Affirmative Action–Or Not

Thomas A. Timmerman, Ph.D., SPHR • 2010

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AA Fishing

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20% good fish $5/lb

30% mediocre fish $2/lb

50% worthless fish

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20% good fish $5/lb

30% mediocre fish $2/lb

50% worthless fish

Lake 2

AA Fishing

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Lake 1

Lake 3

Lake 2

AA Fishing

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Conclusions From the Fish Story

• We want good fish regardless of which lake they come from.

• If we concentrate on one lake only, we will eventually run out of good fish and have to settle for mediocre or bad fish.

• We are willing to spend money to pursue good fish in other lakes.

• It makes no sense to wait for the good fish in other lakes to swim to us.

• We won’t be satisfied with our catch from the smaller lakes until we catch them in proportion to their availability.

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Affirmative Action in Action

Affirmative Action’s First Victim> Ed Stevens

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Affirmative Action in Action

• Rickey wanted the most talented players regardless of where they came from.

• By concentrating on white players only, mediocre and bad players were filling out the rosters.

• The Dodgers spent money sending scouts into the Negro Leagues to find the most talented players.

• The Dodgers didn’t wait for African-American players to knock down the doors demanding equal treatment.

• Robinson was the first, but not the only, good fish landed by the Dodgers from the African-American pool.

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Bertrand and Mullainathan Study

• 5,000 resumes mailed for entry-level jobs in Boston and Chicago.

• Resumes designed to be a good fit or poor fit for job.

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• Resumes also designed to reflect gender of applicant.

Bertrand and Mullainathan Study

7.70%

8.60%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

% Receiving

Call Backs

Male Female

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Male

1. Brad, Jay,

Matthew, Todd

2. Tyrone, Leroy,

Jamal, Rasheed

Bertrand and Mullainathan Study

• One other name manipulation:

Female

1. Kristen, Laurie,

Meredith, Jill

2. Ebony, Lakisha,

Keisha, Latoya

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Bertrand and Mullainathan Study

10.10%

6.70%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

% Receiving

Call Backs

White African-American

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8.80%

11.31%

6.41%6.99%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

% Receiving

Call Backs

White African-American

Poor Fit Good Fit

Bertrand and Mullainathan Study

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Affirmative Action Summary

• The fish story demonstrated what affirmative action is really about. It’s about noticing underutilization and proactively addressing it.

• The baseball story demonstrated that affirmative action done well leads to better organizational performance.

• The Bertrand and Mullainathan study demonstrated that underutilization still happens, even across the labor market.

• So far in our discussion, the government hasn’t forced anyone to engage in affirmative action.

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What Is Affirmative Action?

• Attempt to ensure that the organization is attracting and selecting the best talent from every available source.

• Only mandated by law for:> Federal contractors and subcontractors with 50 or

more employees and contracts of at least $50,000.• Required by Executive Order 11246.

> Organizations found guilty of illegal discrimination.> For everyone else, it’s just a good idea.

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• Utilization analysis:> Are there any pools that are not being tapped?> Compare your workforce to the relevant labor force.

• Establish goals and timetables for tapping underutilized pools.> Goals should match availability in the relevant labor

force.> Timetables should consider anticipated growth and

typical turnover rates.

• Develop plans to reduce underutilization:> Recruit in nontraditional areas.> Examples….

What Is Affirmative Action?

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Recruiting in Nontraditional Areas

• SAS Institute, Inc.> Family-friendly work environment.

• Raytheon> Finding new untapped pools.

• Sempra Energy> Building social networks.

• Goldman Sachs> Educating women in underdeveloped nations.> LEAD program.

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• Utilization analysis:> Are there any pools that are not being tapped?> Compare your workforce to the relevant labor force.

• Establish goals and timetables for tapping underutilized pools:> Goals should match availability in the relevant labor

force.> Timetables should consider anticipated growth and

typical turnover rates.

• Develop plans to reduce underutilization:> Recruit in nontraditional areas.> Selection practices that reduce subjectivity.> Examples….

What Is Affirmative Action?

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• Changing Selection Practices> Home Depot:

• Changes driven by growth and class-action lawsuits.

• Job Preference Program (JPP) automated the selection process.

• Number of female managers increased by 30 percent.

• Number of minority managers increased by 28 percent.

Selection Practices that Reduce Subjectivity

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1. Utilization analysis:1. Are there any pools that are not being tapped?

2. Compare your workforce to the relevant labor force.

2. Establish goals and timetables for tapping underutilized pools:1. Goals should match availability in the relevant labor

force.

2. Timetables should consider anticipated growth and typical turnover rates.

3. Develop plans to reduce underutilization:1. Recruit in nontraditional areas.

2. Selection practices that reduce subjectivity.

4. Monitor progress.

What Is Affirmative Action?

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What Affirmative Action Is Not

• Not a government mandate for many employers.• Not reverse discrimination.

> Court rulings have placed limits on affirmative action programs:

• Affirmative action plans must be temporary.• The purpose must be to correct underutilization.• The plan may not completely ban the hiring/promotion of

majority members.• The plan may not cause the termination of majority members.• Preferences may only be given to qualified minority

members..

• Not quotas.> Specifically forbidden.

• Not diversity for the sake of diversity.> Evidence is not clear.

Wrap-Up

• What Affirmative Action IS:> An attempt by an organization to actively recruit and

select talented employees from traditionally undertapped pools.

• What Affirmative Action IS NOT:> A government mandate that forces organizations to

hire unqualified employees.

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