1. Gender, Diversity, and Organizations
10/10/ :46 AM
Gender, Diversity, and Organizations
Prepared by Dr. Sam Paustian-Underdahl
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2. Agenda Review the statistics and business case
Discuss key theories-why and how glass ceiling exists?
How does diversity management impact organizational success?
Review implications and solutions for employees and managers

3. Women, Men, and the Workplace
Wanted: Male Engagement! | Jeffery Tobias Halter | TEDxCentennialParkWomen

4. Why Study Gender Diversity in Organizations?
Business units with greater gender diversity perform at higher levels financially (Badal & Harter, 2013)
Return on Equity: On average, companies with the highest percentages of women board directors outperformed those with the least by 53 percent.
Return on Sales: On average, companies with the highest percentages of women board directors. outperformed those with the least by 42 percent.
Return on Invested Capital: On average, companies with the highest percentages of women board directors outperformed those with the least by 66 percent. (Catalyst)
Badal & Harter, 2013: 800 business units from retail and hospitality
--net profit and percent change in revenue

5. Why Study Gender Diversity in Organizations?
Discrimination is costly
Bank of America Paid $39 Million in Gender Bias Case in 2013
“How can a company expect to survive, let alone thrive, if half of its talent pool is excluded from key positions? Most companies can’t even recognize they have a problem with gender discrimination”
-Jonathan Segal (Fortune, May 24, 2013)

6. Gender Diversity and Innovation
Deszö and Ross (2012) of studied the effect of gender diversity on the top firms in Standard & Poor's Composite list
a group designed to reflect the overall U.S. equity market
They examined the size and gender composition of firms' top management teams from 1992 through Then they looked at the financial performance of the firms.
On average, “female representation in top management leads to an increase of $42 million in firm value.”
They found that companies that prioritized innovation saw greater financial gains when women were part of the top leadership ranks.

7. Still Unequal? Men, Women, and Work in the 21st Century

8. U. S. Women’s Earnings as a Percent of Men’s, Full-time Workers

9. U.S. Weekly earnings, full-time, 2015, by age and sex

10. Global Wage Gap

11. A finer grained analysis shows….
Economists Francine Blau and Lawrence Kahn conducted a more fine-grained analysis in a recent paper, “The Gender Pay Gap.”
Taking into account education and experience?
That didn’t shift the gap very much (women generally have more education than men in the US)
Men are more likely to be in unions and have their salaries protected
accounts for about 4 percent of the gap
Differences in occupation and industry?
Women congregate in different professions than men do, and the largely male professions tend to be higher-paying.
If you account for those differences, and then compare a woman and a man doing the same job, the pay gap narrows to 91 percent.

12. Men and Women and Leadership

13. Organizational & Business Leadership in USA, 2015-2016
Data from BLS and Catalyst

14. Women continue to be under-represented at top levels of leadership in healthcare
74% of healthcare workforce (Bureau of Labor Statistics, 2012)
Source:
71% of mid-level officer and management positions (EEOC Employer Information Report for Hospitals, 2011)
54% of executive and senior officer positions (EEOC Employer Information Report for Hospitals, 2011)
24% of senior executives (AHA, 2010)
18% of hospital CEOs (ACHE)
Collective Source: Changing Healthcare by Design: Critical Career Inflection Points for Women Healthcare Executives. ACHE 2013 Congress on Healthcare Leadership.
Take Away: Women are not making it to the top. Why?
Sources: Bureau of Labor Statistics (2011), EEOC Employer Information Report for Hospitals (2011), American Hospital Association (2010), American College of Healthcare Executives (2013).

15. Understanding why….

16. A META-ANALYTIC TEST OF SEX DIFFERENCES IN PERFORMANCE AND REWARDS (Joshi, Son, & Roh, 2014)
Meta-analytically tested whether occupational, industry, and job-level factors mitigate or exacerbate differences in performance evaluations (k = 93; n = 95,882) and rewards (k = 97; n = 378,850) between men and women
Sex differences in rewards (including salary, bonuses, and promotions) were 14 times larger than sex differences in performance evaluations
Differences in performance evaluations did not explain reward differences between men and women
Only a higher representation of female executives at the industry level enabled women to reverse the gender gap in rewards
Joshi, A., Son, J., & Roh, H. (2014). WHEN CAN WOMEN CLOSE THE GAP? A META-ANALYTIC TEST OF SEX DIFFERENCES IN PERFORMANCE AND REWARDS. Academy of Management Journal, amj-2013.

17. The Glass Ceiling
The term "the glass ceiling" is used to describe the often invisible discrimination that prevents women from ascending to senior management positions (Morrison, White & Van Velsor, 1987)

18. A new look at the Glass Ceiling
Dr. Alice Eagly

19. The Leadership Labyrinth Eagly and Carli, 2007
“For women who aspire to top leadership, routes exist but are full of twists and turns, both unexpected and expected. Because all labyrinths have a viable route to the center, it is understood that goals are attainable. The metaphor acknowledges obstacles but is not ultimately discouraging.” (p 3)

20. Theoretical Background
Heilman has proposed that the glass ceiling is a natural result of gender stereotypes and the expectations they produce about how women should behave (2001)

21. Gender Stereotypes at Work
What stereotypes did you see?
How have these changed since the 1960s?
What stereotypes/ gender roles are still at play?

22. Gender-stereotypical characteristics
Communal characteristics-interdependence, cooperation, an emphasis on relationships, and an acceptance of change (Heilman, 2001)
Agentic characteristics- ambition, assertion, control, ability, and independence from other people (Heilman, 2001)
Associated with masculinity and leadership

23. Role Congruity Theory
Role congruity theory proposes that in general, prejudice toward female leaders follows from the incongruity that many people perceive between the characteristics of women and the requirements of leader roles (Eagly & Karau, 2002)
People tend to have dissimilar beliefs about the characteristics of leaders and women and similar beliefs about the characteristics of leaders and men (Eagly & Karau, 2002)

24. Barriers to Advancement
According to a Catalyst study conducted in 2005, senior women executives consistently pointed to gender-based stereotyping as a top barrier to their advancement

25. What are some other barriers to women’s advancement?

26. Access to equal opportunities…
Neil Degrasse Tyson on being Black, and Women in Science

27. Research Study: Gender and Healthcare Leadership
(Hauser, 2014)
Goal: Identify specific factors and trends that differ by gender and impact the process of recruiting, developing, retaining and advancing healthcare talent
282 quantitative responses to online survey
157 women, 125 men in leadership levels from Director to CEO
58% secular non-profits, 21% religious non-profits, 9% government, 7% for-profits, 5% other
38% > 10,000 employees; 22% between 5,000 and 9,999 employees; 32% between 1,000 and 4,999 employees; 8% fewer than 999 employees
52% urban, 36% suburban, 12% rural
The purpose of the research was to examine gender differences in the career experiences of healthcare leaders including Chief Executive Officers and other C-suite positions, Vice Presidents and Director Levels.
The survey was conducted jointly by Diversified and the Women’s Leadership Center through the Coles College of Business at Kennesaw State University. Analysis was conducted by the Women’s Leadership Center Research Director Samantha Paustian-Underdahl, PhD.
Participants included 157 female leaders and 125 males working for healthcare systems, hospitals, medical centers and other types of facilities in a broad range of sizes throughout the U.S.
Hauser, M. C. (2014). Leveraging Women's Leadership Talent in Healthcare. Journal of Healthcare Management, 59(5),

28. Challenges to Career Advancement
Women identified challenges to career advancement:
Lack of supportive supervisors
Exclusion from informal networks
Lack of senior role models “like me”
Inhospitable culture/biased attitudes
Failure of senior leadership to help advance someone “like me”
The need to prioritize family over work
Women rated these 6 factors as more significant obstacles to career advancement than their male counterparts.
Men rated only these 3 factors higher than the women did in terms of their impact on career advancement.
Diversified research also showed men perceived their willingness to relocate throughout their careers as more beneficial than their female counterparts; yet the same research shows relocation is significantly more helpful for women’s career advancement than men’s .
Possible explanations:
perhaps women who are willing to relocate get “rewarded” with promotions to a great extent than men because it is less likely to happen;
Perhaps it takes a major promotion to entice women to relocate whereas men may be willing to relocate for lateral job opportunities.
Take Away: Women identify external challenges to their career advancement, while men identified internal limitations as the most significant challenges to advancement.
Men identified different challenges to career advancement:
Unwillingness to change organizations / companies
Having an ineffective leadership style
Lack of significant general or line management experience

29. Backlash
Negative reactions to successful women tend to target interpersonal traits in the communal domain:
These women are characterized as the antithesis of the female nurturer—as the quintessential “bitch” who is concerned not at all about others but only about herself (e.g., Heilman et al., 2004)
Rudman (1998; Rudman & Glick, 2001) found that women who engaged in self-promoting behavior were judged as
lacking social skills
were less likely to be recommended for hiring

30. Backlash Research and Negotiating
Research has demonstrated that penalties result when women engage in behaviors that are counter to female stereotypic prescriptions
How does this relate to negotiating behaviors?
Start at 3:30, stop at 18:16
Start at 47 minutes, stop at 51:50

31. Other barriers? Leadership styles differ?
What leadership style is most effective?
Meta-analysis (Eagly, Johannesen-Schmidt, & Ven Engen, 2003) showed that:
Female leaders were somewhat more transformational than male leaders
Engaged in more of the rewarding behaviors that are one aspect of transactional leadership.
Men exceeded women on the aspects of transactional leadership involving corrective and disciplinary actions
Men were also more likely to be laissez-faire leaders, who take little responsibility for managing.

32. Gender and Perceptions of Leadership Effectiveness: A Meta-Analysis of Contextual Moderators (Paustian-Underdahl et al., 2014)
Meta-analysis summarizing gender differences in perceptions of leadership effectiveness across 99 independent samples from 95 studies
When all contexts are considered, men and women do not differ in perceived leadership effectiveness.
When other-ratings only are examined, women are rated as significantly more effective than men
When self-ratings only are examined, men rate themselves as significantly more effective than women rate themselves
Paustian-Underdahl, S. C., Walker, L. S., & Woehr, D. J. (2014, April 28). Gender and Perceptions of Leadership Effectiveness: A Meta-Analysis of Contextual Moderators. Journal of Applied Psychology.
Women were rated as significantly more effective than men in business; men were rated as more effective in government organizations.
Women were rated as significantly more effective than men in midlevel positions.

33. Other barriers Demands of family life
We know from time-diary studies, in which people record what they are doing during each hour of a 24-hour day that:
In the United States married women devoted 15 hours per week on average to housework in 2011, while married men contributed 9 hours.
Married mothers increased their hours per week spent on child care from 10.6 in 1965 to 14.3 in 2011, and married fathers increased theirs from 2.5 to 7.3

34. How can women’s family demands be reduced?
Social support—spouse, extended family, child-care
Equal division of household labor
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35. Discrimination Motherhood penalty/ Fatherhood premium
Decision makers often assume that mothers have domestic responsibilities that make it inappropriate to promote them to demanding positions.
As one participant in a study of the federal workforce explained, “I mean, there were 2 or 3 names in the hat, and they said, ‘I don’t want to talk about her because she has children who are still home in these [evening] hours.’ Now they don’t pose that thing about men on the list, many of whom also have children in that age group.”

36. Discrimination Exampleed

37. Are women dropping out? Sheryl Sandberg, COO of Facebook
Sheryl Sandberg, COO of Facebook

38. Implicit Association Test
You completed the IAT on Gender—Careers.
The score is determined by comparing how quickly and accurately you were able to categorize career words with male compared to female (and family words with female compared to male). Most respondents find it easier to associate Female with Family and Male with Career compared to the reverse. 

39. IAT Norms
Evidence suggests that implicit associations form based on everyday experiences, so the daily exposure to differences in gender roles in one's own family might be influential on how these associations form in memory - whether we consciously agree with them or not.

40. IAT Discussion
Please share with your group how you think unconscious associations between gender and work and family could affect organizational behavior in the workplace.
Come up with at least 3 examples of how implicit biases could affect how managers interact with their employees and discuss what you/managers/employees can do to address unconscious bias in the workplace (be sure to reference your readings about diversity and bias). Discuss each other’s ideas within your group.

41. What is Diversity?
Diversity is defined as “the full range of human similarities and differences in group affiliation including gender, race/ethnicity, social class, role within an organization, age, religion, sexual orientation, physical ability, and other group identities.”
(Dreachslin, 1998)

42. Why is diversity important?
Research has shown that social diversity in a group can cause discomfort, rougher interactions, a lack of trust, greater perceived interpersonal conflict, lower communication, less cohesion, more concern about disrespect, and other problems.
So what is the upside?

43. Diversity enhances creativity
If you want to build teams or organizations capable of innovating, you need diversity.
Diversity enhances creativity
“It encourages the search for novel information and perspectives, leading to better decision making and problem solving. Diversity can improve the bottom line of companies and lead to unfettered discoveries and breakthrough innovations. Even simply being exposed to diversity can change the way you think.” (Phillips, 2014, para 3)

44. Racial Diversity and Innovation
Richard et al. (2003), surveyed executives at 177 national banks in the U.S., then put together a database comparing financial performance, racial diversity and the emphasis the bank presidents put on innovation.
For innovation-focused banks, increases in racial diversity were clearly related to enhanced financial performance.

45. Causality?
Phillips, Northcraft, and Neale (2006) examined the impact of racial diversity on small decision-making groups in an experiment where sharing information was a requirement for success.
They put together three-person groups—some consisting of all white members, others with two whites and one nonwhite member—and had them perform a murder mystery exercise.
The groups with racial diversity significantly outperformed the groups with no racial diversity.
Being with similar others leads us to think we all hold the same information and share the same perspective. This perspective, which stopped the all-white groups from effectively processing the information, is what hinders creativity and innovation.

46. More evidence
Other experiments (Lisel et al., 2004) with racial diversity show:
when we hear dissent from someone who is different from us, it provokes more thought than when it comes from someone who looks like us
Studies on democrats/ republicans (Loyd, Wang, & Lount, 2013) work similarly:
When disagreement comes from a socially different person, we are prompted to work harder in our arguments. Diversity jolts us into cognitive action in ways that homogeneity simply does not.

47. What is Cultural Competency?
A set of congruent behaviors, attitudes and policies that come together in a system, agency or among professionals that enables effective work in cross- cultural situations.
‘Culture’ refers to integrated patterns of human behavior that include the language, thoughts, communications, actions, customs, beliefs, values, and institutions of racial, ethnic, religious or social groups.
‘Competence’ implies having the capacity to function effectively as an individual and an organization within the context of the cultural beliefs, behaviors and needs presented by consumers and their communities.
(HHS Office of Minority Health, 1999)

48. Diversity Management
Diversity management is defined as “a strategically driven process whose emphasis is on building skills and creating policies that will address the changing demographics of the workforce and patient population.”
(Svehla, 1994; Weech-Maldonado, et al. 2002)

49. Building a Business Case for Diversity Author(s): Robinson and Dechant, 1997 Costs of mismanagement
Negative impact of diversity mismanagement on the bottom line
The turnover rate for Black employees in the U.S. workforce is 40 percent higher than the rate for Whites
The turnover among women is twice as high as for men--at all ages, not just during their childbearing years
Women and minorities most often leave firms out of frustration over lack of career opportunities and advancing up the corporate ladder
The added recruiting, staffing, and training costs per person for turnover are estimated at $5,000 to $10,000 for an hourly worker and between $75,000 to $211,000 for an executive at around the $100,000 salary level.

50. Costs of mismanagement
Absenteeism rates are often higher among women and non- white men than they are for white males.
family responsibilities, including child and elder care, are key factors underlying such high absenteeism
On site daycare and flexible work schedules can improve organizational commitment and job satisfaction and lower absenteeism rates

51. Costs of mismanagement
Lawsuits on Sexual, Race and Age Discrimination are expensive
The average jury award for a discrimination lawsuit is $600,000.
Negatively impact employee morale, and the reputation of an organization

52. Benefits of diversity management
Winning the competition for talent means attracting, retaining, and promoting excellent employees from different demographic groups.
Women and minorities most often leave firms out of frustration over lack of career opportunities and advancing up the corporate ladder.
Possible explanation? Reluctance of management to coach and counsel these employees.
Women and people of color tend to receive less feedback than men. Feedback given to men is two-and-a-half to three times lengthier than that given to women
Mentoring and developmental feedback is essential

53. Benefits of diversity management
Improving business growth/ marketplace saturation
The consumer market for goods and services is becoming increasingly diverse
spending power of African-Americans, Asian-Americans, and Hispanics together was estimated at $424 billion in 1990 and was expected to reach $650 billion by the year 2000

54. Benefits of diversity management
Utilizing human capabilities
leveraging opportunities associated with increased marketplace understanding, greater creativity, higher quality team problem- solving, improved leadership effectiveness, and better global relations

55. Organizational solutions?
Develop some ideas you have for things organizations and/ or managers can do to manage diversity more effectively.

56. Solutions
Train decision makers to be aware of innate biases/ stereotypes (we all have them) in order to reduce discrimination that may take place unknowingly
Have a zero tolerance policy for discrimination
Have checks and balances to ensure equal pay, development, and promotions
Have work-family programs in place
On-site daycare, flexible scheduling
Train employees on negotiation skills and biases