Evaluate different explanations for the under-representation of women in managerial posts.

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GENDER AND EQUALITY

Q.5 Evaluate different explanations for the under-representation of women in managerial posts

In the 1980’s the lack of women in managerial positions hit the headlines and started a debate as to why women are under-represented at the higher levels of hierarchy in most organisations. In fact women only make up 6% of all directors in FTSE-100 companies and 2% of executive directors in 2000 (Guardian 5th November 2001, pg17). In the US the top companies have a higher proportion of women directors but only 1% of executive directors in the US are women (Guardian Women 9th November 2000, pg8). In this essay, I will firstly state the advantages and disadvantages that women can bring to an organisation in senior management, and then I will look at the explanations as to why women are under-represented. Once the explanations are apparent I will then discuss what can to done to help alleviate the problem. Finally I will conclude on my opinions as to the under-representation of women in senior management.

It is clear that there is a lack of women in senior management posts, but why is this? Is it because women have nothing to offer?

No, women have a lot to offer an organisation, they have differing perspectives and opinions that will stimulate discussion and help improve decision-making. Women have a different leadership style to men, it is known as a ‘transformational’ or ‘interactive leadership style’. This can bring benefits to the organisation and employees as women’s leadership style encourages participation; the sharing of power and helping people feel good about themselves. Research in a wide variety of industries including health care, military and education has shown that when a transformational leadership style is used, employees are likely to perform better, have an increased effort level and have more job satisfaction. It is also linked to organisational morale, team cohesion, commitment, team and organisational measures of success. However there is a debate about this as to whether it does bring so many benefits.

When personnel directors in the retail industry have been challenged about the under-representation of women in managerial posts, the majority viewed it as serious, affecting company image, recruitment and staff turnover. Some thought an increase of women managers would have a positive change and welcome a fresh management style.

Another reason why organisations should try and increase levels of women in management is that evidence has shown that once women achieve some seniority they tend to stay loyal in an attempt to reduce some of the effects of gender stereotype (Marshall, 1984). Therefore it would be wise to have more female managers, as they would work for the company for a longer time period than men. This has numerous benefits for the organisation, as recruitment costs will be lower. Also the company would reap the benefits from the expensive training they have provided for them. This concept that it may be cost efficient to have more female managers is backed up by research carried out by Cozby in 1973 that showed in terms of management development women are cheaper because they are less barrier bound, they can change and adapt more easily, more quickly and therefore more cost effectively.

Therefore it can be seen that women do bring benefits when in senior management, a study by the Cranfield School of Management in 2001 showed that the most successful companies are more likely to have female board members. For example, 17 of the top 20 companies by market capitalisation have women board members and of those companies in the bottom 20, half had all male boards. The obvious question therefore is why are women under-represented in management?

However there is evidence that women may actually be a hindrance, this might be a reason as to why women are under represented at senior management. A recent article in The Times (November 11, 2003) found that after analysing FTSE 100 shares, those companies that don’t install women on the board outperformed those that promoted sexual equality at the top. Of the top ten companies with most women on their board, 60% underperformed the FTSE 100. However of the bottom companies that have the least female board members they generally outperformed the FTSE 100. For example, Marks and Spencer underperformed by 19%, Shell by 17% and BAA by 14% whereas Schroders outperformed by 34.4%, Rio Tinto by 6.7% and Anglo American by 23.7%. (The Times, November 11, 2003)

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There are many arguments why there is a lack of women in management posts. If we look back in time we can see that historically when a company was set up it was usually a family run business typically run by one man, the male head of house. This has obviously had an impact of the culture of modern organisations. It would often be an independent retailer, employing relatives or staff. This is bound to have implications today as many people both male and female will have a stereotype that a manger should be male. Virginia Schien first identified ...

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