3995-3627 Dessler ch2

Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER
BIJU VARKKEY
Part 1 | Introduction
Chapter 2
Equal Opportunity and the Law
© 2009 Dorling Kindersley (I) Pvt. Ltd.

All rights reserved.
After studying this chapter, you should be able to:
1. Cite the main features of at least five employment

discrimination laws.
2. Define adverse impact and explain how it is proved
and what its significance is.
3. Provide a brief overview of important labor legislations
in India.
4. Avoid employment discrimination problems.
5. Cite specific discriminatory personnel management
practices in recruitment, selection, promotion, transfer,
layoffs, and benefits.
6. Define and discuss diversity management.
© 2009 Dorling Kindersley (I) Pvt. Ltd. All rights reserved. 2–2
Laws related to Industrial Relationships
1. The Trade Unions Act, 1926.
2. The Industrial Employment (Standing Orders) Act,
1946.
3. The Industrial Disputes (ID) Act, 1947.
The Trade Unions Act, 1926
• The act allows freedom for any seven employees to
apply to register a trade union, but a later amendment
(2001) specified the minimum membership as 10% of
the unionizable employees or 100 employees,
whichever is less.
• Trade unions are to be registered with the appropriate
government-appointed Registrar of Trade Unions.
Industrial Employment (Standing Orders)
Act, 1946
• The act formally defines conditions of employment
including recruitment, discharge, disciplinary action,
working hours, holidays and leaves.
• The act is applicable to industrial establishments under
the jurisdiction of central and state governments.
• It serves to reduce conflict and communication
mechanism between management and labor.
Industrial Disputes (ID) Act, 1947

The act was formulated with the objective of having a
machinery and procedure for the investigation and
settlement of industrial disputes in place.
Laws Related to Wages
1. The Payment of Wages Act, 1936
The act ensures payment of wages on time.
2. The Minimum Wages Act, 1948
a. The act sets the framework for declaring the
minimum wages payable for occupations, both in
formal and the informal sectors.
b. It specifies the structure and procedure for fixing
and revising the minimum wages at regular
intervals.
Laws Related to Working Hours,
Conditions of Services and Employment
1. The Factories Act, 1948
The act safeguards the health, safety and welfare of
workers in establishments covered by the act.
2. The Shops and Commercial
Establishments Act, 1961
a. The act deals with work-related aspects of shops
and commercial establishments.
b. It prohibits employment of children, underage
people, and women during night hours.
c. It lays down the procedure for dismissal,
discharge, and termination of employment.
Laws Related to Equality and
Empowerment of Women
1. The Maternity Benefit Act, 1961
It provides job security and support to pregnant
women.
2. The Equal Remuneration Act, 1976
• The act prevents gender-based discrimination in
employment and wages.
Laws Related to Social Security
1. Workmen’s Compensation Act, 1923
a. The act provides compensation to employees in cases of mis-
happening at work.
2. Employees State Insurance Act, 1948
a. The act provides relief to employees and
dependents in cases of sickness or events that
prevent them from working.
b. Various benefits given to eligible employees are:
i. Sickness benefit – in cash
ii. Maternity benefit – in cash
iii. Disablement benefit –in cash
iv. Dependents’ benefit – in cash
v. Funeral expenses – in cash
vi. Medical benefit – as service and kind
Laws Related to Social Security (Contd.)
(Contd.)
3. Employees’ Provident Funds And
Miscellaneous Provisions Act, 1952
The act provides security to employees during
times of distress and old age.
4. Payment of Gratuity Act, 1972
The act provides for gratuity payment to all
employees at the prescribed rates, currently
15 days for every year of service.
Guidelines
Guidelines for
for Handling
Handling Sexual
Sexual
Harassment
Harassment Complaints
Complaints
The Supreme Court of India has given the
following guidelines for defining sexual
harassment of women:
1. Sexually determined behavior (whether directly or
by implication)
2. Physical contact and advances
3. A demand or request for sexual favors
4. Sexually colored remarks
5. Showing pornography
6. Any other unwelcome physical, verbal or non-
verbal conduct of a sexual nature.
Equal Employment Opportunity 1964–91 (US)
Title VII of the 1964

Civil Rights Act
EEOC
Federal Agency Executive Orders

11246, 11375
Guidelines OFCCP
Equal
Employment
Pregnancy Opportunity Equal Pay Act
Discrimination Act
of 1963
of 1978
Vocational Age Discrimination

Rehabilitation Act in Employment Act
of 1973 of 1967
Equal Employment Opportunity
1990–91–present (US)
Money Damages
Burden of Proof
Compensatory
Disparate Impact
Punitive
Civil Rights Act

of 1991
Mixed Motives
Desert Palace Inc.
v. Costa
1990–91–present (US) (cont’d)
AIDS
Qualified Individual
Americans with
Disabilities Act
(ADA) of 1990
Reasonable Accommodation
Employer Defenses
Adverse Impact
Showing
Adverse Impact
Disparate
Restricted Population McDonnell-
Rejection
Policy Comparisons Douglas Test
Rates
Showing Disparate Treatment
McDonnell-Douglas Test for Prima Facie Case
1 The person belongs to a protected class.
2 The person applied and was qualified for the job.
3 The person was rejected despite qualification.
4 The employer continued seeking applications.
Bona Fide Occupational Qualification
Age
Religion
Bona Fide
Occupational
Qualification (BFOQ)
Gender
National Origin
Business Necessity
• “Business Necessity”
 A defense requiring employers to show that there
is an overriding business purpose (i.e., “irresistible
demand”) for a discriminatory practice.
 Spurlock v. United Airlines
• Validity
 The degree to which the test or other employment
practice is related to or predicts performance on the
job can serve as a business necessity defense.
Other Considerations in Discriminatory
Practice Defenses
1. Good intentions are no excuse.
2. Employers cannot hide behind collective
bargaining agreements—equal opportunity
laws override union contract agreements.
3. Firms should react by agreeing to eliminate an
illegal practice and (when required) by
compensating the people discriminated
against.
Discriminatory Employment Practices
Recruitment Selection Personal Appearance

Word of Mouth Educational Dress
Misleading Information Requirements Hair
Help Wanted Ads Tests Uniforms
Preference to Relatives
Height, Weight, and
Physical Characteristics
Arrest Records
Application Forms
Discharge Due to
Garnishment
The EEOC Enforcement Process
EEOC Claim and Enforcement Process
1 File Charge
2 Charge Acceptance
3 Serve Notice
4 Investigation/Fact-Finding
5 Cause/No Cause
6 Conciliation
7 Notice to Sue
Addressing EEOC Claims
During the EEOC Investigation:
1 Follow Three Principles
2 Meet with the Employee
3 Limits of EEOC Authority
4 Submitting Documents
5 Position Statement
Addressing EEOC Claims (cont’d)
During the Fact- During EEOC Determination

Finding Conference: and Attempted Conciliation:
1 Official Records 1 Review Carefully
2 Employer’s Attorney 2 Conciliate Prudently
3 Information
4 Witnesses
Diversity Management Program
Steps in a Diversity Management Program:
1 Provide strong leadership
2 Assess the situation
3 Provide diversity training and education
4 Change culture and management systems
5 Evaluate the diversity management program
Is the Diversity Initiative Effective?
• Are there women and minorities reporting directly to
senior managers?
• Do women and minorities have a fair share of job
assignments that are stepping stones to successful
careers in the company?
• Do women and minorities have equal access to
international assignments?
• Are female and minority candidates in the company’s
career development pipeline?
• Are turnover rates for female and minority managers
the same or lower than those for white male managers?
Designing an Affirmative Action Program
• Good Faith Effort Strategy
 Eliminating the present effects of past practices
that excluded or underutilized protected groups.
 Identification through numerical analysis.
 Proactive elimination of employment barriers.
 Increased minority or female applicant flow.
• Increasing Employee Support for

Affirmative Action
 Transparent selection procedures
 Communication
 Justifications
Steps in an Affirmative Action Program
1. Issues a written equal employment policy.
2. Appoints a top official to direct and implement the program.
3. Publicizes the equal employment policy and affirmative action
commitment.
4. Surveys minority and female employment to determine where
affirmative action programs are especially desirable.
5. Develops goals and timetables to improve utilization of minorities
and females. Carefully analyzes employer human resources
practices to identify and eliminate hidden barriers.
6. Uses focused recruitment to find qualified applicants from the
target group(s).
7. Establishes an audit and reporting system to monitor and
evaluate progress of the program.
8. Develops support for the affirmative action program, both inside
the company and in the community.
Reverse Discrimination
• Reverse Discrimination
 Under the U.S. law, discrimination against non-
minority applicants and employees by quota-based
systems is reversed discrimination.
Important Indian Labor Laws
1. Trade Unions Act, 1926
2. Industrial Employment (Standing Orders) Act, 1946
3. Industrial Disputes (ID) Act, 1947
4. Payment of Wages Act, 1936
5. Minimum Wages Act, 1948
6. Factories Act, 1948
7. Shops and Commercial Establishments Act, 1961
8. Maternity Benefit Act, 1961
9. Workmen’s Compensation Act, 1923
10. Employees State Insurance Act, 1948
11. Employees’ Provident Funds And Miscellaneous
12. Provisions Act, 1952
13. Payment of Gratuity Act, 1972
KEY TERMS
Indian Labor Laws Federal Violence Against Women Act

of 1994
Title VII of the 1964 Civil Rights Act
protected class
Commission (EEOC) Civil Rights Act of 1991 (CRA 1991)
affirmative action mixed motive case
Office of Federal Contract Compliance Americans with Disabilities Act (ADA)
Programs (OFCCP) qualified individuals
Equal Pay Act of 1963 adverse impact
Age Discrimination in Employment Act disparate rejection rates
of 1967 (ADEA) restricted policy
Vocational Rehabilitation Act of 1973 bona fide occupational qualification (BFOQ)
Vietnam Era Veterans’ Readjustment Act alternative dispute resolution or ADR
of 1974 program
Pregnancy Discrimination Act (PDA) good faith effort strategy
uniform guidelines reverse discrimination
sexual harassment

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Human Resource

Equal Opportunity and the Law

© 2009 Dorling Kindersley (I) Pvt. Ltd.

1. Cite the main features of at least five employment

Industrial Disputes (ID) Act, 1947

Title VII of the 1964

Federal Agency Executive Orders

Vocational Age Discrimination

Civil Rights Act

McDonnell-Douglas Test for Prima Facie Case

1 The person belongs to a protected class.

2 The person applied and was qualified for the job.

3 The person was rejected despite qualification.

4 The employer continued seeking applications.

Recruitment Selection Personal Appearance

EEOC Claim and Enforcement Process

During the EEOC Investigation:

1 Follow Three Principles

2 Meet with the Employee

3 Limits of EEOC Authority

During the Fact- During EEOC Determination

1 Official Records 1 Review Carefully

2 Employer’s Attorney 2 Conciliate Prudently

Steps in a Diversity Management Program:

1 Provide strong leadership

2 Assess the situation

3 Provide diversity training and education

4 Change culture and management systems

5 Evaluate the diversity management program

• Increasing Employee Support for

Indian Labor Laws Federal Violence Against Women Act

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