Glass Ceiling Concept - Research Paper Example

? Glass Ceiling Executive Summary In a presentation on “Why we have too few women leaders”, Facebook COO Sheryl Sandberg explains why a smaller percentage of women than men reach the top of their professions. She states that women systematically underestimate their abilities, points out the tensions between work and family (child-rearing specifically), and their position relating to priority and value of raising children and suggests that enlisting a real partner ensures equal attention to all things is ideal for the human experience as it is expected to work wonders on our psyche, our culture, and our overall standards of living. The report seeks to analyze the following questions and a statement related to the concept of ‘Glass Ceiling’: Does a glass ceiling exist for female executives in business or is this a myth? Analyzing the causes as to why there are still too few women in top positions of leadership. What are the responsibilities of the corporate companies with reference to glass ceiling? Based on the literature review and discussions, the paper outlines the recommendations to create a level playing field for the women employees to succeed in their carrier and attain top positions of leadership. The recommendations outlined covers introduction of reforms in the performance scales to avoid discrimination on the basis of gender, introduction of quota system by the government by allocating proportional representation for women in recruitment and promotions to higher positions and introduction of legal reforms by the government for property rights to women in succession. These basic reforms at the company and government level will increase the presence of women in top positions in various organizations, institutions and the government departments. The other barriers enumerated will be shattered down over the period of time, once the fundamental reform process covering these issues are carried out. Introduction Purpose of the report The issue of glass ceiling in the context of the developments in technology, telecommunication and media assumes greater significance on account equality of opportunities to the women in the society. Several companies have declared this issue as an objective in their CSR (Corporate Social Responsibility) programs. The purpose of the report is to analyze and present the various issues involved in practice and the ways to rectify the position for a better working atmosphere by ensuring equality in opportunity for all in the society for a sustainable development. Scope The scope of the paper is to cover the concept of glass ceiling, the factors leading to this phenomenon in the companies, institutions and government and the responsibilities on the part of the corporate companies or other institutions in fixing up the issue. And as such, the issues extraneous to this objective are covered only to the extent they are relevant to the topic of the discussion. Sources and Methods This report relies mainly on secondary sources for analysis and discussion. The data with reference to glass ceiling are analyzed in the background of the information gathered from the secondary sources which forms the basis for the recommendations. Limitations The psychological factors involved in the study may vary from person to person within the society among males and females. Therefore, perception with regard to the issues could be mostly subjective in nature conditioned by their cultural background, level of education and the individuals’ experience. Therefore, the study can only give broad outlines in its findings and giving specific solution or recommendation to the issue would be difficult. Glass ceiling The discrimination by sex was outlawed in the Civil Rights Act, 1964. The barriers to the advancement of women in employment especially for the leadership positions still exists in various forms though there has been considerable progress achieved in the lower and middle levels in business organizations and the government departments as per the statistics. Stock, K (2011) states that in the composition of the Standard & Poor's 1,500, which is comprised of the largest U.S. companies, over a 12-year period, almost two-thirds of the companies had at least one woman on their board, however only 23% had a female top executive. Though the barriers are not explicitly stipulated or stated in the management policies or the administrative system of the businesses or government in reaching the highest positions based on their qualifications or experience, the perception of glass ceiling could be discerned in the fewer promotional opportunities provided to the women compared to men. Matsa, D. A. and Miller, A. R. (2011, p. 1) states There may also remain sympathetic demand-based or institutional barriers that present a “glass ceiling” blocking women’s progress to the highest corporate levels, despite their continued gains at lower levels and in middle management. Current top executives and corporate directors, who are primarily male, may tacitly discriminate or stereotype by sex, and the historic absence of women in top positions may lead to hysteresis, preventing women from accessing powerful, male-dominated professional networks… This disparity needs to be fixed up for a balanced growth and development in the society. The table given below illustrates the position with regard to female representation in top corporate leadership in the United States during 1997-2009. Table 1 - Female representation in Top Corporate Leadership, United States, 1997-2009 Board of directors Top five executives ----------------------------------------- ------------------------------------------------ Share Share Female Female Any (including (excluding Any Share Female Year Female Executives) Executives) Female Female CEO 1997 59.1 7.6 8.9 14.2 3.2 0.9 2009 77.4 14.8 17.0 22.6 6.0 5.7 Average 63.7 9.5 10.9 23.5 5.7 1.8 --------------------------------------------------------------------------------------------------------------------- Notes: This table reports the percent of company-year observations with any female representation among its corporate leadership, and women’s average aggregate percent of these positions. Source: Masta, D. A. and Miller, A. R. (2011, p.9) Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership, Social Science Research Network. The existence of glass ceiling is corroborated by the employment data, though the extent of prevalence varies from organization to organization. This is due to the fact that several organizations have taken proactive measures to improve the situation by their CSR initiatives. However, with the increase in the strength of women at board level in an organization, greater proportion of women in the senior executive positions becomes easier, and it is an evolving phenomenon. According to a new study from Northwestern University's Kellogg School of Management, Masta, D. A. (2011) states “a higher representation of women on a company’s board of directors directly increases the female share of and access to higher positions within the company”. This thinking is based on the fact that the demand for women’s position in the top echelons of the management should emerge from the companies, though there is no dearth of qualified and to some extent experienced women candidates in the market. Also, there has been a stagnation noticed in the middle level executives due to lack of promotional changes to the women employees to higher positions. Mandell, L. J. (2011) reports that at the companies that made the top 50 list, women hold 23 percent of board seats (versus 16 percent at Fortune 500 companies) and represent 14 percent of CEOs (versus 2 percent of all companies nationwide) and Allstate Insurance Company is one of them from the insurance sector. Barriers to the advancement of women Eggers, K. (2010) states “New research from Oregon State University found that 7.2% of female execs at S&P 1500 companies left or were let go from managerial positions, compared to 3.8% of male execs in similar roles from 1996 to 2004”. Predominantly, the domestic and social responsibilities of the women are responsible for this situation. One explanation for this outcome suggests that when there is a decision to cut jobs, naturally the women employees who were recently hired or promoted had to bear the brunt, and they are mostly women. While the domestic responsibilities of the working women, the children care and need for assistance in their studies as well as traditional discrimination towards them in the workplace, at least in a subtle manner are the major barriers. Women directors at the board level, is likely to influence the composition of the work force in terms of gender at the top level executive positions to start with. However, this has been mainly hampered by the succession policies adopted by the business and industrial families which are in favor of male succession. But, this achievement at the board level will percolate down to the next lower strata over a period of time to the desired level. Achievement of proportional representation all levels of the management would pave way for improved working conditions and work environment. Succession in Business Families When there is no shortage of qualified and talented women for the high level postings, there should not be any disparity in the appointments or promotion of the women to the top posts. Masta, D. A. (2011) states “Today, women account for nearly half of the nation’s overall workforce, but hold only 6 percent of corporate CEO and high-level executive roles”. The institutional gender barriers in today’s workplace is cited as the reason for the women not holding senior executive positions, though there are qualified and experienced executives available in the middle level positions for elevating to the higher positions. There is also a tendency among the managements to recruit or promote men to the higher posts when they face an indifferent situation between a man and woman. Sometimes, men are favored on account of unknown fear or simply to avoid criticism that could be expected on such decisions. The cultural background of the society also plays an important role in this issue. For instance, in the business families men are given preference over women as successors to the business, even if the women are intelligent, talented and capable. Even in the case of professionally managed companies owned by the wealthy families, when it comes to the question of succession, women are considered only when there is no male offspring. An article in the Economic Times (2009), a leading business daily of India from the Times of India group by Duttagupta, I. and Dhall, A (2009) states “The times are changing for the mega business families of India. Or are they really? For long, these families ignored the business acumen of the fairer sex — but time now, perhaps, for a rethink on succession planning which typically excluded the women”. In the various societies, family wealth is divided among the male members equally. In the Japanese families one male successor receives the wealth in succession. In India several State Governments have recently passed acts giving property rights to the women. American society is cosmopolitan and comprises people from different ethnic groups and countries of the world and therefore, the cultural background of the business families reflects in their decisions in respect of family succession. According to Gross, M. A. (2011) “whether the family business is based in the United States or across the world, one needs to be aware of the five points in which conflict is most likely to occur: (1) the mutual acceptance of roles; (2) the agreement to continue the business; (3) the propensity of a successor to take over; (4) the propensity of an incumbent to step aside; and (5) succession planning because conflict in family succession is universal”. This is a very pertinent issue with regard to the position of women in the society due to its impact on employment. Since succession in the business and industrial enterprises is grounded on social issues, reforms in legal landscape are essential for us to achieve the objectives in respect of glass ceiling. Therefore, the issue of glass ceiling could be considered as a significant barrier inherent in the social system which could be addressed effectively also by introducing quota system in recruitments and promotions of women in the businesses and government. Quota System Norway imposed a quota in 2006 requiring that the boards of directors of public limited companies be composed of at least 40 percent female members. Governments across Europe have since adopted or proposed similar rules. A study conducted by Matsa, D. A. and Miller, A. R. (2011, p.32) suggests that “compliance with the quota was costly for firms in the short term, but raises important questions about the long-term impacts. The fewer layoffs may reflect a more stakeholder-oriented attitude on the part of female directors, or a more long-term perspective if women are more willing to incur higher short-term labor costs to increase workers’ productivity in future periods… gender quotas can be effective at increasing board diversity and may shift the balance of corporate governance away from the short-term interests of investors and toward those of rank-and-file workers.” The board members’ characteristics of listed firms in Norway in 2009 are given in the Appendix – I. The purpose is to show that, in case the proportional representation is achieved in due course of time by a quota system, whether it is favorable to the business and hence justifiable. The quota system is eminently justifiable on various parameters viz. professional experience, education, role on board and industry experience based on the actual experience obtained in the case of listed firms in Norway. The analysis acts as an eye opener on several counts, supporting the need for balanced representation of women in the high offices. By and large the negative factors which justify discrimination on the basis of gender are very limited and compensated more by the positive factors, on an overall basis. In fact, women race ahead of men in the case of education and industry experience in several growing sectors, as can be inferred from the Appendix – I. There may be initial resistance and misgivings at the time of introduction of the system. But, it is to be noted that it is not free for all. In order to get selected in the recruitment process or to be eligible in the promotional avenues, the women employees need to possess necessary qualification, experience and additionally good track record in the case of promotions. The important point to be underlined is that such candidates should not be denied opportunities in going up the management ladder. There is no question of favoritism or discrimination against men involved in this system. This is based on the confidence that there are enough intelligent talented women waiting in queue to contribute for the growth and development, if they are entrusted with the responsibilities. Role of Spouse or his preferences in decision making Though there are constraints faced by the working women due to their domestic responsibilities including housekeeping, children’s welfare and their education and their obligations towards the aged dependants, another important feature is the role of spouse and his preferences in the decision making process of the working women, which in many cases impairs the career development of the women. When the husband is transferred to another place or promoted to a position which requires him to shift his residence, it affects the family set-up with impact on children’s education, career choices of the wife, proper arrangements for the aged dependants, taking care of the properties in the existing place in future and so on. The dropout of women from the high positions is not an exception when this factor could be attributed for such phenomenon in general. In most of the cases, the women are forced to take decisions against their career progress in the interest of the family and to protect the unity of the family, though financial issues may not be a bigger concern in the family. Physical and psychological factors: constitution of womanhood Though this area has not been researched in detail by the scholars, the factors involved need to be considered as a barrier in a women’s career. It is not uncommon that the menstrual period is associated with excess bleeding, headaches, fatigue, urinary problems and so on. “Menstruation or periods as it is commonly called can be a cause of worry if it is painful and irregular. It might be staggering to note that up to 90% of woman face menstrual problems. Those days can be really unpleasant and I understand the physiological and psychological state of a woman in that phase “. (Consultant, Menstrual) It affects mobility of the women to a greater extent during this period and travelling, participation in seminars, conferences or meetings which are the routine affairs when the women go up in the management ladder in their career are hampered. The women at the top feel lonely at this point of time, unless they are surrounded by women. This factor strengthens the need for balanced mix of men and women in the top positions. Probably, it is one of the reasons why women at board level or at the top management positions prefer women in the recruitments and promotions to the top positions. These types of problems could be effectively overcome if there are more women at the top level, so that they would be in a position to discuss among themselves and formulate their strategies to meet the emergencies and exigencies, because, in spite of the developments taking place in a society, still such problems are in the domain of women and men are not encouraged to participate in such discussions outside the family, and it is also understandable. Conclusions The refusal to acknowledge by the workshop participants about the existence of a glass ceiling itself is a reflection of male chauvinism exhibited against the facts of the case. Though women actually comprise 54 percent of EIG’s workforce, the concern of Bremners is about the fact that only 6 percent of the company’s senior executives are women, and therefore the concept of glass ceiling can’t be dismissed as outdated. Also, the concern expressed that preferential treatment for women would cause valuable male executives to quit is unreasonable because, there was no proposal to give preferential treatment to women. It is implied that the women employees need equal opportunities and not preference. The general disbelief on the part of the male employees that female executives were more likely to leave organizations because a lack of opportunity at senior levels indicates insensitivity to the issue, because assuming lack of opportunity elsewhere for the women compared to men cannot make a company to give secondary treatment to the women as it could be construed as a form of exploitation. Adoption of good CSR policies calls for elimination of gender discrimination for a balanced growth and welfare of the society. Socially responsible corporate companies throughout the world are reorienting their HRD policies to fix-up the glass ceiling issue in their companies, and identified this as one of their corporate goals for a sustainable development. HSBC Holdings Plc in its annual review (2004) stated “Last year, we carried out a global survey of the barriers to women reaching senior management positions and possible remedies. The action plans which resulted will help us to tackle these issues during the years ahead”. This review indicates that the bank has recognized the importance of the issue in the year 2004 and it is committed to address the situation over the period of time. In a fast developing country like India several women bankers have broken glass ceiling. Padhmanabhan, A. (2011) states “In fact, a look at the composition of the top brass of 11 top listed banks on the Indian stock markets reveals that nine of them have at least one woman on their boards and two of them have women serving as chief executives” which reinforces developments taking place in this connection and the forward looking companies have already resolved this issue successfully. Following the reform process enumerated below do not impose any additional cost in its implementation for the company or the government, but results in equal opportunity for all irrespective of color, race or gender by promoting the policy of taking decisions based on qualification, experience and performance in the society. Recommendations Based on the analysis and discussions in the report, the following recommendations are offered to provide a more inclusive growth and development in the society. Introduction of reforms in the performance scales to avoid discrimination on gender basis Introduction of quota system in the areas on a selective basis ensuring proportional representation in promotions Introduction of legal reforms in the countries for property rights to women on par with men. The introduction of reforms by the companies and the governments on the above lines will eliminate the other barriers over a period of time when the women get their due place in the corporate setup. The recommendations are in line with the modern management practices aiming to provide a fair level playing field for the women employees by providing equal opportunities in the organizations. Word count: 3444 (Excluding references and appendix) References Duttagupta, I. and Dhall, A (2009) Families gradually include women in business plans, Times of India, 8 March 2009, Retrieved from http://articles.economictimes.indiatimes.com/2009-03-08/news/27649581_1_business-families-succession-planning-divya-ramachandran HSBC (2004) Annual Review – 2004. Retrieved from http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relations/hsbc2004ar0.pdf Eggers, K. (2010) Women Leave Management Roles Faster Than Men, The Wall Street Journal Digital Network, Dow Jones & Company, 8 December 2010. Retrieved from http://www.fins.com/Finance/Articles/SB129174130470963961/Women-Leave-Management-Roles-Faster-Than-Men# Gross, M. A. (2011) Family Business - International Family Business Succession, Net Industries, Retrieved from http://family.jrank.org/pages/512/Family-Business-International-Family-Business-Succession.html Mandell, L. J. (2011) Top 50 Companies for Executive Women 2011, AOL, Inc. 15 March 2011, Retrieved from http://jobs.aol.com/articles/2011/03/15/top-50-companies-for-executive-women-2011/ Masta, D. A. (2011) Closing the corporate gender gap, Kellogg School of Management, Northwestern University, 7 March 2011. Retrieved from http://www.kellogg.northwestern.edu/News_Articles/2011/corporate-gender-gap.aspx Matsa, D. A. and Miller, A. R. (2011) A Female Style in Corporate Leadership? Evidence from Quotas, 20 February 2011. Social Science Research Network, Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1636047 (download) Matsa, D. A. and Miller, A. R. (2011) Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership, Social Science Research Network. 28 January 2011. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1709462 (download) Menstrual, Menstrual Cycle Problems: Time to stop suffering! Retrieved from http://www.menstrualproblems.org/ Padhmanabhan, A. (2011) In India, women bankers have broken glass ceiling. India News Post, 22 March 2011. Retrieved from http://www.indianewspost.com/business/46216-in_india_women_bankers_have_broken_glass_ceiling.html Stock, K (2011) Cracking the Glass Ceiling From Both Sides, The Wall Street Journal Digital Network, Dow Jones & Company, 8 November 2011. Retrieved from http://www.fins.com/Finance/Articles/SB129960110316492871/Cracking-the-Glass-Ceiling-From-Both-Sides Sandberg, S. (2010) Why we have too few women leaders, TED Conferences, LLC Retrieved from http://www.ted.com/talks/lang/eng/sheryl_sandberg_why_we_have_too_few_women_leaders.html Appendices Appendix - I Board member characteristics by gender Male Female p-value of difference Professional experience Age 54.135 48.902 Read More