With the increase seen in globalization, many firms have made significant efforts to improve diversity management, however, door leading to boardroom remains usually closed for women. A global survey made by Credit Suisse found that among 3,000 companies, only 14.7% of board seats were held by women altogether (Valentini, 2017). Since women have the potential to bring new and enhanced skills and opinions in the workplace, they must be provided with equal opportunities to accesses top positions in businesses. Therefore, the adoption of gender-based quotas incorporates has grown alarmingly since the past few years which suggests a common agreement among countries government. This further denotes that gender quotas are valid and demonstrates a critical advancement tool for an organization’s policy developers (Choobineh, 2016). Implementation and promotion of the quota system to promote gender diversity in the workplace prove to be a good idea, however, to analyze the truth behind the notion, it is significant to make analyses of subjects related to gender quotas and how compelling policies satisfies organizational demands.
Due to gender and social diversity groups, people start believing that they pose different perspectives through learning how on to make necessary changes in organizational behaviour and with their team becomes comparatively easier. Looking form social cognitive theory perspectives, in a society which comprises both male and female, there are some aspects in human behaviour like talent and intelligence they both poses but need to conceptualise themselves to gain social and constructive aspects. Study shows that even in gender-specific facilities, practical implementation remains missing most of the times and male dominancy are seen in top management positions (Bibi, 2016). Arguing that gender-based quota can improve organizational productivity and have a positive influence on corporate governance, Joshi (2017) examined that across 4,050 firms in Spain revealed a positive impact through implementing gender-based diversity management in their firms. besides, American firms highlighted gender-diversity in top positions which impacted the firm’s value positively and offered high yielding returns along with increased acquisitions made by women rather than men.
Arguably Pande & Ford (2011) cites “Economic development does not beget female leadership” (p. 5). Accordingly, the authors argued that rather being dependent on economic development, implementation of quotas have appeared to be a political agenda in many countries. The evidence of many democratic countries suggests reforms in a political system that provides an opportunity to women and introduce controversial arguments concerning such quotas which reveals how disproportional representation can result in majoritarian systems. Moreover, in many countries, there are very fewer women representatives like 17% in the US and 11.3% in Japan. There are other nations like Mozambique with 39.2% of women representatives as compared to Europe where only 3.9% of women represented the board of directors (Pande & Ford, 2011). But then, it can also be noted that government intervention and regulations can help in giving shapes to traditional organizations perceptions which follows disproportionate norms. For example, the EEO law of the US-led to the gender diversity emergence with the help of experts who advocated and promoted normative acceptance behind diversity within organizations (Zhang, n.d.).
A report prepared by ( Australian Institute of Management, 2012) on “Gender Diversity In Management” found that around 59% of surveyed women accepted the idea behind quota system in board role to obtain a prestigious position within the firm. Henceforth, gender quotas became mandated requirements, stating a fixed proportion of women that needs to be appointed for particular roles, for instance in corporate boards or political position. Quota are been legislated by the government, although can be implemented willingly by an organization or industry. The normative legitimacy behind diversity management or gender promotion can make social categorization a moderate process in organizations.
When gender diversity will be embraced worldwide, the exchange of diversified knowledge and perspective will create a sense of inclusion among people and make women feel more valued and respected for contributions made by them. Such exchange of ideas will facilitate healthy interactions within the workplace and reduce the likelihood of internal conflicts and sexual discrimination. Zhang (n.d.) documents that if gender diversity is ignored by firms, women are the ones who feel more excluded and face stereotyping that further makes them feel detached to the organization. Therefore, social cohesion brought due to quota system might help in determining the firm’s productivity through engaged and unified staff where both men and women create a better synergy along with feeling a stronger attachment with their firm.
The above findings reveal that women have the potentiality to make advances in the corporate and political world across the globe. Gender gaps still exist in society especially in low-income countries which have made gender-based discrimination a significant factor that has made many women faced stereotyping and smaller roles in top positions within firms. However, in developed and developing nations, many such gaps have been identified and reversed with the help of self-considerations and quota systems to manage workplace diversity and promotion of equality between men and women. Yet, more improvement can be made within the educational and professional development sector to influence new generations regarding female leadership in businesses.
Past few decades have reflected several changes within organizations especially concerning progress towards women representation in top positions. Considering the situation, in 1995, no female representative ruled the industry as per Fortune 500 CEOs list, however, in 2017, around 31 women, representing 22% in Fortune 500 CEOs list of corporate boardroom gives a general view why more countries are considering gender-diverse boards. While the number is still less, it gives a general viewpoint that women at top positions will naturally spread improvements in women leadership outcomes such as pay equity ( Georgeac & Rattan, 2019). For example, in Norwegian, 40% of a corporate board is required to be represented by women as per country law. Other nations such as France, India, Germany, Belgium and Iceland use quota systems that establish an improved female representation in company’s board list. Spain, on the other hand, proposed a legal system altogether for quota systems with softer-recommendations to promote good governance schemes from 2020. Such legal system will account for 30% seats reserved for women in company’s board as compared to 2017 report of Spanish Association of Women Entrepreneurs which states that an increase from 19.1% to 21.8% has been seen for the first time indexing female representatives in company board (García-Izquierdo, et al., 2018).
A research made by Turban, Wu, & Zhang (2019) shows that there is a positive impact of diverse society with a normative belief about women leadership. While some countries support women entrepreneurship culturally, there are few legal systems associated with it. Others have legal systems established, but culture proves to be highly male-dominant. However, organizational behaviour studies reveal that diverse teams are more productive and innovative especially when people belonging to different countries, both men and women, work together for a shared vision. Diverse leaders can create a more innovative environment where new ideas meet each other’s and developed with one another’s support.
According to Ellemers (2014), various factors contribute to make women representatives a more preferable than male-dominant ones which have made more countries implement legal and normative approach to promote gender diversity. Gender-Mixed management displays more uniformed and culturally effective teams that can engage themselves in successful problem-solving because of different perspectives existence. For example, female entrepreneurs in male-dominant culture can yield a novel insight which can significantly develop industry and science in domains such as “gendered innovation” which include public services, health care, water and technology infrastructure, etc. The bottom-line benefits behind gender diversity in organizations further proves that achieving gender-based diversity management can result in economic gains for organizations and country GDP (Ellemers, 2014).
Despite increasing evidence revealed about the correlation between company performance and gender diversity, Australian firms have been so far very slow in increasing gender diversity particularly while representing executive teams and company board. A recent study conducted states that many countries including Australia have shown concern towards gender diversity in board and remarkably, such considerations have sustained very less female participation in Australian companies. On S&P/ASX 200, only 23.6% of directors represented females and around 20 firms have only male board members. Moreover, in personnel management, female representative holds only 20.2% share, yet, women comprise 40% of the total Australian workforce (Regnan, 2019). Regarding pay equity, Australian men continue to earn more than women counterparts according to data released in 2015 by the WGEA showing how women representatives are underpaid than men (BlackRock, 2015).
The above results indicate that the trend towards a female role in Australian companies Board reflects typically a lower percentage than major other countries although quota systems implemented and finding a positive association between financial gains and board diversity. Further, the relationship between women proportion in organization’s board and financial gains suggest various implications for regulation and practice. Women in board can enhance organizational performance by managing business cases impacted due to Australian regulatory changes which require board nomination committees to increase the number of female participants in board-member selection. Motivational policies and quota systems can further make necessary amendments in the ASX Corporate Governance Council policies, implying companies to acquire board diversity by fair means Vafaei, Ahmed, & Mather (2015).
Constructive theories in leadership show reasons why leaders inspire and motivate others by integrity, empowering employees, become role model, ethical and supporting organizational goals. In contrast to it, the destructive leadership approach has emerged in the past few decades thereby developing interest among researchers and business scholars. Destructive leadership is one key term that describes how leaders or managers violates the legitimate interest of businesses by sabotaging and undermining organizational goals, resources, effectiveness, tasks or by reducing the well-being of others through ways of ignorance.
According to Martin (2015), destructive leadership is one theoretical and practical issue where leaders affect followers negatively which results in financial loses within organizations. It is estimated that US Corporations pay $23 billion annually due to health care loses because of decreased productivity, absenteeism and legal fees occurring because of leaders abusing their position. In spite of the fact behind negative results taking place due to violation of leadership powers, generation of followers abide by rules, delivers high-quality work, strive to please them, have little trust of leadership and delivers low self-efficacy. Such findings indicate that present leaders may be suspected with demeaning behaviour showing an attitude of ignorance and less assertive in their supervisory position (Martin, 2015).
Characteristics of leaders who abuse their positions, also described as abusive leadership include verbal abusiveness, sarcastic, intimidator, dishonest, poor interpersonal skill development, inadequate competencies and de-motivator. In literature, it has been asserted that leaders who pose dark-side of leadership traits involve argumentative nature, insensitivity towards others, fears failures and lacks ethics by threatening employees and putting them down or ignore them completely (Murari, 2013). Power in leadership can be one reason which often leads leaders to abuse their positions in organizations. Although power entails leaders to be responsible and promote welfare for their members, leaders rather become motivated to increase their domination and resources. Consequently, they behave in a pattern which designs their benefits even though such actions damages and hinders others well-being.
The desire for more power reveals fundamental human behaviour which is shared by many leaders. Consequently, such motives become a primary source of tension within the firms. For instance, a leader who is asked to make decisions for benefitting employee’s empowerment, but they are so highly motivated to satisfy self needs or enhance personal power that they tend to ignore their subordinate’s welfare completely. Another reason behind the abusive behaviour of a leader can be fear of middle-managers or other people with similar authority who poses smarter and skilled characteristics which makes them an excellent leader. Such threats may make leaders fear to lose their power and position in the firm due to which they start behaving in an incompetent way by taking credit of others work (Maner & Case, 2013).
The expectations theory focuses upon beliefs associated with statuses and different roles in society where people in high-status are gratified with superior positions as per skills and knowledge who in turn emerges in the form of leaders. Because of an institutionalized social hierarchy, the male is regarded as superior and females in lower status groups. Such differences seen reflects gender-based leadership within firms also which makes most of the male leaders think that they are born to lead others. Furthermore, constructive leadership theory reveals a common leadership trait which shows a preference towards stereotypes due to which many women face leadership barriers as they are never seen as competent one or considered to lead men (Stempel & Rigotti, 2018). Although making the decision based on sexism may not be possible for organizational leaders especially while analyzing individual performance, there are few high-profile examples in literature which shows how leaders are filed lawsuits for making gender-based discrimination in workplace. For instance, a lawsuit faced by Walmart where female employees claimed that they received fewer promotions in comparison to male despite superior qualifications and holding records of quality service. In this case, the firm’s district manager was accused of confiding few women employee’s data who ignored their work and passed it to men because of protecting the superior position from women’s hand (Stamarski & Hing, 2015).
Leadership and leading others seem to be stressful work as there are no effective ways to avoid constant challenges present in the business world, particularly during uncertain outcomes and workplace with a diversified workforce. Moreover, leaders who move forward with greater freedom often experience seduction and greater pressures. This necessitates leaders to avoid pitfalls by giving more time in personal development and cultivate inner self rather than exploiting or abusing their position for reframing heroism in front of the subordinates they lead. Such processes will require an introspective and thoughtful approach as many people might get into the leader’s role to satisfy their ego rather than satisfying an organizational need. It will enable transformation in them that seeks external gratification from the others to find inner satisfaction thereby making meaningful contributions from their leadership.
References
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BlackRock, 2015. Achieving Gender Diversity in Australia: The Ugly, The Bad and The Good. [Online] Available at: https://www.blackrock.com/corporate/literature/whitepaper/achieving-gender-diversity-in-australia-en-au.pdf [Accessed 15 10 2019].
Choobineh, N., 2016. Gender Quotas for Corporate Boards: A Holistic Analysis. Joseph Wharton Scholars, Volume 21, pp. 1-48.
Ellemers, N., 2014. Women at Work: How Organizational Features Impact Career Development. Policy Insights from the Behavioral and Brain Sciences, 1(1), pp. 46-54.
García-Izquierdo, A. L., Fernández-Méndez, C. & Arrondo-García., R., 2018. Gender Diversity on Boards of Directors and Remuneration Committees: The Influence on Listed Companies in Spain. Frontiers in Psychology, 9(1351), pp. 1-14.
Georgeac, O. & Rattan, A., 2019. Research: When People See More Women at the Top, They’re Less Concerned About Gender Inequality Elsewhere. [Online] Available at: https://hbr.org/2019/03/research-when-people-see-more-women-at-the-top-theyre-less-concerned-about-gender-inequality-elsewhere [Accessed 15 10 2019].
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