Question

In: Operations Management

Comparing Stock Statistics – Utilization Analysis Using this table, compare the stock statistics – the ratio...

Comparing Stock Statistics – Utilization Analysis

Using this table, compare the stock statistics – the ratio of employees in a given job relative to the percentage of (qualified) people in the potential applicant pool (usually limited geographically), which helps determine if any demographic group is underutilized. Note, there is no legal requirement for the stock statistics (incumbency/availability) to be equal, but it can be used as a way to evaluate if the staffing function should be evaluated further.

Job Group

Female Incumbency %

(Qualified) Female Availability %

Based on the stock statistics, is underutilization occurring? Would you set a goal to increase (or decrease) the utilization of men or women in each occupation group?

If Yes, what would you set as a goal?

1

3.00

47.6

Yes (the staffing ratio is (3.0/47.6) = 6.3%, well below the 80% threshold). Although this isn’t illegal, if you were sued, this would likely be used as evidence that women are somehow disadvantaged in the recruitment process for this position.

Goal could be set between

(38.0% to 59.5%)

2

40.5

43.8

92%

3

20.0

34.5

58%

4

83.3

65.0

128%

5

85.2

78.5

109%

6

22.5

38.5

58%

Fill in the rest of the table on your own.

which includes a similar table to see additional examples.

Based on the information available (just this table), is there any evidence that disparate treatment is occurring? Why or why not?

In cases where underutilization is found, what criteria did you use to set a staffing goal?

Where would you suggest looking for data about the availability of people within a certain demographic or industry?

What other information would you want to have to help develop an AAP to help meet your goals?

Solutions

Expert Solution

1. Completed table :

Job Group Female Incumbency % (Qualified) Female Availability % Based on the stock statistics, is underutilization occurring? Would you set a goal to increase (or decrease) the utilization of men or women in each occupation group? If Yes, what would you set as a goal?
1 3 47.6 Yes (the staffing ratio is (3.0/47.6) = 6.3%, well below the 80% threshold). Although this isn’t illegal, if you were sued, this would likely be used as evidence that women are somehow disadvantaged in the recruitment process for this position. Goal could be set between
(38.0% to 59.5%)
2 40.5 43.8 No, this staffing ration fits the goal and 40/5/43.8 = 92% which shows effective utilitisation This goal has been met, effective range is (35% to 53%)
3 20 34.5 Yes, this staffing goal 20/34.5 = 58% which is well below the 80% threshold Goal could be set between 28% to 41%
4 83.3 65 Yes, but the underutilisation is for the male demographic. This staffing goal 83.3/65 = 128% indicates that more women than are qualified and available are being hired, showing a bias towards hiring women in this group Goal could be set between 52% to 78% for women, and between 28% and 42% for men
5 85.2 78.5 No, The utilisation 85.2/78.5 = 108% is higher than the availability however, well within the range that a goal is likely to be set for this metric Goal could be set between 63% to 94%
6 22.5 38.5 Yes, the utilisation is 22.5/38.5 = 58%, well below the 80% threshold Goal could be set between 31% to 46%

2. Based on the information available (just this table), is there any evidence that disparate treatment is occurring? Why or why not?

There is evidence of disparate treatment occurring towards women employees in job groups - 1,3,6, with under-utilisation seen as low as 6.3% in group 1, and 58% in groups 3 and 6 against the 80% threshold. This indicates a clear bias towards recruiting female employees in these groups, despite clear evidence of availability.

In job group 4, what looks like over-compensation has lead to more women being hired than are available and suitable for the roles. There could also be a possible unconscious bias against male employees in a bid to ensure pro-women hiring.

3. In cases where underutilization is found, what criteria did you use to set a staffing goal?

Using the range set for Job group 1 - which set a goal range from 80-125% from the availability %, the ranges for the other groups are set at 80-120% (not as aggressive as group 1 as these have higher utilisations metrics). Using this same goal setting method, it is clear that job group 5 that shows a higher utilisation than the required 80%, is still within the range that the firm would likely set.

4. Where would you suggest looking for data about the availability of people within a certain demographic or industry?

Most countries maintain a central repository of their labour force, capturing key demographic information. E.g. in the US the Bureau of Labor Statistics, an official government website, provides information about age, sex, employment status, race, disability, education and certifications etc. that can be used to inform organisational decisions.

5. What other information would you want to have to help develop an AAP to help meet your goals?

- Once demographic information is obtained (question 4 above), an analysis is needed of your current organisational diversity to understand where you meet the guidelines and where you fall short. This analysis should also be compared against industry and regulatory standards to check for gaps.

- Review your past/current employment practices and to evaluate whether you have any policies that restrict or exclude certain demographics. This can help you understand the most severe issues so they can be prioritised and addressed.

- Budgetary concerns, alternate solutions, management inputs are all required to help you develop an effective and sustainable affirmative action plan.


Related Solutions

Using the Ratio formula table compute the following: Liquidity and Solvency Analysis All users of financial...
Using the Ratio formula table compute the following: Liquidity and Solvency Analysis All users of financial statements are interested in the ability of a company to do the following : maintain Liquidity and solvency which are normally assessed using the following Current position analysis- Working capital, Current ratio and Quick ratio Accounts receivable analysis-Accounts Receivable turnover and # of days sales in receivables Inventory analysis- Inventory turnover, number of days’ sales in inventory Ratio of Fixed Assets to long term...
What may be a problem of comparing the P/E ratio of a stock to the P/E...
What may be a problem of comparing the P/E ratio of a stock to the P/E of the overall market?
evaluate financial statements using ratio analysis
evaluate financial statements using ratio analysis
A. Compare and contrast the MANOVA and MANCOVA analysis in statistics. B. Identify the type of...
A. Compare and contrast the MANOVA and MANCOVA analysis in statistics. B. Identify the type of hypothesis(es) each tool use in an investigation.
5. Compare Present worth analysis, future worth analysis, annual worth analysis and benefit cost ratio analysis...
5. Compare Present worth analysis, future worth analysis, annual worth analysis and benefit cost ratio analysis of project evaluation.
Please compare 5 years ratio and analysis each ratio which is better and reasons. Brahim's Holdings...
Please compare 5 years ratio and analysis each ratio which is better and reasons. Brahim's Holdings Bhd BRAHIMS (Malaysia) 2013 2014 2015 2016 2017 Debt Management Debt Ratio=Total Liabilities/Total Assets Total Liabilities 247,381.40 244,466.70 220,717.10 138,136.00 128,923.00 Total Assets 536,264.40 517,827.60 478,660.00 383,658.00 372,277.00 Debt Ratio 0.46 0.47 0.46 0.36 0.35 Debt To Equity Ratio=Total Liabilities/Total Equity Total Liabilities 247,381.40 244,466.70 220,717.10 138,136.00 128,923.00 Total Equity 288,883.00 273,360.90 257,942.90 245,522.00 243,354.00 Debt To Equity Ratio 0.86 0.89 0.86 0.56 0.53...
Please compare 5 years ratio and analysis each ratio which is better and reasons. Brahim's Holdings...
Please compare 5 years ratio and analysis each ratio which is better and reasons. Brahim's Holdings Bhd BRAHIMS (Malaysia) 2013 2014 2015 2016 2017 Liquidity Current Ratio=Current Asset/Current Liability Current Assets 147,717.90 126,933.70 91,215.30 103,387.00 98,028.00 Current Liabilities 157,966.20 112,664.80 103,111.60 62,378.00 59,232.00 Current Ratio(times) 0.94 1.13 0.88 1.66 1.65 Quick Ratio=(Current Assets-Inventories)/ Current Liability Inventories 7,350.90 7,525.30 7,066.80 6,126.00 6,259.00 Quick Ratio(times) 0.89 1.06 0.82 1.56 1.55
create your own example of the Debt Utilization Ratio of debt to total assets ratio. You...
create your own example of the Debt Utilization Ratio of debt to total assets ratio. You answer should result in a percentage. Also, distinguish the difference between Revenue and net income and give the four steps of the Accounting Cycle.
Jeffery has just concluded a ratio analysis comparing its performance and position at 31 December 2006...
Jeffery has just concluded a ratio analysis comparing its performance and position at 31 December 2006 with those at 31 December 2005. The directors are concerned to see that the current ratio and quick ratio show a considerable decline. You are required: (a) State and explain three possible causes for the decline in one or both of these ratios. (b) State and explain three ways in which the company could improve these ratios.
Analyzing ratios One of the most important applications of ratio analysis is to compare a company’s...
Analyzing ratios One of the most important applications of ratio analysis is to compare a company’s performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as comparative analysis and trend analysis, respectively. Common size analysis requires the representation of financial statements in relation to a single financial statement item or base. What is the most commonly used base item for a common size balance...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT