Women in Management
A study of Equal Opportunity in UK Banking industry
In order to have a clear understanding of women in management, we will first need to identify the meaning attached to this phenomenon. Since the mid 1990s, women’s representation amongst executives has doubled and amongst company directors it has tripled. At the same time there has been an overall increase in women working in management jobs. However, women still comprise less than a quarter of executives and only one in ten company directors.
The ‘glass ceiling’, the situation where women can see but not reach higher level jobs and so are prevented from progressing in their careers, appears still to exist in many organisations. This is what led to the creation of the terminology ‘women in management’. Several key factors account for the continuing low representation of women in management. Firstly, like most other occupations, there is a tendency for some types of management jobs to be associated with either women or men. For example, whilst women are comparatively well represented in personnel and the public sector, men still predominate in production management and Information and communication technology. Secondly, opportunities to work part-time are limited, with only six percent of managers and senior officials employed part-time.
Although it may be difficult to carryout some management functions on a part-time basis, there are still far too few opportunities for flexible working at senior levels in organisations. With this in mind, we can now move on to discuss the theoretical perspectives of women in management. There are several already established theoretical perspectives that have been used to gather a better understanding of this issue, however, the ones used in this paper are:
Issues and problems facing women reaching the top (manager)
Why so few women reaching the top?
Why are women workers still going cheap?
What causes the gender pay gap?
Have women achieved equality in the UK banking industry?
4.1 Issues and problems facing women reaching the top (manager)
Several factors account for the continuing low representation of women reaching the top. One of the key issues is that women consider family obligations and the predominance of ‘male values’ in corporate culture to be the main obstacles to career advancement for them. The nature of the obstacles blocking women’s progress to higher management varies, however, from those encountered at lower levels. Higher ranking female bank managers seem to experience discrimination to a greater extent, both on terms of structural and cultural barriers, where insufficient personal contacts and dominance of ‘male values’ adversely affect their advancement. The difficulties women face in reaching the top is also reflected in the higher levels of education and effort often demanded of them. The hurdles facing women aspiring to management jobs can be so formidable that they sometimes abandon efforts to make it to the top of large firms. They often take their energy and know-how to smaller and more flexible companies or set up their own businesses. Another principal constraint on the level and type of labour market participation of women is the responsibility they carry for raising children and performing household tasks. An important feature of professional and especially managerial work is the extended working hours that seem to be required to gain recognition and eventual promotion. It can be practically impossible to reconcile the long hours often required of management staff with the amount of time needed to care for a home and children, not to mention care of the elderly. Yet the availability of part-time managerial work varies across organisations. Women who desire both a family and a career often juggle heavy responsibilities in both domains. Those who opt for part-time work early in their careers may find their advancement hampered, even after a return to full-time employment, since their male counterparts will have invested heavily in career building during the same period.
4.2 Why so few women reaching the top?
Few women gain access to the highest positions as executive heads of organizations and, despite some improvements, many would claim that the pace of change is still far too slow given the large number of qualified women in the labour market today. Where figures are available (ILO data, 2002), they show women holding from 1 percent to 5 percent of top executive positions. While it must be acknowledged that time is still needed for women at junior and middle management levels (those in the pipeline) to move into executive positions, the fact still remains that women are not moving quickly enough nor in sufficient numbers into line or strategic positions. Yet this factor is crucial for enlarging the pool of women aspiring to senior positions and for building a critical mass of senior women for networking and providing role models for those down the line. Speeding up women’s movement towards the top requires that recruitment and promotion methods be objective and fair. Above all, there has to be awareness and commitment from directors of companies as to the benefits for their organizations from promoting women to high-level managerial positions. Women seem to experience the most difficulty in obtaining executive jobs in large corporations, even though they often have greater opportunities at junior and middle management levels in these same corporations. Another reason for this purge is the educational attainment required for top management positions. Evidence provided by the Equal opportunities Commission in the United Kingdom suggest that, in some cases women do not have the educational qualifications to get into management positions, and even when that is not the case, they still do find it hard to break into management, due to the fact that it is predominantly male dominated. Another reason is that few senior women are in the so called ‘line’ positions that involve profit and loss or revenue generating responsibilities, and which are critical for advancement to the highest level. Additionally, in the United Kingdom, the share of women among financial managers rose from 11 percent to 17 percent in the 1980s and still increasing, although they are still outnumbered by men in top management positions in the 21st century.
4.3 Why are women workers still going cheap?
Much of women’s work has historically tended to be undervalued or unrecognized. While the United Nations system and governments are making more systematic efforts to value and account for women’s work in national statistics, research on women in management is a relatively new field and comparisons over time and across countries are limited. This is further made complicated by the range of definitions employed and the non-availability of statistics for different countries over time. Under a report provided by the United Nations in 1996 called the Human development report, it states that ‘no society treats its women as well as men’. A gender related development index was created to record achievements and monitor progress. This is based on life expectancy, educational attainment and income, but adjusts the latter mentioned for gender equality. They noted that life expectancy rates are positively affected by care in different forms, such as social support and social relationships. For example, unmarried adults have higher mortality rates than married ones and, according to them, children in a caring environment fare better in terms of health than those who lack this attention. It is not only the weak and sick that need care to prosper; even the healthiest of adults need a certain amount of care. A deficit in care services not only destroys human development, but it also undermines economic growth. That these factors are overlooked has considerable implications for gender equality, as women still carry the main responsibility for care. Gender discrimination is perpetuated through the lack of value placed on women’s caring role in society. As managers, women are affected by the common assumption that in the event of building families they will bear the main burden of responsibility arising out of this. Thus, there is not the same degree of investment in women. They are less likely to receive the same encouragement or career advice through mentoring as men. Another important factor is that in some countries equal opportunity policies tend to be established within organizations, however, in some countries they are not strictly adhered to. In the UK a scheme known as ‘Opportunity 2000’ was launched in 2000. Its member included 300 organizations ranging from the financial services to the educational departments. They agreed to increase the number of women into management positions, and between 1994 to 2000, women’s share of management positions increased from 25 percent to 35 percent. Therefore, one can say although women are still going cheap in certain jobs in other parts of the world this is not the case universally.
4.4 What causes the gender pay gap?
A difference in management positions does tend to contribute to earnings differentials. Although rates of pay may be similar, actual earnings can vary because of the different salary packages offered to managers, which provide various fringe benefits and access to certain schemes for boosting bonuses. Earnings gaps may also reflect differences in seniority and concentration of women in low-paid managerial sub-groups. Additionally, certain jobs tend to be affiliated with men and to women, i.e. productions and manufacturing jobs tend to be affiliated with men, while nursing, and household jobs tend to be affiliated with women, this contributes to the pay gap between men and women. Within the Banking sector in the United Kingdom, there has been an increase of the number of women into both middle and top management. However, the positions they tend to head are not profit-making positions or revenue generating positions, which are positions of higher pay and responsibility. They tend to be based within the retail, customer services, and bookkeeping departments, which are areas of significance to the organization, but are of less repute.
4.5 Have women achieved equality in the UK banking industry?
In the area of finance, women have certainly increased their share of management positions, although at a varying pace. In the United Kingdom, the share of women among financial managers rose from 11 percent to 17 percent during the 1980’s and at the turn of the century increased to 25 percent. While women have captured an ever-increasing share of the labour market, improvements in the quality of women’s jobs have not kept pace. This is reflected in the smaller representation of women in management positions, particularly in the private sector, and their virtual absence from most senior jobs, i.e. Directorships, or President’s of Banks. Wage differentials in male and female managerial jobs stem from the reality that even when women hold management jobs, they are often in less strategic lower-paying areas of a company’s operations. They are also linked to the fact that women managers tend to be younger on average, as most senior jobs tend to be dominated by older men. Despite the persistent inequalities at managerial level, the continuous entry of women into higher-level jobs is being addressed; however, they still remain under-represented in senior management. With few exceptions, the main challenge appears to be the sheer slowness in the in the progress of women into senior leadership positions in organizations, which suggests that discrimination is greatest where the most power is exercised. However, the growth in entrepreneurship and increasing numbers of women running their own businesses, both large and small, heralds a different future for societies. The economic power gained by women will play a key role in the struggle to sweep aside gender inequalities in all walks of life in which the UK banking sector is no exception.
Tags: bank managers, banking industry, female, gender, management, organisations, representation, UK, women
