Question

How does the concept of disparate impact and the four-fifths rule affect a performance evaluation system in a business environment? Do the concepts of reasonableness and fairness support the four-fifths rule as a means of combating discrimination?

Answer 1

Disparate impact is a process by which any policy can be considered discriminatory if it adversely affect a people pr a group of people. It can be based on colour,race, sex. It plays a very important role in performance evaluation system as it in an organisation, promotion is based on any biases then an employee can claim if it will be based on his race or colour or sex. It can also be applied in case of interviews. But there has to be a solid proof regarding any discrimination. If a person is not promoted as he is a minor then he can complaint against it. It is also applied in case of age. If an aged person is fired from an organisation then he can use this method.

The four-fifth rule that selection rate of any group which is less than four fifth to that of higher rate show case of adverse impact. It thus shows discrimination. Complaint in this case can be made regarding promotion transfer or training. So a proper test has to be taken to see the efficiency regarding any job. It can be seen in case of male and female applicants that if number of females hired is less than four-fifth then it is a case of discrimination. It is meant to protect minor or protection group which is less as compared to higher rate.

The four-fifth rule is a good method in protecting the interest of minor group unless there is no ambiguity in selecting sample. If it fails in calculation then the process of selection or recruitment will not be fruitful. Discrimination can be minimised by using this method. This can be seen in cases where women are employed less than men even though they are efficient. So this method helps to recruit female employees. And if statistically it is correct then it is reasonable and fair also.