Additional Case 3.1 You Have Been Hired as HR Director of a Company

question 107

Multiple Choice

Additional Case 3.1
You have been hired as HR Director of a company with about 100 employees. As you begin to learn about the company, you discover that female managers are paid about 20% less than their male counterparts. When you ask why, the CEO explains that men have families to support and women are earning extra income. As you review personnel files, it becomes apparent that protected-class employees are promoted less often and have longer terms between promotions and raises than white employees. A test is used as part of the promotion process, and protected-class candidates always do about 25% worse on it than white candidates. Another test is used to screen job applicants. It screens out about 25% of white male applicants and about 50% of protected-class applicants.
The firm has a hazardous products division. Traditionally, women are not hired or promoted into that division because the CEO is concerned that the toxic nature of the production process will adversely affect the female employees' reproductive processes.
-Refer to Additional Case 3.1.As HR Director,you should most likely inform the CEO that the company policy prohibiting women from working in the hazardous waste products division is:

• A) a wise company policy to limit potential liability from women filing suit over birth defects.
• B) well-meaning but illegal due to the 1978 amendment to Title VII of the Civil Rights Act.
• C) illegal according to the Supreme Court decision of Griggs vs. Duke Power.
• D) creating an adverse impact on women employees.

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Definitions:

Journal Entries

Recorded transactions in the accounting system that show the effects of financial events on the accounts of a company.

Investment Account

An account held at a financial institution that contains securities, cash, and other investment vehicles.

Related Income

Income that arises from transactions or relationships between entities that have a special connection or are part of the same group.

Revaluation

An adjustment of the book value of an asset or currency to its fair market value, often affecting the financial statements of a company.