Global Financial Crisis: Are Women the Antidote? CERAM Research


A rather different type of article this time to give us something to think about and discuss!

Earlier in the year, Professor Michel Ferrary Professor of Human Resources from CERAM in Sophia Antipolis became famous for his research which concluded that firms with a higher ratio of women in management have better resisted the world financial crisis.

Nearly all of the French national press: Le Monde, Le Figaro, Libération, Les Echos, La Tribune, L'Express, and Elle ran stories on Professor Ferrary's research paper called 'When Gender Diversity Protects Stock Prices from the Crash' and the international press followed, so it was a hot topic for a while!

Let's review one or two aspects. His research showed, amongst other things:
 
*   The fewer women a company has in its management, the greater the drop in its share price since the beginning of the year;
*   The more women in management, the smaller the drop in share price.

Firms with a highly feminized management like LVMH (56% female managers), Sanofi (44.8%) have gone down less than the CAC40, while stocks of more male-managed firms like Alcatel-Lucent (8.68% women), Renault (21.77% women) have fallen more than the CAC40.

So it looks like it makes real economic sense to have more women in management in organisations.

Why?

Although we must avoid getting into stereotyping (we suffer enough from it after all!), it is generally borne out by research that business women use positions of authority to create a supportive, nurturing environment whereas men use positions of authority to create a hierarchal environment in which they issue orders and expect obedience.   Women are more democratic, encouraging participation, and men are more autocratic, directing performance. Women tend to avoid risk and to focus more on a long term perspective so a larger proportion of female managers balances the risk-taking behaviour of their male colleagues and in times of crisis, women take a more prudent line.

What can we do to change the balance?

Whatever research shows, many of us know from experience that it is STILL more difficult to get taken seriously as a women manager, especially if you want to get to the top.

Why not make it your job to get ahead and try and educate others at the same time?

For example, when you next go for an interview or go before a promotion board or go to the bank to ask for a business loan, then make sure you are familiar with this type of research. Internet is fantastic to find out what's being said by management gurus. Add to your list of qualities those traditionally 'female' characteristics which are now proven to be of benefit to companies and make sure you sell them positively.

Tell us YOUR experience. Let us know what YOU think.

Kate Cobb 0033(0)4 93 20 68 94
www.executive-onlinecoaching.com