Federal contractors with contracts in excess of $$50,000$ and $50$ or more employees are subject to Executive Order $11246$ which requires the contractor to have an Affirmative Action Plan. As part of their compliance with AA$,$ contractors must make a good faith effort to achieve full utilization of women and minorities in job groups where underutilization exists.

Utilization analysis is a comparison of $(1)$ the percentage of minority or women employees employed by an organization in a job group $($incumbency or representation$)$ and $(2)$ the percentage of minorities and women available in the relevant labor market in those job groups $($availability$).$ The relevant labor market is where the contractor typically recruits or selects members of the job group, or the labor markets from which such members could reasonably be recruited.

$1.$ Federal Contractor A selects engineering supervisors solely from within the organization. Supervisors are selected only from the Project Engineer rank. None are recruited externally. The contractor has $10$ engineering supervisors of whom $2$ are minorities; none are women. The contractor has $100$ project engineers, $10$ are minorities and $10$ are women. Does underutilization exist in the engineering supervisor job for either minorities or women? If so$,$ where? If so$,$ what action$($s$)$ should the contractor take?

$2.$ Hospital B has Federal research contracts and employs $100$ nursing supervisors of which $40$ are minorities and $90$ are women. The hospital selects approximately $80\%$ of their nursing supervisors from among their own nurses and $20\%$ from the external labor market. The hospital$$s nursing job group consists of $60\%$ minorities and $90\%$ women. The regional external labor market for RNs consists of $40\%$ minorities and $90\%$ women. Does underutilization exist in the nursing supervisor job for either minorities or women? If so$,$ where? If so$,$ what action$($s$)$ should the hospital take?

Make sure that you show all of your calculations. This is an individual exercise; collaboration with others is not permitted.