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Analyzing Promotion Data: Applying the 80% Rule

See attached case file.

Please read the case and then answer the following 5 questions.

1. Analyze the table in Exhibit 1.24. What conclusions do you reach? Is there evidence of discrimination in promotion decisions?

2. Do you believe that Gernson, Thompson, LeBlanc, and Jackson were discriminated against?

3. What are some of the potential disadvantages of a "word of mouth" promotion system?

4. What should Rutherford do now?

5. What kinds of policies can the company design to beuer integrate minorities into management positions?


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1. Analyze the case. What conclusions do you reach? Is there an evidence of discrimination in promotion decisions?

This case study intends to determine the solution to a complaint received by the management in relation to the promotion policies and procedures of the company. Allegedly, there have been discrimination that took place because based on history, a larger percentage of whites have been promoted into higher positions.

To provide a basis in concretizing the answer to the question are the following critical findings:
1. The Human resource director is against discrimination of employees, especially being involved in discrimination suits.
2. Personnel records are centralized.
3. The company's main office, distribution centre and a dozen stores are located in Reed County where 22% of the labour force is black.
4. As to human resource practices, the following are the highlights:
4.1 Human resource policies are decentralized among the various stores, with the district manager having the largest responsibility.
4.2 Promotion recommendation and decision are made by supervisors of different departments in the warehouse.
4.3 To be promoted as a warehouse crew leader, the employee should be in the same shift and department.
4.4 Promotion evaluation criteria include: character, integrity, good/sound morals, correct attitude, and initiative.
4.5 There is no system where employees cannot apply for promotion.
4.6 Written performance evaluation is done only among office employees, merchandisers, and store managers; for the rest of the employees, there is no written or formal performance evaluation.
4.7 Store ...

Solution Summary

The expert examines analyzing promotion data and applies the 80% rule.