Narrative 12-2
It all started when seven female employees in San Francisco sued for employment discrimination. A federal judge granted class-action status to the suit, allowing 1.5 million women who have worked or now work for Wal-Mart to join the lawsuit, and ordered the company to turn over 250 computer tapes containing payroll, performance, and promotion data for the last six years. When those data were analyzed by a statistics professor, here is what he found:
![Narrative 12-2 It all started when seven female employees in San Francisco sued for employment discrimination. A federal judge granted class-action status to the suit, allowing 1.5 million women who have worked or now work for Wal-Mart to join the lawsuit, and ordered the company to turn over 250 computer tapes containing payroll, performance, and promotion data for the last six years. When those data were analyzed by a statistics professor, here is what he found: Women were consistently paid less than men in the same jobs, especially store managers. And, while 65 percent of Wal-Mart's million plus employees were female, a much smaller percentage of women held key management jobs, again especially store manager positions (just 14.3 percent) . Even after controlling for seniority, part-time status, store location, and job title, women were still paid 34 cents less an hour than male workers. It took the average woman 4.4 years to be promoted to assistant manager and 10 years to become a store manager, compared to just 2.9 years and 8.6 years, respectively, for the average man. Of course, Wal-Mart appealed the judge's decision to expand the case from the seven original plaintiffs to the class-action suit with 1.5 million women. That appeal and then an eventual trial or settlement may take years. What does Wal-Mart do in the interim? Certainly, pressure is building for Wal-Mart to address these issues. Even Wal-Mart stockholders are not happy with the number of lawsuits filed and the negative press. They believe that there is a long-term financial risk to shareholders, from community resistance to stores to price-to-earnings contraction. In response, Wal-Mart did make the decision that it will promote women and minorities proportionate to how many apply for managerial jobs. Lee Scott, Wal-Mart's CEO, said, If 50 percent of the people applying for the job of store manager are women, we will work to make sure that 50 percent of the people receiving those jobs are women. Not everyone, however, believes this solution is equitable or legal. Roger Clegg, a lawyer for the Center for Equal Opportunity in Virginia, said, Based on what [CEO Lee] Scott said, that's fine if 50 percent of the people who are most qualified happen to be female, but if all the most qualified applicants are women, then they should be hiring all women, not just 50 percent. And conversely, if less than 50 percent women are the most qualified, they shouldn't be hiring 50 percent women. Wal-Mart, in its panic to reassure people that it wouldn't discriminate against women and minorities, is saying it will be discriminating against men and non-minorities, and that's illegal. Wal-Mart, however, maintains that its approach is fair and legal, that it does not constitute a quota for the promotion of women and minorities. The other significant change Wal-Mart is making to its organizational structure and leadership is the addition of a corporate compliance department. It will be responsible for overseeing workers' pay, work hours, and breaks (lawsuits also pending) , and for making sure that Wal-Mart's practices are in compliance with federal and local employment laws wherever it does business throughout the world. CEO Lee Scott described the 140-person compliance office as the eyes and ears of the board and management team. -Refer to the Narrative 12-2.Wal-Mart has 65 percent female employees,and women comprise just 41.3 percent of its management trainees,35.7 percent of its assistant managers,22.8 percent of its co-managers,and 14.3 percent of its store managers.What does this indicate the giant retailer might have? A) an organizational roadblock B) a diversity bottleneck C) a missing key D) a glass ceiling](https://d2lvgg3v3hfg70.cloudfront.net/TB6327/11ea6434_ae34_473e_9252_3bd67eb4ff4b_TB6327_00_TB6327_00_TB6327_00_TB6327_00_TB6327_00.jpg)
Women were consistently paid less than men in the same jobs, especially store managers. And, while 65 percent of Wal-Mart's million plus employees were female, a much smaller percentage of women held key management jobs, again especially store manager positions (just 14.3 percent) . Even after controlling for seniority, part-time status, store location, and job title, women were still paid 34 cents less an hour than male workers. It took the average woman 4.4 years to be promoted to assistant manager and 10 years to become a store manager, compared to just 2.9 years and 8.6 years, respectively, for the average man. Of course, Wal-Mart appealed the judge's decision to expand the case from the seven original plaintiffs to the class-action suit with 1.5 million women. That appeal and then an eventual trial or settlement may take years. What does Wal-Mart do in the interim?
Certainly, pressure is building for Wal-Mart to address these issues. Even Wal-Mart stockholders are not happy with the number of lawsuits filed and the negative press. They believe that there is a long-term financial risk to shareholders, from community resistance to stores to price-to-earnings contraction.
In response, Wal-Mart did make the decision that it will promote women and minorities proportionate to how many apply for managerial jobs. Lee Scott, Wal-Mart's CEO, said, "If 50 percent of the people applying for the job of store manager are women, we will work to make sure that 50 percent of the people receiving those jobs are women." Not everyone, however, believes this solution is equitable or legal. Roger Clegg, a lawyer for the Center for Equal Opportunity in Virginia, said, "Based on what [CEO Lee] Scott said, that's fine if 50 percent of the people who are most qualified happen to be female, but if all the most qualified applicants are women, then they should be hiring all women, not just 50 percent. And conversely, if less than 50 percent women are the most qualified, they shouldn't be hiring 50 percent women. Wal-Mart, in its panic to reassure people that it wouldn't discriminate against women and minorities, is saying it will be discriminating against men and non-minorities, and that's illegal." Wal-Mart, however, maintains that its approach is fair and legal, that it does not constitute a quota for the promotion of women and minorities.
The other significant change Wal-Mart is making to its organizational structure and leadership is the addition of a corporate compliance department. It will be responsible for overseeing workers' pay, work hours, and breaks (lawsuits also pending) , and for making sure that Wal-Mart's practices are in compliance with federal and local employment laws wherever it does business throughout the world. CEO Lee Scott described the 140-person compliance office as "the eyes and ears of the board and management team."
-Refer to the Narrative 12-2.Wal-Mart has 65 percent female employees,and women comprise just 41.3 percent of its management trainees,35.7 percent of its assistant managers,22.8 percent of its co-managers,and 14.3 percent of its store managers.What does this indicate the giant retailer might have?
Definitions:
Growing Pains
Growing pains signify the difficulties or challenges faced by organizations or individuals when expanding or progressing rapidly.
Psychological Disorders
Mental health conditions characterized by changes in mood, behavior, and cognitive functions that disrupt a person's daily life.
Efficiency
The ability to accomplish a task or produce a desired outcome with minimum waste of time, resources, or effort.
Available Resources
The total assets, financial, human, or material, that are currently accessible for use in achieving goals or completing projects.
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