29 Women, Leadership and Decision-Making

J. Arthi

epgp books

 

 

 

1.    Introduction

 

More and more women are rising to the leadership challenge, even in some of the most male-dominated industries. The increasing number of women in the workplace or starting their own business has demonstrated to men who own businesses that women can be both managers and mothers, thus showing their male counterpart that women can in fact “do it all”. Women are shown to have positive effects that improve corporate performance.

 

The catalyst magazine found that when comparing the worst and best quartile of female representation this had significant effects on the corporate performance. Return on Equity increased by 53%, Profit Margin by 42%, and Return on Invested Capital by 66%. They also found that a minimum of three women on the board gave the best results. McKinsey too expresses that the companies with the highest gender diversity teams, as compared to the industry average, see a much higher Return on Equity (10%), a higher operating result (48%), and a stronger stock price growth (70%). In addition, having at least one woman on the board decreases bankruptcy by a full 20%. Interestingly, companies with more women on their boards see better corporate governance and ethical behaviour .On a global scale, women face a few key challenges. Women are not advancing enough to leadership roles and contributing to influential decision-making roles.

 

2. Objectives

 

The learning objectives are:

  1. To understand the Status of Women Administrators.
  2. To analyse the gender perspective in leading and managing issues.
  3. To comprehend the leadership style of most of the Women Administrators.
  4. To assess the Decision Making Styles.
  5. To find out the traits of successful women in effective leading and decision making.
  6. To project how the skills gap may be closed.
  7. To gain exposure in Gender Neutrality to bring about Gender Equality.

   1. Leadership style

 

Leadership is based on a social interaction between leaders and their peers, supervisors, and subordinates. This interaction is, by nature, influenced by intrapsychic processes, including gender-role orientation and the attitudes and values associated with these roles. One of the biggest components that contributes to leadership style is the social interaction or relationship between a leader and their follower. This is where men and women vastly differ in their leadership approaches as women, by nature of their communication style, value workplace relationships more than men, suggesting that female leaders may foster closer bonds with their followers than male leaders. On the other hand, men’s status and power-oriented communication style suggests a more controlling authoritative leadership approach.

 

The debate about specific aspects of gender differences in leadership styles typically involves two dimensions (Bales, 1950): task orientation and interpersonal orientation. Task oriented man agers let their employees know what the organization expects from them in precise terms, usually in the form of a comprehensive description of tasks and goals. On the other hand, interpersonally oriented managers build their leadership on keeping the morale of their subordinates high and showing concern about their welfare at work. According to gender roles, female managers should be more prone to lead with an interpersonal orientation, while male managers should be more likely to apply a task oriented style.

 

Some common female stereotype traits are affectionate, emotional, friendly, sympathetic, sensitive, and sentimental; stereotypic males traits include dominant, forceful, aggressive, self-confident, rational, and unemotional.

 

These gender differences should not be used as a reason to discriminate against male or female leaders, but rather they should be acknowledged and analyzed so that male and female leaders are placed in positions in which they can best contribute their abilities. To increase efficiency and successful leader-situation placement, leaders should be placed where their skills are most useful and applicable to the leadership role

 

Task Focused- Female leaders tend to be extremely focused on completing a task assigned. Completing day-to-day tasks are necessary to ensure a company is running smoothly from an operational perspective.

 

Transformational – Such leaders mentor and empower followers, encourage them to develop their full potential and….contribute more effectively to their organizations

 

Prefer Flat Organizational Structures – Women tend to prefer leading and creating flat organizational structures that allow for a more collegial atmosphere

 

Promote Cooperation and Collaboration – Female leaders typically promote cooperation and collaboration amongst team members. Cooperation and collaboration is important for managing a large or a geographically dispersed team.

 

Indirect Communication -women indirectly communicate their expectations of a given task and allow more latitude in accomplishing a goal. On the one hand, this can allow a team member to use his/her knowledge and experience to complete a given task.

 

Mentoring and Training Others – Everyone could use a good mentor and training to upgrade their current knowledge, skills and abilities. Beyond upgrading a skill set, mentoring and training a direct report is important for ensuring coverage amongst team members Men on the other hand project-

 

Transactional Leadership-subordinates responsibilities, failing to meet objectives. Such leaders manage in the conventional manner of clarifying rewarding them for meeting objectives, and correcting them for

 

Prefer Hierarchical Structure – Men tend to prefer a hierarchical leadership structure because it allows for easier role clarity and delegation of authority.

 

Focus on Performance – Focusing on doing one’s best is what all organizations strive for. There is a constant drive to outperform other team members.

 

Direct Communication- direct communication style is where a leader clarifies subordinate responsibilities and provides precise instruction for what they are looking for.

 

Like to Create Competition – A little competition amongst team members or departments is a good thing for an organization.

 

Coach– They always try to adopt coaching method of developing subordinates so that the process is continuous and helps the sub ordinates to understand the nuances of Job.

Research results confirm similarities with women’s styles and requirements for global leadership. Women’s styles can be defined as people-based, role modelling clear expectations and rewards for achievements(Mckinsey, 2009) Women adopt more democratic/participative styles (Eagly & Johnson, 1990)

 

Women are more collaborative and more enhancing to increase others’ self-worth (Eagly, Johannesen-Schmidt, & Van Engen, 2003)Women are rated more competent in taking initiative, practicing self development, integrity and honesty and driving for results (Zenger Folkman, 2012)Women apply more Inspiration: vision for the future and inspiring optimism Women adopt Participative decision making: creating an atmosphere where everyone joins in the decisionmaking Rated highly effective in addressing global challenges Intellectual stimulation: challenging assumptions, risk taking, creativity . Women are effective in communication: convincing and with charisma

 

India ranks third lowest in the proportion of business leadership roles held by women, at 15 per cent, falling much below the global average (survey from Grant Thornton 2015). This stands to be a major concern as an economy, if we are only using half its most talented people; it immediately cuts our growth potential. There is tremendous effort being made to close the gender equality gap, but the fact remains that men in board rooms hold the majority and are still unequally matched.

 

The Caliper study (2005)findings are summarized into four specific statements about women’s leadership qualities:

  1. Women leaders are more persuasive than their male counterparts.
  2. When feeling the sting of rejection, women leaders learn from adversity and carry on with an “I’ll show you” attitude.
  3. Women leaders demonstrate an inclusive, team-building leadership style of problem solving and decision making.
  4. Women leaders are more likely to ignore rules and take risks.

      2.Decision Making Style

 

The evidence compiled suggests that female managers tend to lead in a more participative way, while their male counter parts are more directive and autocratic. This support for employee participation in workplace decisions will only be effective when the percentage of female managers is high and they can exercise relevant influence on the management team.

 

With the increasing number of women in decision making positions in business nowadays it’s useful to know how they differ to men in leadership and communication styles. There are even gender differences in decision making with regard to ethical issues.

 

Remember that women are much more interested in relationships than tasks. They build relationships to get the task done. Men prefer to build relationships as they’re doing the task. So strong women bring to decision-making is their analytical perseverance and perspicacity.

 

A survey of more than 600 board directors showed that women are more likely to consider the rights of others and to take a cooperative approach to decision-making. This approach translates into better performance for their companies. The study, which was published in the International Journal of Business Governance and Ethics, was conducted by Chris Bart, Professor of Strategic Management at the DeGroote School of Business at McMaster University Globally, women make up approximately 9% of corporate board memberships. Arguments for gender equality, quotas and legislation have done little to increase female representation in the boardroom, despite evidence showing that their presence has been linked to better organizational performance, higher rates of return, more effective risk management and even lower rates of bankruptcy. How do people make decisions?

 

Personal interest reasoning: The decision maker is motivated by ego, selfishness and the desire to avoid trouble. This method is most often exhibited by young children who largely tend to be motivated to seek pleasure and avoid pain.

 

Normative reasoning: The decision maker tries to avoid “rocking the boat” by adhering to rules, laws or norms. Stereotypical examples of groups that use this form of reasoning include organizations with strong established cultures like Mary Kay or the US Marines.

 

Complex moral reasoning: The decision maker acknowledges and considers the rights of others in the pursuit of fairness by using a social cooperation and consensus building approach that is consistently applied in a non-arbitrary fashion.

 

Why should boards have more female directors?

 

Boards with high female representation experience a 53% higher return on equity, a 66% higher return on invested capital and a 42% higher return on sales (Joy et al., 2007).

 

Having just one female director on the board cuts the risk of bankruptcy by 20% (Wilson, 2009).

 

When women directors are appointed, boards adopt new governance practices earlier, such as director training, board evaluations, director succession planning structures (Singh and Vinnicombe, 2002)

 

Women make other board members more civilized and sensitive to other perspectives (Fondas and Sassalos, 2000) and reduce ‘game playing’ (Singh, 2008)

 

Female directors are more likely to ask questions rather than nodding through decisions (Konrad et al., 2008). to ask questions rather than nodding through decisions (Konrad et al., 2008).

 

A special issue of Fortune saluted women in business. Women are widely respected for being better than men at using intuition for decision making, i.e., “woman’s intuition.”

 

The article by Janet Guyon highlighted her observations of the differences between women and men CEOs:

 

Men love to lecture; women like to listen. Men are more  likely to actalone, apt to blameothers;Women collaborate, listen, and build teams.Men are more focused on long-term results, women on short-term goals. Men put more weight on the how the decision will affect the competitive environment; women consider how it will affect the team.

 

Men exercise their decision making power, if they have it. Women want to work through people, even if they have the decision-making authority. Men are more-likely blindsided by a crisis, where women will more often see the crisis looming (e.g., a woman anticipated the Enron disaster).Men think men are better at problem-solving or decision-making. Women think women are better at both. However, if the job is in general management, both sexes think men are better decision makers. The exception is in “female” jobs, such as human resources.

 

Collective – Participative decision making is when the leader involves the members of the organization. Other perspectives of the situation are discovered because the leader deliberately asks and encourages others to participate by giving their ideas, perceptions, knowledge, and information concerning the decision. The leader maintains total control of the decision because, although outside information is considered, the leader alone decides. The leader is also completely responsible for the good or bad outcome as a result of the decision. The advantages include some group participation and involvement.

 

Consensus decision making is when the leader gives up total control of the decision. The complete group is totally involved in the decision. The leader is not individually responsible for the outcome. The complete organization or group is now responsible for the outcome. This is not a democratic style because everyone must agree and “buy in” on the decision. If total commitment and agreement by everyone is not obtained the decision becomes democratic. The advantages include group commitment and responsibility for the outcome. Teamwork and good security is also created because everyone has a stake in the success of the decision. A more accurate decision is usually made, with a higher probability of success

Women have a clear advantage over men on honesty and ethics, providing fair pay and benefits, and offering mentorship to young employees. Men have an edge when it comes to being willing to take risks and negotiating profitable deals. Women have also made inroads into managerial positions and professional fields in recent decades. In 2013, over half of managerial and professional occupations in the U.S. (52.2%) were held by women, up from 30.6% in 1968. Even so, women continue to lag far behind men in senior management positions Only about one-in-five say women’s family responsibilities are a major reason there aren’t more females in top leadership positions in business and politics. Women are also perceived to have an edge over men when it comes to being honest and ethical (34% say women are better at this; 3% say men are better at it). Women have a somewhat narrower advantage over men when it comes to working to improve the quality of life and standing up for what they believe in despite political pressure. For both of these characteristics, solid majorities say there is no difference between men and women.

 

European Union Survey -Across the EU, women are underrepresented in decision-making positions, particularly in politics and business, even if the situation varies between EU countries. In May 2016, women accounted for 29% of members of the single or lower houses of parliaments in the EU countries.

 

In business leadership the situation is particularly disappointing: in April 2016, women accounted for just 23.3% of board members of the largest publicly listed companies registered in the EU countries. There are evidences for underrepresentation of women in decision-making processes and positions are multiple, and call for a comprehensive approach to tackle the problem.

 

Successful Leadership Traits- Key to achieve Heights

  1. Strategic Influence

  Mastering the art of influence and persuasion are essential skills for anyone pursuing a leadership path. For too long, persuasion and influence have been seen as “soft skills” and an after thought in many leadership programs and seminars, if raised at all. These, like any skill, requires dedicated, diligent practice and focus.

  1. Gender Intelligence

Beyond the biological differences, men and women are different in many behavioral and attitudinal ways that impact how we communicate, take decisions and ultimately understand one another. We need to better understand these differences and find the most productive ways to work together and leverage strengths of both men and women.

 

3. Social Capital involves leveraging a blend of emotional intelligence, interpersonal impact, and diplomacy skills to develop trusting, lasting relationships. This is one of the hardest skills to master and one that only comes with tremendous patience and practice

 

The most successful women in the world have grabbed every opportunity afforded to them, and have created opportunities for themselves, harnessing their fears and doubts as rocket fuel instead of rocks in their pockets.

 

Some of the characteristics of successful people, such as motivation, natural curiosity, courage, self-management, enjoying being stretched and rising to a challenge, personal will and fortitude, drive, and flexibility may be innate, but there is no doubt that these characteristics also need to be nurtured and encouraged.

    1.  Adaptability

 

Demonstrates flexibility in the face of change Projects a positive demeanor regardless of changes in working conditions Shows the ability to manage multiple conflicting priorities without loss of composure

 

2.  Organization

 

Time Management: Determines the appropriate allocation of time

 

Space Management: Effectively manages the workspace (i.e. keeps a clean and organized office, appropriately handles all paperwork, maintains control over the physical environment, etc.)

 

Task Management: Balances conflicting priorities in order to manage workflow, ensure the completion of essential projects, and meet critical deadlines

 

3.  Proactive

 

Demonstrates the ability to foresee problems and prevent them by taking action Utilizes analytical skills and a broad understanding of the business to effectively interpret and anticipate needs

 

4.  Communication Skills

 

Listening skills: Understands that the most important aspect of communication is the act of listening and actively works to improve those skills

 

Oral skills: Speaks with confidence using clear, concise sentences and is easily understood

 

Written skills: Produces well thought-out, professional correspondence free of grammatical and spelling errors

 

Telephone/E-mail: Uses high quality, professional oral and written skills (as described above) to project a positive image of the business

 

5.  Client Service

 

Interacts professionally with clients and associates at all times Promptly responds to requests with accuracy and a courteous demeanor

 

6.  Business Understanding

 

Demonstrates an awareness of fundamental business principles as well as an understanding of the overall industry in which the business operates

 

7.  Team Player

 

Works as a competent member of the team, willingly providing back-up support for co-workers when appropriate and actively supporting group goals

 

8.  Technical Skills

 

Displays proficiency using standard office equipment such as a computer, fax, photocopier, scanner, etc.Demonstrates advanced proficiency by quickly adapting to new technology and easily acquiring new technical skills

 

9.  Judgement

 

Exhibits sound judgment and the ability to make reasonable decisions in the absence of direction Swiftly refers problems/issues to the appropriate person(s) when necessary Works effectively without constant and direct supervision or guidance

 

4. Competencies for Decision making

 

Great leaders understand how to balance emotion with reason and make decisions that positively impact themselves, their employees, their customers and stakeholders, and their organizations.

 

Making good decisions in difficult situations is no small feat because these types of decisions involve change, uncertainty, anxiety, stress, and sometimes the unfavorable reactions of others

 

Emotional Intelligence

 

Emotional intelligence, the ability to understand and manage your emotions and those of others, is one of the most important qualities a leader must possess. According to the authors of Primal Leadership, a leader’s emotions are contagious. This is why resonant leadership is so important—a leader’s mood will resonate with others and set the tone for the emotional climate in an organization.

 

Emotional intelligence consists of self-awareness, self-management, social awareness, and relationship management. Self-awareness is the foundation for all aspects of emotional intelligence. It involves being able to accurately assess yourself. Social awareness is similar to self-awareness but the focus is external and involves understanding the thoughts, feelings, and actions of others, as well as how to relate to other people. Relationship management is crucial for great leadership and includes qualities such as being influential and inspirational and developing other

 

Managing Uncertainty and Choices

 

Why is it so difficult to make decisions? Perhaps it is because the variables and the outcomes are often uncertain. We do not like uncertainty. Uncertainty creates discomfort and analysis paralysis. We try to analyze the situation from every angle to alleviate the sense of uncertainty. These efforts are often futile and waste valuable time and energy because so often we must make decisions in the face of uncertainty.

 

Trusting Your Intuition

 

Excellent leaders often say that they go with their gut to make decisions. They are able to trust themselves and their expertise and not get stuck in the cycle of over-thinking. The more you know about a subject, the more reliable your intuition will be. Women are more concerned with uncertainty, doubts, and the dynamism that are involved in the decision. Women are more aware of the constraints that the setting and close persons put on them, and their emotions are more important to them in the decision process. Conversely, men assign more importance to the analysis of the information required to carry out the decision and to the definition of the goals or purposes of the decision.

 

Gender Neutrality

 

An organization’s performance is determined by the human capital that it possesses and its ability to use this resource efficiently. There is clearly also a values-based case for gender equality: women are one-half of the world’s population and deserve equal access to health, education, economic participation and earning potential, and political decision-making power. Gender equality is thus fundamental to whether and how societies thrive.

 

Strategic engagement for gender equality 2016-2019

 

Promote institutional change in research organisations to remove barriers to gender equality and engage all such organisations to implement gender equality plans.

 

Raise awareness to promote female entrepreneurship Continue action to increase women’s participation in the labour marketcontinue to reduce the persisting gender pay, earnings and pension gaps and thereby gender inequality in access to financial resources through life;

 

Becoming a leader involves much more than being put in a leadership role, acquiring new skills, and adapting one’s style to the requirements of that role. It involves a fundamental identity shift. Organizations inadvertently undermine this process when they advise women to proactively seek leadership roles without also addressing policies and practices that communicate a mismatch between how women are seen and the qualities and experiences people tend to associate with leaders.

 

The three actions we suggest to support women’s access to leadership positions are (1) educate women and men about second-generation gender bias, (2) create safe “identity workspaces” to support transitions to bigger roles, and (3) anchor women’s development efforts in a sense of leadership purpose rather than in how women are perceived. These actions will give women insight into themselves and their organizations, enabling them to more effectively chart a course to leadership

Research from McMaster University in Ontario revealed that women’s abilities to make fair decisions when competing interests are at stake make them better corporate leaders. Specifically, the study found that women are more likely to consider the rights of others and to take a cooperative approach to decision-making, which ultimately translates into better performance for their companies

  1. Lessons from Successful Women in Leadership

Women entrepreneurs account for almost one-fifth of all leadership profiles, who are mainly encouraged to this position favorable business atmosphere and the growing ease of doing business, according to LinkedIn data. In 2015, Ikea Switzerland became the first company in the world to reach the highest level of gender equality certification from EDGE (Economic Dividends for Gender Equality) and Ikea globally has 48% female managers. Ikea’s gender-related philosophy is all pervasive in their business. It extends beyond their organisational wall to their vendors, suppliers and customers. There is no substitute for visible top management commitment to gender equity. But there are specific actions that are complementary to the leadership commitment.

In India, women make up 42% of new graduates, but only 24% of entry-level professionals. Of these, about 19% reach senior-level management roles. Women hold only 7.7% of board seats and just 2.7% of board chairs.

 

Women leaders are missing across sectors. To gain momentum and drive change, women need to “lean-in” and they are doing so—at least more than before.

 

The women leaders can be developed through capacity Building programs, Gender Equality policies, Motivators, work-life balance strategies, review job profile, suitable performance indicators, and wider use of social media

 

Conclusion

 

Creating an environment where women can succeed is vital. Public policy that encourages women to be successful, workplaces that reward those encouraging and advancing women, and education systems that educate women to the highest standards are just some of the things that are needed to help create an environment in which women are prepared and encouraged to rise to leadership.

you can view video on Women, Leadership and Decision-Making

 

Web links