Food Chain Supermarkets

1. Food Chain Supermarkets • Is there evidence of discrimination in promotion decisions? • Adverse impact • Did practices have disparate impact? • Four-fifths rule • Disparate treatment • Were qualified individuals turned down? • What were requirements?

2. Food Chain Supermarkets

3. Food Chain Supermarkets • Informal promotion systems must be formalized, with less room for bias • Promotion criteria currently based on personality traits, not necessarily job-related factors • Job posting • Voluntary affirmative action program, given likely under-utilization • County labor force is 22% black, 37% of warehouse ees black (46% in 2005, 30% in 2006), 8% of store ees black (5% of store mngrs black) • In actual case, District Court found for plaintiffs, Court of Appeals reversed re: adverse impact, remanded re: disparate treatment • District Court found disparate treatment on remand

4. “Women vs. Wal-Mart” • Wal-Mart culture built on inspirational leadership, autonomy, trust • Bring Ees into org, convert them to principles: respect for individual, customer service, excellence, and imperative to buy and sell at lowest price possible • But practices also may create barriers, e.g., job posting • Wal-Mart famous for promotion from within – more than two-thirds of managers started as hourly Ees • Hourly job posted within stores, but until current suit, Co had never posted openings for mngt training positions • Not the Wal-Mart way, thought to be too bureaucratic… • Wal-Mart way was to trust that store mngrs will promote those who merit promotion • Co now also developing formula for pay increases based on evaluation ratings, experience, and other factors to make raises more uniform • Another aspect of culture which may create barrier is willingness to move for the job • Single mother Asst Mngr involved in litigation moved nine times in eight years across three states • Key for Wal-Mart is making processes fair without losing culture that makes it special • Source: Fortune, 7/21/03