course material

1. Easton Technology
y, a specialized software company that serves a large metropolitan area has been in
business for the pastseveral years. It currently has 140 service representatives on its
payroll. It recently came to the noticeof Mr. Johnson, a minority service rep of Easton
Technology, that the salary of minority reps isconsiderably less than that of their white
counterparts. This is despite the fact that the company claims tohave been following a
voluntary affirmative action program for the past two years. He and some otherminority
employees have threatened to take the case to Equal Employment Opportunity Commission
(EEOC) and tofile a case of racial discrimination in salaries against Easton Technology.The
company president is genuinely concerned and insists that Easton Technology does not
discriminateagainst any body, and that it only rewards performance and loyalty. He does
not want the excellentreputation of his company to be tarnished in a lawsuit. He has talked
to the disgruntled employees and hasrequested them to be patient until he has done his
own investigation into the matter. He has hired yourgroup as his consultants to investigate
the salary discrimination charge.The President has put the employment and pay history
data of the 140 service reps at your disposal. Thesedata are contained in the Case 4 Data
file. You will need to examine the employment and pay history data inthis file in your
attempt to resolve the discrimination charge brought forth by the minority
employees.Based upon your analysis and interpretation of the employment and salary data,
write a comprehensive reportto the company president summarizing your analysis and
findings. You will also have to present your findingsto the management group of the
company and the representatives of the minority employees. Remember that yourcharge is
to investigate and report if salary differences based on race exist in the company. The
questionsgiven on the next page will guide your thinking. Use important details from your
analysis of the data tosupport your conclusion and recommendations. Remember the
president of Easton Technology is not astatistician but otherwise can digest technical
reports easily.Data Description:ID: Sequential ID number assigned to employeesPAYGRADE:
Pay grade (=1, 2, or 3)GENDER: 1, if female, 0, if maleRACE: 1, if white, 0, if
minorityMARRIED: 1, if married, 0, if not marriedAGE: Age in years at last birthdayTENURE:
Number of years employed as a service representative by Easton TechnologyRATING:
Employee performance rating, on a 10-point scale; where 1 = poor1. What is the difference
between the average salary of minorities and non-minorities? Does this evidencesupport
the claims of the Mr. Johnson?2. What proportion of minority and non-minority employees
are found in each pay grade? How do theseproportions influence Mr. Johnson’ s claim of

2. salary discrimination? Do these proportional differencessuggest discrimination in
promotions across racial groups?3. What is the average tenure of minority and non-
minority employees in each pay grade? Do these resultssuggest discrimination in
promotions across racial groups?4. When was the company’ s Affirmative Action program
started? Does this information help explain why moreminorities are in lower pay grades?
Explain.5. What data should be examined to see whether Easton Technology rewards
performance and loyalty, as claimedby the company President?6. What type of analyses
would indicate if pay was dependent upon performance and loyalty? Do these
resultssuggest that Easton Technology rewards performance and loyalty? Explain.7. Do
your analyses support Mr. Johnson’ s allegation of discrimination? Briefly explain why the
salary datasuggest apparent discrimination and what will this salary discrepancy? Could
you explain salary differencesin terms of factors other than race?ORDER THIS ESSAY HERE
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