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the glassceiling effect

“ The Glass Ceiling Effect –
A fiction or Truth”
Glass CeilingGlass Ceiling
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A Fiction or Truth”A...
“ The Glass Ceiling Effect –
A fiction or Truth”
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We are in motion, and the world has ch...
“ The Glass Ceiling Effect –
A fiction or Truth”
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the glassceiling effect

  1. 1. “ The Glass Ceiling Effect – A fiction or Truth” ““TheThe Glass CeilingGlass Ceiling Effect –Effect – A Fiction or Truth”A Fiction or Truth” 1
  2. 2. “ The Glass Ceiling Effect – A fiction or Truth” Executive SummaryExecutive Summary We are in motion, and the world has changed. This new era of economic dynamism and possibility marks the end of the old era of stable mass production. We have moved from the farm to the assembly line, and are en route from the assembly line to the computer. Information technologies, combined with global trade and worldwide investment, have shifted the economic ground we stand on. However, women are still concentrated in the most precarious forms of work and tend to be clustered at lower levels and in less vital areas. Is this a consequence of some external barriers that exist at workplace and society or is it a matter of choice that women do not want to reach the top of the corporate ladder? This project provides an insight about the various barriers that impede a female executive from climbing the corporate ladder i.e. the glass ceiling effect. The term “Glass ceiling” means the artificial barriers that exist within organizations, which block women from attaining senior executive positions. The glass ceiling is a term for barriers to advancement that exist but may not be seen, i.e. they are invisible or transparent, like glass. The barriers are covert rather than overt, having to do with attitude or unwritten practices rather than written policy. The glass ceiling includes things like excluding women from 2
  3. 3. “ The Glass Ceiling Effect – A fiction or Truth” meetings where key decisions are made, or not providing mentors or connections within the organization, or subtly sabotaging or undervaluing women's contributions, ignoring ideas that could lead to advancement, limiting opportunities for leadership development, nominating inferior men for promotions and awards and never nominating qualified women, etc. None of these practices can be found in written company policies, but they are commonplace behind the scenes, and they certainly prevent women from advancing. And these practices are extremely difficult, if not impossible, to break through. Hence, the "glass ceiling" term. The Glass Ceiling effect has been around for approximately 50 years. Women have achieved higher levels of education than ever before but still continue to face gender disparity. Various laws have been passed in this effect which has hardly been implemented. However, women are now stepping out and moving into the traditional man’s shoes. These women have carved a niche for themselves in what is believed to be predominantly male domain. It also argued that women contribute to their own inability to break through the glass ceiling in subtle ways stemming from personality attributes, social conditioning and learned management styles. This project is therefore undertaken in order to come to a consensus whether glass ceiling is a fiction or truth…………… 3
  4. 4. “ The Glass Ceiling Effect – A fiction or Truth” Chapter – 1Chapter – 1 IntroductionIntroduction 4
  5. 5. “ The Glass Ceiling Effect – A fiction or Truth” GENESISGENESIS The term “Glass Ceiling” first came into use in 1986 when two Wall Street Journal reporters coined the phrase to describe the invisible barrier that blocks women from the top jobs in corporate America. The Glass Ceiling, in its simplest form, is the theory that women do not advance into senior management or executive positions. It is a barrier that has been in place since women started redefining their roles in the family since World War II when their husbands were forced to leave the home and go fight in the war. At this time, the wife went to work while the husband was at war to support the family. At the end of the war, this new trend did not cease. Women received this era as a time of choice. Although the majority of women, at this time, chose not to continue working when the war ended, a percentage remained in the workforce. This change in the culture and structure was not accepted on a positive note. Women faced multiple barriers to promotions. The Glass Ceiling is certainly an issue that engenders a great deal of emotion…………… Most of the history upto about 1987 can be believed. At about that time, the concept of the “Glass Ceiling” was created, the term came into wide usage, and the Glass Ceiling took off as a political issue. As with virtually any political issue, the masters of political spin soon took over and have been making political hay 5
  6. 6. “ The Glass Ceiling Effect – A fiction or Truth” (and a great deal of money through grants and consulting fees) ever since. In the 1980s, not very many older (i.e. age 40+) women had a college education and still fewer had an advanced degree in business, so it was reasonable that very few women had the education, maturity, and experience to be upper level executives at business firms. At about that time, however, groups like NOW and the Feminist Majority Foundation began to demand 50-50 as the only “fair” representation for women. This was done in spite of the fact that men who were qualified by education, maturity, and experience outnumbered qualified women by a ratio somewhere in excess of 100:1. The ratio of 50:50 is not supported by logic, but 100:1 does not seem to be fair to women either. Hence, a conclusion was made that be it male or female, it takes an MBA and 25 years of experience to be considered for an upper management position. The Glass Ceiling Research Center matched the percentage of women graduating with an MBA or other advanced management degree in a given year (for example, 1955) to the percentage of women on top management teams 25 years later (in our example, 1980). From there the math was simple. If the percentage of women in the executive suit in any year was less than the percentage graduating with an appropriate degree 25 years earlier, then a case could be made that some type of gender-based discrimination may have occurred along the way. The results found were astonishing. For every single year since 1980, the percentage of women in upper management exceeded what would be expected. The expectation was exceeded by a ratio of at least 2:1 and in some years as high as 4:1. What 6
  7. 7. “ The Glass Ceiling Effect – A fiction or Truth” this means is that a woman with an MBA and 25 years of experience has historically been between two and four times as likely to be promoted to the executive suit as per similarly prepared male counterpart. This has been true for every year since before 1980, which was long before the Glass Ceiling became an issue. At the current time, about 33% of MBAs are women, and women constitute about 18% of upper management teams (defined as the top 20 executives in a Fortune 500 company). That percentage is growing every year, because more and more women with the appropriate education are gaining the experience and maturity to reach leadership levels. Since the earliest years of this century women have sought equal opportunities in education, the labor force, and the eyes of the law. This monograph has shown that in most of those areas women have achieved that equality. They are well represented in the professions, and they continue to enter fields of study that were previously dominated by men. Women are starting their own businesses in record numbers and winning elective offices throughout the country. Laws barring discrimination against women are on the books and enforced. All those gain clearly belie the image of women as victims struggling against discrimination in the workplace. The personal choices women have made are perhaps the most important and least appreciated factor in women’s economic progress over the years. Decisions to enter previously male- dominated fields of education and employment, to marry and bear children later in life, to join the work force, and to leave the work force to raise children have all had an enormous effect on whether women can achieve total parity with men. Some of those choices, 7
  8. 8. “ The Glass Ceiling Effect – A fiction or Truth” such as leaving the work force for a time to raise children, can have a negative effect on women’s total lifetime earnings; others, such as entering previously all-male fields, have led to remarkable gains for women in the work force. THREE LEVELS OF THE GLASSTHREE LEVELS OF THE GLASS CEILINGCEILING Glass Ceiling is a term normally used to describe the invisible artificial barriers that exist within organizations to block women from attaining senior executive positions. The three levels of Glass Ceiling are: • Apprenticeship • The Pipeline • Alice in Wonderland ApprenticeshipApprenticeship In the United States, women have been admitted into apprenticeship programs in such large numbers, and for so many years, that it is easy for young women to believe – and for management to assert – that discrimination is obsolete, and the that Glass Ceiling is either a myth or an artifact that will automatically decay over time. The Glass Ceiling at the level of apprenticeship does exist, however, and although the immediate economic consequences are not attention (very few apprentices 8
  9. 9. “ The Glass Ceiling Effect – A fiction or Truth” sue), there are serious long-term implications for the companies and the country. Virtually every industry has its own version of an apprenticeship. One simple way to determine the boundary of apprenticeship is to find where, in a particular company or organization, the line is that must be crossed before an individual is “in the pack” to be considered for management or leadership. Salary may or may not change dramatically across this boundary; the same is true of title. For example, at a large retail food chain, the title and function of “Assistant Store Manager” marked the entry of an individual into the pipeline. In a large defense contra have studied, there are many “Managers” but only one type, a “Project Manager”, actually confers the opportunity to begin building credentials for power and authority in the company. In doing this sort of analysis, reliance on basic numbers that federal contractors gather for required reporting can be very misleading. Women in every industry and profession report that sexual harassment is most common during apprenticeship. Indeed, sexual harassment is frequently defended as being just part of the normal hazing that is meted out to apprentices. In fact, it is one of the most important mechanisms that implement the Glass Ceiling at the level of apprenticeship. To say that sexual harassment has a dramatically greater effect on women than men may seem trivial, but it is important to understand that its use may he difference in how well women perform during apprenticeship, and even whether they complete the apprenticeship at all. At a recent gathering of women radiologists, every single women cracked jokes about their experiences of sexual harassment as a medical student and resident. They all agreed that the self-respect they had sacrificed by 9
  10. 10. “ The Glass Ceiling Effect – A fiction or Truth” putting up with it was a price they had to pay to continue in their programs. In any effective effort to eliminate the Glass Ceiling, an organization should delineate apprenticeship, and should pay particular attention to the fact that the apprentices are almost certainly underreporting the problem of sexual harassment. This is not to say that sexual harassment is not a problem at higher levels. Rather, it is important to recognize that the “effectiveness” of sexual harassment as a tool of discrimination is directly to the power differential between the duals involved. The other main mechanism of the Glass Ceiling at this level is outright exclusion, almost always with the justification that “women don’t want” whatever the particular non-traditional entry- level job is. This justification has been disproved again and again in major class-action lawsuits. For women who find themselves barred or dissuaded from entering apprenticeship in any field, there is no one solution. In general, however, there are enough women who have made it into and through apprenticeship that today there are formal and informal professional and trade associations for women in almost every field. These can provide a great source of information and encouragement for younger women. For women who are in apprenticeship, the basic realities of the low status combined with sex discrimination can be daunting. Women who have made it through tough apprenticeships, seem to have relied on three things: peer support and camaraderie (including regular sessions for venting); humor; and intense development of skill and expertise. 10
  11. 11. “ The Glass Ceiling Effect – A fiction or Truth” The PipelineThe Pipeline This second level of the Glass Ceiling, The Pipeline is the range of jobs that are post-apprenticeship, but prior to senior or top management. We have previously defined top management as officers of a corporation and senior management as executives who report directly to top management. In non-profit or public sector organizations, top management is perhaps best defined as individuals reporting directly to the executive director – e.g. the equivalent of Cabinet members (who report directly to the president), and senior management is anyone reporting directly to top management. Because there are women and minority men who have made it beyond the Pipeline, observers often question whether the Glass Ceiling “really exists” at this level. The simplest way to show the existence of the Glass Ceiling atop this second level is to look at some basic members. According to the Bureau of Labor Statistics, the ratio of men to women in all managerial positions is 1.4 to 1. At the every top level of the salary that the Bureau records, however, ($75,000 and above), the ratio of men to women is 20 to 1. The Department of Labor also confirmed the existence of the Glass Ceiling at this level in its “Report on the Glass Ceiling Initiative” the partial report of compliance reviews of nine federal contractors initiated under former Secretary of Labor Elizabeth Dole in 1990. 11
  12. 12. “ The Glass Ceiling Effect – A fiction or Truth” It has been observed that the mechanisms implementing the Glass Ceiling at the Pipeline level fall into three main categories. And even though the Department of Labor failed to label any of these “sex discrimination”, the Glass Ceiling investigators did in fact note examples in each of these categories in most, if not all, of the nine companies they reviewed. One major category is the growth and the obfuscation of the pay gap. Again, the Labor Department found that none of the nine companies they studied had looked at total compensation of managers for gender-based inequity. Data Line looked foe examples of companies that have proactively reviewed management compensation for gender discrimination, and to date has not found any. A second mechanism used to implement the Glass Ceiling at this level is denial of credential building. This is not only the exclusion of women from credential-building experiences, but also the discounting of the credentials that a woman does hold. A company that wishes to eliminate its Glass Ceiling in the Pipeline should articulate its beliefs about credential-building; integrate review of these into its regular salary and performance review procedures; and require its managers to ensure that women have equal opportunity for credential building experiences. The individual wishing to move through the Pipeline must also do the same analysis, and at the same time, begin dropping the concerns and defense mechanisms she may have acquired in apprenticeship. In the Pipeline, for example, it is no longer appropriate to allow others to take credit for work you have done. Further, you may need not only to keep the credit, but also to 12
  13. 13. “ The Glass Ceiling Effect – A fiction or Truth” take assertive action to make your accomplishments known. This runs counter to the social interaction skills many women have learned, and is definitely a departure from the deferential behavior that is acceptable in apprenticeship. Additionally, jokingly, accepting derogatory treatment, while never desirable, becomes more detrimental in the Pipeline than it was in apprenticeship. As an apprentice, you are not particularly expected to demand respect. In the Pipeline, to acquire not only the credentials you need to keep moving, but also the image of someone who has those credentials, you must demand basic respect. Also, mentorship, while not always effective, is usually a given in apprenticeship; mentors are automatically assigned. In the Pipeline, you may have to drop the expectation that your mentor will find or choose you. In most companies, a woman in the Pipeline needs to recruit her mentor in order to have access to important credential-building experiences. And finally, while developing skills and expertise continues to be important, the woman who considers them paramount, to the exclusion of relationship and image building, will probably find herself regularly losing out to individuals with less skill or accomplishment. A third mechanism that implements the Glass Ceiling in the Pipeline is the use of recruiting services and strategies that unconsciously or explicitly discriminate. Alice in WonderlandAlice in Wonderland 13
  14. 14. “ The Glass Ceiling Effect – A fiction or Truth” The third level of the Glass Ceiling is known as Alice in Wonderland because for women who reach it, the rules and relationships seem so dramatically different; they frequently feel as if they have to run as fast as they can just to stay in place; and for many, the final outcome seems to be a corporate version of “off with their heads!” This third level is also a place where a woman can have a lot of fun, if she survives. Levity aside, the third level is characterized by a dramatic decline in the number of female peers and, as a result, significantly increased visibility for the few women who are here. Basically, a woman at this level has gone from being in a ratio of 2 women for every 3 men, to a ratio of 1 woman for every 20 men. This increased visibility can have a warping effect, independent of anything the woman executive is or is not doing, on how the woman views herself and how others view her. In addition to the glare of the spotlight, many women at this level report a sudden, dramatic change in the criteria by which they are judged. The effect of such dramatic change in the way one is being assessed can be just a little crazy making. If the change is in fact based slowly or primarily on a woman’s sex, after she has spent many years of leaping hurdles and accomplishing significant things despite her sex, the reassertion of this once-inconsequential factor has a determining factor is truly disorienting. In addition to being eliminated from the third level based on new assessment criteria, women at this level are frequently “beheaded” by having their departments or organizations re-organized out from under them. Although this can look, superficially, like politics as usual, there is a different end-result for a woman at this level compared to her male peer who “loses out” in 14
  15. 15. “ The Glass Ceiling Effect – A fiction or Truth” reorganization; her career is usually over. A different version of this mechanism is the placement of an acknowledged inferior over the woman who has reached the third level. This mechanism has a particularly dramatic, demoralizing effect not only on the specific woman executive, but also on less-senior women in the company who daily observe her fate. Companies that want to eliminate the Glass Ceiling at this third level need to recognize that the problems of exaggerated visibility isolation, and change in assessment criteria exist. CEO’s and top management need to recognize that responding to the problems is not affirmative action for executive female, but a response to extra burdens women executive females may suddenly find thrust upon them that male executives at this level do not have to contend with. Also, it is very important to realize that whatever programmes a company has designed to deal with the larger issues and woman in the work place or balancing work and family, or to deal with the Glass Ceiling at the level of apprenticeship or the Pipeline, are not going to be relevant to the woman who has made it to this third level. For woman at this level, it becomes crucial to re- emphasize peer support and camaraderie. Since this is not usually easily at hand within the company, women need to give this enough priority to take the time to develop peer relationship in other companies and even in other industries. And, even though increased visibility may already be a strain, women at this level need to seek even greater visibility outside their companies, through community, professional, political, or other public involvement as a way of ensuring balanced feedback about her success. Finally, for a woman at this level who has spent most or all of her career in one company, it is important to become comfortable 15
  16. 16. “ The Glass Ceiling Effect – A fiction or Truth” with and knowledgeable about the protocols and system for making a job change at executive levels. Not every organization has all three, and sometimes one level is predominant in one part of an organization and not in another. But any company that wants to eliminate its own Glass Ceiling could benefit from analyzing its organization with respect to these levels. And any individual looking at how to negotiate through or around the Glass Ceiling should understand what level she’s encountering, and ensure that she is not relying too much on tools and resources that helped her at a previous level because they almost certainly won’t work the same way at the next level. 16
  17. 17. “ The Glass Ceiling Effect – A fiction or Truth” Chapter – 2Chapter – 2 Style ofStyle of ManagementManagement 17
  18. 18. “ The Glass Ceiling Effect – A fiction or Truth” IN STYLE, ALWAYS !!!IN STYLE, ALWAYS !!! Research indicates that seasoned leaders, whether men or women, share certain characteristics. They are self-disciplined, ambitious, know their stuff and are likely to embrace a visible, take charge and actively influential approach to their roles. But the research also indicates that in many ways, women are more successful than men at traditional, day-to-day tasks of management. Co-workers rate women higher in such skills as hiring the right people for the job, developing and coaching subordinates, and organizing, monitoring and controlling the work of others. Co-workers also find women better at creating a vision and setting clear direction and high standards of performance. The new management paradigm: LeadershipThe new management paradigm: Leadership 20002000 • To survive in a business world characterized by rapid change and increasing complexity, those who can tolerate ambiguity 18
  19. 19. “ The Glass Ceiling Effect – A fiction or Truth” and make decisions in the face of uncertainty will rise to the top. • Traditional hierarchical organizations are a thing of the past. • People and process are as important as task and results. • Employees will demand, and the fewer layers of management will require, empowerment at all levels of the organization. • Teamwork leads to success and the team must come before the star. • Workforce diversity and the globalization of business will require far more acceptance of individual differences and flexibility in management approach and style than ever before. • Managers will spend more and more of their time in situations where they do not have command authority; they will not necessarily be the technical expert but rather the synthesizer of cross-functional activities encompassing different fields of knowledge. Research shows women managers much more closely match this paradigm than men. Women are better suited to the team orientation of the Leadership 2000 model. They understand that personal success is dependent on the support of others. Contrary to common stereotype, women are better team players than men. They are better at communicating and keeping people informed, important skills in flat, non-hierarchical organizations. They are able to put the success of the team first, 19
  20. 20. “ The Glass Ceiling Effect – A fiction or Truth” using influencing skills rather than authority to accomplish objectives. Managing a diverse workforce may well be an easier and more natural task for women. Personality testing shows women managers have less traditional values, are more tolerant to differences and are less bound to social conventions. This is not surprising considering that twenty years ago when today’s women managers entered the workforce, conventional wisdom said women should not be managers. Because of women’s own experiences with prejudice and discrimination, I surmise they can deal with people who are different from themselves in a more empathetic manner. Research also shows that women follow the Leadership 2000 model in terms of the ability to motivate others. Women emphasize behaviors, which generate enthusiasm in their organizational relations, are generally more expressive of their thoughts and feelings and more readily show appreciation of the efforts of others. Women leaders are seen by coworkers as more inspirational role models than their male counterparts. With all this going for them, why aren’t women moving into the executive suite at a faster rate? Discrimination and organizational obstacles, supported by historical and cultural norms, are certainly part of the problem. However, research indicates that basic personality characteristics combined with the management behavior and strategies women have used to succeed at mid-management levels are now preventing them from breaking through the Glass Ceiling. Cream of the cropCream of the crop 20
  21. 21. “ The Glass Ceiling Effect – A fiction or Truth” An extensive review of the literature suggests two conclusions regarding gender and leadership. First, the similarities between men and women tend to outweigh the differences. Second, what differences there are seem to be that women fall back on a more democratic leadership style, while men feel more comfortable with a directive style. The similarities among men and women leaders shouldn’t be completely surprising; almost all the studies looking at this issue have used managerial positions as being synonymous with leadership. As such, gender differences apparent in the general population don’t tend to be as evident because of career self- selection and organization selection. Just like people who choose careers in law enforcement or civil engineering have a lot in common, individuals who choose managerial careers also tend to have commonalities. People with traits associated with leadership – such as intelligence confidence, and sociability – are more likely to be perceived as leaders and encouraged to pursue careers where they can exert leadership. This is true regardless of gender. The result is that, those who achieve formal leadership positions in organizations tend to be more alike than different. Despite the previous conclusion, studies indicate some differences in the inherent leadership styles between women and men. Women tend to adopt a more democratic leadership style. They encourage participation, share power and information, and attempt to enhance followers’ self-worth. They prefer to lead through inclusion and rely on their charisma, expertise, contacts, and interpersonal skills to influence others, men, on the other hand, are more likely to use a directive command-and-control style. They rely on the formal authority of their position for their influence base. The tendency for female leaders to be more democratic than males 21
  22. 22. “ The Glass Ceiling Effect – A fiction or Truth” declines when women are in male-dominated jobs. Apparently, group norms and masculine stereotypes of leaders override personal preferences so that women abandon their feminine styles in such jobs and act more autocratically. Given that men have historically held the great majority of leadership positions in organizations, it’s tempting to assume that the existence of the noted differences between men and women would automatically work to favor men. It doesn’t. In today’s organizations, flexibility, teamwork, trust, and information sharing are replacing rigid structures, competitive individualism, control and secrecy. The best managers listen, motivate and provide support to their people. Organizations tend to recruit and promote people into leadership positions who project leadership attributes. 22
  23. 23. “ The Glass Ceiling Effect – A fiction or Truth” Chapter – 3Chapter – 3 23
  24. 24. “ The Glass Ceiling Effect – A fiction or Truth” The Glass CeilingThe Glass Ceiling EffectEffect - The Truth- The Truth GLASS CEILING EFFECT STILL SEALEDGLASS CEILING EFFECT STILL SEALED Hard going at the top and on the ground If Glass Ceiling existed, they would allow people to see through to the world above them. Because glass is clear, those existing under such a ceiling might not, at first, even notice that a barrier was in place, which separated them from higher levels. Yet if 24
  25. 25. “ The Glass Ceiling Effect – A fiction or Truth” they tried to pass through, they would quickly learn that the ceiling prevented any such rise. This analogy has been offered by some people to describe the alleged condition, which is supposed to keep women and minorities from achieving ant but token positions at the highest echelons of corporate America. Most individuals concerned with this problem cite it as evidence of discrimination; a situation which therefore should be corrected by an application of affirmative action laws. Yet even if what such advocates of “equality” claimed about Glass Ceiling were true, they would not be justified in using immoral means to achieve a purportedly positive end. The Truth behind the Pay Gap Numbers: The commonly held wisdom is that, in spite of the advantages of the past decade, women still earn less than men. A 1996 monograph by Korn/Ferry International entitled “Decade of the Executive Woman” provides good insight into exactly this situation. The study compared a survey of 439 women executives in 1992 drawn from the Fortune 1000 industrial corporations and the Fortune 500 service companies with a 1989 study of 698 male executives at Fortune 500 industrial and Fortune 500 service companies. The findings regarding income for the 439 women were summarized in the following paragraph: The women report working just as long as their male counterparts – 56 hours a week – but take home only two-third of 25
  26. 26. “ The Glass Ceiling Effect – A fiction or Truth” the men’s income, as shown in the 1989 study. The salary differential may be explained somewhat by the women’s younger age (44 years, compared to 52 for the men in 1989) and by the fact that more are at the Vice President level, but unequal pay is still a fact. The average annual compensation for men and women is a bit more difficult to compare. At first glance, the average salaries seem equivalent. The women surveyed in 1992 earned $187,000 on average while men in 1989 earned $190,000. Since most people would prefer to be earning $187,000 at age 44 over earning $190,000 at age 52, this appears to be a slam-dunk for women. The 1989 survey of men asked for “base salary” while the 1992 survey of women was for “salary plus bonus”. The average total compensation for men was reported to be $289,000. This is the basis for the report’s conclusion that women “take home only two-thirds of the men’s income,” because $187,000 is about two-third of $289,000. Aha! Men are clear winners after all. The impact of inflation has been taken into account here. The numbers are what they are. It seems odd that the Korn/Ferry report would claim, “Unequal pay is still a fact.” A report by the Federal Glass Ceiling Commission, which undertook the first comprehensive examination of the so- called Glass Ceiling that this advantages minorities and women from advancement in the upper echelons of management, found consistent pattern of income disparities between whites and non- whites and men and women in virtually every management sector. 26
  27. 27. “ The Glass Ceiling Effect – A fiction or Truth” Income Disparities by Race Bachelor’s Master’s Race/Ethnicity Male Female Male Female Whites $47,181 $31,338 $57,371 $38,391 Blacks -$15,180 -$754 -$10,137 -$4,385 Chinese -$5,924 -$2,032 +$1,481 +$7,292 Filipino -$7,992 -$3,045 -$7,204 -$7,160 Indian -$1,872 -$6,096 +$5,997 -$6,970 Korean -$4,400 -$5,559 -$5,801 -$10,576 Indian women with a bachelor’s degree earn $6,000 less and those with master’s degree $7,000 less than white women with comparable qualifications. Indian men earn almost $2,000 less with bachelor’s degrees, but they earn $6,000 more with master’s degrees. The 25 best recruiters claim of equality in their organizations. However, the table portrays a different picture.. Sr. No. Name of organization Total Employees No.Of Women at Sr.Mgmt. Level % 1 2 3 4 5 6 7 8 9 Texas Instruments Federal Express Johnson & Johnson Eli Lilly Philips Software Center Godrej Consumer Products Wipro Spectramind Nokia Birla Sun Life Insurance 832 207 500 517 860 929 6462 166 754 8 - - 2 1 5 16 1 9 0.96 - - 0.38 0.12 0.53 0.24 0.60 0.19 27
  28. 28. “ The Glass Ceiling Effect – A fiction or Truth” 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cadbury India Aviva Life Insurance Company TATA Teleservices NIIT ERNST & Young SSL Division Marico AV Birla Group Bharat Petroleum Corporation Hughes Software Systems Infosys Technologies Max New York Life Insurance Co. Dr. Reddy’s Laboratories Wipro Tamil Nadu Newsprint & Papers Anand Group Jindal Iron & Steel Company 1910 328 596 3457 169 661 51054 12494 1791 15365 743 5062 24000 1788 3600 1498 - 1 - 134 1 2 540 325 14 29 3 34 40 - 1 1 - 0.30 - 3.87 0.51 0.30 1.05 2.60 0.78 0.18 0.40 0.67 0.17 - 0.03 0.07 The net aggregate % of women occupying senior positions to that of the total employees in the top 25 organizations is 0.835%. This depicts the reality of corporate practices in recruitment and promotion. The Perception GapThe Perception Gap 0 20 40 60 80 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Exe. (F) CEOs (M) 1 : Lack of general management or line experience. 2 : Exclusion from informal networks 3 : Stereotypes about women’s roles and abilities 28
  29. 29. “ The Glass Ceiling Effect – A fiction or Truth” 4 : Failure of top leaders to assume accountability for women’s advancement 5 : Lack of role models 6 : Commitment to personal or family responsibilities. 7 : Lack of monitoring. 8 : Lack of awareness of organizational politics. 9 : Different behavioral style from organization norm. 10 : Lack of opportunities for visibility. 11 : Inhospitable corporate culture. 12 : Lack of opportunities for challenging assignments. 13 : Lack of desire to reach senior levels. 14 : Not in management ranks long enough. 15 : Ineffective leadership style. 16 : Lack of skills to reach senior levels. 17 : Sexual harassment. BARRIERS TO ADVANCEMENTBARRIERS TO ADVANCEMENT What’s holding women back? Three years into the new millennium, women make up more than half of the managerial and professional labor pool but account for just over 1% of all Fortune 500 chief executives. As per the Catalyst survey of Fortune 500 CEOs and women executives at the vice president level and above, the problem isn’t lack of ambition. Less than one-third of the 120 CEOs (almost all male) and the 705 female executives who responded 29
  30. 30. “ The Glass Ceiling Effect – A fiction or Truth” consider a lack of desire to advance to senior levels a barrier to women’s advancement. Of those executive women not already at the very top, 55% said they aspire to the most senior leadership levels. Survey did show that executive women and CEOs tend to perceive the barriers to advancement differently. But on one measure they plainly agree: Lack of general management or line experience is the primary obstacle, cited by 79% of CEOs. Catalyst’s 2002 census indicates that men still dominate these senior line positions. Although the number of women corporate officers holding the positions increased from 20% in 1997 to nearly 30% in 2002, men still hold nine out of ten of these jobs in the Fortune 500. Thus, in 2003, the pool from which a CEO might draw-successors in overwhelming male. Of course, many women move into powerful staff positions to meet their personal career aspirations. However, many women don’t rise into senior line positions because they aren’t aware that such positions are open to them, or if they are, they may be discouraged from pursuing these roles by colleagues and superiors who don’t feel that women can perform well in them. Or, they simply aren’t on the slate when successions decisions are made. Survey also suggests a multitude of individual, cultural, and organizational factors that executive women feel block their advancement. And it exposes some of the deep disparities between female executives’ and CEOs’ perceptions about the barriers to women’s advancement. 30
  31. 31. “ The Glass Ceiling Effect – A fiction or Truth” A clear majority of the female executives surveyed cite numerous barriers; exclusion from informal networks, stereotyping, lack of mentoring, shortage of role models, commitment to personal or family responsibilities, lack of accountability on the part of senior leadership, and limited opportunities for visibility. CEOs also acknowledge these obstacles but in many cases seem less convinced of their significance. CEOs also appear to put substantially more weight than female executives do on these barriers in particular: women’s ineffective leadership style and their lack of skills to reach senior levels. The Glass Ceiling metaphor, though often used, is oversimplified. Studies suggest there are glass walls as well – lateral barriers that limit women’s job potential almost from the beginning of their careers. The Pipeline on longer seems to be the primary problem. The main issue appears to be top leadership’s failure to ensure that women get the profit-and-loss experience that would qualify them for the most senior positions. About two-thirds of women and more than half of the CEOs surveyed agree that the failure of senior leadership to assume accountability for women’s advance in a key barrier. In the words of Ann Morrison, “Glass Ceiling is a barrier so subtle that it is transparent, yet so strong that it prevents women from moving up the corporate hierarchy.” From their vantage point on the corporate ladder, women can see the high- level corporate positions but are kept from “reaching the top”. 31
  32. 32. “ The Glass Ceiling Effect – A fiction or Truth” 32
  33. 33. “ The Glass Ceiling Effect – A fiction or Truth” Chapter – 4Chapter – 4 Beginning of theBeginning of the New EraNew Era A STEPPING STONEA STEPPING STONE There has been a steady increase in the number of women pursuing managerial careers and now they comprise half of the professional schools, the world over. Women are gaining the necessary experience and knowledge as par with men. Recently the giant computer firm of Hewlett Packard named a woman as its new executive present. Who promoted this woman to the post of chief executive? Lewis E Platt, the chairman 33
  34. 34. “ The Glass Ceiling Effect – A fiction or Truth” who just stepped down. Apparently, Mr. Platt had an experience in his personal life that forced him to appreciate women at a new level. In 1981 Mr. Platts’ wife died of cancer and he assumed the role of both parents. Platt never forgot the experience. By the time, he became Chief Executive in 1992, women managers were leaving the company in droves. A consultant informed him that the company’s policies toward working women were not flexible enough. So, together with other top executives, Platt, instituted a new flexible work policy that included flexible work schedules, job sharing, working at home even sabbaticals. The result has been that the company loses fewer than 5% of its employees each year. Mr. Platt is the exception to the rule. We can’t expect all company officers or upper senior management to take this approach, but a precedent has been set. At WIPRO, 20% of its employees are women. WIPRO goes beyond women friendly practices. WIPRO is one of the few companies (IT or NON-IT) to have at least 4 women heading its various divisions. Companies are now realizing that female executives equally contribute to their success. Advancing Women in Management Farm Fresh She has made her mark in an unusual sphere. Mallika Srinivasan, director, Tractors and Farm Equipment Ltd. (TAFE), is a woman who has achieved it through sheer dint of determination and strength. 34
  35. 35. “ The Glass Ceiling Effect – A fiction or Truth” This MBA from Wharton decided “somewhere in her student years” that she would like to manufacture tractors and other farm equipment. And she has proved worthy of the laurels she has acquired over the years. “I grew up in an environment steeped in business”, says Mallika. My father and grandfather used to be discussing business all the time. It sort of soaked in me. My mother also encouraged my sister and me to take an interest in what they were doing. She joined TAFE as general manager in 1986, and over the years, has garnered admiration as an astute businesswoman. Mallika has taken TAFE beyond tractors and implements in the agricultural sector. As part of its corporate vision, the company supports an agro-portal that forms a forum for networking within the farming community. The lady, who has been nominated Businesswoman of the Year for the Economic Times Awards for Corporate Excellence, is petite and soft spoken. Talk to her of the blossoming of women in the corporate sector and Mallika is firmly of the belief that “India has treated her women well”. The ‘Glass Ceiling’ according to her, is a ‘mindset’ issue and one that can be surmounted if the woman is determined. “You have to be focused about what you want to do, keeping your unique value system in mind and just keep going ahead,” she maintains. “The workplace environment is not non- conducive to women,” she avers. Mallika obviously knows what she is talking about. “It is not as if Indian women are letting go of their children. They just put in extra work and get that done as well. And these days, families are also helping out and to that extent we have a supportive environment,” she says, “Women who want to be successful, don’t 35
  36. 36. “ The Glass Ceiling Effect – A fiction or Truth” give up”. Such women, Mallika admits, are in a minority, but are being increasingly recognized in the workplace. She is also very firm in her belief that nothing can be achieved alone. “You have to have a great team and we must work towards that. A chain is only as strong as its weakest link.” Banking on successes She doesn’t think she is powerful. But the rest of the country begs to differ. Naina Lal Kidwani, the hottest investment banker around, has made it to Fortune’s list of the 50 most powerful women in International business. Forty-four year old Naina Lal Lidwani, Vice chairman of JM Morgan Stale (India), who recently featured in Fortune’s list of the 50 more powerful women in International business. Naina is dynamism personified. She has a blazing track record and is recognized as an eminently powerful dealmaker. She is one of the highest paid women in banking in India. In 1982, she was also the first female Indian citizen to graduate from the Harvard Business School. What makes her so influential is her extensive networking with corporate biggies, leading politicians and heavy weights from Mumbai’s Dalal Street. She served for 13 years in ANZ Grind lays before she was headhunted by Morgan Stanley in 1994 to help them start up their offices in India. Naina is credited with resurrecting the fortunes of Morgan Stanley after its mutual fund fiasco, through some brilliant mergers and acquisitions and listings of Indian companies in the international market with deals worth nearly $700 million. 36
  37. 37. “ The Glass Ceiling Effect – A fiction or Truth” She feels its perception rather than fact to be called as “powerful”. She attributes her success to hard work, commitment to excellence and high goals. From early days, it was important for her to top the class, be the school captain and president of Lady Shri Ram College, Delhi. “I worked very hard and never gave up easily. My parents inculcated in me some very strong values about work that’s playing high dividends today” Naina reminisces. Based in New Delhi Naina’s work involves extensive trouble to Mumbai, Bangalore, occasional trip to Hong Kong – the original Head Quarters of Morgan Stanley – and to the financial capitals of the world. Of course, the hectis work schedule means giving up some other things in life. “Two years in succession I’ve missed my Wedding Anniversary and 3 years my Husband’s birthday”. She remarks. The high-profile dealers admits that it’s always a balancing act, but has no regrets. I need my office as much as I need my family for sustenance. “It’s not so difficult to straddled two world especially in India because of the excellence support system”, she says. Naina adds, “I think people with the white traits, men or women will always succeed”. What drives Naina ahead is the desire to continue to grow and stretch oneself and never wait complacent. Every person she meets, she tends to pick out a little something. From Naina Lal Kidwani, one could probably take away her congeniality. One of her kind 37
  38. 38. “ The Glass Ceiling Effect – A fiction or Truth” Kishori Jayendra Udeshi made history by becoming the first woman to hold the coveted post of deputy governor at the Reserve Bank of India. Making history is not something new for Udeshi. She started doing that early in life. Decades ago, the hallowed precincts of the St. Xavier’s College, Mumbai witnessed its first girl all- rounder when Udeshi scupered the boys of her batch to win the coveted award. Looking at dignified women now sitting across in her 18th floor office at the RBI headquarters, it’s difficult to visualize her as the sprightly girl who had once been a National Badminton player and a member of the college Basket Ball team. Udeshi says that her leaning towards economics is attributable to the legendary economist R K Hazari whom she idolized. But more than anything else it stemmed from her desire to be a workingwomen. “I just wanted to work”. So began Udeshi’s journey in the Exchange control department at the old headquarters of RBI, housed just across the road from her present office in the new RBI tower. The transition from the old building to the new one has ot exactly been a walk across the road through. Between the time that she moved out of the exchange control department and finally moved into the deputy governor’s office, Udeshi worked in RBI’s Bangalore office, and then held charge of Ahmedabad, before returning to Mumbai to put in stints at various Central Office departments. Having been a carrier central banker, unlike some of her peers and predecessors who have come in from commercial banks or the Government, most people at RBI views Udeshi as one 38
  39. 39. “ The Glass Ceiling Effect – A fiction or Truth” of their own and take great pride in her success. However, she knows that there in no room for complacency in heading the department of banking operations in a country with the largest network of the bank branches. “Our banking system is very resilient but then you do always find one or two bitter almonds in a packet.” Says Udeshi. In her years in RBI what has struck her the most is the image that the central bank has been able to maintain. “I feel very proud of being in the central bank, the high degree if values and the high degree of ethics in our approach to the public”, says Udeshi. This faith has reinforced her commitment to maintain the trust reposed by public. “You can not demand respect. It comes due to your behavior and that is something I cherish”. Chapter – 5Chapter – 5 39
  40. 40. “ The Glass Ceiling Effect – A fiction or Truth” The Glass CeilingThe Glass Ceiling EffectEffect - The Fiction- The Fiction Risk, Rescue & Righteousness To become CEO or president of a major corporation means forsaking – or at least subordinating – nearly all other aspects of life to one’s career. Such a level of responsibility alongwith its attendant financial success requires putting in seventy – or eighty – hour weeks.; demands one’s almost complete submersion in and dedication to overseeing both the short-term and 40
  41. 41. “ The Glass Ceiling Effect – A fiction or Truth” long-run needs of the business one manages; and result in the loss of tome available to spend with family or in recreation. The desirability of such a goal is not relevant in the current context. What is necessary to recognize is the fact that in our society, more men than women – for whatever reasons – are willing to commit themselves to the course of action demanded by such a rigorous goal. Even if there were no prejudice against women in business, the disparate numbers in the pools of available male and female candidates actively striving for this end would lead to a male/female ratio in line with that observed today. Likewise, women forsake high-powered business careers in favor of the less tangible rewards of greater flexibility in work schedules; of more time invested in the raising of a family; and of wider opportunities for non-monetary personal development. Overall, women work fewer hours than men; have less job experience and work fewer years; and avoid work in risky or unpleasant jobs, which tend to be more highly compensated. Also, marriage and children tend to depress earnings for women when compared to men or single females. Even for many women who do devote their full attention to career issues, many fail adequately to understand how much of the corporate world works. Advancement in the business world frequently is based upon principles most men subconsciously learn as they grow up. It operates in ways emulating team sports and the military chain-of-command. Women who fail to understand the importance of office politics, going through the proper channels, and being able to make decisions quickly put themselves at an automatic disadvantage. Corporate life is a game, which is not 41
  42. 42. “ The Glass Ceiling Effect – A fiction or Truth” always fair; for men or women. Being able to take risks without making waves, being a team player who can operate independently when necessary and participating in after-hours activities may not set well with some women, but for the present, the reality of the situation needs to be acknowledged if it is ever to change. In spite of excellent management and leadership skills, women contribute to their own inability to break through the Glass Ceiling in subtle ways stemming from personality attributes, social conditioning and learned management styles. The obstacles women are creating for themselves fall into three major categories: Risk, Rescue and Righteousness. Risk Concern about striking out prevents women from hitting home runs Avoiding criticism by crossing all the t’s and dotting all the i’s has been a necessary strategy for women to get to mid- management levels. Women’s approach to problem solving has 42
  43. 43. “ The Glass Ceiling Effect – A fiction or Truth” therefore been cautious, thoughtful and detail-oriented. Women look for subtlety and complexity in the environment, a trait shared with minority groups in general. Personality assessments indicate women have a higher tolerance for ambiguity and uncertainty. This tolerance for ambiguity also allows women to take the time needed to collect more data, consider multiple options, and carefully choose from a full range of solutions. This less action-oriented style slows down the entire problem solving process. Although this decision making style is in apart natural, it is also a response to a male-dominated culture that has shaped and influenced the style women have needed to be credible. It has exacerbated women’s lack of action orientation, making them reluctant to take risks without having covered all the bases. This conservation style of management, developed and rewarded at lower, more task oriented organizational levels, hinders women managers from being line management opportunities and the high- risk assignment that provide visibility and make careers. The need to make calculated risks becomes even more critical in the context of rapid change and uncertainty. Rescue Women need to create game plans, not worry about ironing team uniforms The second obstacle facing women is their own highly developed sense of responsibility combined with concern for, and loyalty to, the team. Although women have to be just as 43
  44. 44. “ The Glass Ceiling Effect – A fiction or Truth” independent and achievement oriented as men to get ahead, they also tend to more clearly recognize the need for group support to accomplish personal goals. There is a downside to the team orientation and sense of responsibility women feel. Women can easily get mired in the details in an attempt to make sure everything is handled correctly and everyone is feeling OK. Their tendency to get bogged down in the short term, tactical part of the management job has limited the development of strategic capabilities. It prevents women from being viewed as having a big picture perspective and the ability to keep their eye on the ball. Women’s orientation toward the group is causing them to take on too much responsibility, moving them into a rescuing and mothering mode. Righteousness Locking horns with umpires gets women thrown out of the game The final obstacle breaking the Glass Ceiling is known as righteousness. Women would be far more successful if they learned to present their ideas and proposals more dispassionately. 44
  45. 45. “ The Glass Ceiling Effect – A fiction or Truth” Even though women’s decisions are of high quality, they continue to be viewed as fewer objectives, less flexible, and lower in emotional control than men. This may be a result of how they present their ideas and plead their cases. Women’s more forthright and transparent communication style, appreciated by those they manage, may well appear less polished and diplomatic than men’s when dealing with those above them in the hierarchy. In situations that require tact, women have difficulty putting on a “game face”. Because they have done their homework, they dig in their heels when challenged by less informed coworkers. Women forget the end goal; get bogged down in their commitment to the process, presenting issues in terms of right or wrong. If the woman manager is right, that makes her colleagues wrong by implication, starting a cycle that can only tend in a win-lose scenario. Women must learn to present a case for corporate action rather than defending a private cause to the death. Pay gap-a myth It is well-known that women, especially older women over 50, are far less likely to have graduated from college than men of the same age. The salaries that men and women earn probably reflect that difference, so we are left with the fact that a group of people [men] with a higher-than-average chance of having a college degree earns more than a group [women] with a lower-than- 45
  46. 46. “ The Glass Ceiling Effect – A fiction or Truth” average chance of having a college degree. What is being reported is clearly a difference based on education, not on gender…… Credible research on this issue takes pain to account for differences in age, education, occupation, and experience. Legitimate studies that do that routinely find that there is no disparity between genders as far as earnings are concerned. The numbers revealed that the women executives surveyed in 1992 were significantly younger than the men surveyed in 1989. The average age for women was 44, but men averaged 52. Furthermore, they achieved the landmark plateau of $100,000 in base salary at startlingly different ages. Over half of the women achieved that level before age 40, but only 31% of men did. On the other end of the spectrum, 36% of men were over the age of 46 when they first cracked that barrier, but only 11% of the women had to wait that long. It seems that women executives are very well paid at a much earlier age than their male counterparts. Not so fast. The question remains, would a woman have $187,000 at age 44 or the newly revised figure for men of $289,000 at age of 52? One need to know that a woman age 44 would reach absolute pay parity at age 52 through a pay increase of less than 5.6% per year. If a pay increase of less than 5.6% for women during their most productive executive years is assumed, then men win. A greater average annual pay raise means that women are better off. That same report contains a similar study of 300 women executives conducted in 1982 that revealed an average salary of $92,000. The gain from $92,000 in 1982 to $187,000 in 1992 represents an average annual increase of 7.5%. That same annual increase applied to our average 44-yea-old executive woman 46
  47. 47. “ The Glass Ceiling Effect – A fiction or Truth” earning $187,000 yields an annual salary of $333.510 at age 52. That is 15% more than the $289,000 a man earns at the same age. Women win big time. The truth concerning the entire issue of a “gender pay gap” is that when apples are compared with apples………… (a) Women executives earn at least as much as men of similar age and experience, (b) Women age 27 to 33 earn as much as men in similar life situations, and (c) any other so-called “gender” differences can probably be easily explained by different levels of education and experiences. Women Executives shatter the Glass-Ceiling myth “In the tech industry the Glass Ceiling does not exist, you see a lot of women tech heads. If there is a Glass Ceiling it is in the mind of the women themselves and not in the industry,” says Aruna Jayanthi, principal, Cap Gemini Ernst & young (India). Aruna has been in the industry from 17 years and had started her carrier in 1984 with TCS. A decade later, she joined Aptech to head Hexaware’s India division for starting new units and lines of business. Today, she heads Cap Gemini’s two lines of business in India – Advanced Development and Integration, and Application Management. After heads-on technology for the initial three to four years of her career, she moved on to account management, sales, business development and quality. “Right through my career, even at the time when I was with TCS, I never found being distinguished because I was woman,” she says, adding, “As a team leader I have never had any 47
  48. 48. “ The Glass Ceiling Effect – A fiction or Truth” problems. The main factor is to guide them; it should be leadership by example.” Aruna however, points out that she is very cautious about the word “boss”, because then one cannot deal with the team efficiently. Currently heading a team of 250 people, large-scale recruitment is in the pipeline to almost double the number. For someone who always nurtured the dream of running an independent business and building it into a large organization, well known and recognized internationally, Aruna is happy to be on the ‘right track’. “I have got where I wanted to be but there is a lot more to be done and things are moving in the right direction,” she conclude. Lydia Lobo, chief technology officer with a smile, Aptech, is a teacher turned techie, who also represents a minuscule number of women in the industry who decide Boardroom strategies. Acknowledging that she had always thought she would remain a teacher, Lydia confesses that she enjoys today the managerial capacity of being in the front. “I outgrow every job very soon and look out for new challenges,” she says matter-of-factly. And this is obviously something which her present job provides in plenty. “Being in training we have to be the first. Is anything more challenging?” she asks. Lydia concedes that at the time of starting her career there were limited roles available in the IT profession, today the situation is very different. Domain expertise and multi- skilling gives women in the industry an opportunity to seek their own mould. “May be in hardware there are not that many women, but not so in the other fields, particularly training. In Aptech itself, many women are in good positions. There are two of us who take Boardroom decisions and policy making,” she says, adding however that women heads are there in specific fields, on the business side 48
  49. 49. “ The Glass Ceiling Effect – A fiction or Truth” the percentage is less. “There are more technology than business heads probably because it requires more ruthlessness which is not present in women.” A workaholic, she confesses her love for technology but finds the techno-managerial role much more exciting and she looks forward to greater international exposure. “After a little bit of hardcore technology anybody with some ambition would like to do something different – as a project leader, project manager or client interfacing,” she points out. Lydia’s current assignment includes diversified operations – from keeping track of technology trends and products in market to implementation of training programme course design and strategy to ensuring quality. Like Lydia, Saadia Lobo, director, Knowledge Services Group (KSG), SAP India, finds setting up new opportunities the greatest challenge that keeps her motivated. “I like doing new things and doing them different – going head-on into any issue, taking calculative risks and coming out successful,” she says emphatically. All set to have leave for a global assignment to be based out of the SAP headquarters in Walldorf, Germany, Saadia manages a line of business in the KSG which provides knowledge- based products and services to help corporate clients in their learning processes. With 16 years of experience in the IT sector, Saadia’s portfolio includes sales, business development and management process. She had started her career as a marketing executive with Computer Point, and today has her forte in profit centre and product management. Ask Saadia the formula for success and response is a bit unexpected. “I never looked at what I wanted to be but what I wanted to do. I always took up any assignment that appealed to me,” she adds, candidly admitting that she never had fixed career goals in mind. While agreeing that there 49
  50. 50. “ The Glass Ceiling Effect – A fiction or Truth” are not many women who make strategic organizational decisions and maximum are in the software development field, Saadia reminds that any segment or industry goes through this kind of trend. Gayathri Parathasarthy is head, Development Integration Services, a Strategic Business Unit (SBU) for the IT services division at i-flex solutions. Starting her career one and a half decades back, this mathematics graduate from Chennai University leads a team of 190 professionals in Mumbai and Bangalore. “We handle various types of projects, onsite, offshore, turnkey development, maintenance and enhancement in various technology areas with main focus on corporate and investment banking. There are three project managers working under me who handle these projects out of our development centers and customer locations,” explains Gayathri. Attributing the reasons for success to solution- oriented approach, complete understanding of customer needs and determination to make things happen, she says, “Aim for the best in everything and definitely you will keep on setting bigger goals and achieving them.” Her goal as a professional ranges from making every customer happy to motivating the team members to achieving zero defect in deliverables. A tall order! Well no, not for Gayathri who has always set very high standards for herself. Strongly believing that it is performance, honesty and commitment to the organization and the potential to handle bigger business that takes one to the right position (not whether one is a man or a woman), she remarks, “I have grown in the last 15 years of profession from a programmer to a business unit head today and responsibilities have increased every year.” 50
  51. 51. “ The Glass Ceiling Effect – A fiction or Truth” Pointing out that there are many organizations where senior management consists of a sizable number in India, she reminds that each individual has the responsibility of managing the personal and professional life, the balances that need to put in place and the priorities. “I have never felt that being a women I am restricted to grow…cannot…If I want to I will nobody can stop it!” Whether man or woman it is positive thinking, commitment and business intelligence that charts the way to the top. “These are individual traits and young professionals can be trained/groomed to think on these factors which every senior in any industry who are responsible should take it as an additional responsibility and do it. That will be the contribution to the future of this country and the industry.” Inspiring words for wannabe women techies who have no dearth of role models to find their place under the sun. 51
  52. 52. “ The Glass Ceiling Effect – A fiction or Truth” Chapter – 6Chapter – 6 Fiction & TruthFiction & Truth - A Study- A Study Fiction and Truth – A StudyFiction and Truth – A Study  Fiction: Now women are a third of business school graduates and a significant proportion of middle management, it is just a matter of time equality is reached in the boardrooms and in the executive studies of the corporate world. 52
  53. 53. “ The Glass Ceiling Effect – A fiction or Truth” Truth: For the most part, women are stuck in middle management – and have nothing to do with how long they have been in business or whether they have, the college degrees considered necessary to advance in management. As long ago as 1968, 15% of all managers were women. Assuming it takes 15 – 25 years for a manager to become senior executive, women today should compromise at least 15% of those at the top. But women make up only 3.1% of senior executives at Fortune 500 companies, and only 4.3% of the executives are women. At the rate of increase, it will be 475 years-or until the year 2466- before women reach equality in executive post. Women in business are slamming into a “Glass Ceiling” that prevents them from moving up the corporate ladder.  Fiction: Times are changing and the younger generation of men is more supportive of the idea of working alongside women executives in high-level positions. Truth: Unfortunately, the younger generation of corporate men seems to be holding tight to the negative attitudes their predecessors displayed toward women in top positions. Between 1975 and 1983, men MBA students retained consistently negative attitudes towards women as managers, while their female counterparts were consistently positive. In fact, studies suggest that as women increase their numbers and get closer to the top, the resistance from men hardens, and discrimination becomes more open, according to Harlan and Weiss. 53
  54. 54. “ The Glass Ceiling Effect – A fiction or Truth”  Fiction: Conflicts with family and home responsibilities keep executive women from getting “to the top.” Truth: Of women executives who do have families, “only a tiny minority (3%) feels that family responsibilities have hindered their careers,” according to the Wall Street Journal / Gallup Survey. Few of the women executives reported that family conflicts had ever “prevented them from accepting a job change that would have required relocation” (only 9% of the one-third who say they ever turned down a transfer). Besides, executive-level women are more likely to get help from their husbands with household chores and family responsibilities. Additionally, it is easier for executive level women to combine their careers with motherhood, because they can afford to pay for childcare and household services.  Fiction: Women executives cost the corporation more because they must divide their attention between career and family. Truth: Considering the proportion of top management that is male, the likelihood is that male-linked habits will cost companies a great deal more than pregnancy ever could. For example, alcoholism and the problem it causes are overwhelmingly associated with males. In 1985, 11.9 million men were classified as alcohol abusers as compared to 5.7 million women. 45% of men versus 18% of women were considered moderate-to-heavy drinkers. This male-associated habit creates excessive medical costs and serious performance losses in business. Yet these deficits are tolerated and are not calculated as a “male related cost of business.” 54
  55. 55. “ The Glass Ceiling Effect – A fiction or Truth”  Fiction: Women at the top are frequently single divorced or have no children, proving how difficult it is to combine family and career. Truth: It is also true that the men at the top of corporate America exhibit very different marriage patterns compared to the national norm. Why do executive men and women show marriage pattern so divergent from the general population? The bias in the system that favors the selection of a certain type of woman – and a certain type of a man – discriminates against all other types. The proportion of executive women who remain single (26%), who are divorced or separated (26%), and who have never had children (52%) are higher than the national norms (Wall Street Journal/Gallup Survey). In fact, the higher her ranking, the less likely the executive woman is to be married – only 46% of top corporate women are married. The overwhelming majority of executive men (94.6%) are married compared to 81.6% in the general population of men 45 years and older. Nearly 6% of men over 45 years are single compared to 0.9% of executives. Corporate management is narrowly selecting its executives, and anyone who doesn’t fit the stereotype of the “ideal corporate executive” – the “single woman” and “married family man” – is likely to be cut out when promotional decisions are made. This built-in bias conveniently ensures there will be very few women at the top.  Fiction: Women are not as serious about their careers and often “drop out” to have children or start their own business 55
  56. 56. “ The Glass Ceiling Effect – A fiction or Truth” to better accommodate their family responsibilities. As a result, they are poor investments for companies that must spend considerable amounts on executive development. Truth: Women executives are no more likely to leave their jobs than men. There is also no evidence that executive women leave corporations to have children. In fact, 1986 study by Catalyst found that women at the top took even shorter pregnancy leaves of 6 to 8 weeks. Furthermore, there is no evidence that women are dropping off the corporate fast track to start their own businesses because of the desire to balance family and work. While it is true that more women than ever are starting their own businesses, most are passed the age of 40 years when child-rearing responsibilities are largely ending. A new business venture requires never-ending attention from its owners – not leaving much time for taking on even more family duties. For men executives who start their own companies, the move is seen as a bold and positive career maneuver. For women, entrepreneurial ventures are seen as retreats from the corporate world and a chance to devote more time to family.  Fiction: Women are not suited for top management because they aren’t aggressive enough and lack the self-confidence required for the top jobs. Truth: Study after study shows there are more similarities in these personal traits between women and men managers than there are differences. One of the most comprehensive long-term studies done found that men and women have very similar “profiles of high power ad achievement needs, high self-esteem, and high motivation to manage” (Harlan and Weiss). A separate study of 2,000 men and women managers found “a significant case of no significant differences.” 56
  57. 57. “ The Glass Ceiling Effect – A fiction or Truth” Moreover, women executives often display more modern leadership traits than men. The studies indicate that women’s management style more often encourages consensus, participation, and interaction – traits which today’s employees value – whereas men’s management style often reflects a basic commitment to the premise of a “hierarchy.”  Fiction: Any woman can make it to the top is she’s competent and works hard. That’s how men make it and, after all, the corporation is looking for the best person for the job. Truth: The Corporation is not the meritocracy that has been led to believe. At least up until now, “who makes it to the top” appears to be as determined as much by “who are you” and “who you know” – as by “what you know”.  Fiction: Most women senior executives suffer from the ‘Queen Bee’ syndrome and are not helpful to younger women below them on the corporate ladder. Or, women are their own worst enemies the competitive corporate world. Truth: Since when don’t men seek to be “King of the Mountain?” If anything, women executives complain about their treatment by men – not their treatment by other women. Executive women say men patronize them and they often note male chauvinism in the Korn/Ferry survey, 57% of women executives report belonging to women’s groups. The majority (56%) of women in the Gallup Survey are involved in networking with other women – “getting together regularly in groups to discuss problems and offer support.” 57
  58. 58. “ The Glass Ceiling Effect – A fiction or Truth”  Fiction: Women work primarily for supplementary income or for luxuries. Truth: Two-third of employed women are self-supporting, and 30 to 40 percent of the women are the sole support of other family members as well.  Fiction: Women are better rote learners and are happier doing repetitive routine duties than men are. Truth: Women, on the average, dislike repetitive tasks just as much as men do, although they seem to have higher tolerance for them. They do not seem to do better at rote learning.  Fiction: Women are not especially concerned about the fulfillment of achievement needs and have a lower desire for promotions than do men. Truth: Women have achievement and promotion desires as strong as those of men.  Fiction: Women are absent from work much more frequently than men are. Truth: Women tend to absent about 5.9 days a year, while men are away about 5.2 days (obviously not a meaningful difference). 58
  59. 59. “ The Glass Ceiling Effect – A fiction or Truth” 59
  60. 60. “ The Glass Ceiling Effect – A fiction or Truth” Chapter- 7Chapter- 7 Primary DataPrimary Data PERSONAL FEEDBACK Attitude Toward Women in Management Women As Managers Scale Using the numbers from 1 to 7 on the rating scale, mark your personal opinion about each statement in the blank that immediately precedes it. Give your personal opinion according to 60
  61. 61. “ The Glass Ceiling Effect – A fiction or Truth” how much you agree or disagree with each item. Respond to all 20 items. Rating Scale: 1 = Strongly disagree 5 = Slightly agree 2 = Disagree 6 = Agree 3 = Slightly disagree 7 = Strongly agree 4 = Neither disagree nor agree _____ 1. It is less desirable for women than men to have a job that requires responsibility. _____ 2. Women have the objectivity required to evaluate business situations properly. _____ 3. Challenging work is more important to men than it is to women. _____ 4. Men and women should be given equal opportunity for participating in management training programs. _____ 5. Women have the capability to acquire the necessary skills to be successful managers. _____ 6. On the average, women managers are less capable of contributing to an organization’s overall goals than are men managers. _____ 7. It is not acceptable for women to assume leadership roles as often as men. _____ 8. The business community should someday accept women in key managerial positions. 61
  62. 62. “ The Glass Ceiling Effect – A fiction or Truth” _____ 9. Society should regard work by female managers as valuable as work by male managers. _____ 10. It is acceptable for women to compete with men for top executive positions. _____ 11. The possibility of pregnancy does not make women less desirable employees than men. _____ 12. Women would no more allow their emotions to influence their managerial behavior than would men. _____ 13. To be a successful executive, a woman does not have to sacrifice some of her femininity. _____ 14. On the average, a woman who stays at home all the time with her children is a better mother than a woman who works outside the home at least half of the time. _____ 15. Women are less capable of learning mathematical and mechanical skills than are men. _____ 16. Women are not ambitious enough to be successful in the business world. _____ 17. Women cannot be assertive in business situations that demand it. _____ 18. Women possess the self-confidence required of a good leader. 62
  63. 63. “ The Glass Ceiling Effect – A fiction or Truth” _____ 19. Women are not competitive enough to be successful in the business world. _____ 20. Women cannot be aggressive in business situations that demand it. To determine score on the Women as Managers Scale, add the points for the 20 items. Be sure to reverse score the answers marked with an asterisk. To reverse score, subtract the number given as an answer from the number eight (8). For example, if for question No.1, you slightly agreed with the statement you would enter a 5 on the answer sheet. For determining total score, subtract 5 from 8 to come up with 3, which is actual score for that item. *1. _____ 8. _____ *15. _____ 2. _____ 9. _____ *16. _____ *3. _____ 10. _____ *17. _____ 4. _____ 11. _____ 18. _____ 5. _____ 12. _____ *19. _____ *6. _____ 13. _____ *20. _____ *7. _____ *14. _____ Total Score ______ The range of possible scores is from 21 to 147. The higher you score, the more you look positively toward women as managers. The lower you score, the more negatively you view women in their roles as managers. YOUR DETAILS Name: 63
  64. 64. “ The Glass Ceiling Effect – A fiction or Truth” Age: Profession: Signature: 64
  65. 65. “ The Glass Ceiling Effect – A fiction or Truth” Chapter- 8Chapter- 8 ConclusionConclusion CONCLUSIONCONCLUSION Women have achieved higher levels of education than ever before and today represent over 40% of the global workforce. Yet their share of management positions remains unacceptably low, with just a tiny proportion succeeding in breaking through the Glass Ceiling. 65
  66. 66. “ The Glass Ceiling Effect – A fiction or Truth” The lack of adequate education, training and experience in the past, to some extent, explained the difficulties women experienced in obtaining management jobs. Today, a large and increasing proportion of women in many countries are well qualified. This has resulted a in better gender distribution of jobs, but occupational segregation, both horizontally and vertically, remains a major problem. More women now hold management jobs, but they tend to be clustered at lower levels and in less vital areas. Women have often fared better in professional and financial services, as well as the public services, compared to other sectors. In all cases, however, their access to top managerial jobs remains severely restricted. Factors contributing to the slow pace of change point to the maintenance of traditional views on men and women’s social and economic roles, even though in practice there have been far- reaching changes in women’s participation in the labor market. Such views stem largely from women’s primary responsibility for family care and welfare. They affect the choices made by men and women in terms of study courses and the type of jobs they seek. One of the greatest challenges, however, is still how to make the structures and dynamics within an organization more conducive and sensitive to gender equality concepts and practices. Without such a watershed change from within, women will, in the years to come, continue to experience “Glass Ceiling” and “glass walls” as invisible barriers to positions of management. It is not advocated that unqualified women get jobs that they are unqualified for; it is believed that women are just as qualified as men, but they just need a boost to be on the same level as men. 66
  67. 67. “ The Glass Ceiling Effect – A fiction or Truth” Strategies to be adopted by women to shatter the Glass Ceiling Prominent US researcher Dr. Carol Gallagher has advocated an approach to the Glass Ceiling which said that: “Instead of trying to break the Glass Ceiling, women need to find their own personal windows to climb through it.” Training and professional development The key to career development is to maintain a board skills base alongside the technical expertise, and where possible, managerial and leadership skills should be developed along with the advancement of technical skills. If there are plans to specialize in a particular area, one should try to become the organization’s reference authority in a secondary area of expertise – technical or otherwise. In practical terms, there shouldn’t be limitations on specializing at the expense of one’s personal skills base. Earnings potential Surveys have consistently shown that the difference between male and female earnings decreases as participation in post-graduate education increases. That is, at the Masters level there may still be a significant difference between the median salaries of males compared with females, but considerably less so at the doctorate level. Whether or not one chooses to pursue 67
  68. 68. “ The Glass Ceiling Effect – A fiction or Truth” postgraduate education will depend on whether or not it will be relevant in the context of the organization or in the professional area of expertise, but it is a practical strategy worth considering. Leadership skills Women are often seen to have an “inclusive” style of leadership rather than the leadership skills of a manager able to make and implement the tough corporate decisions. It is therefore useful to pursue accredited qualifications in leadership skills, so that an external body formally recognizes one’s management skills. Succession planning Whether succession planning in the organization is formal or informal, it is important to maintain a profile. Even if one’s manager doesn’t personally select his or her successor, how management views them will certainly impact on whether or not the person concerned is in contention. In practical terms, staying visible and “in the loop” while also achieving results in one’s area is preferable to a straight “head down” approach. Be articulate in how one’s section or role contributes to the goal and bottom line of organization, and promote the value of one’s role and section to decision-makers. Where possible, participate in decision-making meetings so that the person concerned is aware of what’s happening in the organization and organization is aware of the person. Undertaking collaborative projects with other colleagues or departments may also be a way of 68
  69. 69. “ The Glass Ceiling Effect – A fiction or Truth” raising one’s profile with managers beyond the person’s own section. The Superwoman Syndrome For a more senior position, many women may be wary about an increase in the time and out-of-hours commitment required. Changed demands could potentially upset the finely tuned balanced families have achieved in what are already invariably very busy lives. Still, don’t assume that a more senior role will necessarily mean that one can’t find a balance. If the person concerned is considering a promotion, find out what the time and travel commitments are, and whether flexible arrangements, re-prioritizing and appropriate delegation mean that person could successfully manage the change. The practical strategies • Be conscious of career development at all stages of the working life. • Be aware of how one’s choices are informed. • don’t be steered into soft or easy option. • If the person is concerned about a change in time commitments, which may accompany a more senior role, find out what the demands are and what flexibility is available. 69
  70. 70. “ The Glass Ceiling Effect – A fiction or Truth” • Become aware of from which departments or areas senior managers are recruited. • Maintain a broad skills base. • Develop your leadership skills. • Make oneself visible as a potential successor in the organization’s formal and informal succession planning. • Post-graduate education should be pursued. There are two clusters of women above the Glass Ceiling, showing that there are more than one path to career success. One need to understand that the experience that these women felt were significant to their career success, such as mentors and role models, satisfaction in career and life. Organizations can employ this information to insure that female employees have the opportunity to reach top management. Equally important is the experience of discrimination and other obstacles reported by women below the Glass Ceiling. Companies must help break down these barriers in order make sure that women have an equal opportunity to reach top management. Recommendations for business include: (1) The CEO must communicate visible and continuing commitment to workforce diversity. This in turn can influence the culture of the organization by creating an atmosphere that fully utilizes the talents and capabilities of a diverse workforce. (2) Businesses should use affirmative action as a tool to help ensure that all qualified individuals have equal 70
  71. 71. “ The Glass Ceiling Effect – A fiction or Truth” access and opportunity to compete based on ability and merit. Affirmative action is the deliberate undertaking of positive steps to design and implement procedures that ensures the employment system provides equal opportunity to all. Properly implemented affirmative executives action means promoting opportunities for advancement for people who can contribute effectively to a corporation and, consequently, the nation’s economic stability. It means making full use of the rich talent this nation has to offer. (3) Business must expand their traditional executive recruitment networks and seek out candidates with non-customary backgrounds and experiences. They must go beyond the old school network and seek talent both inside and outside the corporation, by looking to employee sponsored networks and affinity groups, or at women’s colleges, or universities with historical ties to ethnic groups. (4) Business must train the entire workforce in the strengths of ethnic, racial, and gender diversity. Educating the employees means creating a workplace that is welcoming and open to all. Diversity training debunks myths about the suitability and capability of women and minorities for executive careers. (5) Companies must act now to prime the pipeline by identifying objective performance, skill and knowledge criteria for advancement; instituting formal succession planning; and providing rotational and non-traditional job assignments and broaden the base of a candidate’s experience and visibility. Mentor and be mentored. Many successful business 71
  72. 72. “ The Glass Ceiling Effect – A fiction or Truth” persons have identified mentoring as a critical factor in their career advancement due to its function as a means of networking, socializing and forming ties with influential corporate leaders. (6) Work/life and family friendly policies should be adopted. These include flexible hours, daycare and elder care programs, telecommunicating, and job sharing. Family friendly policies improve productivity, reduce costs by relieving workers of non-job related worries, and allow them to focus on business objectives. (7) Companies must implement high performance workplace practices that include employee participation, innovative compensation policies, employment security, information sharing, and continuous learning. There is strong evidence that doing right by employees is also good for the bottom line. Companies with well respected employee practices that invest in their workers see a positive impact on measures of long-term corporate performance such as utilization of capital and total returns to investors. One study found companies that introduced formal training programs experienced a 19 percent larger rise in productivity than firms which did not train their workers. Government has a role to play in breaking Glass Ceilings. Government must lead by example and make equal access and opportunity a reality for all. It cannot mandate and require private sector to pursue and value diversity, if it is unwilling to do the same. 72
  73. 73. “ The Glass Ceiling Effect – A fiction or Truth” Corporate leaders must recognize that they need the talent and input of women and men at highest levels to better address the changing consumer markets, the changing workforce demographics, and international competition in today’s global economy. In spite of excellent management and leadership skills, women contribute to their own inability to break through the Glass Ceiling in subtle ways stemming from personality attributes, social conditioning and learned management styles. What it feels like when one believes that change will occur and must occur – yet the obstacles to change appear overwhelming. Equality in the executive suite has that same sense of inevitability. The time has come for those women who have been riding in the back of the corporate bus to make the changes that will allow them to move forward with courage and conviction. Those who are currently in front of the bus must not look at them as interlopers or unwanted competitors, but as partners on a common journey. Competitiveness in the global marketplace depends on our collective ability to get the right people, with the right talent, on the right bus, headed in the right direction. We can no longer afford to leave half of our human assets at the station. Shattering the Glass Ceiling--A Strategy for Survival THE FACTS 73
  74. 74. “ The Glass Ceiling Effect – A fiction or Truth” Federal Glass Ceiling Commission released a report stating that only 7%-9% of senior managers at Fortune 1000 firms are women. (Korn-Ferry and Catalyst). This is compelling, considering women make up almost one half of the nation's workforce. Highly educated and/or experienced women face their biggest challenges at upper levels of corporations. As a result, they have been known to disproportionately cluster in "white collar ghettos" or the bottom tiers of management and lowest paying industries. Well-qualified women face barriers spawning from stereotypes or preconceptions (81%), employers who feel an aversion to taking a risk by hiring a female (49%), or not carefully planning their careers or job assignments to benefit them. Most astounding, a recent survey found that less then 1% of CEOs see the development of high potential women as a priority. THE COSTS If a company chooses to continue to exclude qualified women from top management positions it is most probable that they will find themselves unable to compete in an increasingly diversified marketplace and will lose an extraordinary amount of talent, creativity and productivity. Women today are leaving the corporate sector in vast numbers-twice the rate of men. They are not leaving to tend to their families but rather to seek positions that are more satisfying and rewarding or start up their own business. According to a study released last year by the National Foundation for Women Business Owners, women own approximately 7.7 million firms; an increase of 43% since 1990. Women are forming new businesses at double the rate of men. In turn, big companies are losing valuable players. This loss is becoming more and more costly to organizations that have invested time and money in their employees. It would serve both organizations and women to 74
  75. 75. “ The Glass Ceiling Effect – A fiction or Truth” reexamine the obstacles that prevent females from advancing and from being valued in the workplace. WHAT WOMEN CAN DO You need to know what you want and must clearly define your goals and priorities. Develop strong relationships with others in the company, focusing on those individuals with high authority. Ask these people for feedback on their performance and then make it a point to act on their recommendations. Improve creditability by taking on challenging assignments that are visible to upper management. Document every successful assignment completed and the positive impact your efforts had on the organization. Present these during your review. Become knowledgeable of the less quantifiable criteria for evaluation such as personality, loyalty, networking etc. WHAT MANAGEMENT SHOULD DO Management must learn to recognize and appreciate gender differences as positive qualities, which can serve as assets for the organization. They must loose their preoccupation with old male-oriented procedures. For example, instead of meeting over drinks, meet for breakfast or as a group. Males and females differ in their communicative approaches. Therefore, permit each individual to talk through a situation in their own way, at their own pace. Don't allow emotions to get in the way of good judgment. Most importantly, implement a program that eliminates cultural and structural biases. Examine organizational design, staffing and performance reward systems. Incorporate mentoring programs for 75
  76. 76. “ The Glass Ceiling Effect – A fiction or Truth” women and minorities and hold managers acceptable for initiatives by rewarding only those who successfully meet the goals of the program. BibliographyBibliography Secondary sources  Organizational Behavior -- Stephen Robbins 76
  77. 77. “ The Glass Ceiling Effect – A fiction or Truth”  Organizational Behavior -- O. Jeff Harris, Sandra J. Hartman References  Business World - 1st September’ 2003  Business Line - 3rd March’ 2003  The Times of India - Men $ Women : 18th August’ 2002, 2nd June’ 2003. Sunday review : 13th January’ 2002, Times personal : 30th July’ 2003. Websites www.the glassceiling/com/resources www.googles.co.in 77