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W * APPLICATIONS Age Discrimination in a Promotion? Best Protection Insurance Company (BPIC) handles a massive volume of claims elch year in the corporate claims function, as well as in its for real cims center. The corporate claims function is headed by the senior vice president of corporate claims (SVPCCX.reporting to the SVPCC are two maingers of corporate claims (MCC Life and MCC Residential and a bighly skilled corpoeme claim specialist (CCS). Each regional otice shended by a regional center manager (RCM), the RCM is responsible for both supervision and claims specialists within the regional office. The RCMs report to the vice president of regional clits (VPRC). The organization is structured as follows: SVPCC VPRC MCCL MCCR CCS RCM RCM RCM RCM BPI decided to reorganise its claims function by eliminating the four reinottices and the RCM position and establishing is small field offices throughout the country. The other part of the recognization involved creating live new CC positions The CCS job itself was to be rodesigned and upgraded in terms of knowledge and skill requirements. These new CC positions would be stated through internal promotions from within the claim function The SVPCC asked Gita a 52 year old RCM, to apply for one of the new CC positions since his job wat belang eliminated. The other RCM, all of whom were over 10 Na DC rendam BPI decided to reorganize its claims function by climating the four regional offices and the RCM position and establishing numerous small field office throat the country. The other part of the reorganization involved creating five Dew CC positions. The CCS job itself was to be redesigned to upgraded in terms of knowledge and skill Tequirements. These new CC positions would be studied though internal promotions from within the claim function. The SVPCC asked Gus Tavus a 32-year-old RCM to apply for one of the tow CC positions since his job was being eliminated. The other RCM all of whom were over 40 years of age, were also asked to apply, Neither Gus nor the other RCMs were promoted to the CC positions. Other candidates some of whom were also over 40 were bypassed. The promotions weet 10 five claims specialists and supervisors from within the former regional offices, all of whom were under a 40. Two of the newly promoted employees had worked for, and reported to us RCM Upon learning of his lure to be promoted, Gus sought to find out why. What he learned led him to believe that he land been discriminated against because of his ge. He then retained legal counsel attorney Brace Davis Bruce met informally with the SVTCC to try to determine what had happened in the promotion process and why his client had not been promoted. He was told that there were numerous candidates who were better qualified dun sad that Gus lacked adequate technical sod communication skills for the new job of CCS The SVPC refused to recenti Gus for the band said that all decisions were etched in Gus and the vitin federal district court claiming a violation of the Age Discrimination in Employment Act. They also pomoed numeron BPI documents, including the personnelles all applicants for the CC positions After reviewing the documents and discussing things with us, we learned more about the promotion process challwed by BPC The SVPCC and the two MCC conducted the entire process they received no input from the VPRC of the HR department. There was no formal, written job description for the new cs penition, there forma intemal job posting as required by company policy, The SVPCC and the MCC developed int of employees thay thought might be interested in the job. including us, and then moet to consider the list of candidato. At that meeting the personnelles and perviou performance appeals of the candidates were not comme After deciding on the file candidates who would be offered the promotion (all five accepted the SVPOC MCC Sed the personnel files and apps of the five (only) to check for any disconfirming information Nose was found Bruce inspection of the files revealed to written comments within a ponce Appraisals for my of the candidates, including us. Ali, there was no indication at Gus liced technical and communications. All of us previous paratings were above average, and there was no evidence of decline in the favorability of the rings. Finally, an interview with the PRC (som valed that has not be consulted at all during the promotion process that he was shocked beyond belief that Gus bad of been promoted, and that there was no question" but that Chus wat galited in all respect for the CCS job, chathen all discriminated into the basis ofte. Do sada o A Disparate Impact: What Do the Statistics Mean? Claims of discrimination can be pursued under an allegation of disparate impact. According to this approach, the effect or impact of that poto be decor thus in violation of the Civil Rights Act. Such an impact could occur even though there may be no underlying intention to discriminate members speed group or class leg. women or minorities) Pursuit of a disparate impact claim requires the use of various statistics to show that in effects being treated differently than men or nonminorities under the law Exhibit 26 shows three types of disparate impact statistics flow statistic dock statistics and concentration statistics. Also the scale of dispute for each type. For each of these three types of statistics, prepare a report in which you discuss the following Please respond to the following: Based on the case study Age Discrimination in a Promotion (pp. 87-88), identify three considerations that the Best Protection Insurance Company (BPIC) could include in the promotional process that it utilized to avoid future legal issues. Provide support for your rationale Reply