Elway Tire Company is a large manufacturing firm based in Texas. The highly diverse workforce at Elway requires the HR managers to ensure that all employment practices comply with local, state, and federal laws. Elway is expanding its operations and has recently hired 400 new technicians, of whom 300 were white and 100 were Hispanic. There were 1,500 qualified applicants for the jobs, of whom 1,000 were white and 500 were Hispanic. The HR manager needs to determine if adverse impact exists. Which of the following is a True statement given the facts provided?

Question

Quizplus · Accepted Answer

D) Adverse impact is determined by dividing the success rate for the least-achieving group of applicants (100/500 = .2) by the success rate for the best-achieving group of applicants (300/1,000 = .3). Adverse impact exists because 0.2/0.3 = 66.67%. Adverse impact occurs if women and minorities are not hired at the rate of at least 80 percent of the best-achieving group.

Elway Tire Company Is a Large Manufacturing Firm Based in Texas