires
eligibility for employment in the USA. Employers would have three working days
in which to check new employee eligibility. This eligibility would be confirmed or
disconfirmed as part of a national employment verification system. A pilot
program showed 63 percent support for such a system in a survey conducted by
Society for Human Resource Management (SHRM). Both bills would increase civil
penalties for recruiting, hiring, and referral violations ranging from $ 4,000 to $
40, 000 depending on the violation. Additionally, the legislation would bar
employers from obtaining a Federal government contract, grant or agreement or
would debar employers currently holding for five years if the Secretary
determines the employer is a repeat violator or has been convicted of employing
illegal immigrants. The whole reform effort should be understood within the
broader context of homeland security reforms in light of 9/11 and the goal to
better protect US borders.
1. What factors appear to be affecting LGAs staffing practices?

The major factors include the shortage of labor in the town. The company
appears to be experiencing difficulty in hiring from its traditional labor pool of high
school graduates as young people leave the town for bigger cities. Also given the
location of the company, the town is probably attracting a large number of
immigrants who are attracted by the prospects of employment. LGA also appears
to need a rather substantial pool of unskilled employees which can be satisfied from
the immigrants coming into the town. Increasingly, U.S. born employees are
unwilling to work in perceived low-paying, low status jobs. Some would even argue
that immigrants perform jobs Americans are unwilling to do. In other cases, unions
64
64
have argued that the low wages paid to illegal immigrants suppresses the wages of
U.S. nationals. Employers in some USA cities have pointed out that without access
to immigrant employees, they would not be able to meet staffing needs.
2. Who is responsible for meeting the requirements of the Immigration

and Reform and Control Act in respect of the completion of I-9
Forms?
The U S Congress passed the Immigration Reform and Control Act (IRCA) in
1986 and mandated the I-9 employment verification requirement. IRCA was
designed to discourage the employment of illegal immigrants and, in so doing,
discourage illegal immigration into the United States. The I-9 form is used to verify
both the identity of all employees hired after November 6, 1986, and their eligibility
to work in the United States. According to the IRCA, whenever an employer hires
an individual (U.S. citizen or non-U.S. citizen) as an employee, the employer is
required to complete the I-9 form. An employee is defined as any person who
performs labor or services in return for wages or other remuneration. If an
employee does not have the proper documentation within three business days of his
or her start date, the employer must terminate the employee. If within this time the
employee produces a receipt showing that he or she has applied for a work
authorization or identification document, the employee must be given 90 days to
produce the required documentation. There are certain individual exemptions:
Employees hired prior to November 7, 1986, and continuously employed by
the same employer.
Employees hired for private, casual domestic work on an irregular basis.
Independent contractors, for whom the employer has not set work hours,
provided tools for the job, or whom the employer does not have the authority
to hire and fire.
Dual employer or joint employer. In light of recent high-profile
enforcement actions, it is important to determine if you are a dual
employer or a joint employer. This is defined as the relationship between a
professional employer organization (PEO) or employee leasing firm and an
employer, based on a contractual sharing of liability and responsibility for
employees.
The employer has the major responsibility to ensuring the I-9
information is collected timeously. The regulations are quite specific in that it
is the employers responsibility to assure that the employee fills in the correct
information and signs and dates the form. Failure to provide accurate
65
65
information on the I-9 can make the employer liable. Employees must
indicate their current status, either as citizens/nationals of the U.S., lawful
permanent residents (green card holders) or aliens eligible to work with
temporary work authorization. The employer must make sure all
documentation presented by the employee is original (not photocopies) that
establish identity and employment eligibility. Employers must also ensure
that employees maintain employment eligibility. An employer cannot
abdicate his/her responsibility for the I-9 documentation and employee
status.
NOTE: Instructors should review the final requirements of I-9 employment

verification when teaching this case. At the time of preparation of this
manual, the conference committee work had not been completed to reconcile
the new legislation passed by Congress and the Senate.
3.
If you were Martin, what would you do now?
Students will be quite involved in debating Martins dilemma. They will be

keen to focus on determining the best action for Martin depending on whether LGAs
actions are viewed as deliberate or based on poor management. Hence, the key
question in the case is: whether or not LGA is knowingly accepting false documents
or has not been diligent in monitoring the performance of the employment agency
in regard to I-9 requirements. If the former is the case, then Martin has a legal
obligation to report the offence. If he has knowledge of such practices and does not
report them to authorities then he too could be implicated. On the other hand, if it
is a case of over reliance on the employment agency given the pressures of finding
adequate labor, LGA is still liable for making sure they abide by legislation in
respect of employment verification. The instructor should also point out that Martin
would be protected by US whistleblower legislation.
66
66
15.
CASE: THE BROKEN EMPLOYMENT CONTRACT?
I. OVERVIEW
This case describes the termination of Arthur Wayne from his job after five
years of service. The case requires students to determine whether Wayne had an
employment contract with EcoCare and whether he was wrongfully discharged. The
case allows for a full discussion of the employment-at-will doctrine and its
applicability. Topical areas include employment-at-will, termination policies,
grievance procedures, performance management, employee discipline, and
employee rights.
II. OBJECTIVES
1. To help students understand the legal complexities involved in

discharging employees.
2. To introduce students to the "employment-at-will" doctrine.
3. To allow students to evaluate what constitutes "just cause" in
termination decisions.
III. DISCUSSION
This case is quite effective in discussing the legal complexities involved in

terminating employees. This case is based on Toussaint vs. Blue Cross & Blue
Shield of Michigan, Michigan Supreme Court, 1980, 115. LRRM. 4708. The major
issues in this case are whether there was an agreement to terminate Wayne's
employment only for just cause (that is did he have an employment contract with
EcoCare which stated that he could only be fired for just cause or was his
employment subject to the "employment-at-will" doctrine?) and if so whether
Wayne had been discharged for good cause. The former issue is very important and
raises the pertinent question of whether Wayne's employment was subject to the U.
S. common law doctrine of "employment-at-will." If the "employment-at-will"
defense can be used by the employer, then the company would be unrestricted in
its right to terminate employees.
67
67
The employment-at-will (EAW) doctrine protects an employer's right to

discharge workers for good, bad, or no reason at all. In recent years, however, a
spate of judicial rulings has led to restrictions. These restriction include (1) public
policy exceptions--where an employer's discharge contravenes a well-established
public policy, e.g. an employee is terminated because he/she refused to commit an
unlawful act; (2) duty of good faith and fair dealing--where the employer acts in
malice or bad faith, e.g. firing a worker who is about to be vested in the company's
pension plan; and (3) implied contract rights--where the employer's personnel
manual or other policies imply a contract of employment (this restriction arose out
of the court's ruling in the Toussaint case). The heart of the issue focuses on an
employer's right to terminate employees based on business and organizational
objectives and an employee's right to fair treatment and job security. A corollary
issue that students should discuss in their analysis is the changes needed at
EcoCare to prevent any future problems.
The root of the problem for EcoCare seems to be embedded in the lack of
poor training of managers involved in the hiring process. Bell's statements to
Wayne were somewhat irresponsible; especially, her comment that she "did not
know of anyone ever being discharged." Further, students should point out that Bell
did not follow company policies in handling Wayne's performance problems. The
Supervisory Manual outlines a detailed procedure for handling discipline problems.
It appears that Bell did not follow the steps outlined. It is debatable whether or not
Wayne's alleged conduct falls under one of the reasons justifying immediate
termination. Bell's comments to the personnel director, Chris Miller, seem to imply
that Wayne was terminated for insubordination. It is possible that his conduct fell
under dishonesty and falsification of company's records. It is not clear that Bell or
Findlay had any proof on who had altered the odometers. Several students will
point out that Wayne was unable to give his supervisors an adequate explanation of
the discrepancies and as such EcoCare has the right to terminate him.
Nevertheless, even if his behavior warranted immediate termination, the company's
policies clearly state that an employee should first be suspended and then the
supervisor should consult with the personnel department about subsequent actions.
Neither Bell nor Findlay consulted with Personnel.
There are several alternatives that students can propose for the case. From
the perspective of the company president and the Board of Trustees students could
propose that they place Wayne on suspension until a full investigation can be
launched. In any case it is clear that the company's own policies were not followed.
On the longer-term more general issue, students should propose changes in the
68
68
company's pre-employment hiring process and its administration of discipline. For

example, while the policy manual stresses "fair and consistent" treatment of all
employees, supervisors should be trained in using the policy to avoid future
occurrences of the problems experienced by Wayne.

IV. ANSWERS TO CASE QUESTIONS
69
69
1. Did Wayne have an employment contract either oral or written with

EcoCare? Why or Why not?
Based on the facts in the case, Wayne did not have a contract with EcoCare in
the normal sense of the word. However, in the actual court case on which this is
based, the court held that "... while employers are free to enter into employment
contracts terminable at will without assigning cause, an employer's express
agreement to terminate only for cause, or statements of company policy and
procedure to that effect, can give rise to rights enforceable in contract." Bell's
comments to Wayne also gave him further assurance of job security and that he
could expect to be with EcoCare "as long as he did his job." In fact during the
interview, Wayne was also given a copy of the employer's personnel handbook,
which also stated that "discipline will be given only for cause."
2. What problems, if any, do you see with EcoCare's pre-employment

process?
The major problem with their process seems to be in not training their
supervisors on how to answer employee questions about job security. Clearly, Bell
thought she was accurately portraying the company's policies. This is a common
error often made by interviewers of not always giving applicants accurate and
realistic information. This occurs because of the interviewer's desire to present the
company in the best light possible.
3. Can an employer's written personnel policies ever be construed as

a contract between an employer and an employee?
Yes, in Toussaint vs. Blue Cross & Blue Shield, the court held that "statements
of company policy and procedures can give rise to rights enforceable in contract."
However, many courts will not recognize such a contract unless the employer has
made specific promises of continued employment. The difficulty here is that there
has not been a definitive Supreme Court case on the "employment-at-will doctrine"
and consequently its current status rests upon the interpretation of the rulings of a
host of state courts. Since the Toussaint case there seems to be some shift in the
weight and the authority of employee handbooks and personnel policies as implied
contracts. For example in Reid vs. Sears, Roebuck & Co., DC E. Michigan, 1984, 120

LRRM 2238, the court held that a plaintiff's subjective belief that she could be
terminated only for just cause by itself creates no enforceable contract rights.
According to Schwartz vs. Michigan Sugar Co., Michigan Ct App, 1981, 115 LRRM
4585, notwithstanding the decision in Toussaint, an employee who argues that
personnel policy or an employee manual creates a right to continued employment
must still identify an oral or written assurance of job security. The EcoCare case
would pass this test because the court held that he was handed a manual, which
reinforced the oral assurance of job security made by Bell during the interview.
(See the Bureau of National Affairs publication, "Individual Employment Right
Manual" listed below for information on the status of employment-at-will in other
states.)
70
70
4. Was Wayne terminated for "just cause"? Why or why not?

This question is debatable. Some students will argue that the Bell and
Findlay probably believed that Wayne had tampered with the odometers because he
was unable to offer a good explanation for the discrepancy. If they believe this,
then his conduct might be subject to immediate termination. On the other hand,
one could argue that Wayne's previous performance had been above average and
that there had not been any other disciplinary problems. Therefore he should have
been given more consideration and a better chance to present his side of the story.
It seems that Bell did not follow the four-step progressive discipline process outlined
in the supervisor's manual nor did she consult with personnel about her intended
actions. It is not clear from the case if any of Wayne's performance problems were
documented or reported to personnel as required by the policy manual. The court
held in Toussaint that he was terminated without just cause and without the benefit
of requisite warnings, notice, hearing and other termination procedures as provided
in the Blue Cross Supervisory Manual. Part of the difficulty here is defining "just
cause." This is an issue that many arbitrators grapple with on a daily basis.
5. How can companies protect themselves against a claim of

"wrongful discharge"?
There are several actions that companies can take to protect themselves
against charges of wrongful discharge.
Review all personnel policy handbooks or other statements to

employees for any implied contract language. Many experts
71
71
suggest that companies include statements disclaiming any

guarantee of employment in employee handbooks and policy
manuals and on job applications. For example, a simple statement
like "after a 90 day probationary period you become a permanent
employee" might give rise to a wrongful discharge claim by
employees.
Design and implement a fair discipline procedure to assure due
process for employees. An important element of this step is
adequate training of supervisors who must implement the policies.
Consistency in the application of discipline is essential to avoiding
wrongful discharge claims.
Set up a grievance process for handling employee cases--models
are available in union-management labor contracts.
Have an on-going performance evaluation system where employee
performance is accurately evaluated and documented.
Do not engage in terminations that may violate exceptions to the
employment-at-will doctrine (public policy, fair dealing, and good
faith).

16.
EXERCISE: The Older Worker Questionnaire
72
72
I. OBJECTIVES
1. To familiarize you with typical stereotypes toward older

workers and the managerial implications of these
stereotypes.
2. To provide you with factual information regarding older
workers.
II. OUT-OF-CLASS PREPARATION TIME: 10 minutes to complete the Older Worker

Questionnaire shown in the text.
III. IN-CLASS TIME SUGGESTED: 2030 minutes for group and class discussion of
all items on the Older Worker Questionnaire.
IV. PROCEDURES: SEE TEXT
V. SOLUTIONS:
The answers provided below are based on the referenced sources. It is

important to note that that not all studies may agree with these answers. When
presenting these answers, the important point to make is that many employees
stereotype older workers and this affects how they behave toward these workers
and, ultimately, how these older workers behave toward them.
1. False. Studies have shown that as a general rule, older employees are typically
more satisfied than are younger ones. A Conference Board study showed that 49%
of workers aged 35-44 were satisfied with their job vs. 58% for workers over the age
of 65. (Conference Board Reports Today, February 28, 2005). Another study found
73
73
that 90% of older workers are generally satisfied with their job. (AARP Bulletin Poll,
Sept., 2007). A third study showed that 39% of employees 25 and younger liked
their job vs. 45% for those aged 45-54 and 50% for those over the age of 55. (Inc.
Magazine, March 6, 2007)
2. False. Employees aged 50-65 use on average 1.4 to 2.2 times as much health
care as workers in their 30s and 40s. (Planning for Tomorrows Talent Needs in
Todays Competitive Environment. AARP Report, December, 2005. Prepared by
Towers-Perrin)
3. True. At least one study shows that employers value older workers loyalty, work
ethic, reliability, and experience. ( Munnell, Sass, Soto, Employer Attitudes Toward
Older Workers: Survey Results, July, 2006)
4. True. By 2012, 20% of the workforce is expected to be over the age of 55.
(AARP Press Center, 2005)
5. False. 68% of workers aged 50-70 say they plan to work in their retirement
years. (AARP Press Center, December 21, 2005) Authors note: Because of the
recession in 2008-2010, this number is likely to have increased.
6. True. A study of 5000 retirees found that 64% of them aged 55-65 stated that
not be valued by the company was an important reason for leaving. Half said that
truly being needed for an assignment would have been extremely or very
effective in a decision to delay retirement. (AARP Bulletin Today, July 11, 2008)
7. True. The typical unemployment rate for those over 55 has been about 6% since
1949. (Employment Situation, October, 2009: Unemployment for older workers
spikes up, PPI Fact Sheet 162, November, 2009)
8. False. The average retiree received only $1,153 in social security each month in
2008. (www.socialsecurity.gov web site, January, 2010)
74
74
9. False. According to a National Academy of Sciences report, as persons age there

is some reduction in pupil size together with a loss in accommodating capacity. The
20 year old eye receives about six times more light than the 80 year old in light
adapted conditions. For a detailed task where performance varies with illumination,
older workers may need extra lighting. (National Research Council. Work, Aging,
and Vision: Report of a Conference, National Academy Press, 1987)
10. False. Older workers can receive reduced social security benefits at age 62.
Workers born in 1960 or later do not receive full social security benefits until they
are 67. Workers can postpone receiving benefits after the age of 67 if they chose
and will receive higher benefits. (www.socialsecurity.gov web site, January, 2010)
11. False. Workers older than 50 have been found to be more motivated to exceed
job expectations than are younger workers. (AARP Press Center, December 21,
2005)
12. True. Employers view older workers as more productive, at least as attractive in
terms of employment, but more costly than younger workers. (Munnell, Sass, Soto.
Employer Attitudes Toward Older Workers: Study Results. July, 2006)
13. True. Older Workers do take longer to learn new materials compared to when
they were younger or with performance of a younger person. However, much of
this difference can be explained by variables other than age such as illness,
motivation, learning style, or lack of practice. (AARP, The Aging Workplace, page
33)
14. False. The Age Discrimination in Employment Act applies to workers age 40
and above. (EEOC website, January, 2010)
15. False. Younger workers miss LESS work due to injuries and illness than older
workers. Workers over 65 missed 15 days a year due to injuries and illness
compared to 9 days for 35-44 and 5 days for 20-24 year old employees. (Bureau of
Labor Statistics. December, 4, 2009)
75
75
16. True. Reflective or hands-on approaches are among the best ways for older
workers to learn. 90% also said they learn best by putting their hands on something
and manipulating it or figuring it out. (AARP Research Survey on Life Long Learning,
2000)
17. True. Workers born between 1946-1964 are call baby boomers.
18. True. Older workers generally do have slower reaction times than do younger
people, and this appears to be true regardless of the kind of reaction that is
measured. However, the difference in reaction time is typically only a small
fraction of a second, not enough to make a difference in performing most duties.
(AARP. The Aging Workplace, page 34)
19. True. On average, workers over the age of 45 say they have worked 15.5 years
with the same firm, and 78% say they want to remain with the firm until retirement.
(AARP, Staying Ahead of the Curve, 2002)
20. False. Studies of taste and smell sensitivity show that they decrease with age.
All five senses tend to decrease with age. (AARP. The Aging Workforce, page 34)

17.
EXERCISE: IS THIS UNLAWFUL DISCRIMINATION?
76
76
I. OBJECTIVES:
1. To help students understand the application of the four major

federal laws which regulate equal rights in employment. These
laws are Title VII of the Civil Rights Act of 1964 as amended by EEO
Act of 1972, Civil Rights Act of 1991, Equal Pay Act of 1963, Age
Discrimination Act of 1967, the Vocational Rehabilitation Act of
1973 and the American with Disabilities Act of 1990.
2. To help students understand the court's interpretation of these
laws.
3. To help students understand the legal definition of discrimination
and the burden of proof placed on defendants and plaintiffs.
II. OUT-OF-CLASS PREPARATION TIME: 60 minutes.
III. IN-CLASS TIME SUGGESTED: 45 minutes.
IV. PROCEDURES:
1. All students should read the exercise and review the major laws
before class.
2. The class should be divided into groups of 4.
3. Each group should read each of the incidents that follow and
answer these questions:
What legal statute(s) apply in this case?
What issue(s) must the court decide in this case?
If you were the judge, how would you rule?
Did the employer discriminate unlawfully? Why or Why not?

NOTE: It is a good idea to ask students to read over the exercise prior to class. If
time is a constraint, the instructor may want to eliminate some of the scenarios.
The case scenarios included were chosen to illustrate important concepts in
understanding equal employment laws (e.g. adverse impact, BFOQ, burden of
proof). The scenarios are based on actual court cases.
77
77
V. ANSWERS TO QUESTIONS FOR EACH CASE:

1. Title VII of the CRA of 1964 which prohibits discrimination on the basis
of religion.
The court must decide if Mobley is a victim of religious harassment.
The jury ruled that Mobley had been a victim of religious harassment
and she was awarded $30,250 in compensatory damages. The Judge
agreed with jurors who felt that Mobley had experienced pervasive and
severe harassment at the hands of her supervisor and colleagues. The
hostile environment theory typically used in sexual harassment cases
was applied by the Judge. This case is based on McIntrye-Handy vs.
The State Health Department of Hampton (VA.), the first federal court
case to apply the hostile environment theory to the issue of religious
freedom.
2. Title VII of Civil Rights Act (1964; Civil Rights Act 1991) prohibiting
discrimination on the basis of race.
The major issue is whether or not the employer is guilty of intentional
employment discrimination (disparate treatment) by treating a black
applicant different from white applicants. For a prima facie case to be
established, Roberts must show four things (see McDonnell Douglas
Corp. vs. Green, 1972): (1) that he belongs to a group protected from
discrimination under the Act; (2) that he applied and was qualified for a
job for which the employer was seeking applicants; (3) that, despite
being qualified, he was rejected; and (4) after being rejected, the
employer kept looking for people with qualifications similar to the
applicants.
Employer discriminated against Roberts. Given the information in the
case Roberts would be able to present a prima facie case of
discrimination.
78
78
3. Title VII of the CRA of 1964 that prohibits discrimination on the basis of
sex.
The major issue before the court is whether or not Jones was denied a
partnership because of her gender. A key part of answering this issue
is understanding the respective burdens of proof of a defendant and
plaintiff under Title VII when it has been shown that an employment
decision resulted from a mixture of legitimate and illegitimate motives.
This case is based on the Supreme Court Case of Price Waterhouse vs.
Hopkins, No. 87-1167 decided on May 1, 1989. Hopkins, a female CPA,
sued her company in Federal District under Title VII of the CRA of 1964
charging that it had discriminated against her on the basis of sex in its
partnership decisions. The District Court ruled in her favor on the
question of liability, holding that the employer who has allowed a
discriminatory motive to play a part in an employment decision must
prove by clear and convincing evidence that it would have made the
same decision in the absence of discrimination, and that the employer
had not carried this burden. The Supreme Court reversed the lower
courts and remanded the case back to the District Court. The Supreme
Court argued that when a plaintiff in a Title VII case proves that her
gender played a part in an employment decision, the defendant may
avoid a finding of liability by proving by a preponderance of evidence
that it would have made the same decision even if it had not taken the
plaintiff's gender into account. The case was remanded back to the
District Court where Hopkins won her case (see 52 FEP Cases 1275).
4. In this case Title VII does not apply since the courts have uniformly
held that Title VII's ban on sex discrimination does not encompass
discrimination against transsexuals (it also does not address sexual
preferences). It is generally recognized that congressional intent in
including sex in Civil Rights Act was to protect women from unlawful
discrimination. Further transsexuals are not a "suspect class" under
equal protection analysis. (See Kirkpatrick vs. Seligman & Latz 21 FEP
Cases 40 1979).
5. Title VII of the CRA of 1964.
79
79
The major issue is whether racially oriented name-calling is a form of

racial harassment and constitutes discrimination on account of race in
violation of Title VII of the CRA.
The ruling was in favor of the plaintiff. This incident is based on

Holland vs. First Virginia Bank. The U.S. District Court of Eastern
Virginia found both the supervisor's behavior and the bank's handling
of the incident appalling. The supervisor and the bank maintained that
the remarks were only made as a "joke." The court held that racial
harassment constitutes a violation of Title VII. The court argued that
"shop talk" and name calling occurring on the job that borders on
racial, ethical or sexual overtones, can be in violation of Title VII.
Employers need to take prompt action and corrective measures. If the
employer condones the talk, the employer may be subject to litigation
and a finding of discrimination.
6. Title VII of the CRA of 1964, which prohibits discrimination on the basis
of sex.
The major issue is whether in making the promotion the county
permissibly took into account the sex of the applicants in violation of
Title VII. Related to this is the legality of the county's affirmative action
plan. That is, did a voluntary affirmative action plan designed to
achieve a workforce that reflected the race and sex composition of the
county's population violate Title VII which prohibits discrimination on
the basis of race and sex. The county had never been legally required
to have an affirmative action plan, nor did it ever acknowledge any
past discrimination.
This is based on the Supreme Court case: Johnson vs. Transportation

Agency, Santa Clara County, California, et al., No. 85-1129, March 26,
1987. The court found for the County and ruled that employers who
had not necessarily discriminated against women and minorities can
still give preference to integrate on the basis of sex and race. The
court relied upon its conclusions in Steelworkers vs. Weber and argued
that an employer seeking to justify adoption of an affirmative action
plan need not point to its own prior discriminatory practices or even to
evidence of "arguable violation" on its part; there need be only
conspicuous imbalance in traditionally segregated job categories. In
the county women constituted 36.4% of the area's labor market but
only 22.4% of the transportation department's labor force. As for the
80
80
job classification relevant to this case, none of the 238 skilled craft job
had even been held by a woman.
The court held that the county appropriately took into account as one
factor the sex of the female applicant in determining that she should
be promoted to road dispatcher. The Affirmative Action Plan of the
county represents a moderate, flexible, case-by-case approach to
effecting a gradual improvement in the representation of women and
minorities in the department's work force.
7. Title VII.
Can the school district treat being male as a bona fide occupational
qualification for being employed as a principal in a secondary or middle
school?
The court ruled in favor of the plaintiff. (See Williams vs. Hoffmeister
27 FEP Cases 782 1982). The BFOQ exception is an extremely narrow
exception to the general prohibition of discrimination on the basis of
sex. The employer relying on the BFOQ exception must demonstrate
that the normal operation of business required members of one sex
only to perform the duties of the job involved. The school district could
not show that a "male image" was a BFOQ.
8. Rehabilitation Act of 1973, Section 504 states "no otherwise qualified

person shall, solely by reason of his/her handicap, be excluded from
the participation in, be denied the benefits or, be subjected to
discrimination under any program or activity receiving federal financial
assistance." The American with Disabilities Act is also relevant. It
states, "An individual with a disability who meets the skill, experience,
education, and other job-related requirements of a position held or
desired, and who, with or without reasonable accommodation, can
perform the essential functions of a job."
The major issue is whether or not Poole's employer violated the Act
because it removed him from his classroom duties to an
administrative, non-classroom position. Can the employer show that
there is substantial risk of future injury or a reasonable basis for its
assessment of the risk or injury to the employee himself, his students,
his co-workers, or the public by retaining him as a classroom teacher?
A prerequisite question is whether or not AIDS is classified as a
handicap under the Rehabilitation Act.
81
81
This incident is based on Chalk vs. U.S. District Court and the Orange
County Superintendent of Schools. The Federal appeals court ruled in
favor of Chalk and issued a preliminary injunction requiring the county
education department to restore his classroom duties. The court relied
upon School Board of Nassau County, Florida vs. Airline (______ U.S.
______) 94 L. Ed. 2d 307 (March 3, 1987) which held that an individual
with a chronic contagious disease, tuberculosis, is within the coverage
of Section 504 of the Rehabilitation Act. The court first held that AIDS
as a contagious disease is a handicap under the Rehabilitation Act. On
the second issue of under what circumstance may a person
handicapped with a contagious disease be "otherwise qualified" within
the meaning of Section 504. That is, can he perform his required
duties in spite of his handicap? The court ruled that based on the
accumulated body of medical evidence there is no known risk of nonsexual infection in most situations we encounter in our daily lives.
Casual social contact between children and persons infected with the
AIDS virus is not dangerous. Under the new ADA a person with AIDS or
who is HIV is protected.
9. Title VII of the Civil Rights Act and the Equal Pay Act.
Is Laruen Hills discrimination complaint time barred because the
discriminatory decisions relating to pay had been made more than 180
days prior to the date she filled her charge? (Hill had been employed
since 1979 and had been receiving her pay but only filed a case in
1998. Complainants have up to 180 days to file a discrimination
charge after the incident.
This case is based on Ledbetter v. Goodyear Tire & Rubber Company. A
US Supreme Court ruling in 2007 held that the statue of limitations for
presenting an equal-pay lawsuit begins at the date the pway was
agreed upon, not at the date of the most recent paycheck, as a lower
court had ruled. Thus Ledbetter lost her case. However, after much
contention, Congress passed a new law entitled, the Lilly Ledbetter Fair
Pay Act of 2009. This bill amended the Civil Rights Act of 1964 stating
that the 180 day statue of limitations for filing an equal-pay lawsuit
regarding pay discrimination resets with each new discriminatory
paycheck.
10.Age Discrimination Act.
82
82
This is an unusual case for age discrimination law since most cases
revolve around dismissal or demotion. However, the major question is
whether or not she was a victim of age harassment in violation of the
Age Discrimination Act
The court ruled in Skeens favor. She was awarded $10,513.86. The
derogatory comments were indeed a form of harassment. Also the
employer failed to action after Skeen complained. The company is
responsible for maintaining an environment that is free of harassment.
This case is based on D. Paigo vs. Massey-Yardley Chrysler Plymouth
(Fort Lauderdale, FL).
11.Title VII of Civil Rights Act (also Executive Order 11246).

Can employees most recently hired be subject to layoff if this action
will compromise the affirmative action efforts established?
Based on Firefighters Local Union No. 1784 vs. Stotts 1984, Supreme
Court upheld a bona fide seniority system over an affirmative action
consent decree in the situation of layoffs. (See also Wygant vs.
Jackson Board of Education 1986). Generally, the Supreme Court has
held that affirmative action goals do not take precedent over bona fide
seniority systems and goals are permissible in hiring situations where
the employer has a history of previous discrimination.
12.American with Disabilities Act of 1990.

The court must decide whether the company discriminated against a
clinically depressed employee in violation of the ADA. The court will
have to decide if Herbert Fox was able to perform the functions of his
job (in other words was he a qualified handicapped person?).
This case scenario is based on August vs. Office Unlimited Inc.
Although this case was heard under Massachusetts state disability
discrimination law it has major implications for understanding the
application of the ADA. The court held that the evidence demonstrated
that the plaintiff could not perform his job and therefore no violation of
the state act had occurred. The state disability discrimination law like
the ADA only protects a "qualified handicapped person." The term
qualified handicapped person is defined as a handicapped person who
83
83
is capable of performing the essential functions of a particular job, or

who would be capable of performing the essential functions of a
particular job with reasonable accommodation to his/her handicap.
Additionally, because Fox's own disability insurance claim forms and
statements from his treating psychiatrist showed that he was totally
disabled, he could not be a qualified handicapped person. Even with
reasonable accommodation (e. g. missing morning meetings or
working part-time) he would not have been able to do his job because
of his illness.
13.Title VII of the Civil Rights Act of 1964 prohibiting discrimination on the
basis of national origin.
Does the denial of the promotion to Lee because of her accent violate
Title VIIs ban on national origin discrimination?
Perhaps most central to ones national origin is the use of language in
the workplace. An employment decision based on foreign accent does
not violate Title VII if an individuals accent materially interferes with
the ability to perform job duties. This assessment depends upon the
specific duties of the position in question and the extent to which the
individuals accent affects his or her ability to perform job duties. The
EEOC requires employers to distinguish between a merely discernible
foreign accent and one that interferes with communication skills
necessary to perform job duties. Thus, the test is whether or not the
employees accent interferes with the ability to perform job duties. In
Lees case she had received outstanding performance reviews as a
teller. Since tellers regularly interact with customers, her outstanding
rating would indicate that her accent did not materially interfere with
her job performance. Being a customer service representative would
not require much more language proficiency than she had
demonstrated as a teller. There is no indication in the case that
customers had complained about not understanding Lee.
This case is based on Cambodian American Planna K. Xieng who filed a
discrimination claim alleging that the bank he worked for overlooked
him for a promotion because of his accent. The bank felt that he did
not have sufficient English skills to calm irate customers. The court
awarded Xieng $389,000 in damages. In another relevant case, a
Chinese American received a $55,000 settlement of a discrimination
complaint that she filled with the EEOC against a Northern California
marketing research firm. Chow charged that a supervisor at the firm

harassed her for months eventually forcing her to leave the firm
because she speaks with an accent.
84
84
14.There are no federal statutes prohibiting weight discrimination in the

workplace. Weight is not identified as a protected characteristic. The
differential application of weight standards to members of protected
classes may be covered by Title VII if they constitute disparate
treatment (e.g. applying a weight standard to women but not men).
Being overweight, in and of itself, generally is not an impairment under
the American with Disabilities Act. However, severe obesity which has
been defined as body weight more than 100% over the norm is clearly
an impairment (see Exercise 23). A person with severe obesity may
have an underlying or resultant physiological disorder, such as
hypertension or thyroid disorder. A physiological disorder is an
impairment under the ADA. It should be noted that a few states have
Human Rights ordinances protecting people against weight
discrimination (e.g. San Francisco, Santa Cruz, Seattle, Washington,
D.C.). Michigan is the only state that prohibits employment
discrimination on the basis of weight.
Can weight be a legitimate reason for denying an applicant a job?
Slendercise argues that it sells fitness and Reynoldss weight would
damage the image the company wants to project to potential
customers. Hence, the company is arguing there is a job-related
reason for denying Reynolds the position.
This incident is based on Jennifer Portnick vs. Jazzercise. At the time of
publication of this manual, Jazzercise had entered into mediation with
Portnick. The case has drawn a lot of media attention especially in the
Bay area. Research by Professor Mark Roehling of Western Michigan
University indicates evidence of discrimination against overweight
individuals in virtually every stage of the employment cycle, including
selection, compensation, promotion, discipline, and termination.
15.Title VII of the Civil Rights Act of 1964 prohibiting discrimination based
on religion.
The court must decide if Mohammed is a victim of religious
harassment.
This case is based on a EEOC lawsuit filed in federal court on behalf of
Pakistani-American employees at Stockton Steel Company, a
subsidiary of Herrick Corporation. The company was ordered to pay
85
85
$1.1 million to four former employees. Stockton Steel was obligated

under the requirements of Title VII to protect employees from religious
harassment including reasonable accommodation for religious needs.
In the consent decree the company agreed to make policy changes,
conduct training to prevent future discrimination, and to implement a
policy guaranteeing an employees right to request an accommodation
for religious needs. Title VII prohibits employment discrimination on
the basis of religion, including all aspects of religious practice and
beliefs. The most common problem occurs when the employee asks
management to accommodate a religious need. Stockton Steel should
have made every effort to accommodate the workers need to have a
private place to pray especially since other employees harassed them.
Otherwise, Stockton had to demonstrate that accommodation would
have created undue hardship on the company (which they were not
able to do). Religion and national origin discrimination are two of the
fastest growing types of discrimination charges filed nationally with the
EEOC in recent times. Additionally, the backlash against Muslims after
11 September requires companies to be sensitive to harassment of
Americans who practice the Muslim religion. In the fiscal year 2002
charges filed with the EEOC nationwide alleging religious discrimination
increased 21 percent over the previous year, and national origin
discrimination complaints increased by 13 percent.
NOTE: All of these cases are based on actual court rulings. The exercise gives a
good historical review of how the law has evolved. It should be pointed out to
students that the Civil Rights Act of 1991 made it much more difficult for employees
to prove discrimination. The new act came about because of the Supreme Court
rulings in Wards Cove and Price Waterhouse had the effect of limiting the protection
of women and minorities under equal employment laws. The 1991 Act was to
reverse several U S Supreme Court Cases like Wards Cove and several others. But
the effect was not just to roll back the clock to where it stood prior to those cases.
The acts main provisions were: (a) Burden of proof is on employers to show that
the practice (such as at test) is a required business necessity; (b) an employee can
be awarded compensatory damages and punitive damages if it can be shown that
the employer engaged in discrimination that is malicious or reckless; (c) an
employer can no longer avoid liability by proving it would have taken the same
action without the discriminatory motive; and (d) test scores cannot be adjusted to
alter the results of employment related tests on the basis of race, color, religion,
sex, or national origin.

18.
EXERCISE: WHAT IS SEXUAL HARASSMENT?
86
86
I. OBJECTIVES:
1. To familiarize students with the EEOC sexual harassment guidelines.

2. To teach students the meaning of these guidelines as they relate to
the workplace.
3. To teach students the manager's and organization's role in
preventing sexual harassment.
4. To show students the complexities involved in identifying sexual
harassment in the workplace and in interpreting EEOC guidelines.
II. OUT-OF CLASS PREPARATION TIME: 20 minutes to read the EEOC guidelines
and complete the sexual harassment questionnaire.
III. IN-CLASS TIME SUGGESTED: 45 minutes for group and class discussion
of all items on the sexual harassment questionnaire.
IV. PROCEDURES: See Text
V. ANSWERS TO QUESTIONS:
Prior to discussing the answers to the questions on the Sexual Harassment

Questionnaire, we find it helpful to review the EEOC Guidelines with the class and to
provide some additional legal information. Our discussion usually includes the
following: The EEOC has provided three explicit criteria for determining whether a
certain behavior might be considered harassment. First, submission to sexual
requests is an implicit term or condition of employment. Second, submission to or
rejection of the request is used as a basis for employment decisions. Third, the
request has the purpose or effect of substantially interfering with an individual's
work performance or creating an intimidating, hostile or offensive work
environment. If any one of these criteria is met, than sexual harassment has
occurred.
87
87
The first two of these are relatively clear. However, when the complaint
revolves around a charge of hostile working environment, even the Supreme Court
decision in the Vinson case leaves room for interpretation. A hostile environment is
generally considered to exist when the harassment is sufficiently severe or
pervasive so as to alter the conditions of employment and create an abusive work
situation. Occasional, isolated, trivial remarks or behaviors are insufficient to satisfy
the requirement of pervasiveness. For example, in Jones vs. Flagship International,
the sexual advances by one of the employer's vice presidents and the sculpting of
bare-breasted mermaids by the employer's executive chef as table decorations for
an office Christmas party were held by the Fifth Circuit Court to be insufficiently
pervasive to constitute a hostile work environment (BNA, 1988). Similarly in
Vermett vs. Hough, the District Court for the Western District of Michigan rejected a
claim of hostile environment on the grounds that the complained of conduct was the
sort of teasing treatment that any new employee would have encountered (BNA,
1988). A Supreme Court decision in the 1993 case of Forklift Systems, Inc. held that
behavior needs to be such that a "reasonable person" would find it to create a
hostile work environment. It added that four questions need to be considered in
determining if a hostile work environment exists: (1) How frequent is the
discriminatory conduct? (2) Is the conduct physically humiliating or threatening? (3)
How severe is the discriminatory conduct? (4) Does the conduct interfere with
employee's work performance? Harassment of a short duration can be actionable if
there is a pattern and the harassment is sufficiently intense. Courts measure
offensiveness on the basis of an objective standard keyed to a reasonable person, a
reasonable employee or a reasonable victim rather than to the plaintiff's actual
reaction. Although sexual harassment need not be psychologically disabling, it
must, under the objective standard, be so significant a factor that the average
female employee would find that her overall work performance is substantially and
adversely affected by the conduct.
After reviewing the above information with the students, we then discuss the
answers to each of the questions. The situations described in Questions 5, 7, and
11 all appear to constitute sexual harassment in that submission to, or rejection of,
a request is used as a basis for employment decisions. Question 14 also appears to
constitute harassment because granting sexual favors is required as a term or
condition of an individual's employment. The situation shown in Question 6 also
appears to be harassment in that sexually assaulting an employee would
undoubtedly create an intimidating, hostile, or offensive work environment. On the
other hand, the situations described in Questions 3 and 18 suggest that both parties
are willing participants in a romantic or social affair and, thus, no harassment exists
at present--but it may in the future.
88
88
The answers to the remaining questions are not so clear. Indeed, they are
highly debatable, although not equally so. In fact, we have found that students
disagree significantly on these items. These questions all center around the issue of
whether the situation presented creates an intimidating, hostile, or offensive work
environment. In discussing each, we raise the legal issues described above.
Ultimately, the conclusion on many of the questions is "uncertain," because the law
simply doesn't provide sufficient clarity to know the answer and/or the situation
depicted in the question provides insufficient information.
19.
EXERCISE: UNDERSTANDING THE AMERICANS WITH DISABILITIES ACT
I. OBJECTIVES:
1. To help students understand the application of the Americans with

Disabilities Act (ADA).
2. To help students understand the interpretation of the ADA.
3. To help student understand the meaning of the terms disability,
qualified individual and reasonable accommodation.
II. OUT-OF-CLASS PREPARATION TIME: 45 minutes
IV. PROCEDURES:
1. Have all students read the exercise and review the ADA.
2. The class should be divided into groups of four.
3. Each group should read each case incident and answer the
following questions: (1) What issue(s) must the court decide in this
case? And (2) If you were a member of the jury, how would you
vote? Did the employer discriminate unlawfully? Why or why not?
NOTE: It is a good idea to have students read over the exercise the night before
class.
V. ANSWERS FOR EACH INCIDENT:
89
89
1. Overweight Hospital Attendant. The case is based on a Federal

appellate court case Cook vs. State of Rhode Island Department of
Mental Health, Retardation Hospital, No. 93-1093 (1st Cir.
November 22, 1993). The employer was appealing a district court
jury which awarded Cook $100,000 in compensatory damages and
the judge's order that Cook be placed in the job position for which
she had applied. The plaintiff in this case proceeded under the
"perceived disability theory" arguing that although she was fully
able to perform the duties of the job, the employer regarded her as
physically impaired. The EEOC, in a friend of the court brief, argued
that morbid obesity should be a covered disability under both the
Rehabilitation Act and the ADA because neither piece of legislation
requires consideration of how an individual became impaired, or
whether an individual contributed to his or her impairment. The
court of appeals rejected the employer's position which it felt relied
on generalizations regarding an obese person's capabilities. Cook
had received a satisfactory report following her pre-employment
physical exam and the position for which she applied did not require
any special physical abilities. The employer did not offer any
evidence of any non-weight related reason for rejecting Cook's
application and the appeals court concluded that it was reasonable
for a jury to conclude that Cook was not hired solely due to her
perceived handicap.
2. This case incident is based on a January, 2004 U.S. Tenth Circuit
Court of Appeals decision Mason v. Avaya Communications, Inc.,
2004 WL 56366 (10th Cir., January 13, 2004). The district court had
dismissed Mason's lawsuit alleging that the company violated the
ADA by failing to accommodate her disability and discharging her
on the basis of her disability. The court of appeals agreed with the
district court's conclusion that Mason's request for an
accommodation to permit her to work at home was unreasonable
because it would have required the elimination of essential
functions of the service coordinator position, such as training,
supervision, and teamwork. The ADA does not require an employer
to modify an essential function of an existing position to
accommodate a disabled employee nor to eliminate or reallocate
essential functions of a job. This decision also aligned the Tenth
Circuit with other circuits in ruling that physical attendance at the
workplace, in and of itself, is an essential function of most jobs.
3. The Ultimatum. The key issue is whether Joan's carpal tunnel

syndrome is a disability worthy of an accommodation, in this case a
six-week leave of absence recommended by her doctor. With the
changes made by congress in the 2008 amendments to the ADA,
the employers exposure to litigation would be substantial. With the
2008 amendments, Congress made some important changes to the
definition of the term disability by rejecting holdings in several U.S.
90
90
Supreme Court decisions and portions of the EEOC's ADA

regulations. The effect of these changes is to make it easier for an
individual seeking protection under the ADA to establish that he or
she has a disability within the meaning of the ADA. In the new
EEOC guidance dealing with impairments that may be disabling,
the following example is noted:
(F) Example 6: An individual with carpal tunnel syndrome who is
substantially limited in performing manual tasks compared to most
people, as indicated by the amount of pain experienced when
writing or using a computer keyboard or the length of time for
which such manual tasks can be performed, is an individual with a
disability.
Section 1630.2(o) Reasonable Accommodation
http://edocket.access.gpo.gov/2009/E9-22840.htm .
The use of paid or unpaid leave as a reasonable accommodation to

recuperate from an illness or an episodic manifestation of a
disability has been long recognized by the EEOC. In this situation,
under current law, the employer would be well advised to engage in
the interactive process the EEOC recommends that employers
engage in to deal with employees who have established that he or
she has a disability within the meaning of the ADA.
4. The Fainting Technician. Based on ADA case filed by the EEOC on

behalf of the plaintiff (EEOC vs. Potlatch Corp. 1994). Both the
employee did not claim to be disabled under the ADA and the
employers doctor found nothing wrong with her. The employer
claimed that they could terminate the individual under the direct
threat to the safety of the employee or others. The jury did not
agree and found that the employer perceived the employee was
disabled. The plaintiff was awarded $20,000 in compensatory
damages and $1,300 in back pay.
5. The Gun Slinger. Based on case Hindman v. GTE DATA Services,
Inc., No. 93-1046-Civ-T-17C, US District Court for the Middle District
of Florida, Decided January 20, 1995.
Employee argued that he was discriminated against on the basis of
his disability. The court concluded that the employee was
discharged for bringing a gun to the work site, in violation of
company policy. The court noted that the employer did not know of
the employees disability until after it made the decision to
discharge the employee. Under EEOC Guidelines, employers are
generally regarded as having wide latitude to develop and enforce
conduct rules.
91
91
*This teaching note was prepared by Gerald E. Calvasina, Associate

Professor, Southern Utah University.
92
92
20.
EXERCISE: GROUP DEBATE PROJECT
I. OBJECTIVES
1. To help students understand both sides of controversial human

resource management issues.
2. To allow students to apply human resource management concepts
in understanding the policy implications of the issues.
II. OUT-OF-CLASS PREPARATION TIME: Equivalent to the time required for
students to complete a major term paper assignment.
III. IN-CLASS TIME SUGGESTED: 45 Minutes
IV. PROCEDURES: See text
V. SUGGESTIONS
This assignment has been used over several semesters and always proves to
be one of the highlights of the term. Here are several suggestions for making it an
effective learning tool.
Organizing the Debate
1. It is best to decide at the beginning of the semester which debate topics you
want to cover and to schedule them throughout the semester at appropriate
intervals.
2. Since many students will not be familiar with debating techniques, it may be
useful to spend some time in the beginning of the semester going over basic
debating principles. You should also encourage students to read the
93
93
suggested sources mentioned in the text. I also tell students that they should
make it a point to see me as they organize their debate.
3. It is important to make the debate assignments early on. The effective group
size is four. Students can be allowed to pick which debate topic and side
(negative or affirmative) they want on a first come, first serve basis.
Alternately, I have had teams pick the topics out of hat. While it is better to
have an equal number of students on each team, this is not always possible
due to unforeseen events. I have found that students normally accept this if
you tell them you will give consideration to that fact in grading their
performance.
4. Normally, it is best that the instructor serve as the chairperson during the
debate.
5. Advise students to get organized early in working on their debates. Tell
students to do their research and to write their report first and then work on
the oral presentation.
Grading
1. You will need one debate evaluation form for each class member during each
of the debates. (A form is provided here for duplication.)
2. The grading formula I have used successfully is to assign 40 points to the
debate and 60 points to the written report. See the grading form used for the
written report below.
3. In grading the actual debate, to avoid unnecessary competition and rivalry,
the class evaluation of the debate is used mainly as feedback to the
presenters. At the end of the debate, the class evaluations should be
summarized and the means provided to each team (at the next class period).
I also let them know which team won according to the class's evaluation.
During the debate I fill out my own evaluation form and these are the grades
the teams receive. However, I do use the class's assessment of who won the
debate in the final grading.
4. The possible points for winning the debate are 12 points on the debate
evaluation form (28 points are allocated to the other 7 items). However, the
number of points allocated to a team is based on the class votes on who won.
For example, if 40 votes are cast, 25 for the affirmative team and 15 for the

negative team, then the affirmative team would receive 7.5 points (25/40
times 12). The negative team would then receive 4.5 points (15/40 times
12). In case of a tie vote, the points are distributed equally. Or another
method is to simply give the team with the most votes all 12 points. Since
the students are not really trained debaters, I am reluctant to use this
system.
94
94
95
95
Form 1.4
DEBATE EVALUATION FORM
DEBATE TOPIC:____________________________________________________________
Use the following scale to write in a rating on each item below for each team.
POOR
FAIR
GOOD
SUPERIOR
AFFIRMATIVE
TEAM
I.
ANALYSIS
(Was the analysis reasonable, complete, and
clear?)
II.
REASONING AND EVIDENCE
(Were the arguments structured soundly and
based on research facts and examples? Were
arguments logical?)
III.
ORGANIZATION
(Was each speech clearly and cogently
organized so that you could follow the structure
of the debate?)
IV.
REBUTTAL
(Were unsupported points and assertions
challenged by the opposing team?)
V.
DELIVERY
(Was each speech effectively presented?
Consider voice inflection, eye contact, and
tone.)
NEGATIVE
TEAM
96
96
VI.
QUESTIONS
(Did the team adequately answer audience
questions?)
VII.
OVERALL TEAM RATING
In my opinion, the better debating was done by the______________________________.

(Affirmative or negative team)
Comments for Affirmative Team:
Comments for Negative Team:

21.
97
97
INCIDENT: GIVING UP SENIORITY TO ACCOMMODATE A DISABLED COLLEAGUE
I. OBJECTIVES
The major objective of this incident is to give students an opportunity to
further explore the application of reasonable accommodation of an employee with a
disability. What makes this case interesting is whether a bona fide seniority system
takes precedent over the legal requirement that companies must provide
reasonable accommodation to employees with disabilities.
II. ANSWERS TO INCIDENT QUESTIONS

1. If you were Beckwith, would you have dropped your transfer request to help
Martin?
The intent of this question is not the legality of the issues involved but to
explore the ethics of situation. It is interesting to discuss with students their views
on whether an employee like Beckwith should voluntarily help with the reasonable
accommodation of another employee. There is no right or wrong answer to this
question but it often creates a hefty debate about the fact that reasonable
accommodation may impinge upon the rights and actions of another employee.
2. Should Fisher have given Martin preference over Beckwith because of his
disability? Does seniority override the reasonable accommodation
requirement as specified in the Americans with Disabilities Act?
Fishers decision is correct according to the legal requirements of the
American with Disabilities Act. The EEOC issued Enforcement Guidelines on March
3, 1999 concerning an employers obligation to provide reasonable accommodation
to qualified applicants and employees with a disability. The ADA generally requires
that employers offer reassignment as a reasonable accommodation even if it does
not allow any of the other employees to transfer from one position to another.
However, the present case is based on US Airways vs. Barnett. The Supreme Court
ruled that preferring a disabled employee to a more senior employee in an
assignment request was not reasonable in the run of cases absent a showing of
special circumstances to justify such a preference. In other words, generally it will
be unreasonable to reassign an employee with a disability if doing so would
violate the rules of a seniority system. This is true for both collectively bargained
seniority systems and those unilaterally imposed by management. Seniority
98
98
systems governing job placement give employees expectations of consistent,

uniform treatment expectations that would be undermined if employers had to
make the type of individualized, case-by-case assessment required by the
reasonable accommodation process. However, if the are special circumstances
that undermine the employees expectations of consistent, uniform treatment, it
may be reasonable accommodation, absent undue hardship, to reassign the
employee despite the existence of a seniority system. One example of special
circumstances according to the Supreme Court ruling would be that a company did
not consistently apply a seniority system or that the system allowed for exceptions..
In other words, a bona fide seniority system consistently applied prevails over
reasonable accommodation to a less senior employee.
The instructor should point out to the students that the court ruling does not
change the basic operation of the reasonable accommodation standard. At the
outset, an employee carries the burden of proving an accommodation is
reasonable. An employee can do this by showing the accommodation is
reasonable on its face or, assuming it is not, that there are special circumstances
that make the accommodation reasonable in the situation at hand. Once this is
established the burden of proof shifts to the employer to prove that the proposed
accommodation poses an undue hardship on the operation of the business. The
court stated that Barnett would have won had he been able to show additional facts
(i.e. special circumstances that make violating the seniority system reasonable in
his particular situation).
The EEOC has provided some guidelines on what may constitute an undue
hardship for employers:
The accommodation requires the employer to modify the work hours of an

employee with a disability and in doing so, prevent other employees from
performing their jobs. When a disabled employee cannot provide a fixed date of
return, an employer can show that the lack of a fixed return date causes an undue
hardship.
The EEOC guidelines also suggest that an employer cannot use a cost-benefit
analysis to determine if a reasonable accommodation would cause undue financial
hardship. Nor can a company use the violation of a collective bargaining agreement
as an undue hardship to deny reasonable accommodation.
99
99
See the EEOC Web Site for EEOCs Enforcement Guidance: Reasonable
Accommodation and Undue Hardship under the Americans with Disabilities Act
(www.eeoc.gov).
See also U. S. Airways, Inc. vs. Barnett, 535 U. S. ___, 11 S. Ct. 1516 (April 29,
2002). This is a Supreme Court case.

22. INCIDENT: BEAUTYISM IN THE WORKPLACE
100
100
I. OVERVIEW:
Students should be aware that selection decisions are not always objective
and that physical appearance can sometimes determine which applicant is selected
for given position. In this incident, an academic department hired an administrative
assistant who did not appear to meet the criteria the search committee established
prior to conducting interviews.
II. OBJECTIVES:
The first objective is to sensitize students to the role that appearance may
play if a selection committee is unclear about the selection criteria. A second
objective is to illustrate how one person with a particular bias may cause a
committee to override previously determined criteria. The third objective is to help
students consider ways to make employee selection decisions more objective.
III. DISCUSSION:
In this particular case, the department chair had extra weight in the selection
decision since the new administrative assistant would be working for him. However,
his personal situation coupled with the physical attractiveness of one applicant may
have biased the selection decision.

1. What is beautyism?
Beautyism is giving undue influence to one factor (i.e., physical
attractiveness) which should have little or no influence on selection or promotion
decisions.
2. To what degree was beautyism a factor in this decision? How do

you know?

It definitely played a role since the candidate selected (Diane) had
qualifications which were decidedly inferior to those of the other candidates.
101
101
3. Why and to what degree do more attractive male and female job
applicants have an advantage in the interview process?
Interviewers may tend to generalize high scores on physical appearance to
other attributes which may be more job-related such as intelligence, initiative,
perseverance, etc. They may also be perceived as enhancing the overall work
environment.
4. What can managers do to eliminate the beautyism bias during

the job interview?
For certain positions (i.e., modeling), such a bias may be job related and
should not be eliminated. For most jobs, however, this bias is undesirable because
it is not job related. While it may not be entirely possible to eliminate this bias, but
it is certainly possible to minimize it. The latter can be achieved by establishing
selection committees with representatives of both sexes, determining selection
criteria (and weights) prior to interviews, and not allowing any single individual to
make the final decision.
5. If beautyism is frequently used as an informal selection criterion

for new employees, what strategies do you suggest to address this
issue?
Typically, more than one person is involved in a selection decision, although
the input of some counts more than the input of others. Since many of those
interviewing applicants are unaware of their unconscious bias toward physically
attractive candidates, a training program geared toward identifying this bias in
employee selection and methods of addressing it could be the focus of such
training.
More specifically, those involved in the selection process should agree in

advance concerning the major selection criteria and their relative weights. They
should then practice interviewing potential applicants as part of the training
process. Such training should be repeated periodically and make people aware that
102
102
both sexes have such biases and that it can work both ways. That is, for
professional positions, extremely attractive females are often judged negatively
because some believe that beauty and brains are antithetical. On the other hand,
for non professional positions, attractive female candidates are often viewed more
favorably. For males, being attractive is typically an advantage for both professional
and non professional positions. For whatever reasons, attractive males are not
viewed as less intelligent or less competent than less attractive males.

23.
INCIDENT: SEXUAL ORIENTATION INCIDENTS: BOOTSTRAPPING
DISCRIMINATION
103
103
I. OVERVIEW:
These three incidents are based on real cases that were eventually decided
through the court system. Sexual orientation remains a contentious issue in the
workplace but Title VIIs prohibition of discrimination based on gender does not
extend to discrimination against sexual orientation (e.g. homosexuals or lesbians).
The incidents are utilised to help students understand the complex issue of
discrimination and sexual orientation.
II. OBJECTIVES:
1. To introduce students to the definition of gender discrimination
under Title VII.
2. To illustrate how the courts evaluate sexual orientation cases.
III. DISCUSSION:
These three case incidents are utilised to help students understand the
complex issue of discrimination and sexual orientation. The three incidents
illustrate different aspects of the courts interpretation of Title VII and past cases.
First, the students should be made aware that Title VII of the Civil Rights Act
does not prohibit discrimination due to sexual orientation. The sex referred to in
the Title clearly refers to membership in a class delineated by gender not sexual
orientation. Despite a number of efforts to get sexual orientation added to the
statute, such attempts have been unsuccessful and Congress has constantly
rejected any bills with the goal of including it within Title VII discrimination
prohibition. Nevertheless, some states and local governments have enacted laws
that prohibit discrimination based on sexual orientation. Indiana and Pennsylvania
prohibit against public employees based on sexual orientation and gender identity.
In addition, Alaska, Arizona, Colorado, Delaware, Louisiana, Michigan and Montana
have an executive order, administrative order or personnel regulation prohibiting
discrimination against public employees based on sexual orientation. Seventeen
statesCalifornia, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts,
Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, Rhode
Island, Vermont, Washington and Wisconsinand the District of Columbia prohibit
sexual orientation discrimination in the public and private sectors. At least 2,546
private employersincluding Ford, Microsoft and AT&Thave policies prohibiting
discrimination based on sexual orientation, according to the organization.
Second, while Title VII and no other federal laws cover sexual orientation
discrimination, there have been court cases to indicate that Title VII does protect
persons subject to adverse employment action because of gender-specific
stereotypes, nonconformity with appearance standards. Neither Title VII, nor any
other federal law, expressly prohibits job discrimination against homosexuals, and,
104
104
prior to Price Waterhouse, numerous courts had held that Title VIIs ban on sex
discrimination does not protect gay and lesbian employees from discrimination
based on their sexual orientation. But since Price Waterhouse, a number of gay and
lesbian employees have brought suit grounded in gender-stereotyping theory. In
the Price Waterhouse case, the plaintiff successfully argued that she was not
promoted to a partner because of sex role stereotyping. The plaintiff, Hopkins
alleged she was told by her male partners to act in a more feminine manner
including wearing makeup and jewellery. Hopkins was described as too aggressive
and masculine. The case went all the way to the Supreme Court which found Price
Waterhouse violated Title VII by relying on sex stereotypes in declining to propose
Hopkins for partnership.
Since Price Waterhouse vs. Hopkins, a number of gay and lesbian employees have
brought suit grounded in gender-stereotyping theory. The success of such cases
appear to rest on the specific facts of each case as well as on whether the plaintiff
has specifically alleged a gender stereotyping claim distinct from a sexual
orientation claim. The latter is very important.
The first two questions are answered in the summary of each of the three incidents
presented below. The third question is handled separately.
1. The Smith case incident is based on Simonton vs. Runyon. The United States
District Court for the Eastern District of New York dismissed Simonton's complaint
for failure to state a claim, reasoning that Title VII does not prohibit discrimination
based on sexual orientation. The decision was upheld by the appeals court which
argued: There can be no doubt that the conduct allegedly engaged in by
Simonton's co-workers is morally reprehensible whenever and in whatever context it
occurs, particularly in the modern workplace. Nevertheless, as the First Circuit
recently explained in a similar context, "we are called upon here to construe a
statute as glossed by the Supreme Court, not to make a moral judgment." Higgins v.
New Balance Athletic Shoe, Inc., 194 F.3d 252, 259 (1st Cir.1999). When interpreting
a statute, the role of a court is limited to discerning and adhering to legislative
meaning. The law is well-settled in this circuit and in all others to have reached the
question that Simonton has no cause of action under Title VII because Title VII does
not prohibit harassment or discrimination because of sexual orientation. The court
found that the harassment Simonton suffered was because of his sexual orientation
and not his sex or sexual stereotyping. They analysed the case in reference to
existing interpretation of sex discrimination under Title VII.
2. This case is based on Sanchez v Azteca Restaurant. The case took place in the
state of Washington. In a bench trial, the district court entered judgment in favour of
Azteca Restaurants. However, upon appeal to the United States Court of Appeals
for the 9th Circuit, Sanchez won the case. The Appeals court found that the
behaviour of Sanchezs co-workers and supervisor violated Title VII and the
Washington Law Against Discrimination. The court stated that it is now clear that
sexual harassment in the form of a hostile work environment constitutes sex
discrimination as established in Meritor Savings Bank and Vinson cases. The courts
105
105
have laid out pretty clear guidelines for defining a hostile environment and the
district court relied on these guidelines (e.g. Harris v. Forklift Sys. Inc. 1993). To win
the case Sanchez had to prove a number of factors. First, to prevail in his hostile
environment claim, Sanchez was required to establish a pattern of ongoing and
persistent harassment severe enough to alter the conditions of employment. He did
so because he was able to demonstrate the frequency and unrelenting barrage of
verbal abuse that any reasonable man would find intolerable. Azteca did not deny
this abuse in its testimony. Another factor in Sanchezs favour was that he had
reported the abuse to the company which indicated the abuse was unwelcome. The
major element that this case demonstrates is that Sanchez successfully argued that
the verbal abuse occurred because of sexhe was harassed because he failed to
conform to a male stereotype not because he was a homosexual. The appeals court
found that the systematic abuse directed at Sanchez reflected a belief that Sanchez
did not act as a man should act. Thus, he could rely on the findings in the Price
Waterhouse supreme court case which was decided in favour of the plaintiff Hopkins
who was not promoted because she behaved like a man and not like a woman.
The Court in Price Waterhouse implied that a suit alleging harassment or disparate
treatment based upon nonconformity with sexual stereotypes is cognizable under
Title VII as discrimination because of sex. This theory, however, does not bootstrap
protection for sexual orientation into Title VII because not all homosexual men are
stereotypically feminine, and not all heterosexual men are stereotypically
masculine. But, under this theory, relief would be available for discrimination based
upon sexual stereotypes.
3. Students may believe that this case is similar to the second one but the
circumstances are quite different and illustrate how the courts draw a fine line when
it comes to sexual orientation and charges of sex discrimination. They hold to the
tenet that discrimination based on sexual orientation is not protected under Title VII.
This case is based on Dawson vs. Bumble & Bumble. In the 2005 case, the 2nd U.S.
Circuit Court of Appeals held that the totality of the evidence did not support a
claim that Dawson, a lesbian, had been subjected to an adverse employment action
based on her gender non-conforming appearance. First, they held Dawson could not
assert a claim for discrimination based on sexual orientation because such claims
are not cognizable under Title VII; and although they are cognizable under New York
State Human Rights Legislation the evidence was insufficient to establish that
Dawson suffered intentional discrimination based on her sexual orientation.
Second, her claims of sex stereotyping were not derived from gender stereotyping
but rather from stereotypes based on sexual orientation which are not cognizable
under Title VII. Recognizing that a gender stereotyping claim should not be used to
bootstrap protection for sexual orientation into Title VII, the court found no
evidence that Dawsons employer ever told her that she needed to act or speak in a
more feminine manner. Nor was she subjected to adverse working conditions
because of her appearance. In other cases, gay and lesbian plaintiffs also have
failed adequately to allege a gender stereotyping Title VII claim under Price
Waterhouse. Plaintiffs must establish harassment or discrimination based upon
their failure to conform to accepted gender expectations in behavior or appearance.
Finally, the evidence did not support her claim that the denial of advancement
opportunities were not based on intentional gender discrimination based. Instead
Bumbles reasons for firing her (non-performance) were not a pretext for gender
discrimination.

4.
How
Sexual orientation in the workplace is an increasingly important HR issue.

should companies manage the issues?
106
106
A number of organizations address sexual orientation through their managing

diversity initiatives. For example, efforts are made to establish affinity and network
groups for gay, lesbian, bisexual and transgender (LGBT) employees. Microsoft has
been particularly aggressive in their HR practices. Many organizations provide
same sex partner benefits. The instructor can refer to students to the following
readings for further information on the challenges faced by LGBT employees:
Creed W. E. (2006). Seven conversations about the same thing: Homophobia
and heterosexism in the workplace. In A M Konrad, P Prasad & J K Pringle (eds)
Handbook of Workplace Diversity. London: Sage Publications.
Button, S B (2001). Organizational efforts to affirm sexual diversity: A cross
level examination. Journal of Applied Psychology, 86, 17-28.

24.
SKILL BUILDER: DATA ANALYSIS FOR AFFIRMATIVE ACTION PLANS
107
107
I. OBJECTIVES:
To enhance students' understanding of how to prepare a utilization/
availability analysis for affirmative action plans.
To teach students the data analysis requirements under affirmative
action guidelines.
II. TIME REQUIRED TO COMPLETE: 2-3 hours.
III. INSTRUCTIONS:
You work for a manufacturing firm located in Charlotte, North Carolina, and
your company has just been awarded its first federal contract of $250,000. This
contract is to supply one of your major products over a two-year period to the
Department of Defense. You have been asked by your boss, the plant manager, to
perform the utilization/availability analyses required under Executive Order 11246
as input in developing an Affirmative Action Plan as required by the Office of Federal
Contract Compliance (OFCCP).
You have reviewed the guidelines from the OFCCP on the requirements (see
Exhibit 2.8.) You have also pulled together labor market data in addition to
compiling a detailed breakdown of the company's work force by job category, sex,
and race (see Tables 1-3). Required: Using the relevant data, complete Form 1.5.
Be sure to list any assumptions you make about the relevant labor market for each
job category. Also be sure to indicate the job categories where women and
minorities are underutilized. Make any other recommendations you deem
necessary to the plant manager.
IV. SOLUTION:
The instructor should note that the exercise uses 1990 census data and not
2000 census data. The options on defining ones racial category increased with the
2000 census allowing for 63 racial group classifications. American Indian or Alaskan
108
108
Native, Asian or Pacific Islander, Black, and Hispanic individuals are considered
minorities for purposes of this exercise. However, starting with the 2007 reporting
cycle, covered employers must use EEOC revised Employer Information Report
(EEO-1). These reports will be due on September 30, 2007. The reports ethnic and
racial categories will change in several ways. The most significant changes in
categories are: Two or more races; Asian and Pacific Islanders will be replaced with
two separate categories (Asian and Native Hawaiian or Other Pacific Islander; Black
or African American and Hispanic or Latino. The two or more category responds to
the increasingly multi-racial character of the U.S. population. Instructors should
also note that the new census categories will also eventually effect how EEO data
are reported. The 2010 census was underway at the time this manual was being
prepared.
The difficult part of this assignment is for students to decide how to use the
data provided in the tables. The aggregate population data is not useful since it
includes "everyone" (e.g. children). The data in Exhibits 1.29 and 1.30 can be used
as a gauge of how the firm's sex and race profile compares to the civilian labor force
profile:
Current Utilization
Availability in Civilian
Labor Force 1990
Group
Number
Percentage
Number
Percentage
White
1497
82.2
417,540
81.1
Black
263
14.4
90,270
17.5
Hispanic
21
1.1
3,700
.007
Asian
32
1.7
2,193
.004
.003
1,093
.002
1512
83.1
281,498
54.7
308
16.9
233,298
45.3
American
Indian
Male
Female
The aggregate data (1990) indicates that perhaps blacks and women are
under represented given their availability in the civilian labor force. However, a
more precise analysis would be to use Exhibits 1.31 and 1.32 (1990 data) which
109
109
gives data on the civilian labor force by occupation. See tables that follow (students
should do calculations for officials/managers and professionals as one category).
110
110
EXHIBITS
UTILIZATION AVAILABILITY REPORT
SEX
OFFICIALS AND MANAGERS
RACE
MALE
FEMALE
WHITE
BLACK
HISPANIC
ASIAN
AMERICAN INDIAN
Number of Employees a
267
24
287
Percentage of Employees
92%
8%
98.6%
1.4%
58%
42%
89%
9%
1%
.9%
.1%
AND PROFESSIONALS
(Utilization) b
Percent Available c
Underutilized:
Female, Black, Hispanic, Asian, American Indian
a) Total number of employees of that type in the job category (e.g. 138 + 2 + 1 = 267)
b) That employee type as a percentage of total employees in the job category (e.g. 267 /154 + 137)
111
111
c) Percent available in the occupation (Exhibit 1.18) (e.g. 50,571/87,018)
SEX
TECHNICIANS
Number of Employees
RACE
MALE
FEMALE
WHITE
BLACK
HISPANIC
ASIAN
AMERICAN INDIAN
65
12
67
85.5%
14.5%
88%
5.3%
1.4%
5.3%
54%
46%
85%
14%
.3%
.6%
.1%
ASIAN
AMERICAN INDIAN
(Utilization)
Percent Available
Underutilized:
Female, Black, American Indian
SEX
SALES WORKERS
MALE
FEMALE
RACE
WHITE
BLACK
HISPANIC
112
112
Number of Employees
69
72
89.6%
10.3%
93.5%
6.5%
56%
44%
92%
6%
.6%
.3%
.1%
ASIAN
AMERICAN INDIAN
(Utilization)
Percent Available
Underutilized:
Female, Hispanic, Asian, American Indian
SEX
OFFICE AND CLERICAL
MALE
FEMALE
RACE
WHITE
BLACK
HISPANIC

Number of Employees
113
113
25
163
165
20
13%
87%
87.8%
10.7%
1%
.5%
24%
76%
85.6%
13.5%
.5%
.2%
.2%
(Utilization)
Percent Available
Underutilized:
Black, American Indian
SEX
LABORERS (UNSKILLED)
Number of Employees
RACE
MALE
FEMALE
WHITE
BLACK
HISPANIC
ASIAN
AMERICAN INDIAN
602
53
542
92
10
114
114
91.9%
8.1%
82.7%
14%
1.2%
1.8%
.3%
74.5%
25.5%
69%
29%
.5%
.3%
1.2%
(Utilization)
Percent Available
Underutilized:
SEX
SERVICE WORKERS
Number of Employees
(Utilization)
RACE
MALE
FEMALE
WHITE
BLACK
HISPANIC
ASIAN
AMERICAN INDIAN
74
15
19
58
83%
17%
21%
65.1%
8%
1.3%
4.6%
115
115
Percent Available
Underutilized:
40%
60%
63%
35%
.9%
.5%
.6%
Female
SEX
CRAFT WORKERS (SKILLED)
RACE
MALE
FEMALE
WHITE
BLACK
HISPANIC
ASIAN
AMERICAN INDIAN
Number of Employees
138
12
129
18
91%
9%
86%
12%
.7%
1.3%
90.4%
9.6%
85.6%
12.9%
.8%
.2%
.5%
(Utilization)
Percent Available
116
116
Underutilized:
Black, Hispanic, American Indian
SEX
OPERATIVES (SEMI-SKILLED)
Number of Employees
RACE
MALE
FEMALE
WHITE
BLACK
HISPANIC
ASIAN
AMERICAN INDIAN
272
22
216
62
12
92.5%
7.5%
74%
21.2%
.8%
4.2%
53%
47%
74.3%
24.3%
.76%
.27%
.37%
(Utilization)
Percent Available
Underutilized:
The summary findings are:
1. Females are under represented in all job categories except

office/clerical and crafts workers.
2. Black employees are under represented in all job categories except
sales workers and service workers.
3. While there are some job categories with no Hispanic, Asian or
American Indians, their limited availability makes it difficult to argue
that they are truly underutilized. The differences are probably not
statistically significant.
Students may suggest that the company set reasonable goals for correcting
any significant underutilization found. The manager could use the availability
percentage to calculate the expected number of women and minorities for each job
category and then set goals and timetables accordingly. For example, for women in
the officials/managers and professional job category, the company should
theoretically have 122 women (.42 x 291) instead of 24. The company might then
consider how they could go about increasing the number of women in those
positions.

NFM7e IM Part1

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

NFM7e IM Part1

Hochgeladen von

Copyright:

Verfügbare Formate

INSTRUCTORS MANUAL

APPLICATIONS IN HUMAN RESOURCE MANAGEMENT 7E

Human Resources Management in Perspective:

The HRM Function/Environment

CASE: THE NEW DIRECTOR OF HUMAN RESOURCES

This case describes the creation of a human resource department in a young,

1. To introduce students to the various roles of human resource

Instructors Manual Part 1

2. To illustrate potential areas of conflict between human resource and

Braxton may have indicated an incorrect reason on the termination report

Newcombe has several alternatives to consider in handling the short-term

Instructors Manual Part 1

IV. ANSWERS TO CASE QUESTIONS:

1. Discuss the relationship between the corporate human resources

Instructors Manual Part 1

2. How should Joyce Newcombe have handled this situation?

4. If Johnson's allegations were true, what are the legal ramifications

5. Describe Mount Ridges business strategy. What is the relationship

Instructors Manual Part 1

Instructors Manual Part 1

CASE: THE HUMAN RESOURCE FUNCTION OF HARRISON BROTHERS

This case consists of a description of the human resource function of a large

1. The major objective of this case is to introduce students to the roles

Instructors Manual Part 1

IV. ANSWERS TO CASE QUESTIONS:

1. How does McCain view her role as human resource manager?

2. What is Harrisons business strategy?

Instructors Manual Part 1

Harrison seems to have a two-pronged business strategy. Emphasis appears

3. What is the structure and staffing of HR?

4. Analyze the data in Exhibit 1.4. What are its implications?

5. Given the organization's size and strategic goals, evaluate the

Instructors Manual Part 1

Recruiting and Staffing: The human resource department is currently relying

Instructors Manual Part 1

As a general comment, McCain and all of the human resource managers at

Instructors Manual Part 1

EXERCISE: DEVELOPING ENVIRONMENTALLY FRIENDLY HR POLICIES AT

1. To understand the critical role HR can play in an organizations

III. IN-CLASS TIME SUGGESTED: 45 minutes

Instructors Manual Part 1

Possible Green Initiatives and

1. Recruitment and Staffing.

Include the environmental stance

More employees who are

Instructors Manual Part 1

Possible Green Initiatives and

contribution, and it will also help

Include training and information

New employees will be

The green initiatives of

4. Work Practices and

Develop and implement

Employees will be more

Employees will have

Instructors Manual Part 1

Possible Green Initiatives and

The green initiatives of

People who are making a

Link the green initiatives as

Employees will be more

Employees not achieving