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Male CEO or a Female CEO

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"Evolutionary theory predicts that men will tend to exhibit greater status-seeking, competitiveness and risk-taking than women, and that women will exhibit more nurturance and affiliative behaviour. These predictions are borne out in every known human society" (Marshall, 1984).

        From the Case Study, Whirlway's Chief Executive Officer, James Grant, after 28 years at Whirlway has decided to retire.  After holding selection interviews two external candidates are considered to have all the attributes to 'lead' Whirlway. The candidates are:

* James Cavendish, male, 42 years old

* Jasmine Carusi, female, 45 years old

The Board is unable to decide between the candidates. However, one member of the Board is strongly arguing to appoint Jasmine Carusi to the position - saying "leaders may have always traditionally been men with special qualities, but nowadays it is women who are more likely to be considered as effective leaders".

        Stocks of the eight Fortune 500 companies run by female CEOs underperformed the Standard & Poor's 500 index in 2004, but they beat the men so badly in 2003 that they remain a collective winner over the past two years (www.usatoday.com).

USA TODAY tracked their performance with a fictional investment for a second year to see whether the smart money is on the women. Those eight companies turned in mixed results in 2004 after a blowout 2003, when seven out of eight were winners. While an index of the Standard & Poor's 500 stocks was up 9% in 2004, a portfolio of stocks in the companies led by women was up just 2.2%, and three companies lost money:

* Rite Aid, up 147% in 2003, fell 39% in 2004.

* Pathmark Stores, a chain of supermarkets in the Northeast, was down 24% after rising 50% in 2003.

* Hewlett-Packard slipped 9% after rising 32% in 2003 (www.usatoday.com).

        Stock prices rose in 2004 at four of the companies, including a 32% gain for Patricia Russo's Lucent Technologies. That followed Lucent's 125% jump in 2003 as Russo continues to guide the company through a transformation from the days when it was AT&T's hardware maker. A $100 investment when Lucent was selling for $1.26 a share at the start of 2003 would have been worth $298 at the end of 2004 (www.usatoday.com).

        USA TODAY's fictional investment of $100 in each of the eight companies at the start of 2004 had a capital gain of just $17 compared with a $72 increase for those who invested $800 in the Standard & Poor's 500. Additionally, only H-P, Avon Products and Golden West Financial paid dividends, and the combined yield of the eight woman-led companies cost investors another percentage point in total return, vs. the Standard & Poor's 500 (www.usatoday.com).

        The gender differences were often small, and men sometimes earned higher marks in some critical areas, such as strategic ability and technical analysis. But overall, female executives were judged more effective than their male counterparts. ''Women are scoring higher on almost everything we look at,'' says Shirley Ross, an industrial psychologist who helped oversee a study performed by Hagberg Consulting Group in Foster City, Calif. Hagberg conducts in-depth performance evaluations of senior managers for its diverse clients, including technology, health care, financial-service, and consumer-goods companies. Of the 425 high-level executives evaluated, each by about 25 people, women execs won higher ratings on 42 of the 52 skills measured (www.businessweek.com).

        The growing body of new research comes at a time when talent-hungry recruiters are scrambling to find execs who can retain workers and who can excel in the smaller bureaucracies of New Economy companies. Women think through decisions better than men, are more collaborative, and seek less personal glory, says the head of IBM's Global Services Div., Douglas Elix, who hired two managers within this year--both women. Instead of being motivated by self-interest, women are more driven by ''what they can do for the company,'' Elix says. Adds Harvard Business School Professor Rosabeth Moss Kanter, author of the 20-year-old management classic, Men and Women of the Corporation: ''Women get high ratings on exactly those skills needed to succeed in the global Information Age, where teamwork and partnering are so important." (www.businessweek.com).

        It's no surprise, then, that some executives say they're beginning to develop a new hiring bias. If forced to choose between equally qualified male and female candidates for a top-level job, they say they often pick the woman not because of affirmative action or any particular desire to give the female a chance but because they believe she will do a better job. ''I would rather hire a woman,'' says Anu Shukla, who sold her Internet marketing-software company Rubric Inc. earlier this year for $390 million. ''I know I'm going to get a certain quality of work, I know I'm going to get a certain dedication,'' she says, quickly adding that she's fully aware that not all women execs excel. Similarly, Brent Clark, CEO of Grand Rapids-based Pell Inc., the nation's largest foot-care chain, says he would choose a woman over a man, too. Women are more stable, he says, less turf-conscious, and better at ''all sorts of intangibles that can help an organization.'' (www.businessweek.com).

        But if women are so great, why aren't more of them running the big companies? Thousands of talented women now graduate from business schools and hold substantive middle-management jobs at major corporations 45% of all managerial posts are held by females, according to the Labor Dept. Yet only two of the nation's 500 biggest companies have female CEOs: Hewlett-Packard Co.'s - Carly Fiorina and Avon Products' - Andrea Jung. And of the 1,000 largest corporations, only six are run by women (www.businessweek.com)

        Several other studies showed similar patterns. Personnel Decisions International, a consulting firm in Minneapolis, looked at a huge sample of 58,000 managers and found that women outranked men in 20 of 23 areas. Larry Pfaff, a Michigan management consultant, examined evaluations from 2,482 executives from a variety of companies and found that women outperformed men on 17 of 20 measures (www.businessweek.com).

        To eliminate such potential distortions, Kabacoff conducted a differently designed study in 1998. He compared male and female managers who worked at the same companies, held similar jobs, were at the same management level, and had the same amount of supervisory experience. When he examined 1,800 supervisors in 22 management skills, he found that women outranked men on about half of the measures. Female managers were graded more effective by peers and subordinates, but bosses still judged men and women equally competent as leaders. ''Men and women seem to be doing roughly equally effective jobs, but they approach their jobs differently,'' says Kabacoff (www.businessweek.com).

        Although women and men are represented in almost equal proportions in the wolrd's population, participation in employment, or at least paid employment, is less evenly balanced. World Bank estimates show that about 59% of the world's labour-force are male and 41% female (World Bank, 2001).

        Across the world, men are over-represented in industries such as manufacturing and construction, and in many industrialized countries women are over-represented in the service sector. So, for example, in the second half of the 1990s in the UK, 86% of the female labour-force worked in services compared with 60% of the male labour-force, whereas only 13% of working women were employed in the industrial sector compared with 38% of men. This situation is very similar to that found in the USA (World Bank, 2001).

        Appendices - 2 shows the proportion of men and women in both the labour-force and in managerial and administrative occupations for a selection of industrial nations in 1999. Because the occupational definitions used by different countries vary somewhat, abd because management is notoriously difficut to define precisely, these figures should be treated with caution since they permit only fairly crude comparisons to be made (Thomas, 2003).

        On the basis of the above survey Whirlway should appoint Jasmine Carusi as their CEO, as this survey proves that female executives are taking over men in every possible way and also taking into consideration the betterment and bright future of Whirlway.

REFERENCES:

* http://www.usatoday.com/educate/college/careers/hottopic35.htm

* http://www.businessweek.com/2000/00_47/b3708145.htm

* Thomas, A. (2003) Controversies in Management: Issues, Debates, Answers, Second Edition, London, Routledge.

* World Bank (2001) World Development Indicators 2001, Washington, DC: World Bank.

APPENDICES - 1

Where Female Execs Do Better: A Scorecard

None of the studies set out to find gender differences. They stumbled on

them while compiling and analyzing performance evaluations.

SKILL (EACH X DENOTES WHICH GROUP                  MEN           WOMEN

SCORED HIGHER ON THE RESPECTIVE STUDIES)

MOTIVATING OTHERS                                                                      XXXXX

FOSTERING COMMUNICATION                                                        XXXX*

PRODUCING HIGH-QUALITY WORK                                                 XXXXX

STRATEGIC PLANNING                                                   XX             XX*

LISTENING TO OTHERS                                                                    XXXXX

ANALYZING ISSUES                                                        XX              XX*

* In one study, women's and men's scores in these categories were

statistically even

DATA: HAGBERG CONSULTING GROUP, MANAGEMENT RESEARCH GROUP, LAWRENCE A. PFAFF, PERSONNEL DECISIONS INTERNATIONAL INC., ADVANCED TEAMWARE INC.

Source: http://www.businessweek.com/2000/00_47/b3708146.htm

APPENDICES - 2

Men and Women in the labour force and in management, selected countries, 1999 (%)

Countries

Total Employment

Managers/Administration

Men

Women

Men

Women

Australia

56.53

43.47

75.21

24.79

Canada

54.13

45.87

64.87

35.13

Denmark

54.23

45.76

76.60

23.40

Finland

52.95

47.04

71.31

28.69

Germany

56.75

43.25

73.69

26.31

Greece

63.12

36.88

75.06

24.94

Ireland

59.52

40.48

66.09

33.91

Italy

63.89

36.11

81.18

18.82

Japan

59.28

40.72

90.70

9.30

Netherlands

57.98

42.02

77.23

22.77

New Zealand

54.65

45.34

62.67

37.33

Russian Federation

52.18

47.81

62.78

37.22

Sweden

52.15

47.85

71.20

28.80

United Kingdom

55.16

44.83

66.70

33.30

USA

53.52

46.48

54.90

45.10

Source: International Labour Organisation, Yearbook of Labour Statistics, Geneva:ILO,2000.

        (Thomas, A. (2003) Controversies in Management: Issues, Debates, Answers, Second Edition, London, Routledge)

BIBLIOGRAPHY

* http://www.usatoday.com/educate/college/careers/hottopic35.htm

* http://www.businessweek.com/2000/00_47/b3708145.htm

* http://www.businessweek.com/2000/00_47/b3708146.htm

* Thomas, A. (2003) Controversies in Management: Issues, Debates, Answers, Second Edition, London, Routledge.

* World Bank (2001) World Development Indicators 2001, Washington, DC: World Bank.

* Marshall, J. (1984) Women Managers: Travellers in a Male World, Chichester: Wiley.

SIDDHARTH GOYAL                                                                                  BBA - COHORT - 2006

I.D. NO: 020106010                                                                                       MODULE NO: U51000

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