Women Proven to be Better Leaders in the Workplace

New research shows that women are better leaders in the business world. The difference lies in the decision making process. Men tend to make decisions based on traditional rules and regulations while women tend to think outside the box and look at many solutions. They look for solutions that consider the interests of several stakeholders and use cooperation and collaboration much more effectively than their male coworkers. According to the research, a woman’s presence in a corporate boardroom has been linked to “better organizational performance, higher rates of return, more effective risk management and even lower rates of bankruptcy.” Here are some other statistics (taken from the research) as to why women are better leaders:

  • Boards with high female representation experience a 53% higher return on equity, a 66% higher return on invested capital and a 42% higher return on sales (Joy et al., 2007).
  • Having just one female director on the board cuts the risk of bankruptcy by 20% (Wilson, 2009).
  • When women directors are appointed, boards adopt new governance practices earlier, such as director training, board evaluations, director succession planning structures (Singh and Vinnicombe, 2002)
  • Women make other board members more civilized and sensitive to other perspectives (Fondas and Sassalos, 2000) and reduce ‘game playing’ (Singh, 2008)
  • Female directors are more likely to ask questions rather than nodding through decisions (Konrad et al., 2008).

Although it continues to be long and hard battle for equal rights between men and women in the work place, hopefully these new findings will lead to more women leaders and smaller gender gaps.


Posted on September 23, 2013, in Community, Emerging Trends in Psychology, Students and tagged , , , , . Bookmark the permalink. Leave a comment.

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