Wednesday, October 9, 2019

A case for gender diversity in top management in China


The involvement of women in top management is a function of both culture and observed benefits of maintaining gender diversity within the organisational structures. Progressive studies have been conducted across the world and they indicate that major strides have been made in Western countries in embracing gender equality as opposed to the level of progress made in Asian countries (Lord and Preston, 2009). Besides the argument for gender diversity based on the principles of eliminating gender discrimination, there has been many studies that have linked gender diversity in management to improved performance by organisations (Javalgi et al, 2011; Sincoff, Coleman, Owen, 2009). Studies in China indicate a growing level of participation of women in management and an improvement in overall organisational performance. This study argues that gender diversity is good for Chinese organisations in terms of tapping the potential of different genders in management.

The contribution of women in organisations is influenced by four schools of thought that explain gender differences in management and approach to communication: sex school, gender role school, causal factor school, and attitudinal factor schools (Melero, 2004; Lord and Preston, 2009). In the sex school of thought, males and females have innate differences which influence their approach to communication and operations. Women are observably less abrasive than men and often tend to opt for consensus rather for encouraging competing ideas (Melero, 2004). This is an important property in today’s world where synergy among employees is the key to success (Lopez-Zafra, Garcia-Retamero and Martos, 2012). It demonstrates the rationale for the growing preference for gender diversity in management.

The gender role envisions the society as a unit where members of either gender play distinct roles. The men are the traditional breadwinners while the women are expected to be the home keepers and raise children (Lord and Preston, 2009). In terms of hierarchy, the gender role school of thought places the women below the men and this is believed to be an impediment to the rise of women in corporate organisations. These perceptions have been fought fiercely by proponents of gender equality, especially in the West. In China where the traditional view is considered to be a little stronger than in the West, one-child policy has seen many heiresses being groomed to take over family businesses as succession issues compel the society to acknowledge the potential of women to successfully run organisations (Chen, Chan and Leung, 2010). This has led to a significant increase in the acknowledgement of women to top management positions and this has in turn created the perception that gender diversity in top management is good for the organisation.

In order to discern the influence of women in management, various studies have been conducted to establish whether gender diversity influences organisational performance. Zhang and Hou (2012) conducted a study on Chinese nationals to establish the extent to which gender impacted group performance. In this study, a comparison was made between Chinese and American nationals and the finding was that the presence of women in Chinese groups tended to minimise conflicts related to tasks and relations between group members (Zhang and Hou, 2012). This finding was consistent with the sex school of thought which ranks women as being generally more collaborative and focused on conflict avoidance than their male counterparts. In the same study, women were found to be more considerate of their colleagues than the men who appeared focused more on what they could achieve and the possible benefits that they could obtain for achievements made.  These are qualities that organisations can benefit from in terms of creating a healthy organisational culture that promotes cooperation between employees.

Stereotypes against women are inevitable and they are a function of traditional cultures and views towards members of either gender. As has been illustrated in the gender role school outlined above, the women tend to be perceived as traditional home keepers with no important role to play in the substantive national economy. Even though this view is universal globally, the strength of the perception differs between countries. In a study on USA, Chile and China, Javalgi et al (2011) established that China had the lowest perception of women as potential managers in organisations. It is a reflection that gender roles are still taken seriously in China and that the country lags behind the rest of the world in terms of entrenching gender equality in management teams. The country is strongly dominated by males in most boards of directors and it is predicted that the situation is unlikely to change very soon (Xiu and Gunderson, 2013). This places the organisations at a disadvantage if research linking diversity to performance is to be relied upon.

 The positive perception of women is backed by empirical research on Chinese companies where 98% of businesses run by women make profits (Javalgi et al, 2011). In terms of entrepreneurship, women entrepreneurs record 90% success rates as compared to 50% recorded by their male counterparts (Javalgi et al, 2011). These findings prove the strength of women in fostering business success and justify the push to enable them play a more active role in organisations. In spite of these trends, findings are that China continues to lag behind their USA counterparts in acknowledging women managers and facilitating their rise to top management (Sincoff, Coleman, Owen, 2009). There is a persistent disparity between lower level management and top management with trends being that the number of women reduces drastically in top management. Nevertheless, a number of advantages have been observed in having women managers as elaborated below.

The presence of women in the board of directors is said to have a positive relationship with communication effectiveness and reduction of conflicts between the board members and between the board and management teams. This is believed to be related to the common approach by women to communication where effective interpersonal communication is emphasised and where substantial efforts are made to minimise conflicts. The women are also believed to be more oriented towards empowerment of employees and emphatic towards them. They are therefore said to be more effective in discouraging employee turnover and in creating a more cohesive organisational structure. In many of the cases, recognition of these characteristics of women managers has seen organisations opt to let the women control the human resources dockets within the organisations. This is nevertheless faced with challenges where the dominance of women in human resources functions tends to have a demeaning impact on the dockets. Chen, Chan and Leung (2011) observe that even though women tend to be less gifted in technical areas, they tend to be very effective in encouraging teamwork and bringing out the best in employees. This property serves the organisation better than being in possession of all the technical skills needed in a field.

According to Francoeur, Labelle and Sinclair-Desgagne´ (2008), there is a direct relationship between gender diversity in management and the ability of the organisation to survive in complex business environments. The positive connection is also present in terms of the performance of organisations in corporate social responsibility and this is related to the fact that women tend to be more humane and concerned with the welfare of societies (Boulouta, 2013).Despite these relationships, the stereotypes against women persist in many parts of the world and they often take the form of pay discrimination where women are paid lower wages than their male counterparts of the same rank.

Xiu (2013) found than there was a significant gap between male and female managers in Chinese organisations. In spite of the acknowledgement of their potential, females are said to be less likely to secure senior jobs with large organisations and even where they do, they are paid lower wages than their male counterparts. This view is also echoed by Xiu and Gunderson (2013) who observe that even though compensation for women managers has been rising steadily in recent years, pay gaps are still experienced across China. This challenge is not unique to China. Even countries that are known to be more liberalised in terms of entrenching gender equality like the UK still face general inequality in wages. Nevertheless, the differences in China are more significant and often accompanied by higher levels of condescending attitudes towards women managers.

From the arguments above, it is easy to establish that there is an increase in the extent to which women managers are recognised as good performers in organisations. Even though negative perceptions on women managers persist, the trend towards gender diversity in management in China has been accelerating in the recent past. This trend has been backed by findings establishing a positive relationship between management cohesion, organisational performance, resilience in complex markets, and the presence of gender diversity in organisations. In spite of these gender diversity gains, women in China are still less involved in top management than their counterparts in many of the Western countries. They also face higher levels of pay discrimination than those in other countries. This justifies the push for greater gender diversity in Chinese organisations.  

References
Boulouta, I., 2013. Hidden Connections: The Link Between Board Gender Diversity and Corporate Social Performance, Journal Business Ethics, 113(2), pp. 185-197
Cheng, L.T.W., Chan, R.Y.K., Leung, T.Y., 2010. Management demography and corporate performance: Evidence from China, International Business Review, 19(3), pp. 261–275
Francoeur, C., Labelle, R., Sinclair-Desgagne´, B., 2008. Gender Diversity in Corporate Governance and Top Management, Journal of Business Ethics, 81(1), pp. 83–95
Javalgi, R.G., et al, 2011. A comparative analysis of the attitudes toward women managers in China, Chile, and the USA, International Journal of Emerging Markets, 6(3), 233-253
Lopez-Zafra, E., Garcia-Retamero, R.B., Martos, M.P., 2012. The relationship between transformational leadership and emotional intelligence from a gendered approach. Psychological Record, 62(1), pp. 97-114
Lord, L.A., Preston, A., 2009. Understanding leadership experiences: the need for story sharing and feminist literature as a survival manual for leadership. Gender and Education, 21(6), pp. 769-777
Melero, E., 2004. Sex differences in Managerial Style: from individual leadership to organisational labour relations. (Online) Available at: http://ftp.iza.org/dp1387.pdf (Accessed 29 March 2014)
Sincoff, M.Z., Owen, C.L., Coleman, J.W., 2009. Women as Managers in the United States and China: A Cross-Cultural Study, Journal of Asia-Pacific Business Journal of Asia-Pacific Business, 10(1), pp. 65–79
Xiu, L., 2013. Evidence from an establishment-manager matched survey, Evidence-based HRM: A Global Forum for Empirical Scholarship, 1(1), pp. 60-79
Xiu, L., Gunderson, M., 2013. Performance Pay in China: Gender Aspects, British Journal of Industrial Relations, 51(1), pp. 124–147
Zhang, Y., Hou, L.W., 2012. The romance of working together: Benefits of gender diversity on group performance in China, Human Relations, 65(11), pp. 1487-1508

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