1 Chapter 4 Contents

 Job discrimination
 Racism
 Forms of Job Discrimination
 Average Income Comparisons
 Different Civil right acts
 Affirmative Action
 Whistle Blowing

Ajmal Khan-MBA Finance

Email: Ajmal.khanzai1985 mobile 0770665566
Racism
The prejudice that members of one race are inherently superior to
members of other race or Abusive behavior of one race towards
other races

:Example
The case of denny ‘s restaurants, Maryland. Which refused serving
black customers and paid $ 54 million for settling discriminatory
.issues
Job Discrimination defined
The literal meaning of the term "Discriminate” is to
wrongly distinguish one object from another.

It is usually in-tended to refer to the wrongful act of distinguishing

among employees or job candidates not on the basis of individual
merit but on the basis of unfairness
Examples of job discrimination:
 Short listing a person for a job without merit but based on personal
relations.
 Firing a person based on personal prejudice.
 In USA black Americans were subjected to low paying and low
prestigious jobs.
 Preferential hiring based on gender.
Discriminatory Practices by Employers
 Hiring and firing
 Compensation, assignment
 Transfer, promotion
 Job advertisements
 Recruitment
 Use of Company facilities
 Training programs
 Leaves
Forms of Job Discrimination

1. Isolated and Intentional Discrimination.

2. Institutionalized and intentional discrimination.

3. Isolated and unintentional discrimination.

4. Institutionalized and unintentional discrimination.

 Isolated and Intentional Discrimination.

A discriminatory act may be part of the isolated behavior of a

single individual who intentionally and knowingly discriminates
out of personal prejudice.

Examples…
 A manager is targeting a subordinate by giving him tough tasks.
 Intentionally adopting abusive behavior towards a subordinate.
Institutionalized & intentional discrimination.

Discriminatory act may be part of the routine behavior of an

organization, which intentionally and knowingly discriminates
out of its personal prejudice.

Example….
Company policy that woman not to be placed in supervisory positions
because "the boys in the company don’t like to take orders from
females”
Muthut Finance group prefers (Keralites) for any post in their company.
 Isolated and Unintentional Discrimination

A single individual in the organization who unintentionally and

unknowingly discriminates against someone .
 Writing He in place of HE/SHE In an official letter.
 Institutionalized & Unintentional discrimination

A discriminatory act may be part of routine practice of an organization

which unintentionally adopts discriminatory practices.
Example:
 Organizations in which the best-paying jobs are routinely assigned to
men and the low-paying jobs to women.
 Affirmative action in hiring and promotion.
 Organizational cost of job discrimination

 Increased absenteeism and turnover

 Court awards
 Deterioration of staff morale
 Damaged interpersonal relationships
 Psychological distress
 Employee productivity losses
Average Income Comparisons

Income comparisons provide the most suggestive indicators of

discrimination.
For example: If we compare the average incomes of nonwhite
American families, with the average incomes of white
American families, we see that white family incomes are
substantially above those of nonwhites.
Income comparisons also reveal large inequalities based on
gender.
Distribution of Income Among Working Men and
Women, 1994 USA
Income ($)
percent of men Percent of women
with that job with that income
1 to 2,499 7 14
2,500 to 4,999 4 10
5,000 to 9,999 12 21
10,000 to 14,999 13 15
15,000 to 24,999 20 19
25,000 to 49,999 29 17
50,000 to 74,999 10 3
75,000 and over 6 1
Laws Affecting discriminatory Practice

 Civil right Act of 1866

 Civil right act of 1964
 Equal employment opportunity act of 1972
 American with disabilities act of 1990
 Family and Medical act of 1993
These laws cover all Gov’t and private organizations and educational
institutions with 15 or more employees.
 Civil right Act of 1866

According to this act discrimination is prohibited on the basis of

1. Gender
2. Race
3. National origin

Under this act employee can sue for discrimination.

 Civil right act of 1964

Civil right act of 1964 was divided into parts and the most important part is (Title VII)
……
Title VII prohibits discrimination in
 Hiring
 Promotion
 Firing
 Performance evaluation
Practices of employment based on race, religion, color, gender and national
origin.
Equal employment opportunity act of 1972

Under this act a commission was set and granted the authority
to effectively prohibits all forms of employment discrimination
in hiring ,assigning, promoting, firing etc based on race,
religion, color, gender or nationality.

EEOC(Equal employment opportunity commission) as an

administrative agency to investigate complaints that individual
submit.

Employees can file grievances against their organization.

 American with disabilities act of 1990

(ADA) does not protect all forms of disability like psychiatric disabilities.
However it extends employment protection to most forms of disability status.

Note:Under this law a person should be hired if he posses the relevant

qualification and acceptable disability.
Family and Medical act of 1993
FMLA Provides employees in organization to take up-to 12 weeks of unpaid
leaves for family matters like
Child birth
Own illness
Care for sick family members

If employees are intentionally not given these leave he can sue his
employer.
Affirmative Action
Affirmative Actions seek to rectify the effects of past and
ongoing discrimination against women and racial minorities.
These programs are designed as temporary measures to
increase the employment and educational opportunities
available to qualified women and minorities by giving
them preference in hiring, promotion, and admission.
Whistle Blowing
Whistle blowing occurs when an employee report the organization
to an outside or inside agency for what the employee believe is an
illegal or unethical practice.
 Whistle Blowing
Internal whistle blowing
Whistle blowing can be internal (reported to the executive in the
organization).
External whistle blowing
Whistle blowing can be external (reported to the external public interest
group like media)

Note: Whistle blowing becomes ethical when you have the intensions to
correct the problem.
 Justification for Whistle Blowing

1:When the firm through a product will commit serious and considerable harm
to public ,the employee should report the firm.
2:When employee immediate supervisor does not act, the employee should
report to higher management.
3:The employee must have documented evidence that is convincing.
 Steps for Creating a Whistleblowing Culture
Create a Policy:
Clear communications about the process of voicing concerns, such
as a specific chain of command, or the identification of a specific
person in the organization, such as an ombudsman or a human
resources professional
Get Endorsement From Top Management :
Top management, starting with the CEO, should demonstrate a
strong commitment to encourage whistle blowing. This message
must be communicated by managers at all levels, who are trained
continuously in creating an open-door policy regarding employee
complaints.
 Continuing
 Investigate and Follow Up
Managers should be required to investigate all allegations promptly
and thoroughly, and report the origins and the results of the
investigation to a higher authority. For example, at IBM, a long-
standing open-door policy requires that any complaint received must
be investigated within a certain number of hours.
Assess the Organization's Internal Whistleblowing System:
Take regular feedback from employees about organization internal
whistle blowing system.