# Tanglewood Case 5: Disparate Impact Analysis Essay

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Tanglewood Case 5: Disparate Impact Analysis Recruitment and Selection HRM 450 Current Needs Assessment Tanglewood prides itself on encouragement of diversity in the workplace. All hiring and promotion decisions should be made on the basis of character and quality of work. The ensuing lawsuit brings about a need to analyze Tanglewood’s selection strategies to ensure these practices are not hindering the promotion of diversity. In order to do this, it is necessary to study the flow and concentration statistics of the organization. Flow statistics are calculated by comparing the number of people hired and promoted in the organization with the total number of people that apply. These statistics are then divided into different…show more content…
Store Manager Total White Total Non-White African- American External 11.11% 13.33% 0% (0%) 0% (0%) Internal 25.00% 27.78% 11.11% (40%) 25% Store Manager Total White Total Non-White African- American External 10.42% 7.69% 22.22% 0% (0%) Internal 16.05% 13.64% 26.67% 0% (0%) The selection rates of each category (white, non-white, etc…) are indicated in the column corresponding to whether the employees were hired from outside the organization (external) or promoted from within (internal). In order to calculate the four-fifth’s rule, it is necessary to examine these percentages. The first step is to divide the selection ratio of the minority group by the selection ratio of the majority group. For example, in order examine the four-fifth’s rule in regards to African American employees hired externally in the Shift Leader position, divide that selection ratio (5.88%) by the selection ratio of white employees hired externally to the same position (16.31%). .0588 ÷ .1631 = .36 This indicates that the number of African Americans hired externally for the Shift Leader position is only 36% of the amount of white individuals hired externally for the same position. The number should be around 80% in order to fulfill the four-fifth’s rule. In performing these calculations across all positions, there is evidence that points to disparate impact