Gender Diversity in the US Workplace

​​In modern organisations, gender diversity is a significant issue, and it represents both a healthy culture and inclusion. Despite efforts by human resource and employee management to include more women, disabled, blacks, and LGBTQ+ in the workplace, the corporate world remains a challenging place for women employees. The challenge, specific to tech companies, is associated with the understanding that men predominantly dominate tech organisations. The issue of gender diversity in the workplace is sensitive in two aspects: female employee contribution, and two, social perspective attributed to the grant by these employees. The impact of an organisation’s employee and management gender diversity on U.S. tech firms’ stock price for 2012-2019 forms the analysis topic for this literature review.

Every research has used a specific number of participants that form part of the sample size used to collect information. Moreno-Gómez et al. (2017) show that information is collected from 54 Colombian listed companies, not other research that accounts for the sample size used. González-Morales et al. (2006) give the number of questionnaires used in the study, 1,340. Gilley et al.’s (2019) sample were 1829 observations across 262 firms, while Simionescu et al. (2021) used a sample of 71 companies while Wright (2016) utilised 38 semi-structured interviews. Sander et al. (2013) took 550 university students from the Netherlands and placed them in randomised teams of forty-five participants. The sample size for Kisaka et al. (2019) is 27,193 university employees in Kenyan, while Carol and Jason use a sample size of 432 major American corporations between 1997 and 2006. Dobbin and Jung (2010) do not conduct an empirical study, and therefore, they use reports from reputable agencies. Regardless of the approach, an organisation’s performance is contingent on gender diversity.

Modern decentralised ‘new economy’ continues to be an element of traditional ‘old school’ culture that still exists in the cultural status quo regarding women’s discrimination and inequality. Banks and Milestone (2010) argue that social relations detraditionalisation and modernisation within workplaces result from imbalance and gender stereotypes. However, despite the challenge of detraditionalisation, the connection between the working environment and gender revolves around the gender-environment nexus (Nightingale, 2006). Through re-conceptualizing gender, a dynamic relationship on the environment, gender, and cultural and social life elements becomes possible. From a human-environment interaction perspective, interactions should be centred on resources distribution (Nightingale, 2006). When interactions are centred on such distribution, female employees connect to the natural ecosystem through intimate relationships.

Gender diversity and organisational performance is valuable tool for organisations. When female employees assume leadership positions in firms, there is positive firm performance. Moreno-Gómez et al. (2017) use ROA and ROE as corporate performance indicators showed that with several women in leadership positions, particularly in developing countries, there is a more positive contribution to organisations. Women’s inclusion in a company’s Board and team members, as top management, brings out cognitive diversity that is essential in value addition and enhances the potential of an organisation (Moreno-Gómez et al., 2017). However, Gilley et al. (2019) show that with female board members, risks are minimised with performance and negative reviews an organisation faces. Under the 1,021 listed companies from 12 emerging markets in the Asia Pacific region, developed stock markets and collected data related to them from 2006 to 2016 for analysis. Women in top employment positions improve corporate disclosure quality and reduce a firm’s likelihood of being exposed to share price cash risk (Qayyum et al., 2021). Gender and ethnic diversity measure how well an organisation is doing.

Gender diversity can be a controversial issue in business, and the relationship between gender and ethnic diversity reflects several firm performance indicators in workplaces. Herring (2009) shows that an increase in gender and race exclusivity in organisations results in a performance increase of 3% and 9%, respectively, with consumer numbers rising by 200 and 400, respectively. However, social stress is a significant issue that is misapplied to female employee issues. Enhancing performance among female employees requires providing social support, which has a considerable impact on women than men (González-Morales et al., 2006). Verma (2020) argues that through age and gender diversity, companies can gain a competitive advantage through a profound comprehension of male and female needs, which also has a positive relationship to performance. An organisation’s sales performance can be positively impacted by incorporating much ethnic diversity.

No distinguishable difference sets apart return on assets (ROA) and board representation. Despite the understanding, Simionescu et al.’s (2021) argument are that in the presence of more women on the Board, the influence turns positive on the price-to-earnings ratio. However, it is essential to define the distinctions between gender and sex. The differences are fundamental in understanding the shift in work perception from unpaid care and domestic work to online work (Hearn, 2019). Furthermore, the organisation is still fluid about the work content. Changing and fluidity are characteristic of the modern corporation; membership keeps shifting, same as network organising and lean flexibilisation, demanding an innovative and new approach to workplace gender politics and discourse (Hearn, 2019). Even with the shift in organisational outlook, the significance of organization-wide and benefits based on justice is essential.

Gender representation vertically and horizontally is not equal between men and women in organisations. Fine et al. (2020) show that the lack of equal gender representation is a highly complicated in workplace environments. While male and female employees may not be inherently different, they are not the same as the point of being considered one unit. Through the justice-based lens, less sex discrimination is associated with greater diversity and helps combat products associated with androcentrism (Fine et al., 2020). Further, a practical implication on gender diversity constitutes governance, innovation, firm and team performance, and occupational wellness. Therefore, welcoming gender diversity in organisations is critical since it helps stem evidence-based positive outcomes and is essential in highlighting the significance associated with organisational and workplace gender diversity at every level (Fine et al., 2020). When devising organisations’ initiatives and policies, firms should consider gender diversity due to its effectiveness in enhancing performance.

As time passes, the role of women in organisational performance is increasingly more valued. However, while gender diversity in the Board may contribute to performance in leadership positions, failing to consider the educational background, director’s age and industry experience may result in adverse outcomes (Suherman et al., 2021). Suherman et al. (2021) found out that gender diversity does not significantly influence a company’s performance after addressing endogenous issues and controlling several factors. Developing on this, Kravitz (2003) claims that good reasons for gender diversity harm and help performance in a company. On the association, Kravitz (2003) illustrates that when workgroup performance is hurt due to diversity, the entire routine in a firm suffers, and likewise, the opposite is true. Frinks et al. (2003), using two studies, show that an organisation’s productivity was not related to gender diversity, but profitability, on the other hand, had a positive relationship with an intermediate diversity level. An increasing focus on corporate management is equally associated with significant corporate failures and board diversity.

Despite the increasing focus on board diversity, limited research exists on the benefits attributed to risk management and decision-making. Hutchinson et al. (2015), using data from top 500 firms in Australia, show that the role of the nomination committee and how directors are selected has to be determined based on board diversity. The Board’s diversity needs to handle decision-making effectively and assess risks. Like Chen et al. (2015), Hutchinson et al. (2015) realised that while controlling for potential endogeneity, a board with a designated nomination committee is positively and significantly associated with board gender diversity. Through increased gender diversity, organisations have positive relations on demonstrating the moderating gender diversity effect on excessive risk-taking and financial risk and performance (Hutchinson et al., 2015). Further, female representation had the potential to increase gender diversity at the Board.

The variables used in the research constitute potential endogeny, board selection, and gender diversity, organization performance, and top-level management. Based on these variables, Kravitz (2003), Frink et al. (2003), Htchinson et al. (2015), and Chen et al. (2015) can show the effect that gender diversity has on an organization’s performance. However, the former two argue the relationship might not necessarily be positive since any negative association with variety hurts group performance. The other explanatory variables from the research consist of ethnic and workforce diversity.

The prediction methods used in the research articles vary depending on the research approach used. While some researchers use qualitative studies, others use a quantitative research approach to predict the outcomes of their studies. The analysis technique also depended on the research method based on the processes used. As shown, regardless of the research method and the study outcome, a relationship exists between gender diversity and performance in board members.

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