Gender differences in leadership: current social issues and future organizational implications.

Executive Summary

This paper seeks to review and discuss recent literature devoted to the tasks of identifying and explaining gender difference in leadership behavior(s) and effectiveness. In addition to reviewing U. S. and international trends in leader demographics, attention is paid to the social impact of perceived gender differences and the need for future research. Theoretical models are reviewed and discussed in terms of their contribution to arguments for and against gender differences. The contextual issues of national and organizational culture, stereotype, and perception of subordinate and superior roles are reviewed and discussed. Rationale for gender differences in leadership style are also reviewed within the context of perceptions of leadership effectiveness.

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More women are entering the workforce on a worldwide basis (Gibson, 1995). This increase is accompanied by unprecedented increases in the diversity of the ethnic and national origin demographic makeup of organizations. Localized scopes broadening to become international contingents and increasing merger/acquisition and reorganization activities that cross multiple national boundaries work to increase diversity of human capital within many organizations. Blum, Field, and Goodman (1994; as cited in Luthar, 1996) note a relational increase in the presence of women in management and leadership positions. As more women gain the work experience and education necessary to qualify for leadership positions, the supply of capable women leaders grows. Organizations are subsequently called on to reestablish and expand their notions of what constitutes effective leadership as it relates to gender, stereotyping, and role expectations. These efforts are supported by the estimate that women will outnumber men in management roles by the year 2030 as more women are earning Bachelor level degrees and participating in graduate level educational programs (Girion, 2001). Rosener (1990; as cited in Thompson, 2000) also advocates these reconsiderations adding that they should include "a valuing of diversity of leadership styles" (p. 125) if an organization hopes to be successful in its mission.

Trends and Social Implications

The relative scarcity of women in top leadership roles is not a new phenomenon and can be demonstrated both in national U.S. and international terms. The percentage of women in managerial roles ranges from 25% (Germany) to 43% (Australia) while the percentage of women in positions at the senior management level is between 0.3% and 5% (Japan and Germany, respectively) and 15% (Australia) with the U.S. at 10% (Gardiner & Tiggemann, 1999). Regarding management level women, the U.S. workforce percentage is approximately 40% but with women in this group holding onto only 0.5% of the highest paid management positions. In 1997, there were only two female CEOs amongst the leadership of Fortune 500 companies and only five in the next 500. Corporate board demographics continue this trend. Four years ago, only 10% of corporate board positions were held by women with 150 of the Fortune 500 companies reporting no women board members whatsoever (Oakley, 2000).

Historically, overall compensation trends for leaders also demonstrate this trend in gender difference. In 1990, Solomon (as cited in Oakley, 2000) reported that at the Vice President level of organizations, women VPs were compensated an average of 48% less than their male counterparts. A more recent study by Lublin (1998; as cited in Oakley, 2000) showed this trend reversing within Fortune 500 companies wherein women leaders averaged 32% less than their male counterparts.