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Management Development and Succession in the Electricity Industry 1948 - 1998: Executive Men and Non-Executive Women

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Management Development and Succession in the Electricity Industry 1948 - 1998: Executive Men and Non-Executive Women MANAGEMENT DEVELOPMENT AND SUCCESSION IN THE ELECTRICITY INDUSTRY 1948 - 1998: EXECUTIVE MEN AND NON-EXECUTIVE WOMEN Margaret Nisbet A thesis submitted for the degree of Doctor of Philosophy The London School of Economics and Political Science University of London June 2001 © The copyright of this thesis rests with the author and no quotation from it or information derived from it may be published without the prior written consent of the author. UMI Number: U150870 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U150870 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 F Abstract This thesis investigates the development and succession of British Electricity Industry executives (top managers) during the half-century from 1948, and examines the reasons why few female employees became senior managers, and none became board members. In response to the continuing need for professional engineers, the industry operated a policy of internal promotion in parallel with systematic procedures for recruiting, training, developing and promoting employees and managers. The shortage of technical trainees resulted in the recruitment of apprentices with qualifications below the required standard; together with talented manual workers who were also perceived as potential engineers. Training facilities and career development opportunities were biased in favour of technical employees whose occupations were horizontally and vertically segregated. The term 'manager' was strictly limited to an elite of 1 in 100 employees, distinguished from the 1000s of supervisors (1 in 14 employees). The career trajectory to management was multifaceted until a standard was introduced in 1968. The federal nature of the industry resulted in inequalities with particular biases in training and selection to attend business schools. Managers who attended the Administrative Staff College at Henley were more successful in achieving promotion, especially to the level of chairmen, when compared with managers who attended an internal course. Using questionnaire results the thesis highlights differences between managers and top managers in relation to their personal characteristics, career development (including motivation and managing), and techniques for management selection and succession. The impact of privatisation on career development is also considered. An analysis of management succession over five decades shows that early entry to the industry was correlated with success; the long tenure of the first entrants hindered subsequent succession except for the most mobile. Like the industry's leaders, membership of decision-making committees which influenced female development was also male dominated. This belied the fact that females formed one in ten of non-executive board members. There is a substantial literature on the historical problems of women in work, their concentration in low-paid, low-status posts, employability and exclusion from higher graded posts. The electricity industry is a case in point. In electricity the focus was on boys and young men to fill the horizontally segregated technical training posts at a time when females were actively encouraged to follow a 'feminine' curriculum in schools. In addition, workshop and practical training facilities for females were non-existent in an industry which, unsurprisingly, perceived they would find its workplaces 'unattractive'. Females were concentrated in lower grade clerical work and in the bottom grades of the higher graded administrative structure. Due to the federal nature of the industry the finding that females were discriminated against remained unresolved. Privatisation did nothing to improve the gender imbalance in managerial opportunity. Some females now perform manual jobs previously confined to men, and two women became executive board members. However, by 1998, despite the more widespread use of the term 'manager' a number of electricity companies had still not appointed any senior female managers. 3 Table of Contents page Title Page 1 Abstract 2 Table of Contents 3 List of Tables 5 Abbreviations 9 Acknowledgements 10 Introduction 11 Definitions 13 Note on archival references 22 PART 1 THE ORIGINS OF ELECTRICITY INDUSTRY MANAGERS 1. Women and Work 25 (a) Women's entry to the male preserve of paid employment 25 (b) Problems facing women in the labour market 30 2. Entry to Employment in the Electricity Industry 58 (a) Recruitment into the technical graded posts 62 (b) Recruitment into the non-technical graded posts 70 3. Training, Development and Progression 81 (a) Formal training schemes in the electricity industry 85 (b) Facilities for self-development in the electricity industry 98 (c) The Scholarship Scheme 115 PART 2 THE DEVELOPMENT OF ELECTRICITY INDUSTRY MANAGERS 4. The Attitude of the Electricity Industry to Management 132 Development (a) The background to British management education 132 1950-1980 (b) The background to management education in the 136 electricity industry (c) Identification of managers and their development 140 (d) The attitude of the electricity industry to the use of 145 business schools for management development 5. The Apparent Effect of Management Courses on Management 165 Succession in the ESI 4 6. Evaluation 198 (a) Attempts by the electricity industry to evaluate managers 199 (b) Survey of electricity industry managers: their attitudes to 210 training, development, succession and the future of the electricity industry PART 3 MANAGEMENT SUCCESSION: EXECUTIVE MEN AND NON-EXECUTIVE WOMEN 7. Executive Men: The Results of Management Succession in the 246 Electricity Industry (a) 1948, nationalisation and the ESI's first leaders 247 (b) 1961-1991, leadership over three decades 260 8. The Role of Part-Time Board Members in the Electricity 277 Industry: Non-Executive Women (a) Private sector company boards and nationalised industry 277 boards (b) The role and qualifications of part-time members 284 (c) Women on the boards 288 9. Female Employment, Recruitment and Development in the 299 Electricity Industry (a) The employment of females in the electricity industry 299 (b) Recruitment of females into the electricity industry 310 (c) Development of female employees in the electricity 317 industry 10. The Career Progression of Female Employees in the Electricity 332 Industry and the Effect of Privatisation (a) Female progression in the nationalised ESI 332 (b) The effect of ESI privatisation on women's progression to 344 the board of directors Conclusions 355 Appendix 369 Bibliography 485 5 List of Tables Table No. Title Page Chapter 1 1 Distribution of economically active population by occupational 29 category (GB) - 1911 and 1971 Chapter 2 1 Allocation of salaries and related costs 1955/56 59 2 Growth in the Electricity Industry in England and Wales 60 3 Educational Qualifications - Student Apprentices 67 4 Recruitment of Clerical, Commercial and Administrative Staff 71 5 Recruitment of Graduates for Non-Technical Posts 73 Chapter 3 1 Craft Apprentices - Transfers to Student Apprenticeship 87 2 Manual Worker Trainees - Appointments to the Technical Staff 88 3 Engineering Training Schemes. Types of Trainees - 1960 89 4 Numbers under Training in England and Wales. Formal and Self- 102 Development Schemes 5 Educational Incentives Scheme - Type of Assistance 1965-1985. 105 England and Wales 6 Educational Incentives Scheme - 1965-1985 - England and Wales 106 7 Educational Incentives Scheme - Day/Block Release Students 108 8 Educational Incentives Scheme - Examination Pass Rates. 110 Day/Block Release Students 9 Educational Incentives Scheme. Additional Staff given Financial 111 Assistance - 1965, 1970. 10 Educational Incentives Scheme - Correspondence Courses 1965, 113 1975 and 1985 11 Educational Incentives Scheme. Ratios of students to employee 115 groups 12 ESI Scholarship Scheme for Existing Employees. Applications 119 for Scholarships 1953-1972 13 Scholarship Holders - Employers - 1953-1977 119 14 Scholarships 1953-77 - Analysed by staff groups 120 15 Type of Scholarships awarded 1953 - 1965. Distribution of 121 scholarships across each staff group 16 Venue for Scholarship Courses 1953-1965. Scholars in each staff 123 group 17 Scholarship Holders - Career Progression. Employing Board at 125 time of Scholarship: 1953 - 1972 18 Career Progression of Scholarship Holders. Numbers Progressed 126 by Number of Scholarships Awarded: 1953 - 1972 19 Career Progression of Scholarship Holders. Type of Scholarship 127 Awarded 1953-1972 20 Career Progression of Scholarship Holders. Institution attended 127 by scholars 1953-1972 21 Career Progression of Scholarship Holders 1953-1972 128 6 Chapter 4 1 Usage of Henley College by Nationalised Industries before 1962 142 2 Attendance at Business Schools by Electricity Boards: 1948-1982 148 3 Usage of Business Schools by Electricity Boards - 1977-1982 150 4 Business Schools used by Electricity Boards - 1977-1982 151 5 Popular Business School Courses used by Electricity Boards 152 1977-1982
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