Glass Ceilings The Status of Women as Officials and Managers in the Private Sector

Posted on: May 16, 2018, by :

Comparisons between officials and managers at headquarters and white collar workers at headquarters indicate that women have the highest odds of being managers at headquarter facilities in Legal Services, Employment Services, Security Brokers, and Telecommunications industries.

Total Employment, Relevant Firms Only

Scrty & Comdty Contracts Intermed & Brokerage

Printing & Related Support Activities

The percent of women officials and managers in the private sector has increased from just over 29 percent in 1990 to 36.4 percent in 2002.

Table 1 lists the highest ranked industries based on the percentage of women officials and managers from the 50 largest industries.

Comparisons of White Collar to Management Employees

Scrty & Comdty Contracts Intermed & Brokerage

Industries Where Women Have the Highest Odds

Building Material & Supplies Dealers

Other Ambulatory Health Care Services

Just as women are not employed evenly among job groups, they are not employed evenly in all industries. It is useful then to examine the employment of women as officials and managers by industry. For this purpose, the North American Industrial Classification System (NAICS) code at the industry (four digit) level is utilized. In order to summarize these results in a useful manner, only the 50 industries with the highest level of employment were examined.

Other Ambulatory Health Care Services

of Being Officials and Managers Based on Their

Industries with a high proportion of women in headquarters management are more likely to have disparities between the men and women in field management pools and less likely to have such disparities in white collar pools. Conversely, industries with a low proportion of women in headquarters management are less likely to have disparities in field management pools and more likely to have disparities from white collar pools.

Clearly, the health care sector of the economy is the most likely to employ women as officials and managers. It should be noted that Offices of Physicians includes Health Maintenance Organization (HMO) medical centers. However, other more commerce-type industries such as Department Stores, Legal Services, Banking (Depository Credit Intermediation and Nondepository Credit Intermediation) are also included.

Those Industries Where Women Have the Lowest Odds of Being

It is interesting to note that those industries ranked the highest with respect to the employment of women as officials and managers at headquarters tend to have higher odds ratios for the headquarters white collar-based comparisons than the field managers-based comparisons. The opposite is true for those with the smallest percentage of women as officials and managers at headquarters. Those industries have higher odds ratios for the comparisons based on field officials and managers.

Industries Where Women Have the Highest Odds of Being

Computer & Peripheral Equipment Mfg

Community Care Facilities for the Elderly

General Medical & Surgical Hospitals

Industries Where Women Have the Lowest Odds of Being

Officials and Managers at Headquarters Based on Their Employment

The percentage of women officials and managers in the private sector has increased from just over 29 percent in 1990 to 36.4 percent in 2002.

Professionals, Technicians and Sales Workers at Headquarters

Officials and Managers at Headquarters Based on Their Employment as

Comparisons between officials and managers and white collar jobs indicate that women have the lowest odds of being managers in Nursing Care Facilities, Full-Service Restaurants, Pulp, Paper and Paperboard Mills and Animal Slaughtering and Processing industries.

Steps are taken to eliminate those industries where this assumption is unlikely to be accurate.(9)Further, it is not expected that job groups within the pool of white collar workers contribute evenly to management positions or that these relationships are the same in all industries. Therefore, the job groups are weighted based on their contribution.(10)An odds ratio was computed for each firm within an industry. Firms are defined as all establishments with both the same headquarters and the same industrial classification. The odds for men is the number of men reported as officials and managers divided by the sum of men reported as professionals, technicians and sales workers using weighted values. The same calculation is made for women, and the odds ratio would be the division of these two odds. Once an odds ratio and its logged value is computed for individual firms, medians are then constructed for relevant industries. The distribution of the median log of the odds ratios is examined. Again, the analysis is restricted to the 50 industries with the largest EEO-1 reported employment.

There were 25,681 headquarter facilities that filed EEO-1 reports in 2002. Of these, 872 reported zero employment and were eliminated.(12)This reduces the number of observations from 25,681 to 24,809. There are 9,842 establishment reports where there are headquarters units but no field units. These firms have small facilities and thus are not required to file separate establishment reports. The requirement that the firm have at least one official and manager reduces the sample by 127; another 300 are removed by the requirement that there be at least one official and manager outside of the headquarters unit. The requirement that there be more officials and managers in the field than at headquarters reduces the firms analyzed to 6,667. The requirement that there be 50 employees at headquarters and at the other establishment reduces the sample size to 4,198 companies. While this is less than 20 percent of all possible firms, the reduction may be a good reflection of those employers where glass ceiling problems are likely to be the most relevant and have the largest impact.

Total Employment, Relevant Firms Only

Employers may find it useful to explore their own employment practices in light of the findings of this report.

General Medical & Surgical Hospitals

The report takes strides toward examining the glass ceiling problem within the boundaries of the EEO-1 survey, which historically has collected data on officials and managers in one large job group. By aggregating all managers with officials and reporting them in a single category, the data cannot be examined to show the various levels of responsibility. Despite this limitation, the results of an analysis of EEO-1 data in the Officials and Managers category as well as methodologies for examining entry into management positions can prove useful. A goal of this research is to stimulate readers, especially employers, to identify and reduce inappropriate obstacles women encounter in advancing to management in different workplace settings.

Table 9 shows the ten industries, of the 50 largest industries, ranked the lowest with respect to the odds of women being officials and managers at headquarters based on their employment in white collar positions at headquarters.

Employment as Professionals, Technicians and Salesworkers

Community Care Facilities for the Elderly

This self-evaluation could apply the statistical models and analytical techniques utilized in the report to their firms actual promotion pools so that the entry of women and minorities into top management positions is assessed.

A number of screens were also instituted so that the data are more likely to reflect those situations where assumptions about officials at headquarters are most likely to be valid. To be included a firm must (1) be a multi-establishment company, (2) have more than one official and manager at the headquarters facility, (3) have more than one official and manager in all field units combined, (4) have more officials and managers in the field than at headquarters, (5) have more than 50 employees at headquarters, and (6) have more then 50 employees in all other establishments combined. These requirements, though necessary to make certain that the analysis is appropriate, substantially reduce the number of firms analyzed.

Elec Pwr Generation, Transmsn & Distribution

The main purpose of this report is to use data from the 2002 EEO-1 Survey of Firms in Private Industry to explore the status of women in management. The research will develop some new ways of analyzing the EEO-1 data that focus on access to management positions generally, and perhaps more importantly, access to management positions at headquarter facilities. The primary contribution of these analyses of the EEO-1 survey is the ability to raise important problems and questions about gender-based discrimination given the wide variations in the types of firms and industries in the American economy. While this initial report on glass ceilings focuses on the status of women, the analyses developed here can be applied to examine minority groups.

Table 7 displays those industries from the top 50 industries that have the lowest odds of women being officials and managers at headquarters locations based on their employment as officials and managers in the firms other establishments. Here the industries are strikingly similar, as they are heavily represented by health care-based industries. However, some of the other industries on the list, such as Depository Credit Intermediation (such as commercial banking) and Department Stores, are interesting because the distinction between field and headquarters activity could be somewhat different. In examining the rankings, it can be somewhat difficult to distinguish those industries where there may be some consistent limitation of opportunities for women managers from those situations where the presumed model of movement of managers from field establishments to headquarter establishments does not capture functional practices. Therefore, the second analytic approach is added.

Total Employment, Relevant Firms Only

General Medical & Surgical Hospitals

Industries Where Women Have the Highest Odds of Being

Relationships Among the Recruiting Pools

Comparisons between officials and managers at headquarters and white collar workers at headquarter facilities indicate that women have the lowest odds of being managers at headquarter facilities in Investigation and Security Services, Full-Service Restaurants, Other Fabricated Metal Product Manufacturing and Motor Vehicle Body and Trailer Manufacturing industries.

Agencies & Other Insurance Related Activities

An examination of EEO-1 data, primarily from the most recent 2002 reports, provides insights into the status of women as officials and managers in the private sector.

Examination of Officials and Managers at Headquarters

PERCENT OF WOMEN IN WHITE COLLAR POSITIONS

Community Care Facilities for the Elderly

Two types of analyses are utilized. The first reflects those situations where managers at non-headquarters facilities represent the selection pool for managers at headquarters facilities. Under this scenario, officials and managers in lower level establishments are likely to become officials and managers at the headquarters facility. This can be thought of as a vertical analysis of management positions at headquarters.(13)The second analysis reflects those situations where the white collar employees at headquarters represent the selection pool of managers at headquarters facilities. Under this scenario, it is the white collar workers already at headquarters who are likely to become the officials and managers at headquarters. This can be thought of as a horizontal analysis of management positions at headquarters.

Architectural, Engineering & Related Services

The Employment of Women as Officials and Managers

In some of these industries there may be competing explanations for how individuals become managers, which might cause some industries to be lower ranked. For example, in grocery stores, managers might actually come from the EEO-1 job group of laborers (specifically, stockers). The same may be true of the restaurant industries, where managers might have been promoted from the service worker job category as well as from white collar positions. Also, note that an industry such as Nursing Care Facilities can be highly ranked based on the percentage of women managers but still exhibit low odds that women are managers because the employment of women in their white collar positions is very high.

General Medical & Surgical Hospitals

Comparisons between officials and managers at headquarters and officials and managers at field establishments indicate that women have the lowest odds of being managers at headquarter facilities in industries from the health care sector of the economy.

Table 2 provides the list of industries employing the lowest percentages of women officials and managers. Here the manufacturing industries appear to be much less likely to hire women as officials and managers.

Manufacturing industries are least likely to employ women as officials and managers.

The Equal Employment Opportunity Commission (EEOC) operates a data collection system that, in essence, collects data from all employers in the United States with 100 or more employees. The EEO-1 collects data from private employers. These annual reports indicate the composition of employers workforces by gender and by race/ethnic category.(4)In 2002, more than 39,000 employers submitted, as appropriate, individual establishment and headquarters reports for more than 225,000 reporting establishments with about 52 million employees. The EEO-1 collects data on nine major job categories: (1) officials and managers, (2) professionals, (3) technicians, (4) sales workers, (5) office and clerical workers, (6) craft workers, (7) operatives, (8) laborers and (9) service workers.(5)Race/ethnic designations used in the year 2002 EEO-1 reports are White (not of Hispanic origin), Black (not of Hispanic origin), Hispanic, Asian or Pacific Islander, American Indian or Alaskan Native. In addition to the work force data provided by the employer, information about each establishment is added to the database. This additional information includes the establishments North American Industrial Classification System code, the establishments county and its metropolitan area code. Firm level EEO-1 data are confidential.(6)

Use of Odds Ratios to Identify Disparities

Computer Systems Design & Related Services

The highly ranked industries here are somewhat consistent in their need for high-level professional workers. Legal Services is the highest ranked of the industries where women make up 49.75 percent of officials and managers at headquarters and 45.24 percent of the white collar work force. There may be some bias here to the extent that non-attorney office managers are classified in the official and manager category. It is interesting to note that Security Brokers and Scheduled Air Transportation are ranked high using either field manager and white collar pools.

These three approaches combine to provide an analysis that reflects how officials and managers are selected.(2)The behavior of firms within industries is summarized to provide insight into the characteristics of different industries.

The term p can be modified to reflect appropriate pools as necessary. An example of the odds ratio calculation to a glass ceiling issue is provided in Table 3. When the odds ratio is 1, men and women have equal odds of being a manager. The data in Table 8, shows there are 271 men who are officials and managers and 357 men in a pool of potential officials and managers. At the same time, there are 52 women officials and managers and 159 women in a pool of potential officials and managers. The odds ratio of 0.431 indicates that men have higher odds of being a manager (271/357=0.7591) and women have lower odds (52/159=0.3270)(8).

This research examines the issue of glass ceilings from various perspectives. The first perspective examines the critical initial selection into management positions broadly defined as any type of managerial position. To identify potential gender-based disparities, the employment of women as officials and managers is compared to the potential pool of managers from the white collar positions of professionals, technicians and sales workers. The second and third perspectives focus on the advancement of headquarters managers from two kinds of potential pools: managers in field operations and white collar employees at headquarters. Specifically, women employed as officials and managers at the headquarters facilities are compared to women employed as officials and managers at the firms other establishments. Women employed as officials and managers at headquarters are also compared to women in white collar positions at headquarters.

Scrty & Comdty Contracts Intermed & Brokerage

Selected From the Top 50 Industries Based on

Employers can follow-up on such analyses with a review of their formal and informal personnel practices to identify those policies and procedures that foster the open and competitive selection of top management as well as those policies and procedures that restrict open competition.

Application of Odds Ratio to Glass Ceiling

In order to better analyze the glass ceiling issue under the limitations of EEO-1 data, officials and managers at a companys headquarters were examined in greater detail. This type of analysis is based on the concept that officials and manager jobs at the headquarters facility are thought of as higher level positions, much closer to the glass ceiling. These positions are viewed as being more prestigious, higher paying and more powerful in the sense that headquarters facilities are often responsible for monitoring and directing other company establishments. The 2002 EEO-1 data are summarized to allow this type of analysis. Firm-level data are aggregated in a manner that allows the distinction between employees at headquarters and employees at other establishments.(11)

Community Care Facilities for the Elderly

Industries from the health care sector of the economy are the most likely to employ women as officials and managers.

The industries with a high ranking represent a variety of industrial sectors including manufacturing, service, finance, utilities and transportation. The highest ranked industry is motor vehicle manufacturing, where 29.46 percent of officials and managers at headquarters facilities are women compared to just 15.39 percent in their field units.

Newspaper/Periodical/Book/Database Publis

While the presence and status of women in the work force have increased dramatically since the passage of the Civil Rights Act of 1964, there are still concerns about the relative absence of women in higher management ranks, which some have described as the glass ceiling. In 1995, the Federal Glass Ceiling Commission(1)concluded that todays American labor force is gender and race segregated – white men fill most top management positions in corporations. The issue has taken on particular significance as women and minorities have increased their occupational status. The term glass ceiling is generally used to refer to instances where women and minorities have progressed within a firm but, despite their ambitions and qualifications, find it difficult to make the movement into key higher level management positions, or management positions at all. The social disadvantage of these glass ceilings is the inability of the most qualified employees to move into the most important positions due to irrelevant criteria such as race or gender. The selection of a less qualified employee negatively impacts both the employer and ultimately the economy as a whole. The successful elimination of glass ceilings requires not just an effective enforcement strategy but the involvement of employers, employees and others in identifying and reducing attitudinal and other forms of organizational barriers encountered by minorities and women in advancing to higher level management positions in different workplace settings.

The lowest ranked industry is Investigation and Security Services, where women make up 43.62 percent of white collar jobs at headquarters but just 26 percent of officials and managers there. One of the striking characteristics of this ranking is that the two industries that were the highest ranked with respect to the odds of women being officials and managers at headquarters based on their employment as managers in the field are the lowest ranked when the pool becomes white collar employees at headquarters. These industries are Motor Vehicle Manufacturing and Electrical Power Generation, Transmission and Distribution.

Agencies & Other Insurance Related Activities

As a first step in examining work forces for glass ceilings, it is useful to deal with the threshold issue of the exclusion of women from management positions. When women experience relatively high employment status, it might be expected that they are as likely to occupy management positions as their male peers. This likelihood can be examined to some extent using EEO-1 data. The employment of men and women is divided between managers and white collar employees. White collar employees are defined as those in the EEO-1 job groups of professionals, technicians and sales workers. These white collar employees were treated as if they represent the pool of workers from which officials and managers are selected.

Comparisons between officials and managers at headquarters and officials and managers at field establishments indicate that women have the highest odds of being managers at headquarter facilities in Motor Vehicle Manufacturing, Electrical Power Generation, Transmission and Distribution, Aerospace Product and Parts Manufacturing, and General Freight Trucking industries.

Selected From the Top 50 Industries Based on

Firms are examined to compare officials and managers at headquarters to white collar workers at headquarters. This analysis recognizes that there are firms where there are unique qualifications for officials and managers at the headquarters facility and that these requirements are more likely to be found among the white collar workers at headquarters than managers in the field. Once the pool and target positions are limited to headquarters facilities, the analysis follows that used above in comparing all officials and managers to all white collar employees. This includes the definition of white collar employees as professionals, technicians and sales workers and the weighting of those job groups based on their relationship with the official and manager positions. Table 8 displays the ten industries, of the 50 largest industries, ranked the highest with respect to the odds of women being officials and managers at headquarters based on their employment in white collar positions at headquarters.

of Being Officials and Managers Based on Their

Community Care Facilities for the Elderly

It is useful, then, to examine all 50 of the largest industries to see those areas where the two alternative models are in agreement and where there is some consistency in their rankings. To simplify, the 50 industries were divided into thirds and classified as those having high odds ratios (women have high probabilities of being officials and managers), low odds ratios (women have low probabilities of being officials and managers) or they are rated between these two categories, medium. The industries are classified on the basis of the odds ratios where field managers are assumed to be the relevant pool and where headquarters white collar workers is the relevant pool. See Table 10.

Nav/Measuring/Medical/Control Instruments Mfg

Officials and Managers at Headquarters Based on Their Employment as

Nondepository Credit Intermediation

Table 6 displays those industries where women have the highest odds of becoming officials and managers at headquarters facilities based on their employment as officials and managers at field units.

MEDIAN LOGGED ODDS RATIO WHITE COLLAR

Professionals, Technicians and Sales Workers at Headquarters

Comparisons between officials and managers and white collar jobs (professionals, technicians and sales workers) indicate that women have the highest odds of being managers in the industries of Legal Services, Scheduled Air Transportation, Services to Building and Dwellings and Offices of Physicians.

Other Ambulatory Health Care Services

It is important to keep in mind that the percentages reported below refer to the relevant firms in an industry rather than all firms in the industry. Additionally, industry designation comes from the headquarters unit which is the primary industry of the firm but the field establishments can come from other industries not captured in this summary data.

Table 4 indicates firms where women have the highest probabilities of being managers based on their employment in the white collar job groups. These results suggest that women have a higher probability of being managers in selected service industries. Some of the industries where women are highly ranked are also industries where managers might have low status. For example, in Legal Services partners or associates in these firms may be the true managers. Here a number of office managers may have originally been employed as clerical workers.

The calculation and testing of an odds ratio provides a useful technique for assessing the possible existence of a glass ceiling.(7)In examining glass ceilings, the odds ratio can be thought of as the odds of men being managers based on their employment in a promotion pool divided by the odds of women being managers based on their employment in the same promotion pool. (In the sections that follow, different definitions of promotion pools are utilized.) The odds for men would be the number of men reported as officials and managers divided by the sum of men reported in a possible promotion. The same calculation would be made for women, and the odds ratio would be the division of these two odds:

Industries Where Women Have the Lowest Odds

Firms are examined to compare officials and managers at headquarters to officials and managers at their field establishments. As before, an odds ratio test is utilized where the target position is officials and managers at headquarters and the pool is the officials and managers at their other establishments. Once the relevant odds ratios are computed for each firm, the median odds ratio and its logged value for industry is computed (again, the four-digit NAICS code is utilized) and the log of this value is used to sort the industries. Also, as before, in order to provide more meaningful results, the analysis is restricted to those 50 industries with the highest levels of employment.

Employment as Professionals, Technicians and Salesworkers

As a general rule, industries with a low proportion of women in headquarters management have a low proportion of women in their respective recruiting pools (field management and white collar jobs at headquarters). Conversely, industries with a high proportion of women in headquarters management have a high proportion of women in their respective recruiting pools (field management and white collar jobs at headquarters).

Officials and Managers at Headquarters Based on Their Employment

Total Employment, Relevant Firms Only

The U.S. Equal Employment Opportunity Commission

Research into the glass ceiling and occupational barriers has included useful examinations of both public and private sector work forces. Research of note includes Reid, Kerr and Miller 2000; Lewis and Nice 1994; Tomaskovic-Devy 1993; Carrington and Troske, 1995 and 1998; Weeden, 1998 and Blau, Simpson and Anderson (1998)(3). The issue of glass ceilings can also be viewed as a special case of occupational segregation.

Total Employment, Relevant Firms Only

Elec Pwr Generation, Transmsn & Distribution

Selected From the Top 50 Industries Based on

Industries Sorted by Percent of Women Officials and Managers

Despite this increase in women officials and managers, a more detailed examination of the 2002 data shows that some job groups have more women than others. As Figure 2 displays, although women represent 48 percent of all EEO-1 employment, they only represent 36.4 percent of officials and managers. Office and clerical workers comprise the largest concentration of women at 80.3 percent. Interestingly, women exceed their overall employment rate as professionals and sales workers and are quite close to their overall employment rate in technical jobs.

MEDIAN LOGGED ODDS RATIO WHITE COLLAR

Selected From the Top 50 Industries Based on

Professional & Commercial Equip & Supp Whsle

Table 5 displays those industries where women have the lowest odds of being officials and managers. A fairly wide variety of industries are represented in this group, including some health care industries, where women tend to be well represented, Full-service and Limited-service Restaurants and Grocery Stores.

Women represent 48 percent of all EEO-1 employment, but represent only 36.4 percent of officials and managers. Women make up 80.3 percent of office and clerical workers. Interestingly, women exceed their overall employment rates as professionals and sales workers and are quite close to their overall employment rate in technical jobs.

Selected From the Top 50 Industries Based on Total Employment

Glass Ceilings The Status of Women as Officials and Managers in the Private Sector

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