1991 EFFORTS TO IMPROVE AFFIRMATIVE ACTION PERFORMANCE

Last year, the Bank adopted various initiatives that focused not only on the quantitative elements of the affirmative action program, but also emphasized more than ever before the many qualitative aspects of the program as well. The achievement of numerical targets, while an important indicator of the Bank's commitment to equal opportunity, is not the final goal of our affirmative action program. We recognize the desirability of placing ever-increasing attention on the quality of the integration, training and promotion processes so that we can be assured that the representation of minorities and females continues to increase over time. Toward that goal, we aggressively pursued various recruitment, development and retention initiatives to offset the turnover of talented staff, including minorities and females, capable of succession into senior staff and official positions. In addition, we continued to implement programs aimed at heightening management's awareness throughout the Bank of the flexibility and sensitivity required to manage effectively the Bank's diverse workforce.

College Recruitment

Our college recruitment efforts continued to be a key component of the Bank's efforts to develop a critical feeder pool of talented minorities and females for succession to senior staff and official positions. In 1991, the Bank's college recruitment program made significant strides in increasing the representation of minorities and females in entry level positions. A total of 96 undergraduate and graduate level students were hired by the Bank. Of that number, 30 percent were minorities, and 50 percent were females, compared with 25 and 46 percent respectively, in 1990. These gains largely reflected the new initiatives undertaken by the recruiting staff to reach out to a larger pool of minority candidates on campus including information sessions targeted to

minority organizations on campuses where we recruit. In addition, individual networking with economics professors, career counselors and previous summer interns from predominantly minority schools increased our exposure to minority candidates.

In order to maximize these efforts, we called upon recent minority college recruits to accompany the Bank's recruiters to their alma maters, to assist the Bank in networking and developing contacts with minority organizations on campus, and to serve as mentors for the Bank's summer interns.

The Bank's recruiting needs for 1991 indicated a greater demand for candidates with master's level degrees in several of the policy areas. In addition, the expanded responsibilities of the Bank Supervision Group increased the Bank's demand for individuals with experience in commercial bank lending and credit analysis. In response to the Bank's changing needs and our forecast that this trend will continue, we implemented several initiatives to recruit talented candidates with advanced degrees and/or relevant work experience, including minority and female candidates.

We successfully coordinated an expanded MBA/MA recruitment program for policy areas of the Bank which resulted in 13 new hires, including three minorities and eight females. Recognizing the difficulty we had in finding minority and female candidates, and in order to improve our affirmative action hiring at the master's level in the years ahead, we shifted our strategy and initiated a master's level summer internship program. In 1991, a black female student from New York University's Graduate School of Business Administration participated in that internship program.

In addition, we established contacts and discussed our hiring requirements with key individuals in various minority professional organizations, including the national and the regional presidents of the National Black MBA Association and the Hispanic Society of MBA's. We also sponsored a booth at the job fair during the National Black MBA Association's annual conference.

Training and Development

The training and development of management staff is, of course, a major goal of the Bank with a number of continuing and new programs designed to meet these needs. Clearly, the ability of managers to provide feedback, coaching and counseling to all employees enhances the Bank's ability to retain talented and high potential people, including minorities and females. Toward that goal, our development and retention efforts in 1991 focused on the design of new management development initiatives to replace the former Management Training Program (MTP) and Executive Development and Training Program (ET&D).

The foundation of the new process is a much more active role for area management in developing their staff members. In that regard, efforts are being undertaken to train managers to give more effective career related feedback to their employees. In addition, a new curriculum provides customized managerial training to individuals identified as having the potential to advance to chief and staff director positions, where such formal training is determined to be necessary. These new initiatives, along with more interaction between area management, the Personnel Officers and high potential candidates, will strengthen the Bank's ability to attract, retain, and develop talented females and minorities, and others as well.

Bank staff members also participated in a number of activities after working hours related to recruitment and community outreach. While these efforts do not all directly contribute to minority and female affirmative action targets in the short term, in all cases they provide substantial personal enrichment for the employees involved and underscore the Bank's overall commitment to the community. Appendix I presents details regarding these and other specific initiatives and accomplishments undertaken in 1991, while Appendix II sets forth our continuing programs in support of affirmative action.

AFFIRMATIVE ACTION TARGETS FOR 1992

The Bank is entering the final year of its multi-year affirmative action plan, which was adopted in January 1989. The Bank's original targets for 1992 are shown in Table IV. In setting long term targets for 1992 we realized early on that we were establishing ambitious goals. At this point, we expect that the attainment of the original 1992 targets will be very difficult and, in the case of minority officers and senior staff females, probably unattainable this year.

Looking beyond 1992, we will evaluate the results of our affirmative action program in order

to develop our next multi-year plan. That plan will be based upon the 1990 census data, scheduled to be available by mid-1992. We believe that the programs begun in 1991 and which will be strengthened and built upon in 1992, will position the Bank to meet the challenge of maintaining a highly qualified and diverse work force in the years ahead.

AFFIRMATIVE ACTION INITIATIVES FOR 1992

In 1992, the Bank will continue to concentrate on recruitment, the smooth transition of professionals into the senior staff, and the development and retention of employees. In the area of recruitment, we will increase our efforts to attract master's level candidates and professionals through an expanded master's level summer internship program, greater efforts at networking various affiliations with professional minority organizations, and targeted advertisements in national, minority-focused publications. Given the unprecedented staffing increases planned for Bank Supervision in 1992 and 1993, the need for recruiting efforts to tap all available sources of female and minority talent will be particularly acute.

In addition, we will encourage the more active participation of area management in the training and development of its staff who are deemed to possess management potential. We expect to accomplish this through the development of stronger communication between management and staff with the introduction of a new Coaching and Counseling Program early in 1992 and a new Performance Appraisal System. Also, the Vice President of the Corporate Planning Group and the Personnel Officers will visit area management to discuss the training and development needs of certain individuals, including minorities and females, with a view toward increasing advancement potential where possible. Details concerning these initiatives are included in Appendix III.