Location: Home > Publications >The leadership Challenge: Women in Management (Hannah Piterman © March 2008)
3. Context
3.1 A changing social environment
3.1.1 The social and economic participation of women
The norms governing Western women's social and economic participation have changed considerably over the past 50 years. In Australia, the period from the late 1960s to the early 1980s saw equal opportunity for women comprehensively enshrined in law. Equal pay provisions were phased into federal and state awards, employment restrictions were lifted on married women, and paid maternity leave was introduced for public sector employees.This period of legislative reform culminated in the passing of the Federal Sex Discrimination Act in 1984 and the Affirmative Action (Equal Employment Opportunity for Women) Act in 1986.
At one level, women are reaping the rewards of equal opportunity enactment. Over the past 25 years,Australia's female workforce participation rate has steadily increased and recently overtaken that of men (ABS 2006a). Workforce projections for the United States point to a 'veritable tsunami' of women entering all sectors of the professional workforce as the twenty-first century progresses (Reciniello 1999; 304).The proportion of women accessing tertiary education has also grown steadily (ABS, 2006a), providing greater numbers of women with leverage into Australia's professional workforce. In 2004, just over one-third of Australia's working women were employed at a professional or associate professional level and their participation in skilled employment continues to increase (ABS 2006a). The legislative enactment of equal opportunity has also contributed to a rhetorical framework for the full social and economic participation of women in Australia. The term 'equal opportunity employer' has gained widespread usage and is now considered an important business citation.
However, Australian researchers have raised concerns about the narrow interpretation and enactment of affirmative action by employers.The principle of equal opportunity has remained a marginal concern and a non-core issue for business. Employers have achieved a superficial compliance with the principle of equal opportunity (Spearritt, 1999).The gap between the rhetoric of equal opportunity employment and organisational reality remains not only an academic concern but a source of ongoing social and economic disadvantage for women. In 1950, the basic female wage was estimated to be 75 percent of the basic male wage.Over half a century later, women have gained less than 10 percent on that baseline figure. Current estimates place the average female wage at 84 percent of the basic male wage (EOWA, 2007).
3.1.2 The intersection between work and family life
Women's lifestyle patterns have also changed considerably since the mid twentieth century. Greater numbers of adult women are remaining single and childless. Women are having fewer children at a later age. The peak years for childbearing increasingly coincide with the peak years for women's career development. A growing number of Australia's professional women are taking temporary leave from their careers to begin families (ABS 2006c).
These trends have led to major changes in gender roles, family structures and work patterns. The distinct divisions of labour established between men and women in pre-war society when men were the principal bread winners have become muddied in contemporary Western democracies.Women's interactions with work and family life are increasingly complex and demanding (Charlesworth et. al., 2002). Australia's working mothers are now the most time-poor of all demographic groups (Bittman & Rice 2002).Women are experiencing significant interruptions in their working lives to respond to domestic and care responsibilities. Their re-entry into working life can present an enormous challenge. It is often gradual, incremental and not without great personal sacrifice (Probert, 2006; Charlesworth et. al., 2002). A small number of men are also breaking from traditional full-time career responsibilities to participate in other avenues of their lives. However, male work and family participation patterns remain far more stable and simple than those for women (ABS 2006a).
3.2 The political environment
3.2.1 The emergence of family friendly policies
In many Western democracies, the emergence of family friendly policies signals government and employer attempts to respond to the changing social and economic landscape.There is a notable trend in European countries to 'extensively modernise' the standard employment contract through policy and legislative directives that acknowledge the right of employees to balance work and family commitments. (Charlesworth et. al. 2002). A Scandinavian model for work/life balance recognises that work and family participation patterns alter as individuals move through different life cycles. It encourages government policies to accommodate this dynamic (Probert, 1999). In the United Kingdom (UK), where a trend towards increased working hours has been apparent, the government has now legislated for the provision of maternity and parental leave and an employer requirement to consider requests for flexible work hours from parents with young children (DTI, 2007).
3.2.2 Policies in Australia
The political and socio-economic response to work/life balance in Australia has not mirrored the European approach. Australian work/life patterns have followed economies such as the UK and the United States (US), where average working hours have increased. Indeed, Australia has more people working more hours than all other OECD member countries except for the US (Dawson, McCulloch & Baker, 2001). Australia and the US have also seen a growing number of casual workers and reduction in the proportion of employees who can access basic work entitlements such as paid leave (Charlesworth et. al., 2002).
The development of family friendly policies in Australia has been notably slow. Government policies have been criticised for failing to respond to the real needs and expectations of Australian workers and families and encouraging a 'family hostile'work culture (Charlesworth et. al., 2002). A recent study of work/life patterns found more than two-thirds of surveyed Australians disapproved of the trend towards longer working hours. Many respondents believed unsociable work patterns interfered with their family and personal lives.The study identifies 'a broadly held public preference for the government to take action' through the implementation of public policy (Relationships Forum Australia, 2007: 14).
A number of Australian and international researchers have been critical of the current policy environment for favouring stay-at-home mothers at the expense of their working counterparts (Charlesworth et. al., 2002; Williams, 2000; Probert, 1999; Campbell, 1993). Familyrelated policies reflect an outdated ideal of the full-time, unencumbered worker and fail to respond to the changing needs of women and working families (HREOC 2007; OECD, 2001, 2002). Australia remains one of only two OECD countries without a national paid maternity leave scheme. In 2006, 34 percent of employed mothersto- be took paid maternity leave. The majority of these women were employed in the public sector (ABS 2006c).
Australia's Human Rights and Equal Opportunity Commission (HREOC) has echoed the concerns of research, describing the 'external support for families juggling paid work and care [as] patchy at best and counterproductive at worst'. (HREOC, 2007: xi).The commission called for both government and employers to adopt a more holistic, co-ordinated approach to the delivery of comprehensive, family friendly policies. Recognition of the intersection between work and family life should underpin a strategy that combines legislative, policy and infrastructure remedies to address the systemic discrimination against workers with families.
3.2.3 Employer response in Australia
There is a growing recognition among employers of the need to adopt family friendly work practices as part of a more sustainable approach to workforce management. Increasingly, employers are prioritising the need to attract and retain female talent through the provision of family friendly initiatives (EOWA, 2006b). However the business community is not in total accord. The Australian Chamber of Commerce and Industry recently argued provision of flexible work opportunities would place unreasonable cost burdens particularly on small employers (ACCI, 2004). Many employers remain reluctant to implement a full range of family friendly initiatives on these grounds (HREOC, 2007).
In contrast, there is a growing trend among large employers in professional sectors to create family friendly environments. The provision of paid and unpaid leave arrangements and other flexible work opportunities has increased significantly in sectors such as banking and finance (EOWA, 2005).The business community has lobbied the Federal Government extensively for the provision of tax incentives and other supports to enable a greater number of employers to offer family friendly work environments (HREOC, 2007).
While progress is being made, there is still a long way to go. As public expectations for work/life balance increase, the business community is showing leadership in the delivery of family friendly policies and looking to government for vital support.
3.3 A changing business environment
3.3.1 Diversity: the new imperative
Australia's business community is at the forefront of major change. The demands of a globalised and increasingly competitive marketplace are rapidly reshaping commercial imperatives. While business leaders remain optimistically focused on continuing an unprecedented period of prosperity and growth in the Australian economy, they recognise that the shortage of skilled labour is a key restraining factor (Australian Business Ltd., 2006a, 2006b; EOWA, 2006b).
The tight professional labour market has created a 'war for talent' (Harvie, 2003) among leading organisations. Women represent a significant but underutilised pool of talent that needs to be tapped by business to combat the skills shortage and ensure long-term commercial viability. In 1995, Deloitte & Touche in the US identified the recruitment and retention of women as its 'number one human resource effort' (Rosener, 1995). Its Australian operation has since followed suite, recognising the initiative to retain and grow female talent as 'absolutely crucial to our success' (Giam Sweigers, 2006).
The recruitment and retention of talented staff is emerging as a key goal for leadership. Strategies to broaden the talent pool require effective engagement with the diversity agenda as a core business imperative.
3.3.2 The cultural accommodation of women in business
The growing recognition and response to the diversity challenge across corporate Australia is heartening for women in management. However, research continues to point to fundamental incompatibilities between traditional business imperatives and the accommodation of diversity which requires longer-term strategic initiatives. While the business climate recognises the value of a heterogeneous workforce, pressure to respond to shortterm key performance indicators (KPIs) to meet shareholder value is a major driver of business activity.
The focus of the executive culture is on 'the business' and the business is defined by budgets, resources, shareholders and assets, the objectified workforce and strategic `big pictures'. (Sinclair, 1994: 21)
The traditional imperatives of the market economy do not easily accommodate the diversity agenda. Research has found that within the traditional business environment, and most notably in organisations with a minority of women at senior level, the preferred management style is informed by 'masculine stereotypes such as dominance, aggression, rationality and independence' (Palermo, 2004: 22).This style bias mitigates the value of talents widely associated with the feminine such as interpersonal communication and emotional intelligence. Within this cultural setting, women are seen to provide support to men but fail to thrive as leaders in their own right (Chesterman, et. al., 2004; Meyerson & Kolb, 2000; Burton, 1997; Collinson & Hearn, 1996).
While structural elements such as a lack of family friendly policies undoubtedly inhibit career development for many women, there is strong evidence that mainstream corporate culture still struggles to accommodate the presence of women and the exercise of authentic female authority.
3.4 Women in business
3.4.1 A poor cultural fit
A growing body of research indicates professional women across modern Western democracies have shared experiences of corporate life.
In 2004, three of America's leading business organisations, Ernst & Young, Goldman Sachs and Lehman Brothers, sponsored a national survey of more than 2000 tertiary qualified women to investigate their movements in and out of the professional workforce. An analysis of the results by Hewlett and Luce (2005) reveals a frustrated group of professional women who were 'reluctantly pushed' and 'pulled' from their careers by a range of social, organisational and economic forces. Their exit from the workforce was characterised as 'taking an off-ramp from their chosen career path'.
For many women in our study, the decision to off-ramp is a tough one. These women have invested heavily in their education and training.They have spent years accumulating the skills and credentials necessary for successful careers. Most are not eager to toss that painstaking effort aside. (Hewlett & Luce, 2005: 46)
This research highlights the impact of workplace culture on many women's decision to temporarily or permanently abandon their careers. Indeed, women participating in this survey nominated lack of opportunity, under-stimulation and cultural isolation as greater influences on their decisions to leave work than the 'pull' of caring responsibilities. The 'push' impact of organisational culture was highlighted by the finding that only 5 percent of women re-entering the workforce wanted to return to their old company.This reduced to 0 percent for women who had been employed in the business sector.
Australian research provides a wealth of material on the 'chilly' cultural response that many women face as they rise through management ranks. Male-dominated business organisations have been found to operate unstated promotion criterion that favours Anglo-Australian men. A 1997 Morgan and Banks survey of employers found a worrying 'male bias in key industry sectors' against the employment of women. More than a third of respondents admitted 'they prefer employing men' (Burton, 1997: 13). 'Men recruit 90/10 in favour of men - while women tend to show no gender bias in their recruitment decisions and typically recruit 50/50' (McFarlane, 2004).Amanda Sinclair, focussing on the constructs of leadership in Australian business, has long argued that gender, sexuality, and power have shaped and limited leadership to 'a white male idea'. (Sinclair, 2004a: 17). Along with a growing body of researchers, Sinclair identifies a masculine 'norm' that dominates across organisational settings, supported by stereotypes of both the masculine and the feminine that inhibit the cultural response and recognition of female authority (Chesterman, et. al., 2005; Sinclair, 2004a, 2000, 1994; Spearritt, 1999; Still, 1996; Burton & Ryall, 1995; Karpin, 1995; Rosener, 1995).Women have few options than to be incorporated into these Anglo-Australian norms.
3.4.2 Women in leadership
Women's increased participation in the workforce generally and at the professional level specifically, is not translating into increased numbers of women at senior and executive levels. Statistics show the movement of women through business hierarchy into top level positions has been slow. Indeed, the profile of Australian women in business leadership supports research assertions that despite nearly 40 years of investigation, the dearth of women in management remains a 'perennially critical' and 'tricky' issue to deal with (Fox & Broussine, 2001).
- Twelve percent of ASX200 executive managers are female.
- Three women have been appointed to executive level since 2004.
- In 2007, 13.5 percent of companies have two or more women on their boards, up from 10 percent in 2004.
- There has been a drop in the number of companies with at least one female board member since 2004.
- Over the past three years, there has been no increase in the number of companies with a female CEO to 3 percent.
- No Australians featured in the 2006 Forbes 100 Most Powerful Women list.
3.5 The challenges for leadership
The attraction and retention of talent is a key workforce planning issue that demands a strategic orientation from business leadership. Engagement with the diversity agenda is a strategic issue. While contemporary economic forces are pushing for a longer-term focus from business leaders, the current preoccupation with the short-term remains the major driver in a large number of corporate environments. Narrow demands of day-today business need to be reconciled with a broader consideration of relevance, resilience and sustainability over the long-term.This presents leadership with a challenging balancing act. Notions such as sustainability and diversity require awareness beyond daily operational issues. Corporate environments need to recognise and reward characteristics that transcend the focus on the shortterm, individualism and competition as key leadership attributes. It is the role of leadership to refocus the organisational to accommodate both short and longterm agendas.
3.6 Conclusion
The contextual framework for any investigation of women in management is complex. A range of social, political and organisational elements influence the way women engage with the workforce and manage their professional working lives. Recognition of key impediments to female advancement is growing. The business community is acknowledging workforce planning as a major strategic issue that involves engagement with the diversity agenda. The business community is endeavouring to address:
- the poor provision of family friendly work practices by employers and government; and
- the pervasiveness of negative stereotypes around women in business. There are still large gaps in our understanding about the influence of organisational culture on women's work experiences. This study pursues the issue of culture and tests the contention that unconscious workplace arrangements and unspoken rules create hidden barriers to female promotion and retard their advancement towards leadership. In subsequent chapters we pose a range of questions around this proposition.
- How are talented women faring in business efforts to recruit and retention excellent staff?
- What does success and leadership look like in corporate Australia?
- How is female authority perceived across the range of organisational environments?
- What circumstances are favourable to females exercising authentic leadership and authority?