a)   Generallythere is an indication of discrimination in the recruitment based onthe statistics below. Adverse impact is clearly shown by thefollowing calculations.
Womenselection rate is 20/400= 0.05, =5%
Menselection rate is      120/1200 =0.1, =10%
Minorityselection rate   20/800=0.025, =2.5%
Non-minorityselection rate   120/800=0.15, =15%
Impactratio for women is   0.05/0.15=0.33, =33%
Impactratio for men is 0.1/0.15=0.67, =67%
Impactratio for minority 0.025/0.15=0.17,=17%
Theimpact ratio for the four different groups  is way less than 80%and therefore an evidence that there is indeed adverse impact goingon based on the 4/5s rule.
(b)  Isthere potential for discrimination occurring at any stage?
Discriminationis visible in the company’s recruitment system
Percentageof male applicants employed 120/1200*100=12%
Womenapplicants employed 20/400*100=5%
Percentageof minorities employed 20/800*100=10%
Percentageof non-minorities employed 120/800*100=15%
Inthe employment stages of the minority and the non-minority theminority have been discriminated largely. Compared to the number ofapplications received that is applications received and applicantsinterviewed are similar in terms of numbers but the applicants testedand job offers made reduce significantly for the minority that isminority (50 applicants tested and 20 job offers made) compared tonon-minority (200 applicants tested and 120 job offers made).Therefore, it can be argued that women and minority groups are theones being discriminated while men are given advantage by theemployers.
Basedon the discrimination in the company, there are several reasons thatthe company can give to defend itself from the allegations. One ofthe defenses is that men have better qualifications than women andminorities and this is why they have high chances of being employed.Another defense that the company can offer relates to the ability ofmen to do some of the jobs being done in the company, which women canhave difficulties executing.