In: Operations Management
What is adverse impact in the context of human resource management?
How is it proved?
How would you defend against and allegation of discrimination to a protected class?
Adverse Impact in context of HRM
Adverse impact in the context of HRM means "a substantially different rate of selection in hiring, promotion or other employment decision which works to the disadvantage of members of a race, sex or ethnic group."
This means if a person belong to a group which is biased he will definitely get demotivated and due to this demotivation the efficiency of the system will be reduced due to reduced performance of Adversely impacted employees.
Adverse Impact is proved if someone is given benefit against the company policy and procedures, and the other derserving person is deprived off the benefits due to its race, religion, ethinicity, sex etc.
Defending against an allegation of discrimination to a protected class
The employer can defend itself by providing the past data and it unfair past practices of HRM on the protected as well as unprotected class.
The Equal Opportunity Employer should now prove that in the past the recruitment had been taking place in accordance to the policy and the policy is not voilated at all and the selection is fair and unbiased.
The employee will now have to justify its case.