CHAPTER TWO
2.5 Quantifying the extent of the Glass Ceiling
Globally, women comprise the fastest growing labour force segment, but they are disproportionately under represented at top management while being over represented in informal employment, unpaid work and in undesirable sectors of the economy (ILO, 2004).
2.5.1 Global perspectives
Generally, according to a census study done in the United States (US), Canada and Australia, female representation at top management falls below 20% (BWASA, 2010). In the US, only 8% out of the 46.5% of women making up the workforce hold top managerial positions (Beck and Davis, 2005 as cited in Jain and Mukherji, 2010). In the UK 49.7% of women constituted the workforce with 34.5% holding managerial posts constituting a 3 fold increase since 1988 (Eurostat 2006 as cited in Broadbridge, 2008). According to the Institute of Management (2001 and Hakim 2003 as cited in Broadbridge, 2008), reasons for the increased representation of women in management in the UK were attributed to their investment in
32 higher education, changing attitudes towards the acceptance for women with children to work and a decreasing fertility rate. In addition, organisational policies which promote equal opportunities for both men and women and the growth of an information and service-based economy supportive of women are factors that have helped to increase the representation of women in management in the UK (Powell, 2000). However, like the US, representation of women in top management positions in a majority of UK‟s economic sector remains limited pointing to the existence of barriers that to date still are firmly in place (Singh and Vinnicombe (2000) as cited in Broadbridge, 2008).
According to a study done by Katz and Katz (1997 as cited in Broadbridge, 2008), the retail industry in UK being a crucial employment sector comprises 41% of women in management.
Though parity exists at the lower levels of retail management, higher up the hierarchy disparities in management are eminent (Broadbridge, 2008). According Broadbridge (2001) study, there was an inverse relationship between women and men based on levels in the organisational hierarchy. At departmental level, there were more women than men on a 2:1 ratio. Men on the other hand outnumbered women by a ratio of 3:1 at deputy management levels. Higher up the hierarchy at brand level management positions, the disparity between men and women was bigger reaching a ratio of 9:1 and 20:1 at area management levels.
According to Broadbridge‟s (1998) study as cited in Broadbridge, 2008), barriers to the ascension of women were ascribed to their domestic responsibilities and organisational attitudes (Broadbridge, 2008). On the other hand, both male and female retail managers attributed the disparity in management as being related to company cultures that did not support women and those that embraced leadership styles not akin to women, long work hours, lack of flexible work hours at senior management level that did not support family commitments and unfair promotional practises (Broadbridge, 2008). At top management positions in the retail industry, a study done by Thomas (2001 as cited in Broadbridge, 2008) showed that though there was an improvement in the access of women to top management their representation at this level was limited. This was attributed to women in top leadership being relegated to secondary positions with no visibility rather than in high visibility positions at the centre of corporate influence in retailing (Broadbridge, 2008). At this point it is evident that the Glass Ceiling phenomenon is a worldwide phenomenon and not one unique to South Africa (SA).
33 2.5.2 South African scenario
Coming closer home to Africa in general and SA in particular, despite the existence of empowerment legislation, gender equality is not taking place at the rate needed to impact positively on the economic wellbeing of women (BWASA, 2010). Although women form the majority of the population in SA, their participation in areas of the economy that are male dominated still remains limited (BWASA, 2010).
According to the National Labour Force Survey of 2009, 51.6% of women make up the total adult population in SA (Stats SA, 2009). Although a marginal increase of women in leadership positions is being experienced, women are still under represented in top management positions. Statistics from the Business Women‟s‟ Association of South Africa (BWASA) 2010 indicates that from the total adult population, 44.6% females are active labour participants. Only 19.3% and 16.6% constitute executive managers and company directors respectively as shown in Figure 2.1.
Figure 2.1 BWASA 2010 Census statistics
Adapted from: BWASA (2010). Women in leadership census 2010. In partnership with Nedbank and InWEnt [Online] Available at:
www.bwasa.co.za/Census/2010censusresults/tabid/14708/Default.aspx. (Accessed 20 July, 2011)
51.6% -Females as a % of total SA
population
44.6% -Females as a % of employed
population 19.3% Female
executives
16.6% -Female directors
10.5% Female CEOs and board
chairs
34 According to April et al., (2007), the 19.3% female representation at executive level falls way below the 30% parliamentary seats held by women, majority of whom are black. Reasons that have been cited for the increase of black female representation in Government is attributed to their active engagement in the liberation struggle and the affirmative action policies and Employment Equity Legislation that have served to empower the previously disadvantaged (April et al., 2007).
Comparing the female representation at executive management and directorship level to their male counterparts, the disparities come to light as shown in Table 2.1
Table 2.1: BWASA (2010) Management statistics by gender ABSOLUTE NUMBERS
EXECUTIVE MANAGEMENT POSITIONS
YEAR MALE % Male
representation
FEMALE % Female
representation
2010 11832 80.7 2827 19.3
2009 12078 81.4 2761 18.6
2008 3618 74.7 1227 25.3
2007 5230 80.8 1243 19.2
2006 6567 83.2 1323 16.8
DIRECTORSHIP POSITIONS
2010 5316 83.4 1056 16.6
2009 3366 85.4 574 14.6
2008 2505 85.7 419 14.3
2007 2547 86.9 385 13.1
2006 2777 88.5 362 11.5
Adapted from: BWASA (2010). Women in leadership census 2010. In partnership with Nedbank and InWEnt [Online]
Available at: www.bwasa.co.za/Cesus/tabid/9447/Default.aspx.
(Accessed 2 September, 2010)
35 From Table 2.1, the number of executive female managers increased from 16.8% to 19.3%
from 2006 to 2010 respectively. Women holding directorship positions increased marginally from 11.5% to 16.6% from 2006 to 2010 respectively. In comparison their male counterparts held over 80% of both executive and directorship positions (MWIWA 2010; BWASA 2010).
Though female representation is still dire locally, internationally, SA is tops with regard to female board representation in Johannesburg Stock Exchange (JSE) listed companies with a representation of 16.6% when compared to United States of America (USA) Fortune 500 companies with a female representation of 15.2%, Canada‟s FP 500 with a 13.0%
representation and Australia‟s ASX 200 with a 8.3% representation. Additionally, at the executive managerial level, SA‟s female representation is tops at 19.3%, followed by Canada- 16.9%, USA- 13.5% and Australia- 10.7% respectively (BWASA, 2010).
Shean (2010) asserted that despite there being disparities based on female representation in management, an improvement in the socio-economic equality between men and women was evident as per the MasterCard Worldwide Index of Women‟s Advancement (MWIWA) 2010 report. Four gender parity indicators that were used to assess this equality were labour force participation, tertiary education enrolment rate, incidence of management positions and above median income as shown in Table 2.2.
Table 2.2: MWIWA 2010 gender parity indicators
GENDER PARITY INDICATORS
2007 2008 2009 2010
Labour force participation 78.07 75.79 75.45 75.85 Tertiary education enrolment rate 125.87 127.87 129.91 131.98 Incidence of management positions 72.71 65.31 64.27 75.04
Above median income 108.59 104.16 82.22 91.12
MWIWA equality Index 96.31 93.28 87.96 93.50
Adapted from: Master Card Worldwide Index of Women’s Advancement (MWIWA), 2010. [Online]
Available at: www.masterintelligence.com/viewRegionReport.jsp?hid....
(Accessed 2 September, 2010)
36 From Table 2.2, a gender parity score below 100 indicates gender inequality in favour of males while a score above 100 indicates gender inequality in favour of females. A score equal to 100 shows equality between the sexes. According to MWIWA (2010 as cited in Shane, 2010), there was an increase in the tertiary education enrolment rate among women relative to that of men. From 2007 to 2010, the national enrolment rate showed consistent growth increasing by 611 basis points (125.87 to 131.98), approximately 6% from 2007 to 2010 respectively for every 100 men enrolled in institutions of higher learning. Despite an improvement in gender parity, what was critical was that noticeably fewer women than men reported holding top managerial posts (Shean, 2010). The incidence of top management positions though low increased by approximately 11 basis points (64.7 to 75.04), which translates to approximately 0.11% from 2009 to 2010 respectively, a score which according to the index shows gender inequality in favour of men. Above median income increased by 9% from 2009 to 2010. Generally, according to the equality index, SA‟s score increased by almost six basis points (87.96 to 93.5) 0.06% between 2009 and 2010 respectively, overall, signifying an improvement in equality indicators between men and women. The above statistics clearly show that the glass ceiling is a global phenomenon that affects women the world over and is mirrored in their minimal representation in top management.