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MemorandumTo:      Dr. Patricia KelleyCC:      Human Resources DepartmentFrom: Asia Bulger, Human Resources Director of Be...
August 15, 2012    Beta Technologies, Inc must make certain not to appear to engage in age       discrimination    There...
August 15, 2012          variables, a scat plot will be produced in order to determine if there is a relationship         ...
August 15, 2012       The audit also studied age as a variable in examining the company’s hiring statistics.       The aud...
August 15, 2012       of prior work experience is often a characteristic of younger workers, which       corresponds with ...
August 15, 2012       salary. Also, there is a logical correlation between salary and prior work experience.       The maj...
August 15, 2012       of the workforce earned over ninety-five thousand, seven hundred and twenty-five       dollars per y...
August 15, 2012ATTACHMENTS  1. Frequency Distribution Histograms: Age, Salary, Prior Years Work     Experience  2. Frequen...
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Puad628 1

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Puad628 1

  1. 1. MemorandumTo: Dr. Patricia KelleyCC: Human Resources DepartmentFrom: Asia Bulger, Human Resources Director of Beta Technologies, Inc.Date: September 30, 2010Re: Annual Salary Audit of Current EmployeesINTRODUCTIONBeta Technologies, Inc recently underwent an annual audit which involved adetailed examination of the company’s hiring statistics. The audit studied fifty-twoof the company’s full-time employees and examined several key variables: age,gender, salary, and prior work experience. The audit also sought to determine ifthere is a relationship between age and salary.KEY POINTS  Beta Technologies, Inc does not engage in gender discrimination among applicants
  2. 2. August 15, 2012  Beta Technologies, Inc must make certain not to appear to engage in age discrimination  There is a positive relationship between prior work experience and current salary  There is a positive relationship between age and current salary of the employees studiedMETHODOLOGYTo facilitate the analysis of Beta Technology Inc’s hiring practices, a random sampleof fifty-two full-time employees was chosen. Data such as information provided bythe employees upon being hired was collected from each employee within theselected sample group, and additional information regarding current salary figureswas gathered from personnel records. Frequency distributions were run for gender,age, salary, and prior work experience. Frequency distribution tables were createdfollowing data collection. These tables categorized and separated the observationsfor each variable into Bin. The total number of observations in a bin represents thefrequency in that particular variable. The above mentioned categories are then usedin the analysis of information and development of results. The variables must be innumerical form in order to accurately run frequency distributions. In this particularanalysis, male will be represented as 0 and female as 1 for gender. After frequencydistribution tables are produced, the information can be visually displayed intocharts. The bar charts are referred to as histograms and provide a graphicalrepresentation of the variable’s frequency. After analyzing the frequency of the 2
  3. 3. August 15, 2012 variables, a scat plot will be produced in order to determine if there is a relationship between age and salary. Scatter plots are graphical representations that plot all observation in the variable and demonstrate positive or negative relationships between variables. RESULTS The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency that was created in order to enforce legislation that protects individuals and groups from discrimination within the workplace. Based on the outcome of the audit, there is no compelling evidence that suggests that Beta Technologies, Inc engages in gender discrimination in terms of its hiring practices. While the underrepresentation of women in the workplace has historically been a prominent issue among many companies, it is apparent that Beta Technologies Inc does not discriminate on the basis of gender in its hiring processes. In fact, women make up more than half (51.92%) of the company’s workforce while men represent less than half (48.08%) of the company’s workforce.Table 1 GENDER PERCENT OF WORKFORCE MALES 48.08% FEMALES 51.92%Source: Authors Calculation 3
  4. 4. August 15, 2012 The audit also studied age as a variable in examining the company’s hiring statistics. The audit discovered that Beta Technologies, Inc is largely comprised of a younger workforce. The majority (67.3%) of full-time current employees are under the age of forty-five and most (21.15%) of the employees within that age range fall between the ages of thirty-two and thirty-eight. There appears to be a gradual decline in the number of applicants hired over the age of forty-four. Histogram of Age / Data Set #1 12 10 8 Frequency 6 4 2 0 23.07 29.21 35.36 41.50 47.64 53.79 59.93Source: Author’s Calculation In addition to studying the age of the employees hired, it is also important to examine the prior work experience of those employees. The audit found that slightly more than half (53.85%) of the employees hired had approximately zero to five years of work experience prior to working for Beta Technologies, Inc. The lack 4
  5. 5. August 15, 2012 of prior work experience is often a characteristic of younger workers, which corresponds with the company’s predominately younger workforce. However, there does not appear to be a cause for concern regarding the fairness of the company’s hiring practices since there is no significant gap between these figures and they are reasonably close in percentage. Histogram of Prior_Experience / Data Set #1 12 10 8 Frequency 6 4 2 0 23.07 29.21 35.36 41.50 47.64 53.79Source: Author’s Calculation 59.93 Finally, a key variable on which much importance was placed is salary. A thorough examination of the current salaries of the company’s employees further validated that Beta Technologies, Inc is in compliance with EEOC legislation and does indeed practice equality and justice in the workplace. The audit found that Beta Technologies, Inc does not engage in sex-based wage discrimination since the gender of the employee is not a determining factor in the calculation of their annual 5
  6. 6. August 15, 2012 salary. Also, there is a logical correlation between salary and prior work experience. The majority (78.85%) of the workers earn less than fifty-five thousand dollars per year. This corresponds with the fact that the company’s workforce is largely comprised of younger workers. Younger workers typically lack significant prior work experience and usually accept entry level jobs which pay lower salaries than intermediate and managerial level positions. Histogram of Annual_Salary / Data Set #1 12 10 8 Frequency 6 4 2 0 23.07 29.21 35.36 41.50 47.64 53.79 59.93Source: Author’s Calculation Another important question that the audit sought to answer was whether or not there was a relationship between age and annual salary. According to the data collected, as age increases so does salary. This suggests that there is a positive relationship between age and salary. The audit also found that a very small percentage (21.14%) of employees earned over fifty-five thousand dollars annually. In fact, only 1.92% 6
  7. 7. August 15, 2012 of the workforce earned over ninety-five thousand, seven hundred and twenty-five dollars per year. This percentage most likely represents the small group of older workers. These figures also correspond with those of prior work experience under the assumption that the older the employee, the more prior experience they will have, and thus the higher the salary that they will earn. Age vs Annual Salary $120,000 $100,000 $80,000 $60,000 Annual_Salary $40,000 $20,000 $0 0 20 40 60 80Source: Author’s Calculation CONCLUSIONS In summation, Beta Technologies, Inc upholds fair hiring practices and does not discriminate on the basis of gender or age. Conversely, the company’s workforce consists predominately of younger workers; however, there is no compelling evidence that indicates any form of age discrimination in the company’s hiring practices. The company’s workforce is comprised evenly of males and females in terms of gender, and both sexes are paid equally to perform similar job functions. Also, employees with prior work experience are compensated accordingly. 7
  8. 8. August 15, 2012ATTACHMENTS 1. Frequency Distribution Histograms: Age, Salary, Prior Years Work Experience 2. Frequency Distribution Table: Gender 3. Scatter plot: Age vs. Annual Salary 8

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