INTRODUCTION
The number of women in the workplace has steadily risen over the past decades. In 1960 the female labor-force participation rate was 38% of the female population and by the end of 1992 had grown to 52% (Monthly Labor Review, 1993). The participation rate of older men has fallen
Literature overwhelmingly indicates that most women encounter barriers as they try to move into General Management and Executive Positions. This barrier has been labeled the glass-ceiling phenomenon (Morrison, White, Van Velsor, and the Center for Creative Leadership, 1987).
The glass ceiling was described as a transparent barrier that keeps women from rising above a certain level in corporations (Morrison, et. al., 1987). Women who are not white encounter additional barriers that restrict them from entering middle level management positions. This barrier was termed the Concrete Barrier by Ray and Davis (1988). A review of most business publications finds discussion of the glass ceiling in terms of top managerial positions in American's top companies. Fortune 500 and 1000 companies are frequently featured to cite the existence of the glass ceiling. According to Mainiero (1994), women still hold only 5% of the top jobs in Fortune 500 companies (i.e., positions within three levels of the Chief Executive Officer). Powell and Butterfield, (1994), stated that, all but one of the CEO's of the Business Week top 1,000 corporations for 1992 were men. The study of Smith and Mitchell, (1993), found that 71% of the men who graduated from Stanford MBA program are currently in the top four rungs of management, whereas only 34% of women had reached those positions.
The association of the glass ceiling and top positions in top companies is part of the motivation behind the research in this paper. Large companies account for the minority portion of the jobs held by women in America. The majority of women work in small to mid-size companies (58.9%) with less than 1,000 employees (1983 current population survey). The glass ceiling conditions at the top 1000 companies might be an indicator of the conditions at multinational companies but it doesn't necessarily define actual conditions. Similarly, one might expect the glass-ceiling phenomenon to manifest itself differently in multinatinal companies than it does in Fortune 1000 companies as most other issues do. The lack of research of the glass-ceiling phenomenon at multinational companies makes this study relevant.
A second motivator behind this study is gender segregation. Gender segregation has been used to explain why women make less than men do. Focus has moved towards occupational segregation, which theorizes that men and women are highly segregated by occupation, which results in female occupations being poorly paid (Bergman, 1986; Blau and Feber, 1986; Blau, 1989). In the United States women often fill manufacturing positions yet production management, a key position in any manufacturing companies, is almost exclusively a male position. Caudron (1994) reported that, EOC statistics show that in 1992 women held only 15.9% of managerial positions versus 38% in services and 41% in financial service companies. The disproportionate percentage of women in management at manufacturing companies makes research of the glass-ceiling phenomenon within manufacturing companies relevant.
The fact that most literature focuses on large companies, that most women work in multinational companies, and that women often fill non-management manufacturing positions, makes the study of the glass ceiling in multinational firms a relevant topic.
During the search for and evaluation of candidates, both job relevant and job irrelevant information is obtained. Job relevant information is data about the candidate, which accurately predicts his or her performance at the next management level. Job irrelevant information can include race, friendship, appearance, and gender.
Hypothesis 1: Women as mangers are less likely than men to be promoted to top level managerial positions in multinational firms.
Education has been defined as an accurate predictor of performance. American companies pay a premium for an educated employee. Researchers have found that education is a significant variable for describing the amount of human capital a person has. Similarly, education has been used as a variable in the research of differences in salary by gender (Baroudi and Truman, 1994). The researchers cite others who included education as a variable for explaining the amount of human capital a person has (Auster, 1989; England and McCready, 1987; Forgionne and Peeters, 1982; Weaver, 1978).
Since salary and management levels are closely linked in American companies, education should be an accurate predictor of a person's performance in a management position.
Hypothesis 2: Women with comparable education levels to men are less likely to be promoted into management positions of multinational firms, than these men, even when controlling for the other relevant variables.
Work experience has been identified as a variable that helps explain the quantity of human capital a person has (Auster, 1989; England and McCreary, 1987; Hulin and Smith, 1965; Olson and Frieze, 1987). Caroll and Lam (1995) identified education as a job relevant in a study, which concluded that the glass ceiling existed within the USDA Forest Service. Similarly, in a study of the glass ceiling phenomenon, Powell and Butterfield (1994), cite that work experience as a job relevant variable for promotion consideration.
Hypothesis 3: Women with comparable work experience to men are less likely to be promoted into management positions of multinational firms, than men, even when controlling for the other job relevant variables.
A person's job level was identified as a variable that helps explain the amount of human capital this person has (Baroudi and Truman, 1994). The highest grade and the years at the highest grade were identified as a job relevant variable in the study of the glass ceiling (Powell and Butterfield, 1994). The same pattern can be applied to multinational firms, which requires that a person gain experience in a position before being promoted to the next higher position.
Hypothesis 4: Women who occupy comparable positions to men are less likely to be promoted into management positions of multinational firms, than men, even when controlling for the other relevant variables.
The last significant variable applicable to the study of the glass ceiling is past performance. Although often subjective, past performance as documented in performance appraisals, is often a factor in determining whether to promote a person (Caroll and Lam, 1995; Powell and Butterfield, 1994; Stumpf and London, 1981; Taylor, 1975).
Hypothesis 5: Women who have performance ratings similar to men are less likely to be promoted into management positions of multinational firms, than men, even when controlling for the other job relevant variables.
METHOD
Subjects
For the purpose of this study 84 subjects were selected out of 200 subjects. The response rate count for about 42%, which is considered to be a very good response rate. Most of the subjects were graduate students with some Entrepreneurship experience. About 80% of them were over 30 years old. Eighty-five percent-occupied junior or middle management positions. Of the sample, 71 percent (n=60) were female and 29 percent (n=24) were male..
Instruments
Women As Managers Scale (WAMS) developed by Peters, Terborg, and Taynor (1974) was used in this study. The original scale had 21 items. Later on another item was added, based on the data collected by Bhatnagar (1987) from a similar sample. Fifty percent of these items were negatively worded. Each item was scored from 1 to 5, were 1 refers to strongly disagree and 5 refer to strongly agree. The minor change of this score from the original scale, which was 1 to 7, is due to compatibility with another scale we used in this study. The reported internal consistency coefficient for the WAMS was .84 (Peters et al. 1974). A principal component factor analysis was used to determine the dimensionally of WAMS. There were six factors; the first factor explained 50% of the variance, while the next three factors explained an average of 20% of the variance, and the other was much lower.
Analysis
Principal component factor analysis with VARIMAX rotation and multivariate analysis of variance (MANOVA) were used to test for main effects and for the interaction effect of the five job relevant variables (gender, education, work experience, position, and past performance). The selection of a factor and an item were based upon the following criteria: 1. Factor loading = 0.40, 2. Eigenvalue = 1, 3. Scree test of Eigenvalue. The analysis specified six factor, which presented in table 1. To test the hypothesis, multivariate analysis of variance (MANOVA) revealed highly significant F ratio for the first three hypothesis. The results are presented in tables 6.
TABLE 1
VARIMAX FACTOR STRUCTURE OF WOMEN AS MANAGER SCALE
ITEMS F1 F2 F3 F4
Women cannot be assertive in
business situations that demand it. .77 .12 .07 -.18
Women cannot be aggressive in business
situations that demand it. .76 .32 .19 -.13
Women are not ambitious enough to be
successful in the business world. .69 -.19 .06 .07
Women are not competitive enough to be
successful in the business world. .68 .05 .19 -.23
Women are less capable of learning
mathematical and mechanical skills than
are men. .60 .22 .47 -.04
The possibility of pregnancy does not make
women less desirable managers than men. -.40 -.28 .10 .25
Women are at least as capable as men in
controlling their subordinate staff. -.46 -.13 -.36 -.15
Women have the capability to acquire the
necessary skills to be successful
managers. -.54 -.44 -.46 .06
Society should regard work by female
managers as valuable as work by male
managers. -.60 -.48 -.22 .32
Men and women should be given equal
opportunity for participation in
management training programs. -.80 -.27 -.19 .14
It is not acceptable that women assume
leadership roles as often as men. .08 .80 .12 -.09
On the average, women managers are less
capable of contributing to an
organization's goals than are men. .15 .76 .22 -.14
The business community should someday
accept women in key managerial positions. -.46 -.64 -.27 .24
Challenging work is more important to men
than it is to women. .13 .29 .82 -.03
It is less desirable for women than for men
to have a job that requires
responsibility. .07 .15 .72 -.46
Women posses the self-confidence required
of a good leader. -.44 .01 -.67 .20
To be a successful executive, a women does
not have to sacrifice some of her
femininity. -.05 -.15 -.07 .78
It is acceptable for women to compete with
men for top executive positions. -.43 -.29 -.31 .59
A women who stays at home all the time with
her children is a better mother than a
women who works outside the home at least
half time. .25 .08 .19 -.67
Women tend to allow their emotions to
influence their managerial behavior more
than men. .17 .13 .10 .01
Problems associated with menstruation
should not make women less desirable than
men as managers. -.40 -.22 -.16 .27
Women are good at realistic assessment of
business situations. -.12 -.18 -.01 .17
Variance explained by each factor 5.0 2.8 2.7 2.2
ITEMS F5 F6 FCE
Women cannot be assertive in
business situations that demand it. .25 -.11 .72
Women cannot be aggressive in business
situations that demand it. .20 -.02 .79
Women are not ambitious enough to be
successful in the business world. .13 -.42 .71
Women are not competitive enough to be
successful in the business world. .31 -.10 .66
Women are less capable of learning
mathematical and mechanical skills than
are men. .19 -.01 .67
The possibility of pregnancy does not make
women less desirable managers than men. -.27 .04 .36
Women are at least as capable as men in
controlling their subordinate staff. -.32 .40 .65
Women have the capability to acquire the
necessary skills to be successful
managers. .08 .18 .75
Society should regard work by female
managers as valuable as work by male
managers. -.17 -.06 .77
Men and women should be given equal
opportunity for participation in
management training programs. .16 -.03 .77
It is not acceptable that women assume
leadership roles as often as men. .05 -.12 .69
On the average, women managers are less
capable of contributing to an
organization's goals than are men. .35 -.12 .80
The business community should someday
accept women in key managerial positions. -.03 -.01 .77
Challenging work is more important to men
than it is to women. .08 -.01 .78
It is less desirable for women than for men
to have a job that requires
responsibility. .03 -.16 .79
Women posses the self-confidence required
of a good leader. -.21 -.10 .75
To be a successful executive, a women does
not have to sacrifice some of her
femininity. .05 .32 .74
It is acceptable for women to compete with
men for top executive positions. .12 -.09 .75
A women who stays at home all the time with
her children is a better mother than a
women who works outside the home at least
half time. .38 .12 .71
Women tend to allow their emotions to
influence their managerial behavior more
than men. .82 -.03 .73
Problems associated with menstruation
should not make women less desirable than
men as managers. -.41 .07 .49
Women are good at realistic assessment of
business situations. -.02 .87 .84
Variance explained by each factor 1.7 1.4
DISCUSSION & CONCLUSION
The first hypothesis argued the effect of gender on the promotion into managerial position of multinational firms. As reported in Table 2, a multivariate analysis of variance (MANOVA), revealed highly significant F ratios for all six factors with Wilks lambda at 2.74, Pillai's criterion valued at 2.74, Hotelling-Lawley trace at 2.74, and Roy's greatest rote at 2.74. The Pr [is greater than] F were equal to 0.0019, which indicates a significant difference in terms of gender.
TABLE 2
THE IMPACT OF GENDER
F
ITEMS Mean Value Pr > F LOS
It is less desirable for women than for
men to have a job that requires 2.0144 9.20 0.0034 S
responsibility.
Women are good at realistic assessment
of business situations. 3.7101 7.43 0.0082 S
Challenging work is more important to
men than it is to women. 2.3043 8.23 0.0055 S
Men and women should be given equal
opportunity for participation in
management training programs. 4.5507 10.97 0.0015 S
Women have the capability to acquire
the necessary skills to be successful
managers. 4.5072 7.93 0.0064 S
On the average, women managers are less
capable of contributing to an
organization's goals than are men. 1.9130 3.23 0.0767 S
It is not acceptable that women assume
leadership roles as often as men. 2.1159 2.24 0.1392 NS
The business community should someday
accept women in key managerial
positions. 4.2028 18.36 0.0001 S
Society should regard work by female
managers as valuable as work by male
managers. 4.3768 7.90 0.0065 S
It is acceptable for women to compete
with men for top executive positions. 4.3188 10.30 0.0020 S
The possibility of pregnancy does not
make women less desirable managers
than men. 3.4637 2.73 0.1033 NS
Women tend to allow their emotions to
influence their managerial behavior
more than men. 3.0289 4.13 0.0460 S
Problems associated with menstruation
should not make women less desirable
than men as managers. 3.8550 9.95 0.0024 S
To be a successful executive, a women
does not have to sacrifice some of
her femininity. 3.8695 2.90 0.0932 S
A women who stays at home all the time
with her children is a better mother
than a women who works outside the
home at least half time. 2.5362 16.91 0.0001 S
Women are less capable of learning
mathematical and mechanical
skills than are men. 1.6956 10.69 0.0017 S
Women are not ambitious enough to be
successful in the business world. 1.6811 6.23 0.0150 S
Women cannot be assertive in business
situations that demand it. 1.7246 18.70 0.0001 S
Women posses the self-confidence
required of a good leader. 3.9420 12.04 0.0009 S
Women are not competitive enough to be
successful in the
business world. 1.8115 19.45 0.0001 S
Women cannot be aggressive in business
situations that demand it. 1.7246 27.87 0.0001 S
Women are at least as capable as men in
controlling their subordinate staff. 3.7826 3.09 0.0834 S
The second hypothesis indicated that women with comparable education levels to men would be less likely to be promoted into management position of multinational firms. The results shown in Table 3, indicate a highly significant difference among the three groups. The results of MANOVA revealed highly significant F ratios: Wilks' lambda at 3.31, Pillai's trace at 3.14, Hotellin-Lawley trace at 3.49, and Roy's greatest root at 5.35. The reported probabilities for all items were 0.0001.
TABLE 3
THE IMPACT OF EDUCATION
F
ITEMS Mean Value Pr > F LOS
It is less desirable for women than for
men to have a job that requires
responsibility. 2.0144 4.45 0.0153 S
Women are good at realistic assessment
of business situations. 3.7101 1.22 0.3026 NS
Challenging work is more important to
men than it is to women. 2.3043 3.77 0.0282 S
Men and women should be given equal
opportunity for participation in
management training programs. 4.5507 2.49 0.0909 S
Women have the capability to acquire
the necessary skills to be successful
managers. 4.5072 1.62 0.2054 NS
On the average, women managers are less
capable of contributing to an
organization's goals than are men. 1.9130 5.80 0.0048 S
It is not acceptable that women assume
leadership roles as often as men. 2.1159 1.90 0.1570 NS
The business community should someday
accept women in key managerial
positions. 4.2028 7.01 0.0017 S
Society should regard work by female
managers as valuable as work by male
managers. 4.3768 6.00 0.0040 S
It is acceptable for women to compete
with men for top executive positions. 4.3188 5.22 0.0078 S
The possibility of pregnancy does not
make women less desirable managers
than men. 3.4637 2.27 0.1117 NS
Women tend to allow their emotions to
influence their managerial
behavior more than men. 3.0289 2.11 0.1297 NS
Problems associated with menstruation
should not make women
less desirable than men as managers. 3.8550 1.31 0.2756 NS
To be a successful executive, a women
does not have to sacrifice
some of her femininity. 3.8695 1.38 0.2594 NS
A women who stays at home all the time
with her children is a better mother
than a women who works outside the
home at least half time. 2.5362 4.48 0.0150 S
Women are less capable of learning
mathematical and mechanical skills
than are men. 1.6956 5.06 0.0090 S
Women are not ambitious enough to be
successful in the business world. 1.6811 2.63 0.0796 S
Women cannot be assertive in business
situations that demand it. 1.7246 5.07 0.0089 S
Women posses the self-confidence
required of a good leader. 3.9420 3.00 0.0567 S
Women are not competitive enough to be
successful in the business world. 1.8115 0.80 0.4552 NS
Women cannot be aggressive in business
situations that demand it. 1.7246 9.15 0.0003 S
Women are at least as capable as men in
controlling their subordinate staff. 3.7826 3.55 0.0343 S
The third hypothesis reflects the impact of work experience for women in comparison with men to be less likely to be promoted into management positions of multinational firms. The results of MANOVA presented in Table 4, indicates no significant differences among all groups.
TABLE 4
THE IMPACT OF WORK EXPERIENCE
F
ITEMS Mean Value Pr > F LOS
It is less desirable for women than for
men to have a job that men to have a
job that responsibility. 2.0144 1.17 0.3350 NS
Women are good at realistic assessment
of business situations. 3.7101 1.29 0.2765 NS
Challenging work is more important to
men than it is to women. 2.3043 1.21 0.3131 NS
Men and women should be given equal
opportunity for participation in
management training programs. 4.5507 1.41 0.2234 NS
Women have the capability to acquire
the necessary skills to be
successful managers. 4.5072 1.23 0.3023 NS
On the average, women managers are less
capable of contributing to an
organization's goals than are men. 1.9130 2.94 0.0137 S
It is not acceptable that women assume
leadership roles as often as men 2.1159 1.19 0.3221 NS
The business community should someday
accept women in key managerial
positions. 4.2028 3.23 0.0080 S
Society should regard work by female
managers as valuable as work by
male managers. 4.3768 2.85 0.0162 S
It is acceptable for women to compete
with men for top executive positions. 4.3188 1.70 0.1353 NS
The possibility of pregnancy does not
make women less desirable managers
than men. 3.4637 1.09 0.3766 NS
Women tend to allow their emotions to
influence their managerial behavior
more than men. 3.0289 1.50 0.1925 NS
Problems associated with menstruation
should not make women less desirable
than men as managers. 3.8550 1.35 0.2504 NS
To be a successful executive, a women
does not have to sacrifice some of
her femininity. 3.8695 1.05 0.4002 NS
A women who stays at home all the time
with her children is a better mother
than a women who works outside the
home at least half time. 2.5362 1.71 0.1324 NS
Women are less capable of learning
mathematical and mechanical skills
than are men. 1.6956 2.68 0.0222 S
Women are not ambitious enough to be
successful in the business world. 1.6811 1.35 0.2470 NS
Women cannot be assertive in business
situations that demand it. 1.7246 1.31 0.2646 NS
Women posses the self-confidence
required of a good leader. 3.9420 2.39 0.0383 S
Women are not competitive enough to be
successful in the business world. 1.8115 1.86 0.1015 NS
Women cannot be aggressive in business
situations that demand it. 1.7246 3.46 0.0052 S
Women are at least as capable as men in
controlling their subordinate staff. 3.7826 2.18 0.0567 S
The same results were also true for the last two hypotheses as indicated in Tables 5 and 6.
TABLE 5
THE IMPACT OF MANAGERIAL POSITION
F
ITEMS Mean Value Pr > F LOS
It is less desirable for women than for
men to have a job that requires
responsibility. 2.0144 0.43 0.8783 NS
Women are good at realistic assessment
of business situations. 3.7101 1.47 0.1946 NS
Challenging work is more important to
men than it is to women. 2.3043 0.21 0.9814 NS
Men and women should be given equal
opportunity for participation in
management training programs. 4.5507 0.93 0.4921 NS
Women have the capability to acquire
the necessary skills to be successful
managers. 4.5072 0.94 0.4811 NS
On the average, women managers are less
capable of contributing to an
organization's goals than are men. 1.9130 0.66 0.7063 NS
It is not acceptable that women assume
leadership roles as often as men. 2.1150 0.18 0.9884 NS
The business community should someday
accept women in key managerial
positions. 4.2028 0.46 0.8568 NS
Society should regard work by female
managers as valuable as work by
male managers. 4.3768 1.52 0.1761 NS
It is acceptable for women to compete
with men for top executive positions. 4.3188 0.66 0.7074 NS
The possibility of pregnancy does not
make women less desirable managers
than men. 3.4637 2.99 0.0091 S
Women tend to allow their emotions to
influence their managerial behavior
more than men. 3.0289 1.27 0.2792 NS
Problems associated with menstruation
should not make women less desirable
than men as managers. 3.8550 0.83 0.5680 NS
To be a successful executive, a women
does not have to sacrifice some of
her femininity. 3.8695 0.62 0.7333 NS
A women who stays at home all the time
with her children is a better mother
than a women who works outside the
home at least half time. 2.5362 0.99 0.4477 NS
Women are less capable of learning
mathematical and mechanical skills
than are men. 1.6956 0.77 0.6149 NS
Women are not ambitious enough to be
successful in the business world. 1.6811 1.55 0.1691 NS
Women cannot be assertive in business
situations that demand it. 1.7246 1.19 0.3236 NS
Women posses the self-confidence
required of a good leader. 3.9420 1.87 0.0895 S
Women are not competitive enough to be
successful in the successful in the 1.8115 2.43 0.0290 S
business world.
Women cannot be aggressive in business
situations that demand it. 1.7246 0.97 0.4639 NS
Women are at least as capable as men in
controlling their subordinate staff. 3.7826 1.28 0.2748 NS
TABLE 6
THE IMPACT OF PAST PERFORMANCE
F
ITEMS Mean Value Pr > F LOS
It is less desirable for women than for
men to have a job that requires
responsibility. 2.0144 0.50 0.7735 NS
Women are good at realistic assessment
of business situations. 3.7101 0.70 0.6255 NS
Challenging work is more important to
men than it is to women. 2.3043 0.27 0.9277 NS
Men and women should be given equal
opportunity for participation in
management training programs. 4.5507 0.89 0.4917 NS
Women have the capability to acquire
the necessary skills to be successful
managers. 4.5072 1.81 0.1232 NS
On the average, women managers are less
capable of contributing to an
organization's goals than are men. 1.9130 0.98 0.4362 NS
It is not acceptable that women assume
leadership roles as often as men. 2.115 1.45 0.2202 NS
The business community should someday
accept women in key managerial
positions. 4.2028 0.63 0.6789 NS
Society should regard work by female
managers as valuable as work by
male managers. 4.3768 1.00 0.4276 NS
It is acceptable for women to compete
with men for top executive positions. 4.3188 1.14 0.3493 NS
The possibility of pregnancy does not
make women less desirable managers
than men. 3.4637 0.24 0.9441 NS
Women tend to allow their emotions to
influence their managerial behavior
more than men. 3.0289 0.47 0.7987 NS
Problems associated with menstruation
should not make women less desirable
than men as managers. 3.8550 0.73 0.6016 NS
To be a successful executive, a women
does not have to sacrifice some of
her femininity. 3.8695 0.72 0.6142 NS
A women who stays at home all the time
with her children is a better mother
than a women who works outside the
home at least half time. 2.5362 0.60 0.6993 NS
Women are less capable of learning
mathematical and mechanical skills
than are men. 1.9656 0.62 0.6884 NS
Women are not ambitious enough to be
successful in the business world. 1.6811 2.05 0.0835 S
Women cannot be assertive in business
situations that demand it. 1.7246 1.12 0.3594 NS
Women posses the self-confidence
required of a good leader. 3.9420 0.66 0.6586 NS
Women are not competitive enough to be
successful in the business world. 1.8115 0.74 0.5960 NS
Women cannot be aggressive in business
situations that demand it. 1.7246 0.75 0.5902 NS
Women are at least as capable as men
in controlling their subordinate
staff. 3.7826 0.52 0.7638 NS
The results of this study support that, gender and education are very important variables for determining promotion into managerial positions in multinational firms. These findings have value for organizations in terms of examining the glass ceiling phenomenon and managing multinational firms in particularly. Of course there are certain limitations to this study and its conclusions. First, other complementary methods and instruments, and second more representative national samples are needed to have a clearer presentation of this research.
This study opens up a number of future research directions such as:
1. Cross cultural analysis for the same WAMS in different cultures.
2. Examining the glass-ceiling phenomenon in different cultures.
3. Integrating the measure of perceived competence developed by Wagner and Morse (1975) to this study.
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