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# Human Resource Management (Available Titles Coursemate)

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April 7, 2009 John Paneto 1 Adverse Impact Analysis AKA: Disparate Impact

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April 7, 2009 John Paneto 2 Math Functions Numerator 6 Denominator 100 6 divided by 100 = .06 or 6%
April 7, 2009 John Paneto 3 Termination Rate Slide 1 For any kind of adverse personnel action (e.g. termination, layoff, disciplinary action) determine which termination rate is the lowest, and compare all others to it.

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April 7, 2009 John Paneto 4 Termination Rate Slide 2 The lowest termination rate becomes the numerator, the higher rate becomes the denominator.
April 7, 2009 John Paneto 5 Example #1 Males ( Adverse Impact Analysis for Women) Out of 100 male employees, 6 males are layed off Determine rate for male employees 6 divided by 100 = .06 or 6 % 6 = .06 or 6% 100

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April 7, 2009 John Paneto 6 Example #1 Females Out of 50 female employees, 5 females are layed off. Determine rate for female employees. 5 divided by 50 = .10 or 10 % 5 = .10 or 10% 50
April 7, 2009 John Paneto 7 The 80% Rule or 4/5’s Rule Adverse Impact is defined as a substantially different rate of selection in hiring, promotion, or other employment

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