Gender Roles and the Construction Business - Assignment Example

of your Paper Sub Paper Due Table of Contents Paper Due Issues Generated3 Gender Roles and the Construction Business 3 Sibling Rivalry in the Family 4 A Woman as a Successor 4 Succession Planning 6 Theories and Frameworks 7 The 3 circle model of Family Business 7 Handler Framework 9 Concluding Questions 11 Theory 12 Description 12 Criticism of the Model 12 Comparison with other models 12 Limitations of the Model 13 Application of the Models and Frameworks 15 3 circle model of family business 15 Handler Framework 16 Factors promoting resistance 16 Factors reducing resistance 17 Plan of Action 17 Mentoring encouraged and practiced 17 SMT Aspects 18 Culture reinforcing organizational continuity 18 SMT Aspects 19 Pursuit of technical advice and consultation 19 SMT Aspects 20 Open Communication 20 SMT Aspects 20 Recommendations 21 Bibliography 21 Issues Generated Gender Roles and the Construction Business The construction industry is considered to be a male dominated industry with women in the business viewed as incompetent due to stereotypical thinking. For a woman, stereotyping makes the working environment and culture very difficult to work in. It can be a cause of problem in terms of: Relationship with male subordinates Delegation of duties Conducive working environment Morale of the workforce Loyalty amongst the staff This perceived non existing role of women in the construction business is a serious factor in deciding the succession plan of the company. If left ignored, there can be issues of decreased productivity, lack of teamwork and communication, dissatisfied customers and decreased revenues. The bottom line of the company is affected due to this limited view whereby the competitive abilities and the quality of human capital suffers (Kothari and Tobwala). Essentially the issue with women as leaders in a male dominated society has a lot to do with the stereotypical roles that they are supposed to confine themselves in. This can lead to females having credibility issues and not being able to effectively lead the company. This can negatively impact the company and even cause failure. It effects multiple levels in the company which includes employees and even clients who do not think a woman can run a stable company. This could affect revenue and make it difficult for the company to survive in such an industry. Sibling Rivalry in the Family The current scenario between the two sisters in the company can be a cause of sibling rivalry that can outgrow generations. The conflict is mainly between the two sisters. The eldest one belongs to a creative profession and has little know how about the actual business itself whereas the youngest sibling has been working in the business so far and does have the much needed experience. However, the eldest wishes to take charge of the company after her father from the virtue of her being the eldest. If the eldest is given the major chunk of responsibility, this can cause a great source of resentment for the younger sister since she will feel cheated out of her rightful place. Despite her obvious greater experience, if she is not given the position, she will feel that she has been treated unjustly and she might direct her anger towards the older sibling or refuse to work in the company at all. And the impact doesn’t end there, since the eldest daughter does not know much about the business, her management and business skills are in questions. She will take a lot of time to adjust to the business and a longer time to run it in an effective manner. Most companies cannot handle this impact or adjustment period and the company might run to the ground. So essentially, a lose-lose situation is created for both parties (Institute for Family Business). At the moment there is unspoken resentment between the two sisters who both want to occupy the same position. The appointment of one over the other will spark a sibling rivalry and cause disruption in the flow of the company operations. A Woman as a Successor There is evidence to suggest that more and more businesses are handing over their business controls to daughters. In the US 34% of the business’ next leader may be a woman and daughter successors are set to make an impact on the family business scene. In a family business set up, daughters are overlooked and not recognized for the business and leadership abilities, but this trend is quickly changing (Man-nung). The very same way, Alex has little choice in the matter and either way must appoint a woman as his successor. This can bring its own set of issues which includes the core issue of the perceived authority of the successor. Most women are not taken seriously or viewed with a stereotypical view. In a male dominated field, women are considered to be wasting time and not sure of what they are doing. This can effect the relationship the staff has with their boss negatively and cause many star employees to leave what they might consider a ‘sinking ship’. Women have gender characteristics that are unique to their sex and this can have an impact when they join the family business. Most women are emotional, sensitive and loyal and this is reflected in their dealings as well. They tend to put family first and business second and this is something that Alex does not want since he has put his life and soul into the business and wants to see it succeed and not be placed no.2 on the priority list. But women are more intuitive and capable of problem/conflict resolution which is a positive trait that Alex has in his favor. Another issue that comes into play with women as a successor is the indivisibility of women leaders. The assumption by the outside world is that women in important positions are there because they are the boss’s daughter or wife; that they are there because of their relationship and not their skills or competency. This attitude is difficult to remove and at times causes many clients and employees to ignore female businesswomen. Even if the daughter is more capable, most employees tend to look at male authority figures for the final decision making power. This invisibility is due to stereotyping and discrimination and is reflected in the family business system (Kothari and Tobwala). Another reason can be the woman’s own attitude which limits their potential roles. This often happens due to their own socialization and how they have been groomed to approach the family business. Even if they work alongside their fathers or husbands, they are often invisible and ignored. This can hamper their training and make them ineffective in the actual running of the company. It’s not an easy road for a business woman and they face a difficult task to attain the recognition they deserve for their efforts. Joining the family business presents opportunities and challenges but due to the fact that women are overlooked despite their skills and accomplishments, is still an issue in succession planning for businesses. Women also regularly face the problem of the glass ceiling. They do not advance as quickly as men when it comes to forming healthy relationships with their staff and are constrained by their traditional female roles. In most family businesses, the females are kept in the dark and they have trouble establishing and maintain authority (Kothari and Tobwala). Many women are known to make sacrifices for the good of the business but there can be clash of family and business interest in this regard. Even with high stakes involved, some women select family interest over business interest and this can affect the survival of the business itself. At times, the business cannot afford to be second priority. The health and survival of the business required professional management and that the interest of the family must be secondary; a thing that most female business women struggle with. A proper balancing of interests is required or in the long run unsatisfactory results will surface (Kothari and Tobwala). Succession Planning Alex has not yet outlined any succession plan and has made up his mind rather arbitrarily that the control of the business should go to the younger one. By asking the siblings to work together in unison, he has not made matters any better. There is no formal procedure or plan of action that has been formulated to groom, train and help select one of his daughters to lead the company in the future. This reluctance in forming a succession plan that is formalized and effective can have far reaching consequences for the company. There is little communication between Alex and his daughters and both the daughters currently do not know where they stand in the succession plans. The question of who is more deserving and what the new ownership dynamics will be have not been communicated to either one of the daughters and this has led to a simmering sibling rivalry and resentment in the family. Theories and Frameworks The 3 circle model of Family Business The three circle model is accepted a general model for a family business which consists of family, business and ownership as its main components. The three circles are intertwined at times which can result in poor communication, lack of commitment to the future and resentment (Institute for Family Business). The model consists of three parts: Ownership Business Family (Institute for Family Business) Within these three circles, there are seven positions that various individuals can occupy. As you can see in the above representation of the model, these positions can be a source of future successors or managers for the company. These positions are not fixed for individuals and often at times these positions change. The family membership however is constant although the role can vary. Each circle contains various stages of development and each member within the family, business or ownership circle. The 7 possible positions are: 1. External investors, who own part of the business, but who do not work in it and Are not members of the family 2. Non-family management 3. Owners who are part of the business but not the family 4. Family members who have ownership shares of the business 5. Family members who are not actively involved in the business 6. Family members who work in the business, but have no ownership 7. Inhabiting all three circles are owners who are also family members and who work in the business. (Institute for Family Business) This model initially consisted of a two circle system and later the ownership circle was added to ensure a thorough analysis of the family business. The model is considered to be theoretically elegant and simply with far reaching consequences. But lately there have been additions to this model to make it more comprehensive and dynamic. These five dimensions include: Family, Ownership, Wealth management, Business and portfolio governance and foundation. This is an odd variation of the 3 circle model and questions the simplicity of the latter (Spector). Handler Framework The framework shown below formed by Handler highlights succession reluctance and the forces at play in that scenario. (Family Firm Insitute) This framework is organized into two core components, namely: Factors promoting resistance Factors reducing resistance These are then further divided into four levels which cover the individual and environmental perspective i.e. external factors. These include individual, interpersonal group, organizational and environmental. Controversial succession at top level always draws a lot of negative attention which can damage the reputation of the company. It can also create rifts, lower morale and induce a feeling of volatility in the company. The framework outlined by Handler allows for an effective analysis of the succession situation and can help provide crucial information to make a thorough succession plan (Family Firm Insitute). Concluding Questions The above issues and theories raises some questions that can warrant reflection: 1. What factors has caused Alex to be reluctant in forming a succession plan. How can this reluctance be overcome 2. How will the ownership be transferred to the sister or will there be a plan to distribute the ownership between the two sisters? Who will get the majority share and why? How will it change the dynamics of the family, owner and business circles. 3. What method would be best to ease the transition impact and cost? 4. Would a consultant ease the succession process or should Alex manage it himself? 5. Should the daughters be appointed mentors and trained for the eventual succession? What happens at the end of their training? Theory Description There are many forces at work in the Family Business and the Handler framework analyses the reluctance to succession planning. The framework was created by Handler provides information about the factors that promote and reduce resistance to succession planning. It requires looking at four different perspectives: Individual, interpersonal group, organizational and environmental. Criticism of the Model Comparison with other models The Handler framework lacks a similar model which can allow for an effective comparison hence a comparative analysis is not effectively possible. There is however a model which covers some of the factors which are present in the Handler framework known as the IFB model. It covers 3 core components which include: The Owner The family Employee and environmental factors (Institute for Family Business ) The owner factors consist of factors such as reluctance to let go of power, loss of identity for the owner, bias against planning, and inability to choose amongst children, fear of retirement, jealousy and rivalry. All these factors can hamper the succession planning process. A similar approach is also seen in the Handler Framework. The family aspect consists of factors such as the spousal resistance to change, family taboos and fear of parental mortality. These aspects can have a negative impact on succession planning and cause problems for the long term growth of the company. Employee and environmental factors consist of two core aspects: Job Insecurity External worries about change (Institute for Family Business ) Job insecurities refer to the employee’s relationship with their owner and their tendency to see successors as a potential threat to their job satisfaction and security. An external worry about change refers to the clients and other stakeholders of the company who might be resistant to change. This can cause a troubled power transition and a longer adjustment period (Institute for Family Business ). The Handler framework covers different perspectives as compared to this model so it is more comprehensive in that regard. And it also takes into the factors that reduce reluctance which is another limiting factor for the IFB model. The bad point of the Handler framework is that it doesn’t take into account individual perspective of the family. This is a good factor about the IBF model and hence it allows for a more thorough analysis (Institute for Family Business ). Limitations of the Model There are not a lot of papers critiquing the Handler framework. Although there are many statistics and articles regarding the issue of succession planning, no paper analyzes this topic deeply. In terms of applying this framework to a situation, the execution is easy. The simple methodology to be followed allows for a clear and directed channeling of the effort. The subheadings and factor levels are easy to understand as well. The framework is however descriptive in nature which means there is a little subjectivity in the interpretation of the factors. One reader might interpret the matter in a certain way and the other might get another meaning from it. Therefore there might be some confusion regarding the subject matter. For example, if one looks at the factor titled, ‘lack of other interests’, one will find that there is some confusion regarding the matter. Interests can be defined as a hobby whereas it can also stand for financial interests or ownership interests (Family Firm Insitute). Culture threatens organizational development also has subjective connotations. Culture can stand for workplace culture, family culture or office environment. To summarize, the framework is fundamental in nature and some concepts are subjective. However the underlying concept behind the framework is sound and easy to understand. One flaw in the framework is the fact that it only analyses a given situation but does not provide any possible solutions to the situation. None the less, it gives direction to the problem solving efforts and can be used as a focal point for brain storming sessions regarding succession planning (Family Firm Insitute). Application of the Models and Frameworks 3 circle model of family business Looking at the 3 circle model of family business, it is easy to identify and analyze the situation going on in the family. Alex falls right in the intersection of all 3 circles i.e. he is an owner, part of the business and part of the family as well. The younger daughter is part of the business and family intersection of the circle. The problem comes with the eldest daughter. The eldest daughter was initially in the plain family side i.e. family member who is not actively involved in the business as owners or employees. But she has now taken a shift from occupying that level to the same level as that of the younger sister. It is important to note however that the youngest daughter has the necessary experience of working actively in the business and her educational experience in law is also an added bonus. This law experience can also help her during the course of her work at the construction company. The eldest daughter has experience in film making so needless to say that she has no formal educational or work experience in this field. The question remains that where will Alex decide to place his two daughters in the 3 circle model. Will the youngest occupy the ownership, business and family intersection alone or will she share it with her sister. If she does share it, what will be the optimum sharing percentages? This model can help direct the efforts in the right manner by analyzing the situation from various angles. Handler Framework Factors promoting resistance On an individual level, we can see that the owner has a strong identity with the business and so far there has been an avoidance of technical advice and consultation since no succession planning consultant or expert has been hired to oversee the matter. Alex is the founder of this business and wants to see it succeed despite his wife’s insistence to prioritize family harmony over the business. There is lack of open communication since both daughters do not know where they currently stand in regards to succession or what the plan of action is. There has been no formal training or mentorship for the daughters either. There is no conflict in terms of other potential heirs and the choice is limited between the two daughters. On an organizational level, there are cultural problems which may stand in the way of the daughters succeeding their father. Construction is a very male dominated field and there might be issues with the daughters being taken seriously by their employees and even clients. Due to this, it is easy to say that the culture threatens organizational development if the daughters do take control. This might lead to the impression that the company is not stable and not headed in the right direction. This can cause problems with employee discipline, morale and productivity. On an environmental level, the industry requirements are such that there is a need to be on site often which means going to dangerous construction sites and dealing with mostly men in a very unfamiliar environment. There are specialized professional pre requisites that must be learned in time since construction sites often require safety precautions and procedures to be followed. Factors reducing resistance There are some factors at play that reduce the resistance to effective succession planning. Alex has to a certain extent delegated responsibility to the youngest daughter and realizes that a certain plan of action is to be taken if smooth power transition is to take place. This realization makes him open to technical and expert consultation. The heirs are now actively involved in the business especially the younger daughter. The eldest daughter has started to take an interest and is eager to learn. There are professional prerequisites and industry requirements but the younger daughter is aware of these since she has been a part of the company for some time. Her previous law educational experience is also suitable since she has foreknowledge of the legal requirements in the construction and building industry. Plan of Action Mentoring encouraged and practiced Since there is no mentoring or formal training procedure to help ease the transition process, it has left doubts about the ability of the two daughters in leading the company. A process whereby daughters were assigned to mentors and a quarterly progress report can be taken. This quarterly report can list down the strengths, weaknesses and potential areas for improvement for each daughter. A rotation program can also be implemented whereby the daughters are assigned to work in different departments. This can allow for effective training and know how in different departments. It will allow for smoother administration and power transition. It will also help with the authority issue that most women face. If they have worked in different parts of the company, it can help build their credibility and ensure they are looked as competent administrators. It can help with the stereotyping in the workplace and help remove misconceptions about women as bosses of a construction company. SMT Aspects a. Specific This mentorship program is specific in terms of its goals and what it hopes to accomplish. It can effectively train the heirs with competent managers in the company in terms of building credibility and improving management skills of the heirs. The managers can take charge of the mentorship program. b. Measurable The goals are measurable as the progress report from each mentor for each heir will give an accurate view of what the achievement of the objective has been. c. Timely This program requires quarterly progress report and to ensure effective training, the program has to be conducted well in advance of the actual succession point. The timeline should consist of a five year plan with rotation with different managers. Culture reinforcing organizational continuity Since women face a stereotyping in the construction industry. To ensure that once the succession has taken place, the boss does not face an issue of credibility, there has to be promotion of workplace culture that focuses on removing stereotypical views. The top management has to start a culture that looks at women as credible business leaders. SMT Aspects a. Specific This program is specific in its objective and it must be initiated by the top management. The workplace culture change needs to be companywide hence only the top management can start the movement. It can include introduction of a women’s quota or recognizing the star female employee in the company. b. Time bound This program can be started and kept alive with timely refreshers. A time line can be formulated and it can help Alex ease the transition process for his daughters. Pursuit of technical advice and consultation In terms of succession planning, transfer taxes are a core problem. The transfer tax involves policies to transfer ownership of the business while minimizing gift and estate taxes. The size of the business owners taxable estate, need for retirement income, owners desire to control the business during the transition period etc. are all important factors that must be carefully considered. These are technical and important questions and an expert consultant can help minimize the transfer taxes and ease the transition process. This can be done through the following methods: Gifting strategies Statutory Relief Life Insurance Applications Such consultants can guide the upper management into forming a good succession plan that fits with the company requirements. SMT Aspects a. Specific This measure is specific in nature and its objectives as well. The consultant hiring must be done by the upper management and it can help them solve the issue in a effective manner b. Time bound The program can be formulated using a time lined approach. The execution of the plans depends upon the strategy the expert wants to follow. Open Communication Communication between the father and the two daughters is essential. Although the father knows that the youngest daughter is working in the company, he has still not informed any of them what exactly his plans are or even if he wishes to make formal plans. Family meetings where both parties can communicate with each other and form a succession plan that is acceptable for all parties can help improve the flow of communication. It can also reduce the reluctance to form succession plans. It can help increase trust and form succession plans that ensure stability. SMT Aspects a. Time bound The family should be able to organize timely family meetings which ensure that there is two way communications. The objective of these meetings should be to increase harmony between the family members. It can help curb family conflict and sibling rivalry. Such meetings should be held on a regular basis with timely progress reports. Recommendations 1. The lack of formal training and succession plan can affect the entire business and might cause failure. 2. The family should open communication in order to ease tension and curb resentment. 3. Mentorship programs should be started to make sure that the daughters are effectively trained. 4. A program should be initiated which seeks to change the work place culture about women leaders Bibliography Family Girm Insitute. "Succession in Family Business: A review of the research." Family Business revieq (2009). Document. Ganguly, Dibeyendu. The Economic Times. 15 Oct 2010. Web. 15 June 2014. Institute for Family Business . "Insitute for Family Business." 2011. Family Business challenges: Understanding Family Business. Web. 15 June 2014. Institute for Family Business. Insititute for Family Business: The three circle model of family business. 2010. Web. 15 June 2014. Kothari, Dr. Anil and Shehnaz Tobwala. "Growing Role of Women as Successor in Family Business." Pacific Business Review (2007): 59-64. Document. Man-nung, Chen. Want China Times: More Family businesses in China anonting female successors. 16 July 2013. Web. 15 June 2014. Spector, Barbara. McKinsey report adds two circles. 5 Febuary 2010. Web. 15 June 2014. Read More