FOXING THE MINOTAUR

By Phumla Mnganga

Foxed by the minotaur?

Phumzile Mlambo-Ngcuka is the Minister of Minerals and Energy, and Dr Nkosazana Zuma is the Minister of Foreign Affairs, so why does the prospect of a woman at the helm of Anglo American, SAB Miller or Standard Bank seem such a long way off? When will women in numbers that resemble their representation in the workforce, make it to the highest ranks of corporate South Africa? Could it be that "ladies can't climb corporate ladders"? Or could it be that the gender cause has been foxed by the minotaur?

The minotaur is a mythological beast, which is half beast, half human. This beast lived in a labyrinth through which no way out could be found. The labyrinth was the mind of the minotaur. The minotaur can be likened to the complex maze of systemic factors that result in the poor representation of women in leadership positions in most South Africa's business organizations. There exists a growing consensus that despite the influx of women into tertiary education and the labour market, little progress has been made towards making gender a central theme in the transformation of business in South Africa.

A pathway out of the labyrinth

This paper will not provide an exhaustive analysis of the structural and systemic causes for the position of women in South African society as this is well documented. Focused attention will be paid to the causes of the low representation of women (especially African women) in key business leadership positions. Two related themes that can form the basis of positive intervention are discussed in depth. The discussion that follows will explore whether South Africa's current Employment Equity framework has adequately dealt with the prevailing business culture that presents as a labyrinth for women generally, especially African women. It is hoped that this concussed approach will assist in charting a definitive pathway out of the labyrinth. This is essential as there can be no meaningful business transformation in South Africa without gender centrality.

An international perspective

The entry and progression of women into management varies across the world reflecting the cultural, social and legal framework in each country. However, the situation in most Western industrialised nations is similar, and the representation of women in management is significantly lower than that of men. On both sides of the Atlantic the average percentage of women in top management hovers around 10% and less. Even in Scandinavian countries such as Norway and Finland, women make up just 9% and 11% of all management positions respectively. In this regard, researchers make two interesting observations: firstly, even in countries with an exemplary record of equal opportunity the proportion of women in business leadership positions is not much higher, and secondly the cause for poor representation of women is not a failure to train or recruit women into junior management, the problem lies in company cultures that don't enable the transition from junior to senior management. In summary, equal opportunity legislation internationally has not dealt adequately with hostile business cultures that present both direct and indirect barriers to the advancement of women in business.

International trends suggest an interrelationship between the growth in the service economy and the nature of women's participation in the workforce. As services expand, so there is more possibility for skilled and experienced women to exit from large companies to start their own companies, or join smaller companies in the service sector. This gives women flexibility and access to their own disposable income, which in turn fuels the growth in services. Those that remain in corporations continue to experience barriers to advancement to the top.

White males continue to dominate the plum jobs

The Employment Equity Act of 1998 was a social, economic and political imperative aimed at the elimination of discrimination and the implementation of Affirmative Action to achieve a diverse workforce representative of South Africa's demographics. It was promulgated at a time when research conducted by the Breakwater Monitor (a body assessing progress of Employment Equity in a number of South African organizations voluntarily) reported that little progress had been made in Employment Equity and that there was a need to significantly accelerate the pace of transformation.

Five years on, since the promulgation of the Employment Equity Act, white males continue to dominate the plum jobs. In an interview with Business Day on 25 April 2003, the Minister of Labour Membathisi Mdladlana said that private sector managers in South Africa still remain overwhelmingly "pale and male". In the interview, he expresses concern regarding the limited progress made by companies in the implementation of the provisions of the Employment Equity Act. According to the Department of Labour Commission for Employment Equity Report for 2001 (which is cited as it had a larger sample of employers), African women hold 0.9% of top management positions, 1.4% of senior management positions and 4.3% of middle management positions. Women of all races hold 13% of top management positions and 20% of senior management positions. The representation of African women is shocking to say the least.

Whist Employment Equity policies and Affirmative Action programmes have succeeded to a limited extent in bringing the question of race to the forefront of business transformation, the centrality of the gender question still remains a challenge. In understanding why this is the case, it is useful to distinguish between formal and substantive equality. Formal equality prescribes equal treatment of individuals regardless of the actual circumstances pre-supposing that all persons are equal bearers of rights. Substantive equality on the other hand recognizes a world of diverse disparate groups. It acknowledges that all persons are not equal bearers of rights and that these differences need to be taken into account. A substantive perspective acknowledges specific disparities experiences to black women in particular. This means that when affirmative action measures are conceptualized, developed and implemented by business, specific attention must be paid to position of black and African women.

The Employment Equity Act identifies the beneficiaries of Affirmative Action as "designated groups"; this includes blacks, women and people with disabilities. The designated groups are a homogenous group with little recognition being given to the fact that certain designated groups such as black people with disabilities and women experience multiple barriers. Seeing designated groups as a homogenous can result in indirect discrimination being experienced by those designated groups who experience multiple discrimination. This could involve the application of apparently neutral criteria that have the effect of excluding or causing disadvantage or a disparate impact on a certain designated group. The most practical example is entrance requirements for certain jobs. A driver's license may appear to be apparently neutral criteria for a job. But it may be found that a much larger percentage of females may not have the relevant licenses to drive certain categories of vehicles. Accordingly this criterion could have a disparate impact on women. A gender conscious approach calls for the disaggregation of "designated groups" in order to understand specific barriers to the employment and advancement in order to eliminate these. In this way, focused strategies can be developed.

In the determination of affirmative action measures, priority should be given to those designated groups who face multiple barriers such as African women. Such an approach would be consistent with the Act's acceptance of the concept of preferential treatment in managing the requirements of affirmative action. In this case the concept would be broadened to encompass preferential treatment within the designated groups.

South Africa's business culture: - the labyrinth

In addressing the question of organization culture, I will provide a theoretical framework for defining the concept, then, explore its practical application based on personal experience.

Organization culture can be defined as a shared appreciative system, a system of shared beliefs that predispose people to see the world in a certain way. The mission beliefs, values systems, policies, rituals and philosophies of a corporation make up its culture. Though a company may have distinctive subcultures (which are often counter-cultures), the dominant culture tends to prevail. Culture is strongly influenced by the core ideology of top management and in the case of South African business organizations, the "dominant" prevailing culture is influenced by a 87% white male worldview. Having spent over 10 years in corporate South Africa, I would like to share my personal experiences regarding common invisible assumptions, the subtle gender discrimination that prevents women from advancement.

The "gender-blind" companies: Some companies are proud in their pursuit of gender-blind policies. They claim to offer both sexes equally opportunities for employment, development and advancement to senior levels. "Gender-blind" companies refuse to acknowledge the gender specific barriers that are experienced by women. Such companies often have one or two women (who are happy to be the only women) in top management and are not concerned with the need to proactively recruit, train and develop a critical mass of women.
The marriage and children "barrier": A commonly shared view is that even the most talented women, if they are young will at some point marry, follow husband if they relocate and have children. This means that they cannot be relied on as a solid succession pipeline for senior and top management. As such it is seen as risky to promote women into key positions of responsibility. Whilst the question of family responsibilities is a key issue, it provides a useful means to detract attention from the organization culture barriers that women face in many working environments. It locates the problem squarely with the women.
The "no concessions" ethic: At the beginning of my career, I was offered "well meaning" advice, to expect no special favors as a woman, in fact I was told that a certain American "iron lady" once said to her female colleagues: it is best to look like a lady, act like a man and work like a dog. This ethic is supported by the view that the reason that there are so few female executives is that "only a few iron ladies exist". The "no concessions" ethic is often found in gender-blind companies discussed earlier.
The race first, gender later argument: This view also articulated by many blacks, suggests that the dual focus on race and gender dilutes the focus of Affirmative Action. Achieving racial representivity is difficult enough without the added complexity of gender issues. What is concerning about this argument is that it is even articulated by black women. The concept of the "dual role" of women as Affirmative Action and Gender activists is articulated by a very small fraction of women.
The two career tournaments: In many cases the career progression pathway tends to differ between men and women. More women are found in social science based disciplines such as marketing, public relations and human resources, than in technical disciplines such as engineering, finance and operations. This has its origins in high school when subject choices are made. In most businesses a technical background provides a greater range of opportunities for executive progression.
The assimilation of hostile company culture by women: In order to survive many women assimilate gender hostile company culture and even promote it. In some cases this results in such cognitive dissonance that those who fail to successfully engage in dissonance reduction through a process of rationalization finally opt out and leave the business world to other working environment that offer more congruence.

It should be noted that the organisational culture barriers discussed above are experienced by women in addition to the well documented difficulties with Affirmative Action experienced by people from designated groups. Because in business the race debate is louder, the gender debate is voiceless.

Out of the labyrinth we must all march

A strong multifaceted approach is required to capitalize on women as a critical resource in our economy. The centrality of the gender cause in our society was emphasized by the President Thabo Mbeki when he said; "The progress we make towards the attainment of a democratic society can only have full and deeper meaning if it is accompanied by significant progress in the struggle for the emancipation of women" (pg 261 The Emancipation of women: Paper delivered at the National Conference on Women Abuse and Domestic violence, Cape Town 23 November 1995) Similarly there can be no business transformation without the participation of women in the leadership and ownership of businesses.

In order to fox the minotaur, the Employment Equity framework must be strengthened, possibly through a Code of Good Practice to specifically provide guidelines on measures to be taken to ensure an improved gender representation at all levels. This will provide an enabling framework for women, in particular black and African women to embrace their dual role as Affirmative Action and Gender activists. Women in business must spearhead initiatives aimed at ensuring women, but in particular African women are represented at all levels of management. They must represent a new way of thinking about competitiveness - that the most sustainable source of competitive advantage lies in attracting and retaining the largest pool of talent and ability.

In order to fox the minotaur companies, especially those that are product-oriented must become increasingly aware that women are often the primary decision makers regarding a large range of buying decisions. Women drive more than 85 percent of purchasing decisions in most consumer products. The organizations of the future needs people at all levels to reflect the demographics of the consumer base and such individuals are especially needed in top management positions providing leadership.

Lastly, in order to fox the minotaur women in business must rise, organise, speak, act and strike at the rock of business culture!

References

Mbeki, T. "The Emancipation of women": Paper delivered at the National Conference on Women Abuse and Domestic violence, Cape Town 23 November 1995
Dagnall, N. The legal/practical implications of the Employment Equity Act 55 of 1998. Juta & Co Labour Relations Handbook, 1998.
The Jossey-Bass Business and Management series: Advancing Women in Business. Jossey-Bass Publishers, San Francisco, 1998.
Syrett M, & Hogg C. Frontiers of Leadership - An essential reader. Blackwell Publishers, Oxford, 1993.
Department of Labour: Commission for Employment Equity Annual Report. 1999 - 2000.
Department of Labour: Commission for Employment Equity Annual Report 2001 - 2002.

[Contents]