Report on Disparate Impact: Statistical Analysis in Human Resources

This report provides an analysis of disparate impact, focusing on the application of statistical methods within the human resources context. It introduces the concept of disparate impact and its implications for fair employment practices. The report examines various statistical tools and methodologies, including flow statistics, stock statistics, and concentration statistics, to identify potential discrimination in hiring and promotion processes. The 4/5 rule (also known as the 80% rule) is explained as a key metric for evaluating potential discrimination. Through the analysis of selection rates for different demographic groups (men and women in the provided example), the report highlights how statistical data can reveal evidence of disparate impact, leading to recommendations for improving hiring processes and ensuring equal opportunities. The report emphasizes the importance of data collection, analysis, and interpretation in addressing and mitigating discriminatory practices within organizations.

Running Head: Disparate Impact
Disparate Impact

Disparate Impact 1
Introduction
Statistics is considered as the collection, interpretation, organization, and analysis of numerical
data. It mainly utilizes to extract necessary conclusions about a set of data from a sample of the
given data. It is widely utilized for research purposes and market analysis.
Recommendations regarding guidelines or standards for deciding whether
statistical differences show discrimination
Flow Statistics
It is a responsibility of the organization to delegate all responsibilities regarding the collection of
the fooling information to human resource department. Fooling information: the total number of
people who had applied for a significant post; age, gender, and a number of people hired by
ethnic background. The 80% of 4/5 rule should apply to the organization to identify the cases of
discrimination in the staffing process. With the help of 80% calculation of 4/5 rule organizations
can gain significant information about the selection rates for every protected case (http://best-
hr.biz/four-fifths-rule-a-k-a-eighty-percent-rule/). In the given exhibit 2.5 the selection rate for
men is 50%, and the women are 11%. On the basis of women and men selection data, it can be
said that disparate influence exists in the organization. Due to this influence women of the
organization don't get suitable chances to prove themselves. Thus, it can be said that the 80% of
4/5 rule helps an organization management in finding evidence of discrimination in its staffing
process of human resource department. On the other hand, it also suggested to the organization
to give proper selection opportunities to women also so that they can prove their efficiency.

Disparate Impact 2
Stock Statistics
It can be said that data is collected by the management in terms of demographic segments of its
recent workforce. It is because data in the demographic segment is easy to compare with data of
other location. After collecting the required demographic data management compare it with the
demographics of the other location in which the organization currently operates (Feldman, 2015).
After comparison, the result is analyzed under proper evidence or judgments to find out the
existing problem. The person who makes a judgment regarding the data supposed to detect the
discrepancies which like to pop out. On the other hand, it can be said that stock statistics mainly
represents the underutilization of women about some women present in a relevant population. In
the given an example, only 30% women are available in the workforce of an organization, and
10% of the trainee workforce of an organization. This age bracket represents a dangerous
situation and requires further investigation by the organization.
Concentration Statistics
In the concentration statistics, the number of people on various posts classifications in the
organization are measured and later divided based on gender (Allen, 2014). It does not utilize
any predetermined or specific rules that should be employed by every organization. Mainly,
concentration statistics explores the women concentration in different job categories. A person
who is making a decision should look out vacancies that pop out of the collected data. In the
example, the selection rate for men is 50% and for women is 11%. This high difference between
the men and women selection rate represent that an issue exists within the organization. In such
type of situation, the organization needs to improve its hiring process and give reservation
facilities for women so that they can contribute the large part of organization workforce.

Disparate Impact 3
References
Feldman, M., Friedler, S. A., Moeller, J., Scheidegger, C., & Venkatasubramanian, S. (2015,
August). Certifying and removing disparate impact. In Proceedings of the 21th ACM SIGKDD
International Conference on Knowledge Discovery and Data Mining (pp. 259-268). ACM.
Allen, M. G., Crook, J. L., & Relman, J. P. (2014). Assessing HUD's disparate impact rule: a
practitioner's perspective. Harv. CR-CLL Rev., 49, 155.
HR, B., HR, B., HR, B., HR, B., HR, B., & HR, B. et al. Four-Fifths Rule a.k.a. Eighty Percent
Rule : best HR. Best-hr.biz. Retrieved from http://best-hr.biz/four-fifths-rule-a-k-a-eighty-
percent-rule/