Journal of Business Diversity

North American Business Press Atlanta – Seattle – South Florida - Toronto

Journal of Business Diversity

Dr. Sandra Williams Editor

Dr. David Smith Editor-In-Chief

NORTH AMERICAN BUSINESS PRESS EDITORIAL ADVISORY BOARD

Dr. Andy Bertsch - MINOT STATE UNIVERSITY Dr. Jacob Bikker - UTRECHT UNIVERSITY, NETHERLANDS Dr. Bill Bommer - CALIFORNIA STATE UNIVERSITY, FRESNO Dr. Michael Bond - UNIVERSITY OF ARIZONA Dr. Charles Butler - COLORADO STATE UNIVERSITY Dr. Jon Carrick - STETSON UNIVERSITY Dr. Mondher Cherif - REIMS, FRANCE Dr. Daniel Condon - DOMINICAN UNIVERSITY, CHICAGO Dr. Bahram Dadgostar - LAKEHEAD UNIVERSITY, CANADA Dr. Deborah Erdos-Knapp - KENT STATE UNIVERSITY Dr. Bruce Forster - UNIVERSITY OF NEBRASKA, KEARNEY Dr. Nancy Furlow - MARYMOUNT UNIVERSITY Dr. Mark Gershon - TEMPLE UNIVERSITY Dr. Philippe Gregoire - UNIVERSITY OF LAVAL, CANADA Dr. Donald Grunewald - IONA COLLEGE Dr. Samanthala Hettihewa - UNIVERSITY OF BALLARAT, AUSTRALIA Dr. Russell Kashian - UNIVERSITY OF WISCONSIN, WHITEWATER Dr. Jeffrey Kennedy - PALM BEACH ATLANTIC UNIVERSITY Dr. Jerry Knutson - AG EDWARDS Dr. Dean Koutramanis - UNIVERSITY OF TAMPA Dr. Malek Lashgari - UNIVERSITY OF HARTFORD Dr. Priscilla Liang - CALIFORNIA STATE UNIVERSITY, CHANNEL ISLANDS Dr. Tony Matias - MATIAS AND ASSOCIATES Dr. Patti Meglich - UNIVERSITY OF NEBRASKA, OMAHA Dr. Robert Metts - UNIVERSITY OF NEVADA, RENO Dr. Adil Mouhammed - UNIVERSITY OF ILLINOIS, SPRINGFIELD Dr. Roy Pearson - COLLEGE OF WILLIAM AND MARY Dr. Sergiy Rakhmayil - RYERSON UNIVERSITY, CANADA Dr. Robert Scherer - CLEVELAND STATE UNIVERSITY Dr. Ira Sohn - MONTCLAIR STATE UNIVERSITY Dr. Reginal Sheppard - UNIVERSITY OF NEW BRUNSWICK, CANADA Dr. Carlos Spaht - LOUISIANA STATE UNIVERSITY, SHREVEPORT Dr. Walter Amedzro ST-Hilaire - HEC, MONTREAL, CANADA Dr. Ken Thorpe - EMORY UNIVERSITY Dr. Robert Tian - MEDIALLE COLLEGE Dr. Calin Valsan - BISHOP'S UNIVERSITY, CANADA Dr. Anne Walsh - LA SALLE UNIVERSITY Dr. Thomas Verney - SHIPPENSBURG STATE UNIVERSITY Dr. Christopher Wright - UNIVERSITY OF ADELAIDE, AUSTRALIA

Volume – 13(1/2) ISSN 2158-3889

Authors have granted copyright consent to allow that copies of their article may be made for personal or internal use. This does not extend to other kinds of copying, such as copying for general distribution, for advertising or promotional purposes, for creating new collective works, or for resale. Any consent for republication, other than noted, must be granted through the publisher:

North American Business Press, Inc. Atlanta - Seattle – South Florida - Toronto

©Journal of Business Diversity 2013

For submission, subscription or copyright information, contact the editor at:

[email protected] or [email protected]

Subscription Price: US$ 305 per year

Our journals are indexed by UMI-Proquest-ABI Inform, EBSCOHost, GoogleScholar, and listed with Cabell's Directory of Periodicals, Ulrich's Listing of Periodicals, Bowkers Publishing Resources, the Library of Congress, the National Library of Canada, and Australia's Department of Education Science and Training. Furthermore, our journals have been used to support the Academically Qualified (AQ) faculty classification by all recognized business school accrediting bodies.

This Issue

Understanding the Complexities of the Arizona Immigration Act: A Midwestern Business Student Perspective ...... 9 Nancy J. Hanson-Rasmussen

Immigration policy and law have a history of being controversial and emotional issues in the United States. While a bipartisan effort to create an amenable immigration policy continues, states have proposed their own immigration laws. This study investigates the opinion of Midwestern university students in regard to the proposed 2010 Arizona Immigration Act. Specifically, it looks at student awareness of the Act and whether Midwestern students have the same views toward the Act as the general population. Comparisons are drawn using nationally recognized public opinion polls and student surveys conducted at the time of the Act’s proposal.

Organizational Perspectives on Stained Glass Ceilings for Female Bishops in the Anglican Communion: A Case Study of the Church of England ...... 23 Judy Rois, Daphne Rixon, Alex Faseruk

The purpose of this study is to document how glass ceilings, known in an ecclesiastical setting as stained glass ceilings, are being encountered by female clergy within the Anglican Communion. The study applies the stained glass ceiling approach developed by Cotter et al. (2001) to examine the organizational structures and ordination practices in not only the Anglican Communion but various other Christian denominations. The study provides an in depth examination of the history of female ordination within the Church of England through the application of managerial paradigms as the focal point of this research.

The Entrepreneurial Experiences of 1st Generation Migrant Black African Female Entrepreneurs in Britain ...... 40 Thomas T. Domboka

This paper explores the experiences of 1st generation black African women who have settled and started business in Britain and the impact those experiences have had and are likely to have on the success for new migrants in starting their own businesses. This qualitative study was carried out using semi- structured interviews with 35 female entrepreneurs based in the West Midlands County of Britain. Findings suggest that these women are motivated by various pull factors; they have limited access to finance, while having high levels of human capital which they do not seem to benefit from due to its irrelevance to the businesses they started.

Effects of Leader Race and Leader Mistake on Patronizing Behaviors ...... 52 Sarah Singletary Walker, Juan M. Madera, Michelle R. Hebl

This study examined the extent to which perceptions of leadership vary as a function of leader race. Using experimental methods, results suggest that Black managers experience patronizing discrimination that consists of differential allocation of limited, but not unlimited resources. Specifically results revealed that under conditions of mistakes, evaluations of the leadership capability for Black and White managers are similar, however, salary differences emerged. More specifically, participants assigned lower salaries to Black managers when mistakes were made. We discuss implications of these findings and directions for future research.

Multigenerational Differences in the Puerto Rican Workforce ...... 65 Maritza Yvette Soto, Maria V. Lugo

This study examines the perception of intergenerational differences among workers in Puerto Rico. An adaptation of the Intergenerational Tension Questionnaire (ITQ) (Choo, 2002) was administered to human resources managers of approximately 500 companies of a variety of types of businesses: manufacturing, service, educational, in Puerto Rico. Results found that there is no difference between younger/older workers in the different aspects related to their jobs and that organizational practices, particularly those associated with recruitment, training, promotions and transfer systems, could alienate older workers to a greater extent than they would younger workers.

What Lies Ahead: Emerging Trends in the Diversity Pipeline Among New Entrants in the Workforce ...... 83 Arlise P. McKinney

This paper reviews the changing demographics in the US population and workforce that have implications for the diversity pipeline into the workforce. The diversity pipeline represents the anticipated new entrants into the workforce from both population trends but also the increasing number of women and ethnic minority college graduates. To examine the outcomes associated with higher college enrollment for women, this study examined gender and race differences in academic measures from nearly 4,000 students and discusses anticipated challenges for managing workforce diversity. The findings are discussed with recommendations for diversity management practices.

The Role of Gender in Explaining Motives for Business Informality and Formalization...... 96 Justina Lucas Utouh

This research work sought to explain how motives for business informality and formalization are explained by gender. Data was collected through plain interviews, in-depth interviews, interviewee triangulation, participant observation, and documentary analysis. Data was analyzed using open, axial and selective coding Straussian grounded theory procedures. Findings suggest that access to education and subsequent positive perception of formalization whether it is worth doing or not are crucial in determining motives for business informality and formalization. It is necessary therefore, to ensure equitable access to education and to address simultaneously awareness, capacity, regulatory and gender issues in fostering formalization of businesses in developing countries.

Family Business Succession: The Impact of Customer Relationship Management and Customer Based Brand Equity on Firm Success or Failure ...... 108 Catherine Ashley-Cotleur, Sandra K. Kauanui, Carol J. Gaumer

This paper addresses second generation family business and the necessary nurturing required to sustain current customer relationships and existing brand equity. As power is transferred from the founder to the next generation, family stresses, organizational issues, and leadership characteristics of the successor take center stage. Established relationships with customers, suppliers, and employees may not receive the necessary attention, thus negatively impacting hard-earned brand equity. Failure to nurture customer relationships may cause the loss of key stakeholders, contributing to second generation business failures. Reasons for relationship and equity deterioration are examined, along with suggestions for future research. The purpose of this paper is to reconcile two distinct marketing strategies: customer relationship marketing with brand equity.

GUIDELINES FOR SUBMISSION

Journal of Business Diversity (JBD)

Domain Statement

The Journal of Business Diversity (JBD) is dedicated to the advancement and dissemination of knowledge by publishing, through a blind, refereed process, ongoing analysis, study and results that address non-traditional demographic characteristics such as age, gender and ethnicity that influence company policies. JBD is inclusive, & practical, and encourages active interaction between academics, managers, and consultants performing in diverse business settings. The scope encompasses policy analysis and best practices in large and small enterprises, public and private sector service organizations, state and national government, and local and regional societies and economies with special emphasis on linking academic research to future practice. Articles are written by business leaders, policy analysts and active researchers for an audience of specialists, practitioners and students. Articles of regional interest are welcome, especially those dealing with lessons that may be applied in other regions around the world. This would include, but not limited to areas of marketing, management, finance, accounting, management information systems, human resource management, organizational theory and behavior, operations management, economics, or any of these disciplines in an international context.

Submission Format

Articles should be submitted following the American Psychological Association format. Articles should not be more than 30 double-spaced, typed pages in length including all figures, graphs, references, and appendices. Submit two hard copies of manuscript along with a disk typed in MS-Word (preferably).

Make main sections and subsections easily identifiable by inserting appropriate headings and sub-headings. Type all first-level headings flush with the left margin, bold and capitalized. Second-level headings are also typed flush with the left margin but should only be bold. Third- level headings, if any, should also be flush with the left margin and italicized.

Include a title page with manuscript which includes the full names, affiliations, address, phone, fax, and e-mail addresses of all authors and identifies one person as the Primary Contact. Put the submission date on the bottom of the title page. On a separate sheet, include the title and an abstract of 100 words or less. Do not include authors’ names on this sheet. A final page, “About the authors,” should include a brief biographical sketch of 100 words or less on each author. Include current place of employment and degrees held.

References must be written in APA style. It is the responsibility of the author(s) to ensure that the paper is thoroughly and accurately reviewed for spelling, grammar and referencing.

Review Procedure

Authors will receive an acknowledgement by e-mail including a reference number shortly after receipt of the manuscript. All manuscripts within the general domain of the journal will be sent for at least two reviews, using a double blind format, from members of our Editorial Board or their designated reviewers. In the majority of cases, authors will be notified within 60 days of the result of the review. If reviewers recommend changes, authors will receive a copy of the reviews and a timetable for submitting revisions. Papers and disks will not be returned to authors.

Accepted Manuscripts

When a manuscript is accepted for publication, author(s) must provide format-ready copy of the manuscripts including all graphs, charts, and tables. Specific formatting instructions will be provided to accepted authors along with copyright information. Each author will receive two copies of the issue in which his or her article is published without charge. All articles printed by JBD are copyright protected by the Journal. Permission requests for reprints should be addressed to the Editor. Questions and submissions should be addressed to:

North American Business Press 301 Clematis Street #3000 West Palm Beach, Florida 33401 [email protected] 866-624-2458

Understanding the Complexities of the Arizona Immigration Act: A Midwestern Business Student Perspective

Nancy J. Hanson-Rasmussen University of Wisconsin-Eau Claire

Immigration policy and law have a history of being controversial and emotional issues in the United States. While a bipartisan effort to create an amenable immigration policy continues, states have proposed their own immigration laws. This study investigates the opinion of Midwestern university students in regard to the proposed 2010 Arizona Immigration Act. Specifically, it looks at student awareness of the Act and whether Midwestern students have the same views toward the Act as the general population. Comparisons are drawn using nationally recognized public opinion polls and student surveys conducted at the time of the Act’s proposal.

INTRODUCTION

In April of 2010, the State of Arizona passed a unique yet controversial act regarding the status of illegal immigrants. The act ignited an emotionally charged debate across the U.S. This paper looks at Midwestern college students’ opinions regarding the immigration act and compares and contrasts them with responses to national opinion polls. The students have taken or will be taking a course called Diversity in the Workplace, which introduces racial profiling and Title VII of the Civil Rights Act. Critical race theory will also be used in this study to investigate responses to immigration law and to analyze student responses.

Background A framework for understanding the issues related to the Arizona Immigration Act and illegal immigration includes the following: a description of the Act and its amendment, an overview of demographics of the “illegal” immigrant population, literature on immigration fear and bias, language, and the role of the economy. Politics is deeply embedded in the immigration debate as well. Illegal immigration was a focus during the presidential election of 1996 when political campaigns addressed illegal immigration and “illegals” were associated with the Mexican border (Burns & Gimpel, 2000).

Arizona SB 1070 For a number of years, Arizona political leaders have introduced legislation designed to tighten the entry of illegal immigrants to the U.S. at Arizona borders. The intent of past legislation was to stop immigration from Mexico, in hopes of reducing violent crime and falling property values (Rodriguez, 2010). In recent years, several pieces of legislation designed to address illegal immigration in Arizona were introduced. Each of these proposals was vetoed by then Arizona Governor, Janet Napolitano (Archibald, 2010). During Napolitano’s second term as Governor, she was appointed as Secretary of

Journal of Business Diversity vol. 13(1/2) 2013 9 Homeland Security (Longley, 2012). Jan Brewer was then appointed as Arizona’s Governor in 2010 and is known for her attempts at Arizona-Mexico border control. In March of 2010, the murder of a South Arizona rancher, by a person alleged to be a drug smuggler, increased pressure on elected leaders to do something about border-related crime (Archibald, 2010). Representative Russell Pearce of Mesa had been working on a piece of legislation now known as the controversial Senate Bill 1070. On April 23, 2010, Arizona Governor Jan Brewer signed Pearce’s, “Support Our Law Enforcement and Safe Neighborhoods Act” a.k.a. SB 1070 (Staff, 2011). The Act was intended to go into effect on July 29, 2010. This did not happen because on July 28, a federal judge placed an injunction on three major components of the bill declaring them unconstitutional (CNN Wire Staff, 2010). A highly publicized debate ensued. President Obama openly criticized the Arizona law taking a seldom demonstrated Presidential stance on state legislation (Archibald, 2010). The premise of the federal judge injunction was that “states may not pursue policies that undermine federal law” (Barnes, 2012). The Center for Immigration Studies (2010) identified the bill as being very popular among Arizona voters and found Arizona to have one of the fastest growing illegal immigrant populations in the country. The Center noted that the relationship between illegal immigration and crime is difficult to determine. Two aspects of the bill are frequently identified as controversial because of their potential for discrimination in enforcement. One makes it a crime to not carry immigration documents. The other requires law enforcement officers to have only a “reasonable suspicion” prior to asking about immigration status (Center for Immigration Studies, 2010). The concern expressed on the “reasonable suspicion” part of the bill is that it will lead to racial profiling by officers, often resulting in discrimination against Hispanics. Most elements of SB 1070 did not pass, including asking for documentation without probable cause, making it a crime to not carry papers, and forbidding individuals from performing work (Cohen & Mears, 2012).

Senate Bill (SB) 2162 Following the SB 1070 injunction, Governor Brewer signed a new proposal amending several of the more controversial aspects and named the new bill Senate Bill 2162. Under this bill, law enforcement officers could only question an individual’s documentation when they are stopped for an unrelated issue (CNN Staff, 2010). The purpose of SB 2162 was to reduce racial profiling. In addition, race, color, or national origin cannot be the basis for investigations (Silverleib, 2010).

Demographics Information on the demographics involved in immigration is far from exact because the U.S. Census reports utilize self-identification. Exposing illegal or undocumented status can be very risky for an immigrant or their employer. In March of 2010 (just before the data for this study was collected), the estimated number of immigrants in the U.S. was 40 million (approximately 60 percent of them are from Mexico), and that 11.2 million of them could be categorized as unauthorized immigrants (Passel, 2011). Arizona, the focus of the Immigration Act, is estimated to have a six percent population of unauthorized workers, while in the Midwestern state used in this study 1.8 percent of the population is unauthorized workers (Passel, 2011, Table A3). As demographics in the U.S. change, one of the most dramatic areas of change is the race-ethnic group birth rate. In 2010, more than one-fourth of infants in the U.S. (under the age of one) were Hispanic (Frey, 2011). Hispanics are the largest infant minority group in the Midwestern state of the researched university, yet less than 40% of the infants are non-white (Frey, 2011).

Immigration Induced Fear and Bias Prejudice is defined in this report as “bias which devalues people because of their perceived membership of a social group” (Abrahms, 2010, p. 6). Otherness, or marginalization, is the result of prejudice. With the number of immigrants growing in America, some immigration opponents are

10 Journal of Business Diversity vol. 13(1/2) 2013 organizing and using growth as anti-immigration political opportunity. As demographics change and immigrant numbers increase, it is not unusual for immigration opponents to organize and for some to use the immigrant population growth as a political opportunity (Hopkins, 2010). Research on the emotions and anxiety related to immigration issues support that emotions play a role in “opinion change and political action” (Brader, Valentino, & Suhay, 2008, p. 960). Another emotional reaction in regard to Arizona immigration is that of concern over the Hispanic population entering from nearby Mexico. Some feel that the state’s crackdown on Hispanic illegals is also a fear of an increase in noncitizens, resulting in criminalizing immigrants (Sandoval, 2011). With the Latino population growing at a rate higher than the U.S. population in the 1980s and 90s, Branton, Cassese, Bradford and Westerland (2011) wrote that a “perfect storm” existed for anti-Latino backlash. Citizen groups and border-watch groups got some attention, but the growth of Hispanic and Latino populations was not a pressing national interest. “We argue that the terrorist attacks of 9/11 served that role (increased interest in immigrant group activity)” (Branton et al., 2011, p. 665). Heightened sensitivity to group-based threats post September 11, as well as concerns over national identity promoted widespread aversion towards Latinos based on perceptions the group violates traditional American values (Branton, et al., 2011). Following the terrorist attacks of September 11, 2001, politicians and newspapers presented the attacks as linked to immigration and national security (Hopkins, 2010).

The Language of “Otherness” Words and the application of words associated with immigration tend to identify immigrants as an “other” group. According to Branton, et al., the language used to describe the immigration issue – “invasion, porous border, illegal, etc. – explicitly creates a politics of division an “us”, a “them” (2011, p. 664). Some immigrant groups are “constructed as desirable, as enhancing ‘who we are’ and others are constructed as undesirable, as a threat to U.S. sovereignty and national identity” (Dick, 2011, p. 36). The media often addresses illegal immigration by including information on Latinos/Hispanics. This can tend to reinforce negative stereotypes about Latinos, to a greater extent than immigrants from other areas (Brader et al., 2008). Sandoval (2011) found that states with high Hispanic populations show more support for an Arizona-style law.

The Role of the Economy Concern that immigrants may take jobs away from American workers or will depress wages is not a new concern (Espenshade & Calhoun, 1993). Speculation that anti-immigrant attitudes are influenced by economic conditions continues today. The premise is that when an “outgroup” has a large number of members and is competing for the same scarce resources as the general population, there will be hostility (Hopkins, 2010, Persell 1997). Is this hostility truly a result of economic hardship? Burns and Gimpel have found that economic hardship acts to “activate prejudices that are latent” (2000, p. 224). The prejudices appear to be based on economic reasons, but once economic conditions improve, it is easier to blame prejudices on the economy than identify oneself as a racist (Burns & Gimpel, 2000).

RESEARCH QUESTIONS AND INTENT

The intent of this research is to determine the level of awareness and personal opinion related to the Arizona immigration legislation of 2010. Specifically, it is designed to unearth perspectives of college business students at a Midwestern university. While the 2010 immigration debate waged in Arizona, did the Midwestern students hear and pay attention to the debate, and did they form opinions on the immigration issue? Therefore, the first research question is, “Are the students at the Midwestern University aware of the issues related to the Arizona Immigration Law (SB 1070)?” News of the law spread across the country through a variety of media outlets and people naturally formed opinions on the law. The second research question is, “Do Midwestern university students have the same views on the Arizona Immigration Act as the general population?” It is hypothesized that Midwestern university students would be more open and accepting of illegal immigrants than respondents in three national

Journal of Business Diversity vol. 13(1/2) 2013 11 opinion polls and respondents in a “Midwestern” regional poll. It is recognized that demographic characteristics are sometimes determined by the organizational context like a university (Spataro, 2012). Midwestern exposure to immigrants, particularly illegal immigrants, is estimated to be less than other geographic regions of the United States. In fact, the 2010 U.S. Census reports that 4.5% of the researched university’s state population is foreign-born. A Monmouth College study found that 62% of Midwesterners view illegal immigration as a serious problem (Cordery & Johnson, 2011). This is far less than the 88% of national respondents citing it as a serious problem in an August, 2010, CBS News poll (Dutton, De Pinto, Backus, & Salvanto, 2010). The same study (Monmouth) found that a smaller percentage of Midwesterners under the age of 50, (56%) saw it as a serious problem; whereas, 69% of Midwesterners over the age of 50 saw it is a serious problem. Therefore, it is expected that students in the study will have more moderate opinions of illegal immigration. It is also expected that those who have taken coursework in workplace diversity will demonstrate an even more moderate opinion.

METHODOLOGY

This study uses a mixed method approach to understanding the complexities of immigration. The mixed method is employed because quantitative research alone could not address the culture-specific knowledge required to explain how college students understand immigration in Arizona. The quantitative aspects of the study help to describe broad population data related to immigration facts and perspectives. Quantitative research can help to analyze the “what” of a social issue and qualitative research can help to solve the “why” (Kelle, 2006). Facts were gathered, applicable polls were identified, and an instrument was developed to gather data. The study is cross-sectional because it was important to gather opinion at the time of the legislation proposal. The study utilizes three nationally recognized opinion polls conducted by reputable agencies. Questions from the public opinion polls, administered and published in April and May of 2010, were used to create a questionnaire on the topic of the Arizona Immigration, SB 1070. The student data was gathered in May of 2010 from students who had recently taken a one-credit workplace diversity course or would be taking the course the following fall.

Polls and Surveys The Gallup, Angus Reid, and Rasmussen opinion polls were utilized in this research and survey development.

Gallup Opinion Poll The focus of this national opinion poll (conducted via telephone) to 1,013 adults nationwide on April 27-28, 2010, was awareness, political affiliation, and support of SB 1070. Questions from the survey related directly to the proposed law and included: “Based on what you know or have read about the new Arizona immigration law, do you favor or oppose it?” and “How much have you heard or read about a new immigration law that was just passed in the state of Arizona?” (Jones, 2010)

Angus Reid Public Opinion Poll The Angus Reid poll was administered online April 22-23, 2010. One thousand and two adults responded to the survey. This poll identified nationwide responses as well as a geographic breakdown of responses. Both sources of data were used for this study, with particular attention given to the 200 responses from the Midwest. This opinion poll included awareness questions, such as “All things considered, do you think immigration is having a positive effect or negative effect in the U.S?” (Angus Reid Staff, 2010). Other useful questions inquired into personal point of view on immigration, job availability and the use of “reasonable suspicion” by law enforcement.

12 Journal of Business Diversity vol. 13(1/2) 2013 Rasmussen Opinion Poll This national opinion poll was conducted just prior to Governor Brewer’s signing of SB 1070. Results were published online on April 22, 2010. Findings revealed that 70% of Arizona voters supported SB 1070 and 23% opposed the bill. Fifty-four percent expressed concern over racial profiling. Seventy-three percent of respondents reported that securing the border was more important than offering amnesty to illegal aliens (Rasmussen Staff, 2010). This survey contributed to the research by providing Arizona opinion statistics that could be compared to student responses regarding racial profiling.

Survey Development and Administration A survey consisting of open-ended qualitative questions and quantitative questions regarding student perceptions of immigration and immigration law was created. It was distributed to undergraduate College of Business students at a Midwestern University. The survey was distributed via email in an online format, with the survey being completely anonymous and voluntary. There was no incentive to take the confidential online survey. The survey was sent May 11, 2010. In total, 257 fully completed surveys were received from a possible 865 eligible students for a 30% return rate. Of the completed surveys, 56% had completed a College of Business, one-credit course on workplace diversity. The questions from each of the three national polls were incorporated into the survey. The survey was designed to investigate the two research questions through the aspects of: (1) awareness of the immigration law; (2) impact of immigration; (3) personal viewpoint on illegal immigrants; (4) effect on civil rights, and (5) predictions of the future of immigration law.

Awareness of Immigration Law The survey began with a question from the Gallup Poll (2010), intended to measure awareness of the Arizona Immigration Law: “Have you heard of the new Arizona Immigration Law before you started this survey?” This yes/no question was followed with a question asking respondents where they had heard or learned of the legislation. Respondents could select from any or all of 13 listed communication sources and could also type a response to other.

The Impact of Immigration A group of questions relating to the impact of legal and illegal immigration were asked, each taken from the Angus Reid Opinion Poll (2010). The first asked if respondents thought immigration was having a positive effect or negative effect in the U.S. Answers could be positive, negative or not sure. The next question related to whether respondents thought the number of legal immigrants allowed relocation to the U.S. should increase, remain the same, or decrease. Students could also answer not sure. The last impact question dealt with illegal immigrants and asked, “There are more than 12 million illegal immigrants in the United States right now. Which of these statements comes closest to your own point of view?” (Angus Reid Staff, 2010). Respondents could answer They take away jobs from American workers, they are employed in jobs American workers do not want, or not sure.

Personal Views on Illegal Immigrants Students were then asked their opinion or personal view of illegal immigrants. Questions on this originated in the Angus Reid poll (2010). The first asked for a personal point of view on the status of illegal immigrants who are currently working in the U.S. Respondents could answer They should be allowed to stay and apply for citizenship, They should be able to work temporarily but not become U.S. citizens, They should be required to leave their jobs and be deported, or Not sure. The next personal view question addressed whether respondents would support one of five regulations from the Arizona bill in their own state. The regulations ranged from: using “reasonable suspicion” to determine status, arresting anyone unable to provide documentation, making it a crime to transport an illegal immigrant, and making it a crime to hire day laborers.

Journal of Business Diversity vol. 13(1/2) 2013 13 Civil Rights The researcher included two questions related the Title VII of the Civil Rights Act. The first yes, no, or not sure type question asked whether the Arizona law violated Title VII. The second asked if students thought racial profiling would be used to determine who is “suspicious” of being an illegal immigrant. Each of these topics is discussed in the workplace diversity course.

Predictions on the Future of Immigration Law Two questions written by the researcher asked respondents to predict the future. The first asked, “What would you expect to see as a result of the legislation?” Answer options were taken from the jargon used in popular media and included statements like Legislation will soon be re-written due to public concern over the violation of rights and Violence against immigrants will increase and illegal immigrants will leave Arizona. An Other response option with explanation was also provided. Respondents were then asked if similar legislation were to be introduced in their state, would they expect it to pass? The answer options were Yes, No, and Not sure. The survey ended with an opportunity to type additional thoughts regarding the Arizona Immigration law. Fifty-five respondents provided their own additional comments.

SURVEY ANALYSIS

Quantitative Measures The quantitative measurement in this survey is used to compare answers from respondents in national and geographic polling regions to answers of Midwestern university students.

Qualitative Measures This research relies heavily on personal opinion expressed through qualitative, open-ended questions. Students were also allowed to make comments following close-ended questions and many of them did. As sociologist, Stewart Kirk states, “If the quantitative data represents the skeleton of an answer to the research questions, qualitative data gives it flesh” (2009, par. 2). The narratives allowed for coding and identificaton of emerging themes regarding immigration and the impact the law is having on Midwestern college students. The coded themes identified the viewpoints of students toward a very current and pressing issue.

CRITICAL RACE THEORY

Theory can be used in determining why reaction to SB 1070 was so strong and why an injunction was placed on the law. Critical race theory helps in looking at the role of race, law, and power in the oppression of some groups. The theory is rather complex and controversial. In their book, Critical Race Theory, Richard Delgado and Jean Stefanic introduce the “black-white paradigm” (2001). They present the race paradigm as a way people make sense out of a complex reality. A problem arises when a group does not fit into the “black-white paradigm.” The theory states that illegal immigrants do not fit the paradigm. They could become part of the minority that is seen as both invisible and un-American (Delgado & Stefancic, 2001). One aspect of critical race theory is the use of semantics or labels. Kevin Johnson addresses issues with, “stereotyping Mexicans as ‘illegal aliens’ and social constructing Mexicans as criminal, foreign and the other. The alien terminology helps rationalize harsh, perhaps inhumane, treatment of persons from other countries” (1997, p. 268). Combining the words “illegal and alien” results in negative social recognition. Illegal immigrants have very little power. Perhaps their low status in power structures does not allow them to “fight back” or defend themselves from the proposed legislation. Associated with critical race theory is the concept of having to show papers to prove you belong. Inspection of things like passports or identification cards were once associated with totalitarian regimes. These are now being used in America to access control to social services, to regulate movement, and to

14 Journal of Business Diversity vol. 13(1/2) 2013 single out specific racial groups (Caplan & Torpey, 2001). A number of offshoots or spinoffs of critical race theory can now be found. One of interest to this research is LatCrit theory.

Latino Critical Race Studies (LatCrit) Latino Critical Race studies (LatCrit), is an area of study that combines scholarship with law in regard to the interests of Latinos. Beginning in 1995, an organized group of people, LatCrits, have defined their purpose as: (1) “to develop a critical, activist and inter-disciplinary discourse on law and policy towards Latinas/os, and (2) to foster both the development of coalitional theory and practice as well as the accessibility of this knowledge to agents of social and legal transformation” (Santiago, 2012, para. 3). The use of LatCrit theory helps to understand why and when discriminatory practices exist. Explaining the protective practice of “nativism” helps to understand why some groups may be discriminated against more in certain times. “Nativism against Latinos and Asians thrives during times of economic hardship, when the labor supply is glutted or when workers are insecure” (Delgado & Stefancic, 2001, p. 81). This begs the question of how important a role job availability and job security play in the creation and support of Arizona Immigration Law.

RESULTS AND FINDINGS

Student surveys, national and regional opinion polls, and critical race theory were used to explore perspectives on the Arizona Immigration Act. In the attempt to answer the two research questions regarding student knowledge/awareness and opinions on immigration law, five areas of interest were identified.

Awareness of the Immigration Law One of the key research questions at the outset of this study was, “Are Midwestern college students aware of the Arizona Immigration Law?” With this study being conducted in May of 2010, media coverage was plentiful. There had been a protest on the target campus called “Do I Look Legal?” just prior to the survey administration. Protests on this campus are a very rare occurrence. One student group from the university had recently traveled to Arizona to protest the proposed legislation. Well over half of the students participating in the online survey (70%) had heard of the Arizona immigration law. The National Gallup Poll published on April 29, 2010 indicated 75% of total respondents had heard of the law. Ages of those participating in the Gallup Poll were not available. When asked where students had heard or learned of the law, 106 reported conversations with friends or family, 102 indicated network television news programs, 64 indicated newspapers, 46 cited either the Daily Show with John Stewart or the Colbert Report on Comedy Central. Thirty seven students had been in classrooms where the law was discussed and 28 had read it on an online news source. Ten students identified personal emails as a source and five indicated Twitter. Saturday Night Live had included a piece on the law in “Weekend Update with Seth Myers” just before the survey launched. Three students indicated they had seen that piece. While the above choices were listed in the survey, there was also an area for other responses. The most common responses in this area were: Facebook, a campus protest, ESPN, the New York Times, CNN, and public radio. One person had traveled home a few weekends prior to the survey and saw a very large group of “people marching with signs and chanting.”

Impact of Immigration The next series of questions investigated viewpoints on the impact of immigration and used questions from the Angus Reid Public Opinion Poll (Angus Reid Staff, 2010). In response to the question, “All things considered, do you think immigration is having a positive effect or negative effect in the U.S.?” 41% of students think it is having a negative effect. The national opinion poll found a negative effect response of 65% nationally and 68% among their Midwestern respondents. Thirty-five percent of the students were Not sure on this question.

Journal of Business Diversity vol. 13(1/2) 2013 15 The next impact question asked “From what you have seen, read or heard, do you think the number of legal immigrants who are allowed to relocate in the U.S. should increase, remain the same, or decrease?” (Angus Reid Staff, 2010). Thirty-six percent of students thought the number should remain the same and 31% thought it should decrease. The national percentages differed in that 34% thought the number should stay the same and 46% believed it should decrease. The Angus Reid group of Midwestern respondents indicated 36% should stay the same and 31% thought it should decrease. The final impact question asked, “There are more than 12 million illegal immigrants in the United States right now. Which of these statements comes closest to your own point of view?” (Angus Reid Staff, 2010). Forty-five percent of students viewed them (or illegals) as taking jobs away, 39% believe they take jobs Americans do not want, and 16% were unsure. National responses were 59%, 31% and 10% respectively. Midwestern respondents were 67% (taking jobs away), 23% (others wouldn’t want the jobs) and 10% unsure.

Personal Viewpoint on Illegal Immigrants Two questions from the Angus Reid poll were used to determine personal viewpoints on the status of illegal immigrants working in the U.S. Thirty-four percent of the university students indicated these workers should be deported, while 42% of the national poll takers indicated this and 48% of the Midwestern poll takers indicated deportation. Thirty-three percent of the students thought they should be able to stay in the U.S. with 25% of the national respondents and 24% of the Midwestern respondents feeling this way. In the next personal viewpoint question, participants were given four of the regulations of the Arizona Immigration Law and asked if they would support enacting it in their own state. One regulation is, “Requiring state and local police to determine the status of a person if there is reasonable suspicion that they are illegal immigrants” (Angus Reid Staff, 2010). Sixty-five percent of students would support this in their own state, while 66% of national respondents would. Another regulation makes it a crime to hire day laborers off the street. Sixty-six percent of students would support this in their state while 57% of national poll respondents would support it.

Effect on Civil Rights Only university students were polled on whether the Immigration Law is a violation of Title VII of the Civil Rights Act. This topic is discussed in the workplace diversity course. Thirty-four percent see it as a violation, 43% do not see it as a violation, and 24% are unsure. Breaking down the numbers to reflect those who took the diversity course prior to the survey, 36.35% who had taken the course saw it as a violation and 29.8% of those who had not taken the class saw it as a violation. Of those who had taken the course, 21% were unsure on this question, while 28.1% of those who had not taken the course were unsure. The next question came from the Rasmussen poll and asked if respondents “believe that racial profiling will be used to determine who is ‘suspicious’ of being an illegal immigrant” (Rasmussen Staff, 2010). Seventy-nine percent of students felt racial profiling will be used while 53% of respondents in the national poll indicate this. The use of racial profiling is one of the subjects studied in the workplace diversity course.

Predictions of the Future of Immigration Future effects of immigration were explored with, “Which of the following would you expect to see as a result of the legislation?” Percentages of total students selecting each of the given predicted options are shown in Table 1.

16 Journal of Business Diversity vol. 13(1/2) 2013 TABLE 1 STUDENT PREDICTIONS OF THE IMPACT OF IMMIGRATION LEGISLATION

55% Legislation will soon be rewritten because of concern over the violation of rights. 42% Illegal immigrants will leave Arizona. 39% The federal government will step in and develop their own legislation that will take care of immigration concerns. 38% Violence against immigrants will increase in Arizona 36% More states will follow Arizona’s example and pass similar bills. 28% The federal government will determine the legislation is unconstitutional and will override it. 25% Public statements/actions of support to immigrants will be practiced by sport teams and celebrities. 17% Investment in Arizona business will decrease.

Students were then asked if similar legislation were to be introduced in their state, would they expect it to pass. Twenty percent answered yes, 64% answered no and 16% were not sure. There was an area to write comments to this question. Some comments received were; “We’re much farther from the border”, “not very relevant up here”, “State X is mostly liberal”, and “according to a reliable source I have, we have several illegal immigrants on this campus, but we don’t do anything about that because we’re too concerned that it will make our school look less diverse to others.” The final question of the survey was, “Is there anything you would like to add regarding the Arizona Immigration Law?” Some responses were quite derogatory using strong, negative words. Some of the less negative comments are listed below:

“It is blatantly racist.” “A disgrace to the people of the U.S. It makes us look like hypocrites.” “An absolute violation of a person’s rights, making profiling legal.” “Gives police too many rights.” “This profiling goes too far.” “I believe the law is unconstitutional.”

Some of the comments in support of the law are listed below:

“Americans need the jobs.” “It’s not racial profiling, its #!X common sense.” “I applaud AZ for stepping up against the Feds.” “It’s about time someone steps up and does something about illegal immigrants.”

DISCUSSION OF RESULTS

The initial research question is, “Are the students at the Midwestern University aware of the issues related to the Arizona Immigration Law?” It was hypothesized that Midwestern university students would be more open and accepting of illegal immigrants than respondents in a national poll and respondents in a “Midwestern” region poll. Mass media coverage around the date of the implementation of the Arizona Immigration Act created a nationwide awareness. The percentage of students aware of the act was slightly lower than the national average. It is possible that the national poll included a bias because individuals most aware of the act may have been more willing to participate. This bias could also be true of the university students. Attempts to eliminate bias included clear directions indicating there would be no incentive or reward given for participation. A very interesting aspect of the awareness open-ended question is the news sources students identified. It is interesting that students get news through Facebook, Comedy Central network programs, ESPN, and national news broadcasts. News sources for Midwestern college students could be a study in itself. While ESPN appeared to be an unusual source of immigration news, there was a significant amount of coverage

Journal of Business Diversity vol. 13(1/2) 2013 17 of sports celebrities denouncing the proposed legislation in March and April of 2010. Arizona was to host the Major League Baseball All-Star game the next year, and some sports figures were calling for a boycott around the time the survey was administered. The Phoenix Suns NBA team wore jerseys saying, “Los Suns” to protest the law and were supported by the team owner as well as the National Basketball Association (Garcia, 2012). The second research question is, “Do Midwestern university students have the same views on the Arizona Immigration Act as the general population?” Again, it was expected that the surveyed students would be more open and accepting of illegal immigrants than respondents in three national opinion polls and respondents in a “Midwestern” regional poll. Students in the study are also hypothesized to demonstrate more moderate opinions as a result of coursework in workplace diversity. The impact of immigration gets to the heart of the second research question. Opinions as to whether immigration is having a positive or negative effect in the U.S. presented the largest disparity in this study. The high percentage of Midwesterners viewing immigration in a negative manner is higher than the national average in this and other national surveys. However, a majority of students did not share this harsh perspective, although a negative response by 41% of them cannot be discounted. LatCrit Theory may play a role in the responses to personal viewpoint questions. This theory identifies that “nativism thrives during times of economic hardship” (Delgado & Stefancic, 2001). Nativism could explain the concern expressed in personal perspective questions. The economy in 2010 was tight with elevated unemployment rates. Interestingly, the student response to whether the number of legal immigrants allowed relocation in the U.S. was very close to the national and Midwestern response. Critical Race Theory could play a role here in that the term “legal” is used in the question. Terms such as “illegal” and “alien” in the question may produce different results. When the next question did include the term “illegal immigrants”, many more Midwestern respondents answered saying jobs were being taken away from Americans than the number of Midwestern students. The students who indicted the illegal immigrants were working jobs others did not want, may fit the demographic of students who come from an agricultural background. Student responses showed significant support for making it a crime to hire day laborers off of the street, with a response rate higher than the national rate. It is this researcher’s belief that many of the students do not know what day laborers are. This became apparent in a recent ethics course case. The geographic location of the university seldom, if ever, has day laborers on street corners. As an instructor of diversity issues, this researcher was surprised that as few as 36% of students who had taken the diversity course saw the law as a violation of Title VII of the Civil Rights Act. Race and national origin are protected groups within the Act. Discriminatory acts such as racial profiling would typically be seen as a violation of the Act. Perhaps the students did not see racial profiling as a result of the legislation, but in the next question, a majority of the students felt “racial profiling will be used to determine who is suspicious of being an illegal immigrant” (Rasmussen Staff, 2010). Students most educated or aware of immigration law likely had an easier time predicting the future of the Arizona legislation. Each of the listed options was addressed in news stories in April and May of 2010. Many (55%) expected the legislation to be rewritten (as it has) and many expected the federal government to declare the law unconstitutional (28%) and it has. The expectation that other states will follow Arizona’s example and pass similar laws received a 36% prediction response and soon after Arizona’s proposal, other states began work on their own. There had been immigration laws before, but Arizona’s was viewed as the most dramatic. The researcher was not surprised that 64% of the students did not expect to see similar legislation in their state. Some cited the distance from the Mexican border as removing the state from the issue. However, comments about the relevancy of the issue in the Midwest are interesting The Midwestern University is not far from Canada. The final part of the survey allowed participants to leave additional thoughts. Fifty-five or 21% of the students chose to leave an optional comment. Some of the responses were passionate expressions of opinion. Often these responses included a personal experience or experience of someone close to them.

18 Journal of Business Diversity vol. 13(1/2) 2013 One spoke of her personal experience living in Arizona and another spoke of her uncle who often gets stopped in airports for no reason other than his appearance. Knowledge (or the lack thereof) of the immigration system was apparent in many responses. Many said immigrants should just enter the country the correct way by becoming citizens. Others said illegal immigrants do not pay taxes. Both of these topics are discussed in university ethics courses; clearly, however, more facts should be included in the workplace diversity course. Some students have parents who hire migrant workers and depend on them during their harvest. One said they hated the entire topic and wished people wouldn’t talk about it. One student more familiar with the situation said, “The federal government needs to step in and make a clear and modern policy that addresses the pivotal role illegal immigrants play in our economic structure.” In conclusion, the research question of “Are the students at the Midwestern University aware of the issues related to the Arizona Immigration Law?” was answered with a majority of students being somewhat aware. All students who completed the survey should now be aware, to some extent. The second research question, “Do Midwestern university students have the same views on the Arizona Immigration Act as the general population?” was also answered. Their responses were generally quite different than the general population, even the population living in the Midwest. It was hypothesized that Midwestern university students would be more open and accepting of illegal immigrants than respondents in national opinion polls and respondents in a “Midwestern” regional poll. Surprisingly, Midwestern respondents (not students) to a national poll were generally more in favor of the immigration legislation than other parts of the country. The students did not follow the Midwestern poll findings. While results are not conclusive, this research shows a trend for the students to be more open and accepting to illegal and legal immigrants (with the exception of day laborers).

IMPLICATIONS AND FUTURE RESEARCH OPPORTUNITIES

This study investigated a pressing issue and was successful in determining student awareness and perspectives of the proposed 2010 Arizona Immigration Act at one Midwestern university. As of October 2012, five more states have proposed similar immigration legislation (Barnes, 2012). The legislation in these states has not had the same degree of national news media attention. It would be interesting to run a similar study about knowledge and perceptions of the legislation in those states. The role of media may become very apparent in the formulation of immigration opinion. No legislation has been proposed in the home state of the Midwestern University. In 2013, the Gang of Eight (bipartisan U.S. senators), has proposed a new immigration law to deal with immigration reform from a federal level (Welna, 2013). In June of 2012, the Supreme Court struck down three of the main provisions of the law. The Course did uphold the provision of checking papers of those detained by police, but not they could not be detained through racial profiling (Barnes, 2012). Immigration law will continue to change and emerge. Political parties have different positions on legislation. Political sentiment on illegal immigration policy may change with elections and will continue to be a topic of controversy and important public policy. Much research can be done on the perceptions of legislation. As mentioned, business students at the study university take a course on workplace diversity. Opinions were not significantly different between those who had taken the course and those who had not. For now, implementing more educational experiences related to the complexities of immigration law through the lens of critical race theory will be beneficial to students of the workplace diversity course. Hope for dismantling the fear of immigrants and anti-immigration sentiment remains in the hands of education. Education should be designed to “humanize the immigrant experience by revealing statistics regarding mixed status families” (Sandoval, 2011, p. 52). An environment that allows for dissimilarity but also allows individuals to identify with each other can be created (Schaffer & Riordan, 2011). The major limitation of this study is data was collected from only one university. The need to collect data at the specific point in time (when the Act was proposed), limited the ability to organize and collect from other institutions. It is possible that unknown factors may have skewed the results. Future research should attempt to collect data from several institutions. Comparing responses of Midwestern students

Journal of Business Diversity vol. 13(1/2) 2013 19 with students in similar universities in the Southeast, Southwest, Northeast, and Northwest would be very interesting. It would allow the researcher to draw a more direct comparison between regions in contrast to this study which focused on only one region and a nationwide group. The sharing of results could benefit lawmakers who would like a measure of student interest to immigration and would be very helpful to instructors who want to increase interest in current news events. The findings on where students heard of the immigration law provide a good basis for understanding methods to get important news to the student population.

REFERENCES

Abrahms, D. (2010). Processes of prejudice: Theory, evidence and intervention. Equality and Human Rights Commission. Manchester: University of Kent.

Angus Reid Staff. (2010). Americans would adopt Arizona Immigration Bill in other states. New York: Angus Reid Public Opinion. Retrieved May 14, 2010, from http://www.angus-reid.com/wp- content/uploads/2010.06.02_Immigration_USA.pdf

Archibald, R. (2010, April 23). Arizona enacts stringent law on immigration. New York Times.

Barnes, R. (2012, June 25). Supreme Court upholds key part of Arizona law for now, strikes down other provisions. Retrieved from Washington Post Politics: http://www.washingtonpost.com/politics/supreme- court-rules-on-arizona-immigration-law/2012/06/25/gJQA0Nrm1V_story.html

Brader, T., Valentino, N. A., & Suhay, E. (2008). What triggers public opposition to immigration? Anxiety, group cues, and immigration threat. Amercian Journal of Political Science, 52(4), 959-978.

Branton, R., Cassese, E. C., Bradford, S. J., & Westerland, C. (2011, July). All along the watchtower: Acculturation fear, anti-Latino affect, and immigration. The Journal of Politics, 73(3), 664-679.

Burns, P., & Gimpel, J. (2000). Economic insecurity, prejudicial stereotypes, and public opinion on immigration policy. Political Science Quarterly, 115(2), 201-225.

Caplan, J., & Torpey, J. (Eds.). (2001). Documenting Individual Identity: The Development of State Practices in the Modern World. Princeton, NJ: Princeton University Press.

Center for Immigration Studies. (2010, April 30). Fact sheet on new Arizona Immigration Law. Retrieved May 16, 2012, from Rense.com: http://rense.com/general90/factsheet.htm

CNN Staff. (2010, May 1). Arizona governor signs changes into immigration law. Retrieved August 13, 2013, from CNN International: http://editionc.cnn.com/2010/Politics/4/30

CNN Wire Staff. (2010, July 28). Legal battle looms over Arizona immigration law. Retrieved August 13, 2012, from CNN U.S.: http://articles.cnn.com/2010-07-28/us/arizona.immigration.law_1_arizona- immigration-law-illegal-immigrants-arizona-state?

Cohen, T., & Mears, B. (2012, June 26). Supreme Court mostly rejects Arizona immigration law; gov says 'heart' remains. Retrieved August 14, 2012, from CNN: http://edition.cnn.com/2012/06/25/politics/scotus-arizona-law/index.html

Cordery, S., & Johnson, R. A. (2011). Midwest Attitudes Toward Globalization. Monmouth, Illinois: Monmouth College Midwest Matters.

20 Journal of Business Diversity vol. 13(1/2) 2013

Delgado, R., & Stefancic, J. (2001). Critical race theory. New York: New York University Press.

Dick, H. P. (2011). Making immigrants illegal in small-town USA. Journal of Linguistic Anthropology, 35-55.

Dutton, S., De Pinto, J., Backus, F., & Salvanto, A. (2010). Poll: Americans split over birthright citizenship. New York: CBS Interactive. Retrieved November 10, 2012, from www.cbsnews.com/8301_503544_162-20014853-503544.html

Espenshade, T. J., & Calhoun, C. A. (1993). An analysis of public opinion toward undocumented immigration. Population Research and Policy Review, 12(3), 189-224.

Frey, W. H. (2011, August 26). America reaches its demographic tipping point. Retrieved October 29, 2012, from Brookings Up Front: www.brookings.edu'blogs/up-front/posts/2011.08/26-census-race-frey

Garcia, A. (2012, May 4). Phoenix to wear Los Suns jerseys, bringing politics to court. Retrieved from NBA.com: http://www.nba.com/2010/news/05/04/los.sons/index.html

Hopkins, D. J. (2010, February). Politicized places: Explaining where and when immigrants provoke local opposition. American Political Science Review, 104(1), 40-60.

Johnson, K. (1997). "Aliens" and the U.S. immigration law: The social and legal construction of nonpersons. University of Miami Inter-american Law Review, 263-292.

Jones, J. (2010, April 29). More Americans favor than oppose Arizona Immigration Law. Retrieved April 12, 2012, from Gallup.com: http:www.gallup.com/poll/127598/Americans-Favor-Oppose-Arizona- Immigration-Lay

Kelle, U. (2006). Combining qualitative and quantitative methods in research practie: purposes and advantages. Qualitative Research in Psychology, 3, 293-311.

Kirk, S. (2009, February 23). The value of qualitative research. Retrieved August 14, 2012, from Ezine Articles: http://EzineArticles.com/?expert=Stewart_Kirk?

Longley, R. (2012, October 13). Janet Napolitano: Secretary of Homeland Security. Retrieved from U.S. Government Info.: http://usgovinfo.about.com/od/thepresidentandcabinet/a/Janet_Napolitan.htm

Passel, J. (2011). Unathorized immigrant population: national and state trends, 2010. Washington, D.C.: Pew Hispanic Research Center.

Persell, D. H. (1997). The interdependence of social justice and civil society. Sociological Forum, 12(2), 149-172.

Rasmussen Staff. (2010, April 22). Rasmussen poll says 70% of Arizona residents support immigration enforcement bill. Retrieved April 24, 2010, from NumbersUSA: Http://numbersusa.com/content/news/april-22-2010/rasmussen-poll-says-79-arizona-residents-support- immigration

Journal of Business Diversity vol. 13(1/2) 2013 21 Rodriguez, T. (2010, April 27). Arizona passes discriminative immigration Law. Retrieved August 13, 2012, from Mexian-American.org: http://mexican-amercian.org/history/2010/arizona/immigration- law/SB-1070

Sandoval, L. (2011). Race and iImmigration law: A troubling marriage. 7(1), 41-58. Retrieved May 16, 2012, from http://digitalcommons.wcl.american.edu/tma/vol7/iss1/6

Santiago, C. R. (2012, August 14). Welcome to our intellectual and social community! Retrieved August 14, 2012, from LatCrit: http://latcrit.org/

Schaffer, B. & RIordan, C. (2011). The role of work group status as a contextual variable in relational demography research. The Journal of Business Diversity, 11(1), 19-32.

Silverleib, A. (2010, May 1). Arizona Governor signs changes to immigration law. Retrieved August 14, 2012, from CNN: http://edition.cnn.com/2010/POLITICS/04/30/arizona.immigration.law.changes/

Spataro, S. (2012). Not all differences are the same: Variation in the status value of demographic characteristics within and across organizations. The Journal of Business Diversity, 12(3), 67-80.

Staff. (2011). Arizona immigration law: A full guide to the 2011 Arizona immigration law. Retrieved from Immigration Laws.com: http://www.immigration.laws.com/arizona-immigration-law

Welna, D. (2013, May 29). Immigration measure faces test in Senate, rival bill in House. NPR-It's All Politics. Retrieved May 29, 2013, from http://www.npr.org/itsallpolitics/2013/05/29

22 Journal of Business Diversity vol. 13(1/2) 2013

Organizational Perspectives on Stained Glass Ceilings for Female Bishops in the Anglican Communion: A Case Study of the Church of England

Judy Rois University of Toronto and the Anglican Foundation of Canada

Daphne Rixon Saint Mary’s University

Alex Faseruk Memorial University of Newfoundland

The purpose of this study is to document how glass ceilings, known in an ecclesiastical setting as stained glass ceilings, are being encountered by female clergy within the Anglican Communion. The study applies the stained glass ceiling approach developed by Cotter et al. (2001) to examine the organizational structures and ordination practices in not only the Anglican Communion but various other Christian denominations. The study provides an in depth examination of the history of female ordination within the Church of England through the application of managerial paradigms as the focal point of this research.

INTRODUCTION

In the article, “Women Bishops: Enough Waiting,” from the October 19, 2012 edition of Church Times, the Most Rev. Dr. Rowan Williams, then Archbishop of Canterbury, urged the Church of England in its upcoming General Synod scheduled for November 2012 to support legislation that would allow the English Church to ordain women as bishops (Williams, 2012). Williams had been concerned about the Church of England’s inability to pass resolutions that would allow these ordinations. As the spiritual head of the Anglican Communion of approximately 77 million people worldwide, Williams had witnessed the ordination of women to the sacred offices of bishop, priest and deacon in many parts of the communion. Ordinations allowed women in the church to overcome glass ceilings in certain ministries, but also led to controversy and divisiveness in other parts of the church, although the Anglican Communion has expended significant resources in both monetary terms and opportunity costs to deal with the ordination of women to sacred offices, specifically as female bishops. The resolution of female ordination to the episcopate is still ongoing. Problems surrounding the ordination of women have been difficult to define, measure, and resolve. The purpose of this paper is to document the ordination of women bishops within the Anglican Communion and provide a case study of the situation that the Church of England has faced in attempting to resolve issues surrounding the ordination of females. It compares the experiences of women in sacred spaces with secular business settings. Rixon and Faseruk (2012) demonstrated that parts of the Anglican Communion have been proactive in adopting secular practices, such as strategic management. These

Journal of Business Diversity vol. 13(1/2) 2013 23 progressive practices have not always been extended to attitudes concerning the ordination and advancement of female clergy. This paper postulates that a glass ceiling based on gender bias is still being witnessed in certain branches of the Anglican Communion. A history of ordained women in the ministry of various Christian denominations is provided to demonstrate that issues surrounding female vocation or employment in the church do not differ significantly from those of other occupations wherein women have overcome some barriers while encountering others. In certain churches, no attempt has been made to integrate women into ordained ministries, including the Roman Catholic and Eastern/Oriental Orthodox churches. These bodies steadfastly refuse to admit women to Holy Orders. Reasons often cited are based on their interpretation of Scripture and traditions that are firmly entrenched from past practices. For further discussion see Zagano (2008) and Martinez, M. Rodriguez-Entrena and M.J. Rodriguez-Entrena (2012). Aside from outright refusal to consider ordination is a second church-related experience which is on the opposite side. Some churches have fully embraced women into their ordained ministries with little visible discrimination, including the Salvation Army, several Methodist and Lutheran churches, the United Church of Canada and the American Universalist Church. A third type of church-experience on female ordination has been exhibited in the Anglican Communion. The Anglican Communion demonstrates great heterogeneity in examining the ordination of women across various jurisdictions. Some national churches have adopted the model for ordination of women at all levels of ministry, while other parts of the communion reject female ordination at all levels, not unlike the Roman Catholic and Eastern/Oriental Orthodox churches. Still others have only partially adopted the model allowing ordinations at some, but not all levels, thereby limiting upward mobility. In some of these churches within the Anglican Communion, the process continues to unfold and is evolutionary, but at a snail’s pace; hence the Archbishop of Williams’ concern in attempting to overcome the inertia to bring resolution to the issue of the ordination of women bishops in the Church of England sooner rather than later. Lutheran Churches can also display this type of heterogeneity. While some Lutheran Churches, such as Sweden, Denmark and Canada, ordain women to all levels of ministry, the Lutheran Church-Missouri Synod does not ordain women to any sacred offices. In virtually all branches of the Anglican Communion, resistance in varying degrees has been or is currently exhibited with respect to the upward mobility of female clergy. These barriers, metaphorically speaking, have “stained glass windows” functioning as a glass ceiling. The study is divided into seven sections in order to examine the path to the ordination of female bishops within the Anglican Communion. This first section has provided an introduction to the issue of female ordination in the Anglican Communion. The second section outlines the methodology for the study. In the third section, a literature review of glass ceiling and stained glass ceiling is undertaken to describe problems of female advancement within secular and ecclesiastical settings. The fourth section describes the organizational structure of the Anglican Communion, while the fifth section documents female ordinations across various Christian denominations. In the sixth section, the discussion addresses ordinations in the Anglican Communion to demonstrate that it is not a homogeneous body as different national churches and dioceses display divergent theologies toward the ordination of women. The intent is to demonstrate how women in the Anglican Communion have encountered glass ceilings as they progress towards the episcopacy with the underlying question, “Why is the stained glass window a glass ceiling?” The orientation in this section outlines particular problems faced by the Church of England. The seventh section concludes the study and provides directions for future research.

METHODOLOGY

The methodology for this paper is based on a chronological case study approach. This paper draws on the secular glass ceiling framework of Cotter et al. (2001) in order to examine the impact of the glass ceiling on the ordination of female bishops in the Anglican Communion. While the framework of Cotter et al. was based on observations in the secular business world, it can be adapted to explore the advancement of female clergy from entry levels to the pinnacle level of clergy, that of bishop. An

24 Journal of Business Diversity vol. 13(1/2) 2013 extensive literature review is employed to document the history of advancement of female clergy not only in the Anglican Communion but in various denominations.

LITERATURE REVIEW: GLASS CEILINGS AND STAINED GLASS CEILINGS

Over the past several decades, many organizations, in both the private and public sector, have witnessed the glass ceiling for female employees with limitations on upward mobility in organizations. “Glass ceiling” was coined in 1979 by two female employees of Hewlett-Packard, Katherine Lawrence and Marianne Schreiber. They used it to describe the situation that, while on the surface there appeared to be a clear path of promotion for women that, in actuality, women seemed to hit a point beyond which they were unable to progress. It is interesting to note in 1999, upon becoming CEO and Chair of the Board of Directors of Hewlett-Packard, Carly Fiorina, the first woman to lead a Fortune 20 company, proclaimed there was no glass ceiling at Hewlett-Packard. Glass ceiling was subsequently used in a March 1984 Adweek article by Gay Bryant and in the March 24, 1986 edition of the Wall Street Journal, Carol Hymowitz and Timothy Schellhardt wrote an article concerning the invisible barriers that impede the career advancement of women in the American workforce. While sexual discrimination in employment was outlawed in the United States through the Civil Rights Act of 1964, gender barriers have nonetheless persisted. In 1972, the Committee on the Status of Women in the Economics Profession (CSWEP) was founded to document the career progression of women in economics. This committee monitored the progress of women in professional activities and engaged in undertakings that would help to further the process of female advancement in economics. Glass ceiling was used by the Department of Labor in the United States in response to a study of nine Fortune 500 companies. The Federal Glass Ceiling Commission (1995) confirmed that women and minorities encountered considerable glass ceiling barriers in their careers. These barriers were often encountered earlier than previously thought. Cotter et al. (2001) postulated that the glass ceiling effect implies that gender or other disadvantages to advancement within an organization are stronger at the top of a hierarchical structure than at lower levels. Further, these disadvantages become worse at a later stage in a person’s career progression, which is consistent in many parts of the Anglican Communion for Episcopal ordination which is at the top of the organizational structure for a diocese. Cotter et al. (2001) outlined four specific criteria for a glass ceiling to exist:

1. A glass ceiling inequality represents a gender or racial difference that is not explained by other job-relevant characteristics of the employee. 2. A glass ceiling inequality represents a gender or racial difference that is greater at higher levels of an outcome than at lower levels of an outcome. 3. A glass ceiling inequality represents a gender or racial inequality in the chances of advancement into higher levels, not merely the proportions currently at those higher levels. 4. A glass ceiling inequality represents a gender or racial inequality that increases over the course of a career.

Cotter et al. (2001) using random effects models and data from the Panel Study of Income Dynamics examined gender and income inequalities at the 25th, 50th and 75th percentiles of white male earnings. Although they found evidence of a glass ceiling for women, racial inequalities among men did not follow a similar pattern. The data demonstrated the existence of a distinctive gender pattern. References to these criteria are made implicitly throughout this study. A similar term to the stained glass ceiling effect, the “stained glass ceiling” first appeared in a Time magazine article on July 17, 2000. While this study is concerned with documenting a stained glass ceiling relationship in the Anglican Communion, it should be noted that a glass ceiling is not the only potential impediment to upward mobility if the culture pervades the entire organization. Myerson and Fletcher (2000, p. 136) summarized their assessment of organization culture by arguing:

Journal of Business Diversity vol. 13(1/2) 2013 25

It’s not the ceiling that’s holding women back: it’s the whole structure of the organizations in which we work: the foundation, the beams, the walls, the very air. The barriers to advancement are not just about women, they are all around them….We must ferret out the hidden barriers to equity and effectiveness one by one.

Stained glass ceilings refer to the difficulty for women who seek to gain a role within church leadership. This term is metaphorical indicating a certain level of power or authority within church structures that impede women from advancing above a certain level within the church hierarchy. In the extreme, women could be barred from obtaining entry into ordained ministry, such as not being able to obtain access to requisite educational institutions. Another barrier could be the religious group’s barring of women through tradition, canon law or rubrics from ordained positions. Longman and Lafreniere (2012) proposed the use of education to overcome the stained glass ceiling. While this is one remedy to a specific segment of the problem, it cannot be a panacea to solve all problems surrounding ordination. There are additional barriers that frustrate women in attempting to be fully integrated as ministers of a church. The problems include ordination itself, experiencing impediments to the performance of ministry post-ordination, and difficulties that become increasingly more prevalent as one moves further in the hierarchy of the church, which is consistent with Cotter et al. (2001). Anderson (2010) demonstrated that in many Lutheran churches, male pastors were more likely to preside over larger churches, which she refers to as megachurches (more than 2,000 congregants), than their female counterparts who are often relegated to minichurches. Megachurches would presumably have larger salaries for pastors and endowments along with clearer paths for career progression. External forces can attempt to place a stained glass window in a church. Zagano (2008, p. 135) recounts how Pope Paul VI, out of fidelity of safeguarding Apostolic Tradition and removing a new stumbling block placed in the way of Christian unity, reminded Anglicans of the Roman Catholic position, when the Anglican Communion was initially considering the ordination of women. The Pope wrote to F.D. Coggan, Archbishop of Canterbury on November 30, 1975:

She holds that it is not admissible to ordain women to the priesthood, for very fundamental reasons. These include: the example recorded in the Sacred Scriptures of Christ choosing his Apostles only from among men; the constant practice of the Church, which has imitated Christ in choosing only men; and her living teaching authority which has constantly held that the exclusion of women from the priesthood is in accordance with God’s plan for his Church.

It is ironic that in the preceding quote the Church is referred to in feminine terms while denying women admission to the sacred orders of the Roman Catholic Church. In addition to warning Anglicans against the admission of women to Holy Orders, Hunt (2011, p. 87) recounts that three recent popes have made pronouncements against the ordination of women: Pope Paul VI in 1977 in Inter Insignores; John Paul II in Ordinatio Sacerdotalis in 1994; and Benedict XVI in 1995 (as Joseph Cardinal Ratzinger) in Responsum Ad Dubium. When national churches in the Anglican Communion were considering the ordination of women, some adopted conscience clauses that allowed dissenting bishops to not accept women into Holy Orders or to not license them to fulfill clerical responsibilities following ordination. These clauses effectively allowed a barrier to entry if the aspirant were on the outside peering in through a stained glass window. Once inside, it became a stained glass ceiling. For example, in 1975 the Anglican Church of Canada approved the ordination of women but allowed bishops in Canada a conscience clause. It was subsequently rescinded in 1986. There have been incidences of bodies reversing their stance on the ordination of women after female ordinations were allowed, such as the Presbyterian Church in Australia and the Southern Baptist Convention in the United States. The Anglican Communion reversed its stance on whether ordinations of

26 Journal of Business Diversity vol. 13(1/2) 2013 deaconesses actually constituted a valid ordination. The three situations are expanded upon in subsequent sections of this study as examples of stained glass windows postulated by Cotter et al. (2001). In ecclesiastical circles, a barrier has the ability to be put back up after it had been taken down. In addition to gender discrimination being exhibited at the national and diocesan level, it can also be exhibited at the local congregational/parochial level by refusing to appoint/accept a woman as part of the ministerial team, which may be a basic employment equity issue. Even if a woman were to become part of a parish’s ministerial team, discrimination through the imposition of glass windows can take place via other means, some of which are subtle. Consider a parishioner leaving the congregation, altering pattern of monetary giving or selective non-attendance at liturgical celebrations when the female minister presides at liturgies. A phenomenon which is often identifiable in congregations is church-shopping wherein potential congregants “check out” the various activities surrounding a church, such as the ministerial team, Sunday School activities, youth groups, Bible studies, Christian fellowship and social activities, prior to joining a congregation. Sometimes the cost of search in church-shopping can be very extensive, whereas, on the opposite extreme, no monetary or time costs are incurred as others do not move regardless of what happens in a congregational setting. Conversely, a change in ministers can also give rise to congregants following a minister from one parish to the next. In some cases, the acceptance of an ordained woman can be confined to a certain level within the hierarchy. For example, a congregation could accept a female deacon, but would not accept a female priest. Alternatively, career progression could stop at the level of priest, as some national churches may ordain women as priests, but will not ordain them as bishops. Women may not always be willing to accept other women in roles of authority, as argued by Buchannan, Warning and Tett (2012). This concept of women in authority in church-settings has been debated by Radford-Ruether (2011), Via (2011) and Hunt (2011). As such, glass ceilings are evidenced by ordained women in the Anglican Communion, which is consistent with Cotter et al. (2001). The term stained glass ceiling is employed in this study to refer to a particular aspect of a broader trend of gender discrimination in religious communities through defined social roles and barriers justified by tradition, dogma or doctrine within a segment of the church. The first part of the phrase “stained glass” refers to the frequent use of stained glass artwork in places of Christian worship. It is ironic that an art form used for many centuries to edify Christians can be construed as an inhibiting factor to the advancement of women within Christian organizations. The stained glass ceiling, at its highest point, is encountered by a woman who aspires to be a bishop in the Anglican Communion. A bishop is the focal office in the Anglican Communion, as this person is at the apex within the hierarchic organizational structure for a diocese.

ORGANIZATIONAL STRUCTURES IN THE ANGLICAN COMMUNION

The bishop is the head of a diocese, the basic reporting unit within the Anglican Communion. A bishop ordains and licenses clergy. A diocese is divided into various parishes and congregations. The diocese can include chapels, theological colleges, hospitals, book stores, church newspapers, groups of men and women (e.g. ACW-Anglican Church Women), youth groups and many church-related functions. The bishop of one diocese is linked to bishops of other dioceses through a shared tradition, sacraments and church meetings, such as the House of Bishops and Synods. Synods, beyond one diocese, are formed by several dioceses coming together to form a province, which is linked to others through canons and constitutional law. The Anglican Communion does not have a highly codified canon law like the Roman Catholic Church and, while being hierarchical, tends to be much more decentralized than the Roman Catholic Church. A bishop may have an assistant bishop which can either be a Suffragan Bishop (an assistant bishop without the right of succession when the diocesan bishop retires, dies, becomes incapacitated or is removed (deposed) from office), or a Coadjutor Bishop (an assistant bishop with the right of succession) or Area Bishop (a bishop exercising Episcopal functions over a designated geographic area, such as the Diocese of Toronto which has a diocesan bishop who is assisted by four area bishops). Bishops need not

Journal of Business Diversity vol. 13(1/2) 2013 27 have a diocese as there can be missionary bishops sent to a particular geographic region to engage in founding a diocese or they can serve special interests within the church. The Anglican Church of Canada appointed Mark MacDonald as bishop to the First Nations People of Canada, effectively a trans-diocesan bishop. The Church of Nigeria ordained several missionary bishops to establish new dioceses, primarily in the northern part of Nigeria. Succession planning in the church is not readily observed in the Anglican Communion (outside of the Coadjutor Bishop), as the incumbent bishop cannot designate a successor. The next bishop is elected by an electoral synod of the diocese either when the See becomes vacant or the planned retirement of the bishop. For example, in the Anglican Church of Canada, bishops are required to retire at 70. An interesting situation may arise in certain provinces if a legal challenge is made to the canon that requires compulsory retirement. Several civil jurisdictions have eliminated legally enforceable compulsory retirement. It is conceivable that a legal challenge could be made to determine which has greater effect, civil law or canon law. It may be ironic that a court could enforce prohibitions against ageism while not being able to deal with sexist policies in the church. The canons or constitution of a diocese or province specify the eligibility of the electors and the qualifications that candidates for bishop must meet. In terms of corporate governance, the bishop is elected by and is answerable to the synod of the diocese and houses of bishops within the church. A diocesan synod consists of ordained ministers and laity. The House of Clergy consists of priests and deacons. They perform a variety of roles, such as rectors or assistants in parishes or congregations, diocesan administrators, hospital chaplains or seminary/theological college professors. The House of Laity consists of the laypeople that sit on parish councils, serve as Eucharistic Assistants, sing in choirs or serve on the many committees associated with the activities of the parish or diocese. Diocesan synods usually meet on an annual or biennial basis. For resolutions to pass, they must gain a majority of the votes in both houses and receive the pleasure of the bishop. If a bishop withholds pleasure, the resolution is vetoed. There is no provision for the override of a veto, but defeated and vetoed resolutions could be reintroduced at subsequent synods. Issues, including the ordination of women, can be debated over several synods and remain unresolved for long periods of time. Bishops can be deposed from office (equivalent to firing or termination of employment contract in the business sector), but the process is long and cumbersome. It is very infrequently undertaken. One example of a bishop being deposed was the Robert Duncan, the former Bishop of Pittsburgh, who was deposed in 2008 by a vote of 88 to 35 with four abstentions to remove him from all ordained ministry in the church “for abandonment of the communion of this church.” Duncan turned against The Episcopal Church after it elected an openly gay bishop, which he considered defiance of scripture and tradition. The Anglican Communion is Episcopally led, but synodically governed in order to maintain some checks and balances within the church. These are, however, not in perfect balance with more weight given to the bishop. When the synod is at the provincial level, a third house is introduced, the House of Bishops. For resolutions to pass at this level, a majority would need to be obtained in all three houses. A super or two-thirds majority may be required on certain issues. A bishop would appear prima facie to have wide latitude of power, but it would be inappropriate to superimpose a chief executive officer (CEO) model on this office. Infrequent references to bishops as having “chief” are usually only found in liturgical sources or as an administrative officer in diocesan constitutions. Consider the Canadian Book of Alternative Services (p. 183), “As chief liturgical officer it is the bishop’s prerogative to preside at the Lord’s Table and to preach the Gospel.” In many ways, the bishop’s role is more of a regional vice- president in the administration of franchisors or branches on behalf of a segment of the church. A province is under the direction of an archbishop which can be either a metropolitan or primate (also referred to in some provinces as a primus or a presiding bishop). There is some confusion in usage of the term province, as it can mean a sub-division within a national church or the national church itself. For example, Canada consists of four ecclesiastical provinces (British Columbia and the Yukon, Canada, Ontario and Rupert’s Land). Canada refers to both an ecclesiastical province as a subdivision within the Anglican Church of Canada, (the Ecclesiastical Province of Canada consists of seven diocese in the eastern part of Canada, namely Central Newfoundland, Eastern Newfoundland & Labrador, Fredericton,

28 Journal of Business Diversity vol. 13(1/2) 2013 Montreal, Nova Scotia & Prince Edward Island, Quebec and Western Newfoundland), but also to the Anglican Church of Canada which is one of the 38 provinces in the Anglican Communion with other national/regional churches. For a listing and official title of the churches see www.anglican communion.org. Often the national church bodies function like the government of their national state. For example, The Episcopal Church in the United States functions in a similar fashion to Congress, whereas in England, the synods function very much like the British Parliament. The British constitution is an unwritten constitution which has evolved based on precedents and common law, but often precedents can take significant time to evolve. As well, laws can take a long time to be enacted. The American constitution is more formalized contained largely in a single document, which can be amended through a laborious process. The Church of England as an established church is the official national church for England. The Episcopal Church is but one of many churches in a country which holds the doctrine of separation of church and state. Moreover, the Supreme Court in a rare 9-0 ruling upheld in Hosanna- Tabor EEOC (2012) that the rules of diversity, Title VII, etc. did not apply to religious institutions because religious faith and practice operated outside the normal boundaries of legal paradigms. While many churches in the Anglican Communion have become more open, accountable and democratic and sought to become more inclusive, it is often contingent upon the ecclesiastical polity of the various national churches given that these characteristics and movements in the church are not universally accepted. The bishops of the Anglican Communion meet on a decennial basis in the Lambeth Conference, hosted by the Archbishop of Canterbury in England. The last conference took place in 2008 with the next scheduled for 2018. Resolutions at Lambeth are generally non-binding on the national churches that come together and, while the Archbishop of Canterbury functions as the convening and presiding officer, the power of the Archbishop of Canterbury is more of moral suasion as the primus inter pares, the first among equals. While the Archbishop can use statements from his office to persuade delegates, his statements are not binding on delegates, including other bishops. Again, a corporate governance model based on CEO would appear to not be well applied to bishops, or even archbishops, in the Anglican Communion. While appreciating how the hierarchy of the Anglican Church operates at and above the diocesan level, one should note that the majority of church activities take place within the diocese. To understand how glass ceilings function at the diocesan level, it is important to understand the various functions within the diocese. Assisting the bishop would be the priests and deacons who work largely in the parishes of the diocese. Each parish usually has a priest who is referred to as rector if the parish is economically self- financing or priest-in-charge if problems impede the financial viability of the parish. Each cleric in the diocese must have a license from the bishop to perform the duties required of the office. A priest presides at the Eucharist, performs baptisms and sundry rites, thereby functioning as a pastor to the flock within a parish. The bishop is often referred to as the pastor to the pastors. The rector is also responsible for remitting as assessment or percentage of parish income to the diocese. Given this licensing arrangement and assessment of income (akin to a franchise fee), the corporate model that would work well in explaining the activities of the church would again appear to be a franchise or branch manager model. A bishop can have a very small span of control when the diocese has few parishes and few administrative personnel. On the other extreme, the diocese could be divided into several administrative areas with several assistant bishops, regional archdeacons and administrative officers. With a small span of control comes a flat organizational structure with potentially ready access to the bishop; whereas, with a larger span of control comes a more elevated hierarchy with limited access to the bishop. More staff relationships arise in dioceses with elevated hierarchies. The rector may also be assisted by other priests referred to as Associate Priest, Assistant Priest, Curate or Honorary Assistant. In addition to other priests assisting the rector, the rector could be served by a deacon(s). A deacon has liturgical functions, such as the proclamation of the Gospel, setting the altar, dismissal of the congregation and leading various prayers. Deacons may be either a vocational (permanent) deacon (those called to remain in the order for their lives) or transitional deacons (those

Journal of Business Diversity vol. 13(1/2) 2013 29 called to the diaconate for a temporary period prior to being ordained to the priesthood, usually one year). In the latter, case the individual functions in an apprenticeship for the priesthood; whereas in the former case the vocation is expected to be permanent. As outlined in subsequent sections, the office of deacon, initially deaconess, paved the way for women to be ordained to the subsequent orders of priest and bishop within certain parts of the Anglican Communion. In other parts of the Anglican Communion women are still denied access even to the entry level position of deacon; whereas, in still other parts, the office of deacon is the glass ceiling being both the entry level and the highest level attainable by a woman.

FEMALE ORDINATIONS IN NON-ANGLICAN DENOMINATIONS

Until the nineteen century women were routinely denied access to the ordained ministry by almost all Christian denominations. It was not until the early nineteenth century that the first ordinations were made by the Society of Friends (Quakers). Part of their belief system was that there is an existence of an element of God’s spirit in every human soul. The initial justification was proposed by Margaret Fell (1614 - 1708) in a pamphlet that sought to justify equal roles for women and men in her denomination. In 1853, Antoinette Brown was ordained by the Congregational Church, but her ordination was not recognized by her own denomination. So, she quit that church and later became a Unitarian. In 1863, Olympia Brown was ordained by the Universalist denomination despite a last moment case of cold feet by the seminary that she attended. She later became a Unitarian. The Southern Baptist Convention (SBC) underwent a struggle in the late 1990s which ended in a fundamentalist victory and a prohibition against future female ordinations. At that time, the SBC had about 1,600 ordained women in their 41,099 churches and 16 million congregants. The existing female pastors were allowed to remain, but no new female pastors will be ordained. These instances of cold feet, waffling and leaving/joining different denominations represent a pattern of behavior that persists in various forms surrounding the ordination and advancement of women within various religious denominations, including female bishops in the Anglican Communion, which is again consistent with Cotter et al. (2001). When the Salvation Army was founded in 1865, it ordained both women and men with married couples sharing the same rank. Notable dates and events in the ordination of women are: • 1866 Helenor Alter Davisson became a circuit rider in Indiana of the Methodist Protestant Church as the first ordained Methodist. Later church conferences challenged the ordination of women • 1871 Celia Burleigh became the first female Unitarian minister • 1888 Fidelia Gillette first ordained woman in Canada in Universalist Church in Bloomfield, Ontario • 1889 Cumberland Presbyterian Church ordained Louisa Woosley • 1889 United Brethren Church ordained Ella Niswonger • 1892 Church of the Nazarene ordained Anna Hanscombe • 1909 Church of God (Cleveland TN) began ordaining women • 1911 Mennonite Church ordained Ann Allebach • 1914 Assemblies of God was founded and ordained its first female clergy • 1917 Congregationalist Church (England and Wales) first ordained women • 1920s some Baptist churches in the United States • 1920s United Reformed Church in the United Kingdom • 1930 Presbyterian Church (USA) ordained its first female as an elder • 1936 United Church of Canada • 1947 Czechoslovak Hussite Church • 1948 Evangelical Lutheran Church of Denmark • 1949 Old Catholic Church (in the United States) • 1956 The General Conference of the United Methodist Church approved full clergy rights for women • 1960 Evangelical Lutheran Church in Sweden

30 Journal of Business Diversity vol. 13(1/2) 2013 • 1964 Southern Baptist Convention ordained Addie Davis but later the “Baptist Faith and Message” doctrinal statement was modified in 2000 to prevent future female ordinations. • 1967 Presbyterian Church in Canada • 1968 Metropolitan Community Church is founded and will accept female ministers with Freda Smith ordained in 1972. • 1970 Lutheran Church in America (LCA) ordained Elizabeth Platz and later that year American Lutheran Church (ALC) ordained female ministers. The LCA and ALC later merge to form the Evangelical Lutheran Church in America. • 1972 Swedenborgian Church • 1974 Methodist Church in the United Kingdom • 1974 Presbyterian Church of Australia but stopped ordinations in 1991 • 1976 Evangelical Lutheran Church of Canada ordained Pamela McGee • 1984 Reorganized Church of Jesus Christ of Latter Day Saints • 1988 Evangelical Lutheran Church of Finland • 1995 Seventh Day Adventist in Virginia ordained three women in violation of the denomination’s rules • 1998 Guatemalan Presbyterian Church • 1998 Old Catholic Church in the Netherlands • 1999 Independent Presbyterian Church of Brazil • 2000 The Baptist Union of Scotland voted to allow their churches to either allow or prohibit the ordination of women • 2000 Church of Pakistan ordained its first female deacons • 2007 The Worldwide Church of God decided to allow women to serve as pastors and elders

Some denominations have ordained women as bishops. Included in these would be: • 1980 United Methodist Church • 1989 The Episcopal Church in the United States of America • 1994 Anglican Church of Canada • 1996 Lutheran Church in Sweden • 1997 Evangelical Lutheran Church of Denmark • 1997 Anglican Church in New Zealand • 1998 Presbyterian Church in Guatemala • 1998 Moravian Church in America • 1999 Czechoslovak Hussite Church • 2002 Evangelical Lutheran Church in Canada • 2008 Anglican Church of Australia • 2009 Lutheran Church of Great Britain (first female bishop in Great Britain)

The history of women in ordained ministries has been well documented through: “ELCA Gathers Power- Filled Women for a Power-Filled Church” (2004); United Methodist Church in “Growing Churches Led by Clergywomen” (2012); Houseal (2003) on Nazarene Clergy Women; Presbyterian Church (USA) “Clergywomen’s Experiences in Ministry: Realities and Challenges” (2003); Roebuck (2012) in Pentecostalism, “I have done the best I could: Opportunities and limitations for women ministers in Church of God-a Pentecostal denomination.”

THE STAINED GLASS CEILING IN THE ANGLICAN COMMUNION

The Anglican Communion encompasses 77 million people worldwide under the Archbishop of Canterbury as its spiritual head. The Archbishop is the primus inter pares for 38 provinces or

Journal of Business Diversity vol. 13(1/2) 2013 31 national/regional churches around the world. The Anglican Communion started as the Church in England which dates from 597 when St. Augustine of Canterbury became the first Archbishop of the Church. For almost a millennium, the Church of England functioned as a branch of the Roman Catholic Church, but it became detached during the Reformation. In 1534, the English Parliament passed the Act of Supremacy, which provided autonomy of the Church of England. While Roman Catholic authority over the Church of England was briefly restored during the reign of Mary I, it was rescinded following the accession of Queen Elizabeth I. Parliament passed a second Act of Supremacy, (1558). This document, which reflected the doctrine of the Elizabethan Settlement, sought to structure the Church of England as both Catholic and Reformed often being referred to as the via media or middle way between the Roman Catholic Church on the one hand and Protestantism on the other. The Church of England is catholic insofar as it views itself as part of the universal church in unbroken continuity with the early apostolic church. This belief is expressed in its emphasis on the teachings from the Patristic Era of the Church and reliance on formalized creedal statements, such as the Apostles’ and Nicene Creeds. This unbroken chain is recognized through the office of bishop within the church, who through the sacrament of ordination or the laying on of hands maintains this chain. Ordination is an ancient rite of the church to admit candidates to Holy Orders, which in the Anglican Communion is the prerogative of bishop. As previously demonstrated, the entry level position in ordained ministry is as a deacon. To be admitted to the priesthood a second ordination is required. Ordination as a bishop requires a third ordination with a minimum of three bishops performing the ordination, one of whom is the metropolitan bishop of the ecclesiastical province. Part of the problem with ordaining women to the episcopacy has been canon law which establishes various requirements to be elected bishops. In the Canadian church, the usual requirements are that the candidate be a priest with a minimum of six years in Holy Orders, over 30 years of age and be nominated by a minimum number according to the diocesan constitution. Moreover, simply because candidates meet the minimum requirements, it does not necessarily make them viable candidates. However, as more women become priests, more women will become eligible for election as bishop, once they meet the requirements. The Church of England is reformed insofar in that it has been shaped by some of the doctrinal principles of the sixteenth century Protestant Reformation with the development of additional theological expressions, such as the Thirty-Nine Articles which expanded upon ancient creedal statements and liturgical practices. These articles broke with previous Roman Catholic practices and were outlined in the Book of Common Prayer in 1549. The ordination of women in the Anglican Communion has become increasingly accepted since the first ordinations of women to the priesthood more than 35 years ago. The Anglican Communion in its ordained ministry uses the ancient orders of deacon, priest and bishop, as does the Roman Catholic Church and the Eastern/Oriental Orthodox Church. Some provinces within the Anglican Communion, such as The Episcopal Church in the United States of America, Cuba (as an extra-territorial diocese under the jurisdiction of the Metropolitan Council of The Episcopal Church, the Church of the West Indies and the Anglican Church of Canada), the Anglican Church of Aotearoa, New Zealand and Polynesia, the Anglican Church of Canada, the Anglican Church of Australia and, the Church of Southern Africa ordain women as deacons, priests and bishops. Several other provinces ordain women only as deacons (Southern Cone, Congo, Pakistan): still others ordain only up to priests [Burundi, England, Indian Ocean, Jerusalem and the Middle East, Kenya, Korea, Melanesia, Rwanda, South India, Wales, West Indies, West Africa, Ceylon (extra provincial to Canterbury)]. Some provinces allow for the ordination of women as bishops, but have not yet consecrated any: Bangladesh, Brazil, Central America, Hong Kong, Ireland, Japan, Mexico, North India, Philippines, Scotland, Sudan, and Uganda. Some provinces do not allow Holy Orders of any sort to be conferred on women: Central Africa, Nigeria, Papua New Guinea, South East Asia and Tanzania. The road to ordained ministry for women in the Anglican Communion had its origins in 1855, when the Bishop of Maryland set apart two deaconesses and followed by the Bishop of London in 1862. In 1885, ceremonies were conducted in Alabama and New York. In 1889, the General Convention adopted a

32 Journal of Business Diversity vol. 13(1/2) 2013 Canon on Deaconesses, which was followed by training programs for deaconesses instituted in New York, Philadelphia and San Francisco. In 1919, the General Convention recommended the inclusion of deaconesses in the Clergy Pension Fund, but the Board refused, saying that they were not clergy. The 1920 Lambeth Conference concluded that the laying on of hands for deaconesses was in fact ordination and that Holy Orders have been conferred on deaconesses. The 1930 Lambeth Conference rescinded its 1920 decision and in 1948 refused to hear Hong Kong’s request for experimentation with the ordination of women. During the war, Hong Kong had ordained Li Tim-Oi, a deacon from Macau, as a priest on January 25, 1944. As her ordination was considered controversial, she resigned her license, but not her priestly orders, following the war. It was not until 1971 that she was officially recognized as a priest in the diocese when Hong Kong ordained two further female priests. In 1958, Episcopal Theological School admitted women to the Bachelor of Divinity (B.D.) program [now known as the Master of Divinity (M.Div.)]. This decision to allow women to study theology was significant as this was the usual basic educational requirement for ordained ministry. Admission to theological colleges removed a significant barrier to entry for subsequent ordinations. In 1964, the General Convention in the United Stated changed the canon on deaconesses to read “ordered” rather than “appointed.” Deaconess Phyllis Edwards was then recognized as a deacon by Bishop James Pike of San Francisco. In 1966, the House of Bishops in the United States asked the Lambeth Conference to consider ordaining women to the priesthood. In 1968, the Lambeth Conference agreed that deaconesses are part of the diaconate, but referred the issue of the ordination of women back to national churches for further study. Hong Kong, Kenya, Korea and Canada began ordaining women to the diaconate and suspended using the term deaconess. At the General Convention in 1970, women were admitted as lay delegates after a 50 year struggle. The canon on deaconesses was eliminated with women included in the canon on deacons. Women thereby became eligible for the pension plan. Over the next few years, the American Church faced enormous debates on whether or not to ordain women to the priesthood and whether the ordinations were valid. The debate often became acrimonious. People, both clergy and lay, left the church. Eleven women were ordained as priests by three retired bishops in Philadelphia in 1974. Four more ordained in Washington in 1975. These early ordinations were considered irregular until the 1976 General Convention which normalized the ordinations. Since that time women in the United States were well on their way to becoming ordained to all three orders of the Church. In 1989, Barbara Harris was ordained as the first female bishop. To date, The Episcopal Church has ordained 17 female bishops including Mary Glasspool, an openly gay woman as Suffragan Bishop of Los Angeles in 2010, and Katharine Jefferts Schori who became the Presiding Bishop for a nine year term in 2006. While Episcopalians in the United States have overcome many problems associated with glass ceilings for female ordination, there are often other issues that are addressed together. While churches have been contending with the issue of female ordination, it has also encountered issues dealing with the concurrent issue of same sex marriage. While this issue has, of course, been a notable national issue for secular authorities, it has also been prominent within the Church. Pless (2010) asked the question in his article, “The Ordination of Women and Ecclesial Endorsement of Homosexuality: Are they Related?” Gene Robinson, an openly gay male priest, was elected Bishop of New Hampshire in 2003 and married his partner, Mark Andrew in 2008. When Mary Glasspool was elected bishop in 2010, she had been a relationship with her partner for the preceding 19 years. While it is difficult, if not impossible, to provide quantitative evidence, many opponents of ordaining women in The Episcopal Church would also oppose same-sex marriages.

Anglican Church in Aotearoa, New Zealand and Polynesia The Anglican Church in Aotearoa, New Zealand and Polynesia was among the first provinces in the Anglican Communion to ordain female priests in 1977. In 1989, it elected Penny Jamieson as Bishop of Dunedin. In 2008, the Diocese of Christchurch elected Victoria Matthews, former Bishop of Edmonton in the Anglican Church of Canada, as their diocesan bishop.

Journal of Business Diversity vol. 13(1/2) 2013 33 Anglican Church of Canada It was 17 years following the first ordination of female priests in 1976 that a woman was elected as a bishop in the Anglican Church of Canada. In November 1993, Victoria Matthews was elected a suffragan bishop in Toronto and was consecrated in February 1994. In 1997, she became the first woman elected as a diocesan bishop in Canada when she was elected Bishop of Edmonton. She held that office for 10 years until she resigned in 2007. Since Bishop Matthews’ election, six more women have been elected as bishops in the Anglican Church of Canada. They are Ann Tottenham (Suffragan of Toronto, 1997), Sue Moxley (Suffragan of Nova Scotia and Prince Edward Island 2004; diocesan 2007), Jane Alexander (diocesan, Edmonton 2008), Linda Nicholls (Area Bishop of Toronto, 2009), Barbara Andrews (Suffragan to the Metropolitan with responsibilities to the Parishes of the Central Interior, 2009) and Linda Mamakwa (Area Bishop for Northern Ontario in the Diocese of Keewatin, with special responsibilities for the predominantly aboriginal parishes of the diocese, 2010). Cotter et al. (2001) demonstrated that glass ceilings could occur over the course of a career. A glass ceiling may be observed in the Anglican Communion in higher elections. Victoria Matthews twice won elections: first as a suffragan bishop in Toronto and later diocesan bishop in Edmonton. But, she may have faced a glass ceiling in subsequent elections. She lost the election for Metropolitan of the Ecclesiastical Province of Rupert’s Land in 2003 and for Primate of the Anglican Church of Canada in 2007. Matthews had also been a candidate for Primate in 2004, but withdrew before the election owing to treatment for breast cancer. The Anglican Church of Canada is in full-communion with the Evangelical Lutheran Church in Canada. In 2007, Susan Johnson was elected as the National Bishop of the Evangelical Lutheran Church in Canada. She was consecrated in Winnipeg by not only her fellow Lutheran bishops, but also be several Anglican bishops. In the Anglican Church of Canada, she is afforded all the rights and privileges that would be given to an Anglican bishop.

Anglican Church of Australia The Anglican Church of Australia was comparatively late when it ordained its first female priests in 1992 and in the late 1990s began a protracted and acrimonious debate over the ordination of women as bishops. The issue was finally decided by the Anglican Church of Australia’s Appellate Tribunal which ruled on September 28, 2007 that there is nothing in the church’s constitution that would prevent the consecration of a woman priest as a bishop. Following the April 2008 Bishop’s Conference of the “Women in the Episcopate” protocol for the provision of pastoral care to those who cannot in good conscience accept the ministry of a woman bishop, Australia had ordained three female bishops, Kay Goldsworthy (Assistant Bishop of Perth, 2008), Barbara Darling (Assistant Bishop of Melbourne, 2008) and Genieve Blackwell, Regional Bishop of Wagga Wagga, 2012). On November 23, 2012, the Primate of the Anglican Church of Australia, Archbishop Phillip Aspinall, during ceremonies to celebrate the 20th anniversary of the ordination of women priests in Australia said, “I am pleased to see the journeys of women priests [are] now reaching into some of the highest levels of clerical offices in Australia.” He further went on to say, “These include Bishops Barbara Darling from Melbourne, Genieve Blackwell from Wagga Wagga and Kay Goldsworthy from Perth, all of whom exercise greatly value ministries and are excellent role models.” (Anglican Communion News Service, November 26, 2012). On December 5, 2012, Archdeacon Alison Taylor had been selected to lead the Southern Region of the Diocese of Brisbane as Queensland’s first woman bishop and fourth female bishop in Australia. (Anglican Communion News Service, December 5, 2012).

Scottish Episcopal Church The Scottish Episcopal Church ordained its first female deacons in 1985 and priests in 1994. In 2003, the Church provided for the ordination of women as bishops. To date, no female priests have been elected although in 2010 Canon Dr. Alison Peden was a nominee for Bishop of Glasgow and Galloway. Although not elected, her nomination was regarded as very significant for Anglicanism in the United Kingdom.

34 Journal of Business Diversity vol. 13(1/2) 2013 Church in Wales On April 2, 2008, the Governing body of the Church in Wales considered, but did not pass a bill allowing women to be ordained as bishops. Though the bill was passed by the House of Laity (52 to 19) and unanimously by the House of Bishops (6-0), it failed by three votes (27 to 18) to secure the minimum two-thirds majority in the House of Clerics.

Church of Ireland The Church of Ireland approved the ordination of women as priests and bishops in 1990 and ordained its first women as priests that year. No women have been elected as bishop.

Church of Southern Africa During 2012, the Diocese of Swaziland, Anglican Church of Southern Africa elected Ellinah Wamukoya as its diocesan bishop on July 18, 2012 (Anglican Journal Staff, July 19, 2012) and later that year on October 3, Margaret Vertue was elected diocesan bishop of False Bay (Anglican Journal Staff, October 9, 2012). Vertue was one of the first two women priests ordained by Archbishop Desmond Tutu 20 years ago at the close of Apartheid in South Africa.

Other National Churches in the Anglican Communion Two other churches have ordained women as priests, but have yet to ordain a female bishop, the General Assembly of Nippon Sei Ko Kai (Anglican Church in Japan) in 1998 and the Diocese of Mombasa of the Anglican Church of Kenya in 2000. The Diocese of Uruguay, which has been part of the Province of the Southern Cone since its formation in 1988, has applied to leave this Province in order to join the Church of Brazil, which it feels is more compatible in terms of theology, mission and philosophy. In 2010, the Diocese voted to seek another jurisdiction after a proposal to allow dioceses to individually permit the ordination of women to the priesthood. This request was turned down by the Tenth Synod of the Southern Cone. The Southern Cone includes dioceses in Argentina, Bolivia, Chile, Paraguay and Peru. Uruguay, which currently has female deacons, had been requesting the ordination of women for more than a decade. The request to change provinces was also turned down in 2012 by the Standing Committee of the Anglican Consultative Council resulting in feeling “abandoned and unsupported” (Sisson, November 22, 2012).

Extra Provincial In addition to the 38 provinces of the Anglican Communion, there are six extra provincial Anglican churches which function semi-autonomously under limited oversight of a metropolitan. They are largely self-determining when matters of ordained ministry arise. Some of these extra-provincial churches have allowed for the ordination of female priests for several years, but the Episcopal Church of Cuba is the only extra provincial church to have ordained female bishops. The first was in 2007 when Nerva Cot Aguilera was appointed as a suffragan bishop by the Ecclesiastical Authority for the Episcopal Church of Cuba. The Authority appointed her as bishop as the election was deadlocked and unable to elect a candidate. This authority also appointed Griselda Delgato Del Carpio as coadjutor bishop to Miguel Tamayo-Zaldivar in 2010 for the same reason of a deadlocked election following the death of the suffragan bishop. These female bishops were the first two female priests ordained in Cuba in 1986.

Church of England The Church of England has been among the slowest moving of the national churches in the developed world to allow the ordination of women. Many glass ceilings have been encountered over the years. This process has taken place in three distinctive steps. In the first step, the Church of England allowed for the ordination of women as deacons in 1986 with the first being ordained in 1987. There was not a great deal of dissent at this stage as many perceived this level to be a glass ceiling as many felt that women would remain solely at the level of deacon. The second step was the provision for female priests in 1992, effectively raising the glass ceiling. The first female priests were ordained in 1994. This second step was

Journal of Business Diversity vol. 13(1/2) 2013 35 much more divisive with more rhetoric and acrimonious debate. Many priests left the Church of England or became Roman Catholic priests. Many laypeople also either left the church or simply stopped attending. In the third step, which the Church of England is currently debating, would allow for the ordination of women bishops and the removal of the last glass ceiling. The process has, however, encountered several obstacles. The last process has sought to find compromises to minimize the fallout should female ordinations to the episcopacy be allowed. In 2005, 2006 and 2008, the General Synod of the Church of England voted in favor of removing the legal obstacles preventing women from becoming bishops. The process is currently underway but is not progressing quickly due to problems in providing appropriate mechanisms of those who cannot accept this development. On July 7, 2008, the Synod, following an extensive debate, narrowly voted in favor of a national statutory code of practice to make provisions for opponents, though more radical provisions (such as separate structure or overseeing bishops) proposed by opponents of the measure, failed to win the majority required in the three houses. The responsibility of taking this task further fell largely to a revision committee established by the Synod to consider the draft legislation on enabling women to become bishops in the Church of England. In October 2009, this revision committee released a statement indicating its proposals would include a plan to vest some functions by law in male bishops who would provide oversight for those unable to receive women as bishops or priests as there was widespread concern both within and outside the Church of England about the appropriateness of such legislation. In light of the negative reaction to the proposal, the revision committee subsequently announced abandonment of this recommendation. Part of the problem for the Church of England may have to do with the simultaneous debate concerning what to do about same-sex marriages or blessing of the civil union between same-sex couples. As was outlined earlier, Pless (2010) asked the very basic question whether the ordination of women and ecclesiastical endorsement of homosexual marriage are related. To some the two issues need to be resolved simultaneously, while to others the issues are completely unrelated. The varying perceptions make resolution of ordination problematic as some people are confused over the actual issue being addressed. In February 2013, the British Parliament voted in favor of allowing same sex marriage. The Church of England signified its opposition to this legislation. In July 2010, Synod again endorsed the ordination of female bishops. These measures included provisions for individual bishops to allow alternative oversight for traditionalists who object to serving under a female bishop. Opponents to this compromise situation argue for even stronger measures. A further plan put forth by the Archbishops of Canterbury and York involved the creation of a mechanism providing for what they termed a “co-ordinate” jurisdiction in parishes unable to receive the ministry of a female bishop. In these cases a male bishop would fulfill the Episcopal functions. This resolution was endorsed by the House of Bishops and the House of Laity, but failed to be endorsed by the House of Clergy by a narrow margin of 90 against to 85 in favor. The motion was redrafted with minor amendments and passed in all three houses and then by 42 of the 44 individual dioceses of the Church of England. This process is not unlike the procedure to amend the American constitution wherein following a two- thirds majority in both the House of Representatives and the Senate the constitutional amendment is sent to the states for ratification which requires a three-fourths majority. The Nineteenth Amendment, which was sent to the states in 1919 to allow for female suffrage, was only ratified by Florida in 1969 and North Carolina in 1971. In 1984, Mississippi became the last state to ratify having voted against in 1920. Change particularly with respect to gender issues can be slow. With the slow moving process in the Church of England, the Archbishop of Canterbury wanted to remove a legislatively induced glass ceiling to allow women bishops to be ordained (Anglican Journal Staff, September 13, 2012) and (Williams, 2012). On November 20, 2012, the vote was held in the Synod of the Church of England with the results:

36 Journal of Business Diversity vol. 13(1/2) 2013 For Against

House of Bishops 44 3 House of Clergy 148 45 House of Laity 132 74

Total 324 122

Despite the fact that 72% of the delegates voted in favor of the motion and 42 of 44 dioceses of the Church of England supported the legislative changes, the motion was defeated. In order to pass at Synod, the resolution must be approved in all three houses with a two-thirds majority. Six more votes were required for passage in the House of Laity. On a go forward basis, this issue for the Church of England will be addressed by the new Archbishop of Canterbury, Justin Welby who replaced Rowan Williams. As an anecdote, on March 21, 2013, Welby was led into the Cathedral of Canterbury, throned and installed as Bishop of the See of Canterbury by the Venerable Sheila Watson, Archdeacon of Canterbury. The installation as Bishop of Canterbury by the Archdeacon merely follows the recent traditions which have been observed in that diocese. Following installation as diocesan bishop by Archdeacon Watson, Welby was then led to the Chair of St. Augustine by the Very Rev. Robert Willis, Dean of Canterbury, who installed him as Primate of All England. It is ironic that a woman can install a bishop but cannot herself be a bishop in the Church of England. The issue of the ordination of women as bishops in the Church of England will undoubtedly be debated past March 2013 under the leadership of Archbishop Welby.

CONCLUSION

This paper has outlined that stained glass ceilings exist within the Anglican Communion by utilizing the glass ceiling arguments of Cotter et al. (2001). It contributes to the literature on the ordination of female bishops by documenting the issues and history of organizational changes in the Anglican Communion with specific reference to the Church of England. This study adapted the seminal work of Cotter et al (2001) in examining the secular framework of the glass ceiling to a sacred context. The experience of other denominations was juxtaposed to display the Anglican experience within a multidenominational framework. The church is almost two thousand years old and as a consequence brings a large amount of history and tradition to its decision-making processes. Some traditions are based on precedents from Scripture, while others are based on practice. Events, such as the construction of a church, can literally take centuries. Consider some of the great cathedrals of Europe which were constructed over several centuries or the Cathedral of St. John the Divine in New York City which is often referred to as “St. John the Unfinished” given its continual construction or reconstruction. Traditions and organizations can change over time, but often the process can be slow and cumbersome, involving considerable friction. What is also problematic is dealing with an organization that is not homogeneous and displays great heterogeneity, not only in the entire Anglican Communion, but also at the national, diocesan and even parochial level. Nonetheless, there are certain common themes that have been demonstrated over time as the Anglican Communion struggles with female ordination to all offices within the church. The current process of the Church of England in attempting to adopt legislative rules to allow for the ordination of women to the episcopacy is still unfolding and will be revisited by the church. The concept of a stained glass ceiling has been and will continue to be useful in helping to understand this process to provide future fruitful areas for further research including the evolution in not only the Anglican Communion but also other Christian denominations.

Journal of Business Diversity vol. 13(1/2) 2013 37 REFERENCES

ACNS Staff (2012). Second female Anglican bishop elected by Southern Africa. Anglican Journal. Online; accessed on October 9, 2012.

ACNS Staff (2012). Church of England rejects draft legislation on women bishops. Anglican Journal. Online; accessed on November 20, 2012.

ACNS Staff (2012). Women bishops praised by Anglican Primate. Anglican Journal. Online; accessed on November 26, 2012.

ACNS Staff/Anglican Diocese of Melbourne (2012). Melbourne priest to become Queensland’s first woman bishop. Anglican Journal. Online; accessed on December 5, 2012.

Anderson, M.W. (2010). The fortieth anniversary of women’s ordination in the Lutheran Church. Dialog: A Journal of Theology, 49 (4), 354-357.

Anglican Journal Staff (2012). First female Anglican bishop elected in Africa. Anglican Journal. Online; accessed on July 19, 2012.

Book of Alternative Services of the Anglican Church of Canada (1985). Anglican Book Centre, Toronto, Ontario.

Buchanan, F., Warning, R. & Tett, R. (2012). Trouble at the Top: Women Who Don’t Want to Work for a Female Boss. Journal of Business Diversity, 12 (1), 33-46.

Cotter, D., Hermensen, J., Ovadia, S. & Nanneman, R. (2001). The Glass Ceiling Effect. Social Forces 80 (2), 655-681.

ELCA Gathers Power-Filled Women for a Power-Filled Church, March 1, 2004. (http://www.wfn.org/2004/03/msg00004.html)

EINEWS Staff. (2012). Church of England advances legislation for female bishops. Anglican Journal. Online; accessed September 14, 2012.

Federal Glass Ceiling Commission (1995). Good for Business: Making Full Use of the Nation’s Human Capital. (http://www.dol.gov.oasam/programs/history/reich/reports/ceiling.pdf.) accessed October 14, 2012.

Growing Churches Led by Clergywomen (2012) (http://www.aglorybe.com/clergywomen_large_church_html) accessed on October 29, 2012.

Houseal, R. (2003). Nazarene Clergy Women: A Statistical Analysis from 1908 to 2003. USA/Canada Mission/Evangelism Department-Church of Nazarene Headquarters. (http://media.premierstudios.com/nazarene/docs/Nazarene%20Clergy%20Women%20A%Statistical%20 Analysis.pdf) last accessed on October 29, 2012

Hunt, M. (2011). Response II to Rosemary Radford Ruether: ‘Should women want women priests or women-church?’Feminist Theology, 20 (1), 85-91.

38 Journal of Business Diversity vol. 13(1/2) 2013 Longman, K., & Lafreniere, S. (2012). Moving beyond the stained glass ceiling: Preparing women for leadership in faith-based higher education. Advances in Developing Human Resources, 14 (1), 45-61.

Martinez, J., Rodriguez-Entrena, M. & Rodriguez-Entrena, M. (2012). The ordination of women in the Catholic Church: A survey of attitudes in Spain. Journal of Gender Studies, 21 (1), 17-34.

Myerson, D. & Fletcher, J. (2000). A modest manifesto for shattering the glass ceiling. Harvard Business Review, 78 (1), 127-136. Pless, J. (2010). The ordination of women and ecclesial endorsement of homosexuality: Are they related? Concordia Theological Quarterly, 74, 343-358.

Presbyterian Church (USA)-2003. Clergywomen’s Experiences in Ministry: Realities and Challenges. (2003) (http://www.pcusa.org/womensadvocacy/acwc/reports.html) accessed on October 29, 2012.

Radford-Ruether, R. (2011). Should women want women priests or women-church? Feminist Theology, 20 (1), 63-72.

Rixon, D. & Faseruk, A. (2012). Secular Tools and Sacred Goals: A Case Study of How Anglican Priests Are Embracing Management Accounting and Strategic Planning. Journal of Business Diversity, 12 (1), 19-32.

Roebuck, D. (2012). “I have done the best I could”: Opportunities and limitations for women ministers in the Church of God – a Pentecostal denomination. Theology Today, 68 (4), 393-403.

Sison, M. (2012). Uruguay thwarted in attempt to switch provinces. Anglican Journal. Online; accessed on November 22, 2012.

The Stained Glass Ceiling. Time 17 July 2000. (http://www.time.com/time/europe/magazine/2000/0717/wpriests.html) accessed on October 29, 2012.

Via, J. (2011). Response 1 to Rosemary Radford Ruether: ‘Should women want women priests or women-church? Feminist Theology, 20 (1), 73-84.

Wikipedia (2012). Ordination of Women. accessed October 29, 2012.

Wikipedia (2012). Ordination of Women in the Anglican Communion. accessed October 29, 2012.

Wikipedia (2012). Stained-glassed ceiling. (http://www.en.wikipedia.org/wiki/Stained-glass_ceiling) accessed on October 29, 2012.

Williams, R. (2012). Women Bishops: Enough Waiting. Anglican Journal. Online, accessed October 24, 2012. Reprinted from Church Times of October 19, 2012 and may be accessed through http://www.archbishopofcanterbury.org

Women clergy bring a new sensibility to an old calling. (2006). The Christian Science Monitor, July 19, 2006 (http://www.csmonitor.com/2006/0719/p14s01-lire.html) accessed on October 29, 2012.

Zagano, P. (2008). Catholic women’s ordination: The ecumenical implications of women deacons in the Armenian Apostolic Church, The Orthodox Church of Greece, and the Union of Utrecht Old Catholic Churches. Journal of Ecumenical Studies, 43 (1), 124-137.

Journal of Business Diversity vol. 13(1/2) 2013 39

The Entrepreneurial Experiences of 1st Generation Migrant Black African Female Entrepreneurs in Britain

Thomas T. Domboka Leeds Metropolitan University

This paper explores the experiences of 1st generation black African women who have settled and started business in Britain and the impact those experiences have had and are likely to have on the success for new migrants in starting their own businesses. This qualitative study was carried out using semi- structured interviews with 35 female entrepreneurs based in the West Midlands County of Britain. Findings suggest that these women are motivated by various pull factors; they have limited access to finance, while having high levels of human capital which they do not seem to benefit from due to its irrelevance to the businesses they started.

INTRODUCTION

Extant literature and empirical evidence suggests that women have different entrepreneurial experiences to those of men and this has been attributed to differences in educational experiences, labour market experiences, family circumstances, post- education training, culture, and access to resources. Some studies have suggested that women from ethnic minority background particularly migrant women are most affected by these and other factors resulting in them having different entrepreneurial experiences which determines the trajectory of their entrepreneurial ambitions and success of their businesses. Most studies on female ethnic entrepreneurship have focused on certain groups such as Asian and Chinese women and little is known about black African women migrants operating their businesses in the diaspora. This limitation has resulted in little being known about their experiences and how these experiences affect how they start and manage their businesses. The scarcity of literature focusing on the experiences of black African people’s economic activities in Britain in general and women in particular has been acknowledged by Bradley and Boles, (2003) and Dawe and Fielden, (2005) and, according to Kwong et al., (2009), “Studies of ethnic minority entrepreneurship in the UK have overwhelmingly concentrated on the three main ethnic groups, namely South Asians, Chinese and the Indians” (p264). The exclusion in entrepreneurial studies of the activities of the black African migrant women has contributed to our lack of knowledge of their experiences in the host country. A considerable number of studies in ethnic minority entrepreneurship in Europe have focused on some ethnic groups like the Chinese (Liao, 1993, Song, 1997) Asian (Metcaf et.al 1996, Jones and Ram, 2003), Vietnamese (Bagwell et.al 2003, Bagwell, 2006), the Surinamese in Amsterdam, (Blaschke et.al, 1990) and African Caribbean (Ram and Deakins, 1995). Due to lack of studies focusing specifically on black African migrant women entrepreneurs, conclusions about their entrepreneurial experiences have been drawn from discourses on female entrepreneurship experiences in general and particularly the experiences of other ethnic minority women.

40 Journal of Business Diversity vol. 13(1/2) 2013 This over-generalization has been noted by (Nwankwo, 2005) who asserted that this has resulted in a view of the ethnic minority population as a monolithic group. Nwankwo further suggests that due to racial and cultural similarities between black African and black Caribbean communities, studies of the black Caribbean communities are often generalized to apply to black African communities. The question that arises however is whether the experiences of other ethnic minority women who have been studied before and the empirical evidence available to date adequately reflect the experiences of black African women. Other studies do not take into consideration the generational gap between recent migrants and those who are born of migrant parents. Preliminary findings consider two aspects of those experiences namely the reasons why these women start their own businesses and what entrepreneurial resources are at their disposal.

LITERATURE REVIEW

Migration History of Black Africans to Britain The study of the entrepreneurial experiences of the 1st generation migrant black African women will not be complete without considering their migration history. Understanding their history of migration helps to set the context in which those experiences can be understood. The migration history of Black African people into the United Kingdom (UK) is quite different from that of other migrants. Black African migrants who first came in small numbers the 50s and 60s came mainly for education purposes unlike other migrants for example the South Asians and Afro- Caribbean who came for employment purposes. Post- independence Africa has maintained close ties economically, politically, linguistically and culturally with their former colonial powers and this relationship still remains and as for former British colonies this relationship has been maintained through their membership of the Commonwealth. This relationship created privileges for travel, study, work and business (Shimeless, 2010). It is out of these special relationships with the former colonizer that many of the migrants found the UK a favoured destination. Daley (1998) notes that, “... the first arrivals fared better, often being granted full refugee status, and were better equipped educationally and economically” (p1705). The majority of the early African migrants were male which Bryan (1985) posited was due to the gendered nature of the early education system introduced by the Europeans in Africa which resulted in the greater numbers of the student population being male. Women immigrated in larger numbers at the turn of the century to join their husbands or partners with fewer of them coming independently for study and training purposes in the fields like nursing and more recent migration trends has been almost similar numbers of men and women migrating. Since the turn of the century, there has been a huge increase in asylum claimants from certain African countries notably Zimbabwe, Somalia and the Democratic Republic of Congo (DRC). The first official recognition of black Africans in the UK as a major ethnic group was in the 1991 population census and in the 2001 census; they comprised 10.5 per cent of the total ethnic minority population (ONS, 2011).

Factors Influencing the Decision to Go into Business Entrepreneurship studies on ethnic minority groups have often considered the motivation or reasons why they start their own businesses. Factors such as; culture or family tradition (Bygrave and Minniti, 2000), previous career/employment (Feldman and Bolino, 2000), institutional support (Phizacklea and Ram, 1995), level of qualification (Dolinsky et.al, 1993), and role models or peer influence (Phizacklea A, Ram, 1995): have been found to have an impact on the decision to start their own businesses. Blocked upward (Ram and Jones, 1998) has also featured prominently with (Dhaliwal S, Kangis, 2006) suggesting that this aspect is particularly pertinent to women of ethnic minority background due to their perception of double disadvantage in the form of race and gender. Personal motivation at initial start-up also received greater attention in literature (Carter, 2000), with Fielden et, al, (2003) asserting that the overriding factors was for the women to be able to make a living while taking care of their families. Orham and Scott (2001), categorized the motivational factors into ‘push’ and ‘full’ factors by suggesting that starting a business is ‘driven by two opposite factors of choice and necessity according to

Journal of Business Diversity vol. 13(1/2) 2013 41 the relative importance of the “push” and “pull” factors’ (p233). Bourdieu and Wacquant, (1992) have however argued against the push/pull factors as the sole determinants of decisions to go into self- employment by arguing that people do not operate like robots that have to be pushed and pulled but rather use their agency abilities to mitigate against external structures. Earlier, Cooper, (1981) had developed a model that categories factors that influence an individual’s entrepreneurial decisions into; antecedent influences, incubator organizations, and environmental factors. Antecedent influences considers the background such as the educational background, marital status, previous employment experience, family circumstances and genetic factors of the individual entrepreneur and how this affects his/her motivation, perceptions and skills. Environment factors are external to the individual and these could be the level of support given to new entrepreneurs, the norms and culture of the society that they are socialized into, the availability of finance and role models. Incubator Organization is the type of organization the individual worked for immediately before they started their own business. That includes the skills and knowledge they acquired from their last employment and whether the experience from that job ‘pushed’ or ‘pulled’ the individual to start their own business.

Entrepreneurial Capital (Resources) Motivation alone is not sufficient for an entrepreneur to start their own business. She needs the resources to translate the motivation into action. The concept of entrepreneurial capital (Firkin, 2003) was a way of explaining the importance of both financial and non-capital capital to the entrepreneur. The amount and type of entrepreneurial capital (financial, human social and cultural) available to an individual can have a significant impact on the individual’s experience of business ownership.

Financial Resources Firkin (2003) defined economic capital as assets that can be easily converted into cash. Research has suggested that the negative experiences of women in the labour market such as low pay compared to men and lack of upward mobility (or glass ceiling) mean that they have less financial capital at their disposal when they want to start their own businesses. This under-capitalization will negatively impact on the growth and performance of their businesses. Marlow and Patton (2005); Shaw et al, (2005) have concluded that the lack of access to finance by women was a major constraint to their ability to start and grow their own businesses. They concluded that female entrepreneurs start their business with low levels of capitalization. They found that female entrepreneurs start their businesses with only about one third of the start-up capital used by men and they use less borrowed or equity capital when they start their businesses. Watson (2002) found a close connection between the amount of start-up capital and the performance of the business. Carter and Shaw (2006) suggest that businesses owned by women have a tendency of operating in those sectors which do not require much finance and they are also generally smaller compared to those of their male counterparts. The differences in financial requirements have therefore been associated with structural differences between male and female owned businesses. Some studies (Coleman, 2000) found that women did not use bank finance as much as men do and attributed this to the criteria used by the banks. Other studies (Carter and Shaw, 2007) also found no evidence of discrimination by banks as the criteria they used to decide on an application is the same for both male and female applicants though Carter and Shaw, (2006) conceded that decisions about who to lend money are made by individuals who may have their own prejudices. Some significant amount of work has been carried out regarding financing of business owned by ethnic minority groups in general and women in particular. Africans and Caribbean have been found to rely on personal savings more than other ethnic groups because due in part to their weak social networks and negative stereotyping by financial institutions (Dolinsky et.al., 1993).

Human Resources Most other studies have used education and previous experience to measure human capital (Reuber and Fischer, 1994) and according to Gonzalez-Alvarez and Solis-Rodriguez (2011), formal education is an important component of human capital as it enables entrepreneurs to accumulate knowledge and it

42 Journal of Business Diversity vol. 13(1/2) 2013 equips them with the necessary skills they need to start their own businesses. They argued that the accumulation of knowledge alone is not sufficient enough for business creation, but includes personal characteristics that the individual should have, a sense of self-efficacy and the perception one has of their abilities and the amount of skills they think they have. While a number of studies suggests that female entrepreneurs have less work and managerial experience and experience of running their own businesses (Boden & Nucci, 2000; Hisrich & Brush, 1983,; Watkins & Watkins, 1983; Kalleberg & Leight, 1991, among others), other studies have found that female entrepreneurs have the same level of education and even more in some cases (Cowling & Taylor, 2001; Birley et al. 1987). This suggests gender differences in different elements of the human capital. Carter et al., (2002) equally posited that human capital is derived from education, training and work experience and from an entrepreneurial standpoint, work experience has three important dimensions namely industry they have worked before, management experience and start-up experience (ibid). However, Ram and Jones, (1998), found that even though Black and Minority Ethnic entrepreneurs were highly qualified, they work in areas that are not related to their qualifications and expertise, because this human capital loses its symbolism when they migrate (Bourdieu, 1999). This seemed to suggest that despite their academic or professional achievements, black Africans suffer disadvantages on the labour market. Thompson et al., (2010) suggests that the relationship between educational attainment and the rate of self-employment varies between the different ethnic minority groups, while Baycan-Levent and Nijkamp (2009) asserted that foreign born women had lower employment rates than the native born women. The difference increases with levels of education with highly qualified migrant women experiencing the most disadvantages in the labour market. If the more disadvantaged one is on the labour market the more they are likely to start their own business, then one would expect the black African women to be among the ethnic minority groups with the highest levels of self-employment.

METHODOLOGY

The study took an exploratory approach based on the constructivist ontological philosophy. Assumptions about the entrepreneurial experiences of black African migrant women in the UK are therefore based on the perceptions, meanings, thoughts, and viewpoints and lived experiences of the women themselves. Epistemologically, the study assumes the position of interpretivism as I believe it will not be possible to carry out such study objectively and in a value free manner given that the study is dealing with social reality and so takes Hughes (1994) and Proctor (1998) position that reality is socially constructed and its construction can be influenced by factors like culture and gender. As a result of my ontological and epistemological commitments, this qualitative piece of work was conducted using face to face semi structured interviews with 35 migrant black African female entrepreneurs based in the Birmingham area of the West Midlands, United Kingdom. Birmingham is the 2nd largest city in Britain with a large number of migrants. The interviews which were recorded on tape lasted on average one hour each and they were conducted over a period of four months between September and December 2011. An interview schedule was used to guide the researcher during the interviews and to ensure that all key areas were covered. The interview tapes were manually transcribed immediately following each interview. Data was analysed from records observations, field notes, and tape recording of the interviews. From these records, codes of emerging themes were generated and used as categories for analysing, synthesizing and summarizing the data resulting in preliminary findings which are presented in this paper. The participants were identified using the purposive snowball sampling strategy and as a result, participants were drawn from thirteen different countries operating their businesses in the West Midlands area. The interviews were conducted within the business premises of each participant. Table 1 shows the demographic profile of the women who took part in the study.

Journal of Business Diversity vol. 13(1/2) 2013 43 TABLE 1 DEMOGRAPHIC CHARACTERISTICS OF THE PARTICIPANTS

Age Country of Marital Level of Type of Years in origin status education business business 1 49 Nigerian Married MBA Restaurant 18 2 44 Nigerian Widow BA Honours Care Agency 12 3 32 Zimbabwe Married BA Honours Retail 2 4 33 Zimbabwe Married ‘A’ level Hair dressing 3 5 36 Congo Single BA Honours Hair dressing 2 6 34 Uganda Single ‘O’ Levels Hair dressing 2 7 39 Congo Married BA Honours Hair dressing 3 8 46 Cameroon Married BA Honours Hair dressing 5 9 35 Nigeria Married Masters in Law Restaurant 3 10 34 Zimbabwe Married BA Honours Distributor 2 11 34 Zambia Married ‘O’ Levels Distributor 2 12 47 Zimbabwe Married ‘O’ Levels Clothing 0 13 39 Zimbabwe Married BA Honours Interior decor. 0 14 26 Zimbabwe Single BA Honours Confectionary 0 15 45 Guinea Married None Retail 1 16 38 Uganda Married ‘O’ Levels Money transfer 3 17 38 Nigeria Married BA Honours Restaurant 1 18 47 Guinea Married BA Honours Hair dressing 5 19 39 Kenya Single ‘O’ Levels Hair dressing 7 20 34 Congo Married Masters in Law Law 1 21 31 Uganda Single ‘O’ Levels Market trader 2 22 34 Kenya Married ‘O’ Levels Market trader 1 23 44 Nigeria Married BA Honours Catering 4 24 39 Uganda Married None Cleaning 4 25 32 Ghana Married Masters PH Care agency 1 26 34 Cameroon Single ‘O’ Level Boutique 0 27 32 Zambia Married MBA Accountancy 3 28 38 S. Africa Married Masters Training 4 29 48 S. Africa Divorcee Masters Immigration 5 30 31 Swaziland Separated ‘O’ Levels Hair dressing 2 31 29 Zimbabwe Married ‘O’ Levels Network Mkt 1 32 34 Zimbabwe Single ‘O’ Levels Hair dressing 4 33 37 Ghana Separated BA Honours Clothing shop 0 34 33 Ghana Married BA Honours Hair dressing 1 35 32 Sierra Ln Single None Grocery 3

The businesses were small and fairly new with the majority having been started in the last three years. All the women were 1st generation migrants most of whom had migrated to Britain in the last ten years at the time of the study. Twenty-three of the women were married and they had young families. Their businesses ranged from market traders to those running professional businesses.

FINDINGS

Migration History Evidence from the study shows that the women in the study had lived in Britain for about 10 years and the overwhelming majority of them had come into the country with intention to return back to their

44 Journal of Business Diversity vol. 13(1/2) 2013 home countries after a few more. However, they found themselves staying longer than they had planned and the transition from transient to settlement status was beset by main challenges. At the time of the study, a significant number of these women were still waiting decisions on their immigration status. Due to the transient nature of their migration, this resulted in many of these women facing greater challenges compared to the earlier migrants who found it easy to settle in the country (Daley, 1998)

Motivation for Going into Business Findings from the study showed that rather than being pushed into starting their own businesses, these women were motivated by a variety of reasons notably taking advantage of an opportunity they would have identified and for some, entrepreneurship was a lifestyle as they had always been entrepreneurs before they moved to Britain (table 2).

TABLE 2 MOTIVATION FOR STARTING OWN BUSINESS

Motivating factor No of participants Saw an opportunity 9 Financial rewards 2 Wanting to be own boss 5 Personal circumstances 3 Hobby/passion 5 Life style 7 Other pull/ push factors 4

While some studies (Ram and Jones, 1998 and Dhaliwal S, Kangis, 2006) have suggested push factors like blocked upward mobility especially on ethnic minority women, findings from this study suggests that these women were rather pulled into business by a number of factors as summarized in table 2 above. Of the 35 women who took part in the study, only three said they were pushed by circumstances such as their immigration status which did not allow them to work and the only viable alternative for them was to become self-employed and operate in the shadows. The other four mention both push and pull factors. They were initially pushed by circumstances for instance when they were waiting for the outcomes of their application to change their immigration status. During the waiting period which in some cases took years, they had to find something to do. However, when their immigration status changed and they could look for work, they decided to maintain their businesses because of the opportunities they later discovered and so at that time they were motivated by pull factors. If we are to consider what motivated them initially, we would conclude that they were pushed, but when to consider why they are in business, we would conclude that they are pulled. That suggests that motivation has a time span. The remaining women say they were pulled from the onset by different reasons the main one being seeing an opportunity. However, those who had been entrepreneurs before they came into the UK say they were neither pushed nor pulled but running their own business is something they have always done. A closer look at what then triggered them to start their own businesses when they moved into the country, they mention opportunity. Out of the twenty-five women who say they were pulled, only two were motivated by money suggesting that financial gain was not a motivating factor for these women. Another three were motivated by wanting to be their own boss/flexibility. Five other women started their businesses out of passion or as a hobby. In all, 28 of the women from the sample were pulled into self-employment. Antecedent factors such as previous employment experience and other individual background, and incubator organizations these women had worked for before (Cooper, 1981) appeared to have played a large part in influencing these women to start their businesses.

Journal of Business Diversity vol. 13(1/2) 2013 45 Entrepreneurial Capital Sources of Finance Entrepreneurial capital takes different forms including finance which affects the type and size of a business. Table 3 shows a breakdown of the different sources of finance used by the women. Many of the businesses were self-financed as posited by Coleman (2000) with some women stating that because of their poor background and not having their families around meant they have to raise money on their own.

TABLE 3 SOURCES OF FINANCE

Name Own Savings Family & friends Banks* No 1 Felicia √ x √ ( Credit card) 2 Pat √ x √ 3 Candy √ √ √ 4 Lucy √ x √ 5 Rose √ x x 6 Daisy √ x x 7 Danielle √ √ x 8 Jennifer √ √ D 9 Rhoda √ √ D 10 Thandi √ x x 11 Trisha √ x x 12 Sheila √ √ x 13 Delisa √ x x 14 Siduduzile √ x x 15 Anthea √ √ x 16 Khadija √ √ x 17 Rebecca √ x D (Re-mortgage property) 18 Amanda √ x x 19 Dorothy √ x x 20 Jenny √ x x 21 Sarah √ x x 22 Faith √ √ √ (Overdraft ) 23 Tracy √ x x (Re-mortgaged) 24 Ellen √ √ x 25 Patience √ x x (Credit card) 26 Sue X √ x 27 Anita √ x x 28 Brenda X x √ (re-mortgaged ) 29 Yemurai √ x x 30 Victoria √ x x 31 Lisa √ √ D 32 Mercy √ x D 33 Jane √ √ x (Credit card) 34 Christine √ √ x (Credit card) 35 Fiona √ x x

√ = indicates source of finance D= Declined by bank X (Banks* column) = Never approached bank

46 Journal of Business Diversity vol. 13(1/2) 2013 Of the 35 participants only four used bank loans in the form of credit cards and overdraft to start or finance their businesses. These were obtained under the pretexts that that they either wanted to go on holiday or to renovate their homes. They said they used these methods because the banks were not willing to give them loans to start their businesses because they did not meet the criteria. However, the large majority of the women did not even attempt to seek finance from their banks for various reasons such as perceptions that banks will not be willing to help due to what Dolinsky et.al. (1993) saw as negative stereotyping by financial institutions. Lack credibility before the banks, unwilling to start business on borrowed finance, risk aversion, cultural and religious reasons were some of the reasons given by these women for not approaching their banks for financial assistance. Five others obtained money from their spouses with only two getting help from friends. The rest of the women (21) used their personal savings to start their businesses with some continuing to take part- time employment to raise additional finance. Two women who used bank finance to refinance their businesses used debt factoring – a system of selling book debts at a discount. Due to lack of finance, most of the women said they started businesses which did not require a large amount of capital and as a result, their businesses were generally small. This is consistent with some earlier findings Marlow and Patton (2005); Shaw et al, (2005) that lack of finance was a major constraint in the ability of woman to grow their businesses.

Human Capital The women in the study had strong academic background with the majority holding undergraduate qualifications. This is consistent with other studies Ram and Jones, (1998) that black and ethnic minority entrepreneurs were highly educated though this form of capital loses its symbolism due to migration (Bourdieu, 1999). An interesting observation was the relation between the types of businesses the women started and their level of education (table 4) with women at the lower end of the educational ladder concentrated in businesses such as hair dressing and retail while women at the upper end of the ladder like those with post graduate qualifications such as Master’s degree concentrated in the provision of services like Law, Accountancy and Education and Training with a few of them operating restaurants. However, those with first degrees or equivalent appeared to cut across all types of businesses in a more proportional manner. The type of degrees held by some of them suggests that it would have been harder for them to secure formal employment. Generally, even though the women lack other forms of capital (financial and social capital), they appeared to mitigate against these deficiencies by capitalising on their human capital strengths, juggle around their finances and supply good and services that are not dependant on co-ethnic patronage.

TABLE 4 RELATIONSHIP BETWEEN LEVEL OF EDUCATION AND TYPE OF BUSINESS

Level of Education Total Hair & Food/ Retail Services Beauty Catering & Other Below Secondary/ High School 3 1 0 2 0 Secondary / High School 12 5 0 6 1 Graduate 13 4 2 4 3 Post-Graduate 7 0 2 0 5

IMPLICATIONS

Without sufficient support at local and national level, black African women may find it difficult to develop businesses that go beyond subsistence level. The support could come in the form of practical help which take into consideration the circumstances of these women. There is need to encourage institutional

Journal of Business Diversity vol. 13(1/2) 2013 47 support by encouraging banks to devise other ways of evaluating credit worthiness of women who may not have built sufficient credit history as most of these women despite having been in the country for up to 10 years, their immigration status meant that they could not possibly have built a credit history. Support could also come in the form of help with child care since most of these women do not have family around. This could be through subsidised childcare or encouragement for schools to run breakfast and after school clubs for free or at a small fee. This will free single mothers to go into business without the worry about childcare affordability and also for them to start businesses that are not centred on childcare issues.

LIMITATIONS AND OBSERVATIONS

As with qualitative research involving case studies , the research has the limitation that the results cannot be generalized to the wider ethnic minority population and in this case, to the migrant population. Another limitation is the notable lack of data or research on the experiences of 1st generation migrants from other ethnic minority groups would mean that there is no comparable data. As Dawe and Fielden (2005) also noted, a problem encountered when carrying out a research of this nature is the lack of disaggregated data on women entrepreneurship especially on Black and Minority Ethnic Groups and particularly on Black African businesses. Apart from the lack of data, there is also lack of literature on black African women and as a result inference has had to be made based on studies of women from other ethnic backgrounds. This may pose a potential weakness to the study from a theoretical point of view.

CONCLUSIONS AND RECOMMENDATIONS

While most of the women report that they were pulled into business by various factors it may be necessary to ascertain whether the initial motivation they had when they started their businesses can be sustained over time and whether it translates into growth and sustainability of their businesses by monitoring the survival rates of the businesses. Further research may be necessary on whether gender influences those experiences by conducting a comparative study on male and female entrepreneurs. A comparative study between the black African women and women from other ethnic minority groups may also help us to understand the extent to which ethnicity and history of migration affects those experiences.

REFERENCES

Bagwell S, Hitchcock M, Nguyen K. (2003), Vietnamese Businesses in London, Business Link for London, London.

Bagwell S. (2006), UK Vietnamese businesses: cultural influences and intra-cultural differences, Environment and Planning C: Government and Policy, 24(1): 51-69.

Baycan-Levent, T. and Nijkamp, P (2009) Characteristics of migrant entrepreneurship in Europe, Entrepreneurship & Regional Development Vol.21 No.4, pp. 375-397.

Hughes J (1994) The Philosophy of Social Research. Essex, Longman.

Birley, S. Moss, C., and Saunders, P. (1987), Do women Entrepreneurs Require different training? American Journal of Small Business, 12(1): 27-35.

Blaschke J, Boissevain J, Grotenberg H, Joseph I, Morokvasic M, Ward R. (1990), European trends in ethnic business, in Waldinger, R.. Aldrich, H., and Ward, R. (Eds), Ethnic Entrepreneurs: Immigrant Business in Industrial Societies, London: Sage: pp. 79-105.

48 Journal of Business Diversity vol. 13(1/2) 2013 Boden R J, Nucci A R. (2000), On the Survival Prospects of Men’s and Women’s New Business Ventures, Journal of Business Venturing, 15(4): 347-362.

Bourdieu P, Wacquant L. (1992), An Invitation to Reflexive Sociology, Cambridge, Polity Press.

Bourdieu, P. (1999) Understanding. In Bourdieu, P. (Ed.) The Weight of the World: Social Suffering in Contemporary Society. Cambridge, Polity.

Bradley, F. & Boles, K. (2003) Female Entrepreneurs from Ethnic Backgrounds: An Exploration of Motivations and Barriers, Manchester, Manchester Metropolitan University Business School.

Bryan B, Dadzie S, Scase S. (1985), The Heart of the Race: Black Women's Lives in Britain, London, Virago.

Bygrave W, Minniti M. (2000), The Social Dynamics of Entrepreneurship. Entrepreneurship Theory and Practice; 24(3): 25-36.

Carter S, Shaw E. (2006), Women’s Business Ownership: recent research and policy developments Report to the Department for Trade and Industry’s Small Business Service Analytical Unit, November; 2006.

Carter, S. and Marlow, E. (2007), ‘Female entrepreneurship: Theoretical Perspectives and Empirical Evidence’, in Carter, N., Henry, C., Cinneide, B.O., and Johnston, K. (eds) Female Entrepreneurship: Implications for Educations, Training and Policy, pp. 11-37. London: Routledge.

Carter S, Tagg D, Brierton J. (2002), Women owned business in profile, A report from The Bank of Scotland.

Carter S. (2000) Improving the numbers and performance of women-owned businesses: some implications for training and advisory services, Education and Training; 42(4; 5): 326-33.

Coleman S, (2000), Access to Capital and Terms of Credit: A Comparison of Men and Women- Owned Small Businesses, Journal of Small Business Management; 38 (3): 37-52.

Cooper A C. (1981), Strategic Management: New Ventures and Small Business. Long Range Planning; 14(5): 39-45.

Cowling, M. and Taylor, M. (2001), Entrepreneurial Women and Men: Two different species? Small Business Economics, 16(3): 167-175.

Daley P., O. (1998), Black Africans in Great Britain: Spatial Concentration and Segregation. Urban Studies; 35 (10): 1703-24.

Dawe A I, Fielden S L. (2005), The Experiences of Asian Women Entering Business Start-Up in the UK. In Fielden, S. L. & Davidson, M. J. (Eds.) International Handbook of Women and Small Business Entrepreneurship. Cheltenham, Edward Elgar; pp120-132.

Dhaliwal S, Kangis P. (2006), Asians in the UK: gender, generation and enterprise. Equal opportunities International; 25(2): 92-108.

Dolinsky A L, Caputo R K, Pasumarty K, Quazi H. (1993), The effects of education on business ownership: a longitudinal study of women. Entrepreneurship Theory and Practice; 18(1):43-53.

Journal of Business Diversity vol. 13(1/2) 2013 49

Feldman D C, Bolino M C. (2000), Career patterns of the self-employed: career motivations and career outcomes. Journal of Small Business Management; 38(3): 53-68.

Fielden S L, Davidson M J, Dawe A, Makin P J. (2003), Factors inhibiting the economic growth of female small business owners, Journal of Small Business and Enterprise Development; 10(2): 152-66.

Firkin P. Entrepreneurial Capital. (2003), In de Bruin, A. and Dupuis, A. (Eds.). Entrepreneurship: New Perspectives in a Global Age. Aldershot: Ashgate: 57-75.

Gonzalez-Alvarez N, Solis-Rodriguez V. (2011), Discovery of entrepreneurial opportunities: A gender perspective. Emerald Group Publishing Limited. http://www.statistics.gov.uk/cci/nugget.asp? id=954 (accessed 5th March, 2011).

Hisrich, R. D. & Brush, C. (1983) The Woman Entrepreneur: Implications of Family, Educational and Occupational and Occupational Experience. In Hornaday, J. A., Timmons, J. A. & Vesper, K. H. (Eds.) Frontiers of Entrepreneurship Research. Wellesley, MA, Babson College Centre for Entrepreneurial Studies, 255-270.

Jones T.P., Ram M. (2003), South Asian businesses in retreat? The case of the UK, Journal of Ethnic and Migration Studies; 29(3): 485-500.

Kalleberg, A.L., and Leight, K.T. (1991), ‘Gender and organizational performance: Determinants of small business survival and success’. Academy of Management Journal Vol. 34. No. 1 pp. 136-61.

Kwong, C., Thompson, P., Jones-Evans, D., and Brooksbank, D. (2009) Nascent entrepreneurial activity with female ethnic minority groups, International Journal of Entrepreneurial Behaviour and Research Vol. 15 No. 3 pp. 262-281.

Liao Y. (1983), The geography of the Chinese catering trade in Greater Manchester, Manchester Geographer; 14:54-82.

Marlow, S., and Patton, D. (2005). ‘All Credit to Men? Entrepreneurship, Finance and Gender’, Entrepreneurship, Theory and Practice, Vol. 29, No. 6 pp. 717-35.

Metcalf H, Modood T, Virdee S. (1996), Asian Self-employment in Britain: The Interaction of Culture and Economics in England, Policy Studies Institute, London.

Nwankwo S. (2005), Characterization of Black African entrepreneurship in the UK: a pilot study Journal of Small Business and Enterprise Development; 12(1): 120-136.

Orhan M, Scott D. (2001), Why women enter into entrepreneurship: an explanatory model. Women in Management Review; 16(5): 232-243.

Phizacklea A, Ram M. (1995), Ethnic entrepreneurship in comparative perspective, International Journal of Entrepreneurial Behaviour & Research; 1(1): 48-58.

Proctor S (1998) Linking philosophy and method in the research process: the case for realism. Nurse Researcher. 5, 4, 73-90.

50 Journal of Business Diversity vol. 13(1/2) 2013 Ram, M. Deakins, D., (1995), African-Caribbean Entrepreneurship in Britain, University of Central England Business School, Birmingham.

Ram M, Jones T. (1998), Ethnic Minorities in Business, London, Small Business Research Trust.

Shaw, E., Carter, S., Lam, W. and Wilson, F. (2005). ‘Social Capital and Accessing Finance: the Relevance of Networks’, paper presented at the 28th Institute for Small Business Entrepreneurship National Conference, Blackpool, and November.

Shimeless A, (2010), Mapping migration in Africa, Africa Development Bank, mimeo.

Song M. (1997), Children's Labour in Ethnic Family Business: The Case of Chinese Take-Away Business in Britain. Ethnic and Racial Studies; 20 (1): 690-716.

Thompson, P., Kwong, C., and Jones-Evans, D. (2010). Education and Entrepreneurial Activity: A comparison of White and South Asian Males. International Small Business Journal 28(2): 147-162.

Watson, J. (2002), ‘Comparing the Performance of Male and Female Controlled Businesses: Relating Outputs to Inputs’ Entrepreneurship Theory and Practice 26, 3 Spring, pp. 91-100.

Watkins, D. & Watkins, J. (1984). The Female Entrepreneur in Britain: Some Results of a Pilot Survey with Special Emphasis on Educational Needs. In Scott, M., Gibb, A. & Lewis, T. (Eds.) Small Business Growth and Development. Aldershot, Gower.

Journal of Business Diversity vol. 13(1/2) 2013 51

Effects of Leader Race and Leader Mistake on Patronizing Behaviors

Sarah Singletary Walker University of Houston – Downtown

Juan M. Madera University of Houston

Michelle R. Hebl Rice University

This study examined the extent to which perceptions of leadership vary as a function of leader race. Using experimental methods, results suggest that Black managers experience patronizing discrimination that consists of differential allocation of limited, but not unlimited resources. Specifically results revealed that under conditions of mistakes, evaluations of the leadership capability for Black and White managers are similar, however, salary differences emerged. More specifically, participants assigned lower salaries to Black managers when mistakes were made. We discuss implications of these findings and directions for future research.

INTRODUCTION

Workplaces are becoming more diverse. As a result, there are increasing numbers of traditionally underrepresented groups (e.g., women, racial/ethnic minorities) employed in organizations, as well as increasing numbers of diverse individuals serving in managerial roles. Though increases have been made, there is a paucity of research examining the extent to which members of underrepresented groups are evaluated in leadership positions. The research that has been conducted in this area generally focuses on examining the influence of race-based stereotypes on perceptions of leadership. The current study extends previous research by examining both the extent to which there are differences in perceptions of leadership effectiveness that vary as a function of race as well as the impact of those differential perceptions on relevant workplace outcomes.

Research on Discrimination Discrimination is defined as differential treatment given to an individual as a result of membership in a particular group (Dovidio, Brigham, Johnson, & Gaertner, 1996). Thus, discrimination refers specifically to behaviors, positive or negative, given to people based solely upon group membership. There is a growing body of research examining discrimination in the workplace (see Goldman, Gutek, Stein, & Lewis, 2006 for a review). For instance, research reveals that in general women are compensated at a rate lower than men (Blau & Kahn, 2007; Dreher, Lee, & Clerkin, 2011; Smith, Tabek, Showail, Parks, & Kleist, 2005). Similarly, Black and White job applicants are contacted for interviews at

52 Journal of Business Diversity vol. 13(1/2) 2013 differential rates; Black applicants are less likely to be called back than White applicants (Bertrand & Mullainathan, 2003). Likewise, in certain organizational contexts, older individuals are less likely to be recommended for hire than younger job applicants (Diekman & Hirnisey, 2007). More recent research suggests that modern forms of discrimination are comprised of both illegal displays of differential treatment (e.g., differentially hiring, terminating, compensating individuals on the basis of a protected status characteristic), but, subtle displays of incivility which are not mandated by Equal Employment Opportunity legislation (Cortina, Kabat-Farr, Leskinen, Huerta, & Magley, 2011). Specifically, individuals belonging to protected classes report experiencing greater amounts of incivility compared to individuals who are not members of a protected class. As a whole, previous research suggests that protected classes (e.g., women, racial/ethnic minorities, older workers) may experience discrimination in employment settings. Though research on the experience of workplace discrimination is increasing, there remains a shortage of research examining bias directed towards racial and ethnic minority leaders. A notable exception by Knight et al. (2003) found that White subordinates were rated more negatively than Black subordinates, and Black leaders were rated more negatively than White leaders. Similarly, more recent research found that individuals occupying stereotype congruent jobs (i.e., Asian manager in an engineering job) were perceived more favorably than those occupying jobs that were perceived to be stereotypically incongruent (i.e., Asian manager in a sales position; Sy, Shore, Strauss, Shore, Tram, Whitely, & Ikeda-Muromachi, 2010). In each of these studies, the authors interpreted these results on the basis of role congruity theory (Eagly & Karau, 2002). Specifically, evaluations in essence reinforced the status quo. That is, Whites have traditionally occupied and, in line with the status quo should occupy, positions of leadership. Conversely, Blacks have traditionally occupied and, in line with the status quo should occupy, subordinate roles. Likewise, stereotypes about Asians suggest that Asians should excel in engineering roles, and should not perform as well in jobs which require exceptional interpersonal skills and charisma. Chung-Herrera and Lankau (2005) reveal further support. Specifically, the research found stereotypes associated with Black and Hispanic individuals to be less compatible with the “successful manager stereotype” than the stereotypes associated with White or Asian individuals. In sum, previous research suggests that minority leaders experience bias. An unanswered question that remains is whether the race-based stereotyping of leaders is related to discrimination. The current study attempts to address this question. We next discuss recent gender-related research on ambivalent sexism and patronizing behaviors to provide a framework for how discrimination directed towards Black leaders might emerge in the workplace. Research examining women in leadership positions has received considerable attention in the research literature. Though women are occupying more leadership positions today than in the past, recent research suggests that an interesting paradox emerges for working women (Sümer, 2006). For instance, research reveals that stereotypes associated with womanhood (i.e., communal traits) are incompatible with the successful manager prototype (i.e., agentic traits; Welle & Heilman, 2005). As a result, female leaders are less likely to be promoted to upper management than men who perform similarly well (Eagly, 2007; Ibarra, Carter, & Silvia, 2010). Moreover, women in leadership roles are paid less than their male counterparts (Kulich, Trojanowski, Ryan, Hasalam, & Renneboog, 2011). A number of theories have been proposed to explain why such differences emerge (e.g., stereotyping, work-family balance issues). We focus on the literature related to ambivalent sexism to understand the patronizing, discriminatory behaviors examined in this study. Glick and Fiske (1996) posit that sexism consists of two distinct forms being characterized by both feelings of protectiveness and dependence on women (i.e., benevolent sexism) and hostility toward women (i.e., hostile sexism). Thus, women face a complex form of bias that consists of both negative and seemingly positive attitudes about gender (i.e., ambivalent sexism). In a series of studies, Biernat and colleagues reveal an interesting pattern regarding the way in which discrimination manifests for women which they attribute to the ambivalent nature of sexism. Biernat and Vescio (2002) asked participants to assume the role of a hypothetical team manager and evaluate, select, and assign men and women to positions on a baseball team. Though the hypothetical team managers often praised female team members

Journal of Business Diversity vol. 13(1/2) 2013 53 for their efforts, they did not assign women to strategic positions on team at the same rate of male team members with similar capability. Thus, the praise that was given to women was of a patronizing nature and was not linked to desired outcomes (i.e., highly competitive positions on the team). Further support was found in a subsequent study. In this case, women were again praised more than men, but also were allocated valued resources significantly less than men (Vescio, Gervais, Snyder, & Hoover, 2005). Specifically, individuals who stereotyped women competing in a male-oriented domain gave more praise to women (compared to men) and simultaneously assigned women to positions with less potential to win a cash prize than men. In each of these studies, women were given the unlimited resource of praise (i.e., giving praise is of no monetary cost to the individual delivering the compliment; an instance of benevolent sexism). However, women were not given limited resources (i.e., competitive positions with high earning potential; an instance of hostile sexism) to the same extent of men. This pattern of patronizing behavior reinforces the status quo by placing men in positions that have traditionally been occupied by other men (i.e., high earning positions) and placing women in positions with less ability to be competitive or visible (i.e., support roles that have traditionally been occupied by women). These findings have a number of implications in workplace settings. These results suggest that workplace discrimination may manifest in patronizing ways. Rather than be overtly discriminatory, individuals may equally allocate unlimited resources (e.g., praise) to underrepresented groups, while differentially allocating limited resources (e.g., pay, promotion). When applied in an organizational context, such behaviors might provide some insight for the continued wage gaps in earning that exists for many individuals belonging to underrepresented groups (e.g., women, racial-ethnic minorities) as well as disproportionate representation of protected classes in high-level positions in organizations. Though individuals may be praised for their work when they perform similarly to majority group members, they may not be promoted or compensated at the same rate of their majority group counterparts. As with women, previous research reveals that individuals hold both positive and negative attitudes about Black individuals (Gaertner & Dovidio, 1986; Katz & Hass, 1981). The current research extends previous research by examining patronizing behavior directed towards Black individuals in a work-related context. In line with previous research examining leadership prototypes and patronizing behaviors, we hypothesize that Blacks and White leaders will receive equivalent amounts of unlimited resources, and will simultaneously receive fewer amounts of limited resources compared to White leaders.

Hypothesis 1a: There will be no differences in the allocation of unlimited resources, in the form of leadership effectiveness, to Black and White leaders.

Hypothesis 1b: Black and White leaders will receive differential amounts of limited resources. Specifically, Black leaders will receive lower salary assignment, compared to White leaders.

There is an overall tendency for individuals to engage in behaviors which are non-prejudicial and non-discriminatory. Legislation, egalitarian beliefs, and social norms for engaging in social desirable ways all may partially explain the reduction in overt displays of prejudice and discrimination. Social desirability occurs when individuals attempt to present themselves in favorable ways (Holtgraves, 2004). Current social norms discourage the expression of overt biases, and thus lead people to adopt explicit attitudes and behaviors that are non-prejudicial and non-discriminatory. Individuals may conform to social norms primarily to avoid being seen as biased and thus are able to escape the negative outcomes associated with being labeled as racist or otherwise discriminatory (Crandall, Eshleman, & O’Brien, 2002; Plant & Devine, 1998). Societal norms are changing and now suggest that many biased behaviors are simply unfair and no longer acceptable. People respond to these norms by responding in socially desirable ways, or else they suffer repercussions that range from social to monetary in nature. Though prejudices are reduced as a result of social norms, recent research also reveals that there are conditions under which individuals are likely to display their true prejudicial attitudes. According to the Justification-Suppression Model of Prejudice (JSM; Crandall & Eshleman, 2003), individuals are most

54 Journal of Business Diversity vol. 13(1/2) 2013 likely to display their true attitudes when given justifications for displaying biases (e.g., stereotype confirming information). Justifications serve as “releasing mechanism” for prejudice because an alternative explanation for behavior exists. Previous research examining the JSM in customer service settings reveals that heavyweight women who engage in stereotype confirming behavior (i.e., consuming high caloric food) experience more negative treatment from store personnel than heavyweight women who do not engage in stereotypical behavior (King et al., 2006). The current research examines the extent to which different types of managerial mistakes serve as releasing mechanisms. In line with previous research on the JSM, we selected mistakes that were of a stereotypical nature. Individuals are not likely to display any true biases that they have about Blacks in leadership roles as such displays are illegal, offensive, and contrary to social norms. Thus, in conditions under which Black and White leaders perform equally well, there should be no differences in the amount of unlimited resources (i.e., evaluations) and limited resources (i.e., salary, promotion) directed toward Black and White leaders. However, in conditions under which Black and White leaders make mistakes (a potentially stereotype confirming situation), Black leaders should receive fewer unlimited resources (i.e., lower evaluations) as well as limited resources (i.e., pay, promotion) toward leaders. The types of mistakes that Black leaders make serve as a justification or releasing mechanism for prejudicial behaviors. Thus, any biases can be attributed to the mistake rather than prejudicial beliefs.

Hypothesis 2a: Under conditions in which a mistake is made, Black leaders will receive fewer amounts of unlimited resources compared to White leaders.

Hypothesis 2b: Under conditions in which a mistake is made, Black leaders will receive fewer amounts of limited resources compared to White leaders.

Plant and Devine (1998) identified an individual difference variable that potentially explains the expression of biased attitudes and beliefs. Plant and Devine (1998) suggested that people vary in the extent to which they possess internal and external motivations for responding without prejudice. Internal motivation is one’s desire to suppress prejudicial displays due to feelings of guilt and shame, and feelings that such displays are unfair in nature. Thus, individuals with an internal motivation to suppress truly want to engage in behaviors which are non-prejudicial in nature. Conversely, individuals with a high external motivation to suppress reduce displays of overt biases to mask truly prejudicial beliefs. These individuals are driven to suppress their true feelings of disdain and antipathy as a result of social norms. Previous research examining motivation to suppress has found that individuals with a high external motivation to suppress are likely to display biased beliefs when given justifications for doing so. This individual difference variable may partially explain the likelihood of displaying prejudice towards Black leaders who make mistakes. That is, individuals that are highly motivated to suppress their prejudice may be highly likely to display their biases when legitimate alternatives are present. Thus, rather than giving a lower evaluations as a result of category membership (i.e., being Black), individuals can attribute their behavior to the individual’s poor performance (i.e., mistakes). We hypothesized that there would be no differences on the allocation of unlimited and limited resources when no mistakes were made. Thus we predicted that Blacks and Whites will receive similar ratings of leadership quality and resources when no mistakes are made. However, we do anticipate differences in the ratings of leadership quality and resource allocation when Blacks make stereotypical mistakes. Previous research has found that there are widely held beliefs about Blacks (e.g., lazy, aggressive, unintelligent). Thus, stereotype confirming information (the presence of mistakes) should justify the expression of prejudice (Crandall & Eshleman, 2003). Therefore, we expected that the motivation to respond without prejudice would account for the effect of leader race and mistake (i.e., the presence of mistakes) on unlimited resources (i.e., leader evaluations) and limited resources (i.e., salary assignment).

Journal of Business Diversity vol. 13(1/2) 2013 55 Hypothesis 3: Motivation to respond without prejudice accounts for the relation between leader race and the allocation of limited and unlimited resources under conditions in which a mistake is made.

Method Participants A total of 425 adults were asked to participate in the study. Forty three percent of participants were women and 17.6% of the sample did not report their gender. Thirty-eight percent of the sample reported being non-White. Participants were diverse with respect to their occupation with 44% of the sample reporting current enrollment in college, 44% reported full-time professional employment, 7.5% of the sample worked in retail establishments, 4.2% in the service sector, and 6.5% of respondents did not specify their occupation.

Design and Procedure A 2 (Leader Race: White or Black) x 5 (Leader Mistake: no mistake, general mistake, intelligence mistake, aggressive mistake, and lazy mistake) full factorial design was used to explore the effect of leader race and leader mistake on leader evaluations. We focused on male managers in the experimental materials to control for gender differences of perceptions of leadership (Eagly & Karau, 2002; Eagly, Wood, & Diekman, 2000). We used a research approach in which undergraduate research assistants handout surveys to collect data as a recruiting technique (e.g., King, Madera, Mendoza, Hebl, & Knight, 2006; King, Shapiro, Hebl, Singletary, & Turner, 2006; Payne & Webber, 2006). The research assistants were provided with clear verbal and written directions on how and who to recruit, and were instructed to find twenty adults willing to participate in the study. Once the research assistants identified a willing participant, the individual was given an experimental packet. The packet included an envelope, instructions, a hypothetical review of a manager that manipulated the leader’s race and the type of mistake, and a questionnaire that included the dependent measures. Participants were told that they were participating in a study that “examines perceptions of managers based on employee evaluations,” and that they were going to read a manager’s evaluation and answer questions about the manager. First, previous research suggests an individual’s name provides indirect evidence about one’s race/ethnicity or sex (Bertrand, & Mullainathan, 2003; King et al., 2006; Smith et al., 2005). Thus, we used a methodology similar to that used in previous research (Bertrand & Mullainathan, 2003; King et al., 2006; Smith et al., 2005). Specifically, participants examined a manager’s resume, which manipulated the race of the manager by using a stereotypical Black or White name for the manager. As in previous research, the names were first pre-tested to ensure the names would be perceived as Black or White (King et al., 2006). Second, participants read an evaluation of the manager that included a mistake manipulation. We developed a list of mistakes based upon previous research. Specifically, Devine and Elliot (1995) revealed that there continue to be number of widely held stereotypes about Black individuals (e.g., unintelligent, aggressive, lazy, athletic, violent, poor). In the current study, we included stereotypes that were related to employment and specifically focused on stereotypes involving intelligence, aggression, and work ethic. As a result, we developed five mistake manipulations to address the commonly held stereotypes and other common workplace issues. The manipulations consisted of reading an evaluation specifying that the manager: 1) made no mistakes (control condition); 2) made unspecified mistakes (general mistake condition, with no specifics); 3) made managerial mistakes reflecting that the manager was not very bright (i.e., intelligence mistake); 4) was too hostile and aggressive with coworkers and subordinates (i.e., aggressive mistake); or 5) did not finish reports on time, was late to meetings, and took too many days off from work (i.e., lazy mistake). Third, participants evaluated the manager by completing a questionnaire – an unlimited resource measure, which was followed by a question that asked participants to either increase or decrease the salary of the manager – a limited resource measure. Fourth, participants were asked a series of

56 Journal of Business Diversity vol. 13(1/2) 2013 demographic questions, which were followed by Plant and Devine’s (1998) motivation to respond without prejudice (MRP). This was administered after the evaluation of the leader so as not to reveal what was being studied and potentially skew the results through priming effects. Fifth, participants completed manipulation checks. Sixth and last, participants returned the questionnaire in a sealed envelope to the research assistant who then returned the sealed questionnaire to the experimenters.

Measures Leader Evaluation To assess the first dependent variable, the participants’ evaluation of the leader, we constructed an unlimited resource measure intended to evaluate the leader using a Likert-type 7-point scale. A Principal Components Factor Analysis with Varimax rotation revealed four meaningful factors. These factors included “Leader Legitimacy” (eigenvalue = 8.17; 43.08% of variance), “Leader Intelligence,” (eigenvalue = 3.04; 16% of variance), “Leader Aggressiveness,” (eigenvalue = 1.09; 5.8% of variance), and “Leader Agreeableness” (eigenvalue = 1.06; 5.5% of variance). All item loadings were greater than .65. Items were averaged within each factor to create variables for analyses. The internal consistency reliabilities for the four factors were acceptable: Leader Legitimacy (α = .93), Leader Intelligence (α = .83), Leader Aggressiveness (α = .83), and Leader Agreeableness (α = .85).

Assigned Salary To assess the second dependent variable, a limited resource measure, participants were asked to increase or decrease the salary of the manager based on the manipulated evaluation. They were asked to put a negative (-) or positive (+) sign in front of the salary to indicate the decrease or increase. The average modified salary was a decrease of $51.12 (SD = 5,720.76); salary decreases ranged from $100 to $30,000, and salary increases ranged from $115 to $35,000.

Motivation to Respond Without Prejudice Participants completed the motivation to respond without prejudice (MRP) scale (Plant and Devine, 1998), which has both an internal and external motivational factors. An example of an item testing for internal motivation is: “Being non-prejudiced towards Black people is important to my self-concept.” For external motivation, a sample item is: “I attempt to appear non-prejudiced towards Black people in order to avoid disapproval from others.” The internal consistency reliabilities for both factors were acceptable: Internal Motivation (α = .81) and External Motivation (α = .84).

Manipulation Checks We used open items asking participants to recall the manager’s name, gender, and race. Responses were coded as either correct, scored as 1, or wrong, scored as 0. Participants that did not provide the correct responses were not used in the analyses.

RESULTS

To test our hypotheses, we conducted a 2 (Leader Race: White or Black) x 5 (Leader Mistake: no mistake, general mistake, intelligence mistake, aggressive mistake, and lazy mistake) MANOVA with leader legitimacy, leader intelligence, leader aggressiveness, leader agreeableness, and assigned salary as the dependent variables. The results showed non-significant main effects of leader race on the measures of unlimited resources: leader legitimacy, F(1, 401) = .02, p > .05, η2 = .001, leader intelligence, F(1, 401) = .03, p > .05, η2 = .001, leader aggressiveness, F(1, 401) = .24, p > .05, η2 = .001, and leader agreeableness, F(1, 401) = 1.32, p > .05, η2 = .003. The results also showed a non-significant effect for the measure of limited resources (i.e., assigned salary): F(1, 401) = .93, p > .05, η2 = .002. Thus, we found support for hypothesis 1a (i.e., Black and White leaders will receive equivalent amounts of unlimited

Journal of Business Diversity vol. 13(1/2) 2013 57 resources), but not for hypothesis 1b (i.e., Black leaders will receive significantly fewer amounts of limited resources compared to their White counterparts). The results showed significant main effects of leader mistakes on the dependent measures: leader legitimacy, F(4, 401) = 22.2, p < .05, η2 = .18, leader intelligence, F(4, 401) = 19.56, p < .01, η2 = .16, leader aggressiveness, F(4, 401) = 43.12, p < .05, η2 = .36, leader agreeableness, F(4, 401) = 16.63, p < .05, η2 = .14, and assigned salary F(4, 401) = 13.33, p < .05, η2 = .12. To examine the hypotheses that under conditions in which a mistake is made, Black leaders will receive fewer amounts of unlimited resources (H2a) and limited resources (H2b) compared to White leaders, we examined the interaction effect between leader race and leader mistake on the dependent variables. The results showed non-significant interaction effects between leader race and leader mistake for the non-zero-sum measures: leader legitimacy, F(4, 401) = 1.04, p > .05, η2 = .01, leader intelligence, F(4, 401) = 1.38, p > .05, η2 = .01, leader aggressiveness, F(4, 401) = .51, p > .05, η2 = .01, and leader agreeableness, F(4, 401) = .09, p > .05, η2 = .001. The results, however, showed a significant interaction effect for limited resources: F(4, 401) = 2.44, p < .05, η2 = .024. More specifically, simple effect analyses revealed that the significant difference between the White (M = $875, SD = $2,004) and Black (M = -$2,356, SD = $501) managers occurred in the aggressive mistake, t(45) = 3.38, p < .05, see Figure 1.

FIGURE 1 THE INTERACTION EFFECT OF LEADER RACE AND LEADER MISTAKE ON SALARY ASSIGNMENT

2500

2000 1500

1000

500

0 White Leader

-500 Black Leader -1000 Salary Assignment -1500

-2000

-2500 Mistake No Mistake

-3000

Although not significant, a similar trend to decrease the salary of the Black manager more than the White manager occurred with the other mistake conditions: no mistake, MWhite = $1,904 and MBlack = $1,501, general mistake, MWhite = $1,389 and MBlack = $1,163, and intelligence mistake, MWhite = -$1,010 and MBlack = -$2,906. One exception occurred in the lazy mistake condition in which White managers were allocated fewer resources than Black managers, MWhite = -$4,708 and MBlack = -$2,180. Thus, the results supported hypothesis 2b, but not hypothesis 2a. For our final analyses we conducted an ANCOVA

58 Journal of Business Diversity vol. 13(1/2) 2013 with leader race and leader mistake as the independent variable, unlimited resources (i.e., leader evaluations: leader legitimacy, leader intelligence, leader aggressiveness, and leader agreeableness) and limited resources (i.e., assigned salary) as the dependent variables, and the motivation to suppress measures as the covariates. The results showed that motivation to suppress decreased the significant interaction between leader race and leader mistake on salary assignment to non-significant: F(1, 401) = .053, p > .05, η2 = .001. Thus, motivation to suppress prejudice accounted for the relation between leader race and leader mistake on limited resources (i.e., salary assignment), partially supporting hypothesis 3. No other effects changed as a function of controlling participants’ motivation to suppress prejudice.

DISCUSSION

The purpose of the current research was to examine the effects of leader race and leader mistake on workplace outcomes. Specifically, we examined whether Black leaders experienced patronizing discrimination. In line with the literature on patronizing behavior (Biernat & Vescio, 2002; Vescio et al., 2005), we expected and found support for the equivalent distribution of unlimited resources given to Black and White leaders, which in the current study was operationalized as subjective evaluations of hypothetical leaders. Although we expected that Black leaders would receive significantly fewer amounts of limited resources, operationalized as salary assignment) compared to their White counterparts, we did not find support for this hypothesis. Thus, the results partially supported previous research on patronizing discrimination. The results, however, reveal an interesting pattern when examining the interaction between leader race and leader mistake. Similar to conditions in which no mistake was made, there were no significant differences in the allocation of unlimited resources to Black and White leaders who made mistakes. That is, leaders who made mistakes were perceived as having the same amount of leadership capability regardless of race. Conversely, there was a significant difference in the amount of limited resources given to Black and White leaders who made mistakes. Specifically, the results revealed that participants tended to decrease the salaries of Black managers more than the salaries of the White managers when mistakes were made. Additional analyses revealed that the results were influenced by one’s motivation to suppress prejudice. Thus, those who suppress bias because of external pressures, were most likely to exhibit their bias when a justification was present. Given the heightened sensitivity to possible discrimination in today’s workplace, norms regarding the appropriateness of behavior directed toward individuals in protected classes are likely to be particularly salient. That is, individuals are likely to be particularly careful when making judgments about employees. However, when justifications (e.g., mistakes) are present, minorities may receive fewer limited resources. Thus, the current study suggests that under conditions of mistakes, Black and White managers receive equivalent evaluations of their leadership capability, but are not given the same salary assignment. This finding is in line with previous research on patronizing behaviors as well as on shifting standards for resource allocation (Biernat et al., 2009). In sum, the results suggest that when individuals use their own discretion when determining how to distribute limited resources (e.g., pay raises), individuals may create disparities when justifications (e.g., mistakes) are present.

Theoretical Contributions The overall findings are in fact in line with the JSM (Crandall & Eshleman, 2002). Specifically, when no mistake is made, individuals are unlikely to discriminate as there is no alternative explanation for behavior. Thus, in these situations, there were no differences in the allocation of unlimited and limited resources. On the other hand, when mistakes are made individuals may attribute their decision to provide fewer limited resources to an individual’s poor performance and not to their own bias. In line with the JSM, when alternative explanations for behavior are present discrimination is likely occur. For Black managers, the differential treatment that they receive is of a patronizing nature. Specifically, when mistakes are made Black managers receive leadership evaluations (i.e., an unlimited resource) that are

Journal of Business Diversity vol. 13(1/2) 2013 59 equivalent to White managers; however, they simultaneously receive less pay (i.e., a limited resource) than their White counterparts who also make mistakes. The current research suggests that discrimination is complex. As with women, Black leaders experience discrimination that is patronizing in nature. Specifically, both women and Black leaders are given equivalent or sometimes greater amounts of unlimited resources (e.g., praise, leadership evaluations) but simultaneously receive fewer amounts of limited resources (e.g., selection for competitive/high earning positions, salary assignment). In previous research examining patronizing behaviors directed towards women, women received fewer amounts of limited resources compared to men. It is important to note that previous research has not examined the impact of mistakes on manifestations of patronizing behavior directed towards women. However, based upon previous research we predicted that patronizing behavior directed towards Black managers would emerge across all conditions, even when mistakes were not present. Contrary to results from previous studies involving women, the patronizing behavior for Black leaders emerged only under certain conditions, specifically, when an incumbent makes mistakes. That is, when no mistakes were made, Black and White managers received equivalent ratings of leadership capability as well as similar amounts of salary assignment. Conversely, when mistakes were made, Black managers received similar ratings of leadership capability but were allocated less money than White managers. Contrary to previous research, the patronizing discrimination experienced by Black managers appears to be influenced by contextual information. On the other hand, the patronizing discrimination directed towards women appears to be less influenced by contextual information. In sum, results reveal that patronizing behaviors exhibited toward minority leaders shares both similarities with (i.e., emerges in a patronizing fashion) and differences (i.e., contextually driven) from that experienced by women.

Practical Implications Discrimination continues to be an issue for employed individuals. In 2011, there were a total of 99,947 charges of discrimination with approximately 35% of those claims due to race (EEOC, 2012). Previous research suggests that employment discrimination is complex. The current study reveals that Black managers experience patronizing discrimination. Specifically, when mistakes are made Black managers receive leadership evaluations (i.e., an unlimited resource) that are equivalent to White managers; however, they simultaneously receive less pay (i.e., a limited resource) than their White counterparts who also make mistakes. Thus, patronizing forms of discrimination may partially explain the pay disparity that exists between Black and White managers. Because our results suggest that patronizing discrimination occurs in employment settings, organizations should take steps to prevent the occurrence of this bias. For instance, rather than allowing an evaluator to determine an incumbent’s raise or salary, another process might be utilized to make such decisions. Such a process might involve the use of technology to determine pay based upon an individual’s evaluations, or when purchasing software is not feasible, removing identifying information so that inferences about an individual’s background do not influence subsequent recommendations about pay.

Limitations and Future Research As with most research there are important limitations. First, though the current research was not conducted in an actual organization, it does provide a first step at examining how patronizing behaviors manifest in organizations. Future research might examine the phenomena in actual organizations to determine how patronizing behaviors naturally emerge. Such instances of patronizing discrimination may be less likely to occur in organizations with highly developed Human Resource practices. For instance, organizations that invest significant capital in training may be less susceptible to such biases. Similarly, there may be a variety of other ways that patronizing behavior is exhibited. For instance, rather than differentially allocate raises, patronizing discrimination might involve differentially recommending individuals for promotion, placing individuals into visible positions, or a may manifest in a variety of other organizationally relevant ways. To more fully understand patronizing discrimination, future

60 Journal of Business Diversity vol. 13(1/2) 2013 research should examine the extent to which patronizing behavior emerges in other ways. In sum, future research is needed to examine the extent to which such behaviors actually emerge in organizations and to assess whether there are organizational characteristics which moderate the occurrence. Second, a possible limitation of the results is our lack of effect hypothesis (i.e., Black and White leaders will receive equivalent amounts of unlimited resources). Although it is relatively not acceptable to develop null hypotheses, there are researchers who believe that there should be a more comprehensive understanding of “when a phenomenon occurs and when it does not” (Cortina & Folger, 1998, p. 335). In addition, our manipulations, procedure, and findings were in line with valid past research (i.e., Biernat & Vescio, 2002; Vescio et al., 2005). As a result, the current research provides insight into situations under which discrimination (in the form of patronizing behaviors) is likely to occur and when it is not. Future research might examine if leader race and leader mistake influence other measures of unlimited and limited resources, such as the allocation of praises (unlimited resource) and promotions (limited resource). Third, the current study focused on examining the impact of race on patronizing discrimination. Thus, it is unclear whether the results are applicable for other protected classes. Future research should examine whether patronizing discrimination is directed toward other marginalized groups (e.g., older workers, disabled workers, working mothers). In addition, given that individuals may belong to multiple protected groups, future research is needed to examine the extent to which patronizing behaviors manifests for individuals belonging to multiple protected groups. It is possible that different patterns will emerge for different groups, and future research is needed to explore these patterns. Fourth, organizations should take steps to reduce the occurrence of patronizing discrimination. The current study sought to understand patronizing discrimination, but did not examine mechanisms for reducing such displays. It is important for future research to examine a variety of ways to reduce such displays. As mentioned previously, one way to remediate the occurrence might consist of removing identifying information. Thus, future research might examine whether removing names or references to gender, and then making decisions such as assigning salary reduces patronizing discrimination. In sum, future research is needed to examine the advantages and disadvantages as well as the overall effectiveness of a variety of remediation strategies.

CONCLUSION

This research suggests that racial discrimination, in general, as well as, racial discrimination involving Black leaders in particular, is complicated. While Black and White managers are given similar leader evaluations (i.e., perceptions of leadership legitimacy, favorability, leadership ability; an unlimited resource) regardless of whether or not mistakes are made, the presence of mistakes leads to differential allocation of limited resources that vary as a function of race. Furthermore, the level of prejudice accounts for the relation between leader race and leader mistake on limited resources. In sum, results suggest that, in some contexts, Black leaders experience differential treatment that is characterized by a pattern of patronizing, discriminatory behaviors. What these results suggest for organizations is that it is important to monitor how resources, such as promotions, are allocated among employees to assure that distributions are not biased. It is important to note that although the current study focused on salary promotions as a resource, other resources such as training opportunities, work assignments, and management promotions should also be monitored as these may be limited resources. Some organizations have formal systems to monitor its compliance with civil rights laws to ensure non-discriminatory promotions into management (Bell, Connerley, & Cocchiara, 2009). By providing fair and equal access to resources, organizations will be able to circumvent the occurrence of patronizing discrimination.

REFERENCES

Bell, M. P., Connerley, M. L., & Cocchiara, F. K. (2009). The case for mandatory diversity education. Academy of Management Learning & Education, 8, 597- 609.

Journal of Business Diversity vol. 13(1/2) 2013 61 Bertrand, M., & Mullainathan, S. (2003). Are Emily and Greg more employable than LaKeisha and Jamal? A field experiment on labor market discrimination. American Economic Review, 94, 991-1013.

Biernat, M., Collins, E. C., Katzarska-Miller, I., & Thompson, E. R. (2009). Race-based shifting standards and racial discrimination. Personality and Social Psychology Bulletin, 35, 16-28.

Biernat, M., & Vescio, T.K. (2002). She swings, she hits, she’s great, she’s benched: Implications of gender-based shifting standards for judgment and behavior. Personality and Social Psychology Bulletin, 28, 66-77.

Blau, F. D., & Kahn, L. M. (2007). The Gender Pay Gap: Have Women Gone as Far as They Can?. Academy Of Management Perspectives, 21(1), 7-23.

Chung-Herrera, B. G., & Lankau, M.J. (2005). Are we there yet? An assignment of fit between stereotypes of minority managers and the successful manager prototype. Journal of Applied Social Psychology, 35, 2029-2056.

Cortina, J. M., & Folger, R. G. (1998). When is it acceptable to accept a null hypothesis: No way, Jose? Organizational Research Methods, 1, 334-350.

Cortina, L. M., Kabat-Farr, D., Leskinen, E. A., Huerta, M., & Magley, V. J. (2011). Selective incivility as modern discrimination in organizations: Evidence and impact. Journal of Management, online first.

Crandall, C.S., & Eshleman, A. (2003). A justification—suppression model of the expression and experience of prejudice. Psychological Bulletin, 129, 414-446.

Crandall, C.S., Eshleman, A., & O’Brien, L. (2002). Social norms and the expression and suppression of prejudice: The struggle for internalization. Journal of Personality and Social Psychology, 82, 359-378.

Devine, P. G., & Elliot, A.J. (1995). Are racial stereotypes really fading? The Princeton Trilogy revisited. Personality and Social Psychology Bulletin, 21, 1139-1150.

Diekman, A. B., & Hirnisey, L. (2007). The effect of context on the silver ceiling: A role congruity perspective on prejudiced responses. Personality and Social Psychology Bulletin, 33, 1353-1366.

Dovidio, J. F., Brigham, J. C., Johnson, B. T., & Gaertner, S. L. (1996). Stereotyping, prejudice, and discrimination: Another look. In N. Macrae, M. Hewstone, & C. Stangor (Eds.) Stereotypes and stereotyping. New York: Guilford.

Dreher, G. F., Lee, J., & Clerkin, T. A. (2011). Mobility and cash compensation: The moderating effects of gender, race, and executive search firms. Journal of Management, 37, 651-681.

Eagly, A. H. (2007). Female leadership advantage and disadvantage: Resolving the contradictions. Psychology of Women Quarterly, 31, 1-12.

Eagly, A.H., & Karau, S.J. (2002). Role congruity theory of prejudice toward female leaders. Psychological Review, 109, 573-598.

Eagly, A. H., Wood, W., & Diekman, A. B. (2002). Social role theory of sex differences and similarities: A current appraisal. In T. Eckes & H. M. Traunter (Eds.), The developmental social psychology of gender (pp. 123-174). Mahwah, NJ: Erlbaum.

62 Journal of Business Diversity vol. 13(1/2) 2013

EEOC (2012). Charge statistics FY 1997 through FY 2011. Accessed February 5, 2012 at http://www.eeoc.gov/eeoc/statistics/enforcement/charges.cfm.

Gaertner, S. L., & Dovidio, J. F. (1986). The aversive form of racism. In J. F. Dovidio, & S. L. Gaertner (Eds.), Prejudice, Discrimination, and Racism. Orlando, FL: Academic Press.

Glick, P., & Fiske, S.T. (1996). The ambivalent sexism inventory: Differentiating hostile and benevolent sexism. Journal of Personality and Social Psychology, 70, 491-512.

Goldman, B. M., Gutek, B. A., Stein, J. H., & Lewis, K. (2006). Employment discrimination in organizations: Antecedents and consequences. Journal of Management, 32, 786-830.

Holtgraves, T. (2004). Social desirability and self-reports: Testing models of socially desirable responding. Personality and Social Psychology Bulletin, 30, 161-172.

Ibarra, H., Carter, N.M., & Silvia C. (2010). Why men still get more promotions than women. Harvard Business Review, 88, 80-85.

King, E. B., Madera, J. M., Mendoza, S. A., Hebl, M. R., & Knight, J. L. (2006). What’s in a name? A multiracial investigation of the role of occupational stereotypes in selection decision. Journal of Applied Social Psychology, 36, 1145-1159.

King, E.B., Shapiro, J.T., Hebl, M.R., Singletary, S.L., & Turner, S. (2006). The stigma of obesity in customer service: Remediation strategies and bottom-line consequences of interpersonal discrimination, Journal of Applied Psychology, 91, 579-593.

Knight, J. L., Hebl, M. R., Foster, J. B., & Mannix, L. M. (2003). Out of role? Out of luck: The influence of race and leadership status on performance appraisals. Journal of Leadership and Organizational Studies, 9, 85-93.

Kulich, C., Trojanowski, G., Ryan, M. K., Haslam, S. A., Renneboog, L. D. R. (2011). Who gets the carrot and who gets the stick? Evidence of gender disparities in executive renumeration. Strategic Management Journal, 32, 301-321.

Payne, S. C., & Webber, S. S. (2006). Effects of service provider attitudes and employment status on citizenship behaviors and customers’ attitudes and loyalty behavior. Journal of Applied Psychology, 91, 365-378.

Plant, E.A. & Devine, P.G. (1998). Internal and external motivation to respond without prejudice. Journal of Personality and Social Psychology, 75, 811-832.

Smith, F., L., Tabak, F., Showail, S., Parks, J. M., & Kleist, J. S. (2005). The name game: Employability evaluations of prototypical applicants with stereotypical feminine and masculine names. Sex Roles, 52, 63-82.

Sümer, H. C. (2006). Women in Management: Still waiting to be full members of the club. Sex Roles, 55, 63-72.

Journal of Business Diversity vol. 13(1/2) 2013 63 Sy, T., Shore, L. M., Strauss, J., Shore, T.H., Tram, S. Whiteley, P., & Ikeda-Muromachi, K. (2010). Leadership perceptions as a function of race-occupation fit: The case of Asian Americans. Journal of Applied Psychology, 95, 902-919.

Vescio, T.K., Gervais, S.J., Snyder, M., & Hoover, A. (2005). Power and the creation of patronizing environments: The stereotype-based behaviors of the powerful and their effects on female performance in masculine domains. Journal of Personality and Social Psychology, 88, 658-672.

Welle, B. & Heilman, M. H. (2005). Formal and informal discrimination at work: The role of gender stereotypes. Center for Public Leadership.

Word, C. O., Zanna, M. P., & Cooper, J. (1974). The nonverbal mediation of self-fulfilling prophecies in interracial interactions. Journal of Experimental Social Psychology, 10, 109-120.

64 Journal of Business Diversity vol. 13(1/2) 2013

Multigenerational Differences in the Puerto Rican Workforce

Maritza Yvette Soto University of Puerto Rico, Rio Piedras

Maria V. Lugo Bridgewater College

This study examines the perception of intergenerational differences among workers in Puerto Rico. An adaptation of the Intergenerational Tension Questionnaire (ITQ) (Choo, 2002) was administered to human resources managers of approximately 500 companies of a variety of types of businesses: manufacturing, service, educational, in Puerto Rico. Results found that there is no difference between younger/older workers in the different aspects related to their jobs and that organizational practices, particularly those associated with recruitment, training, promotions and transfer systems, could alienate older workers to a greater extent than they would younger workers.

LITERATURE REVIEW

For the first time in history, four generations work side-by-side in many, if not all, organizations. The working generations span more than 60 years, including the so-called Traditionalists, Baby Boomers, Generation X and Millennials/Generation Y. These bring different perspectives into the workplace, including work styles, ethics, expectations, and experiences that create what we have heard before- “the generation gap”. Despite the perceived gap, these individuals are the human resources of the organizations and they must work together and achieve the goals established for their businesses. Managers should expect to see more employees with unrealistically high expectations, a high need for praise, difficulty with criticism, an increase in creativity demands, job-hopping, ethics scandals, casual dress, and shifting workplace norms for women (Twenge & Campbell, 2008). It is because of this that we need to thoroughly understand the generations, what these perceived differences or gap may be and develop strategies to maximize these differences. These are the aspects that identify each generation: the Silent or The Veterans (also called Matures), born 1922-43 (sometimes 1930-1945), lived through World War II and the Korean War. They believe in family values, hard work and dedication. They grew up in an era when most men worked and women reared children. This group is too young to have been World War II heroes and too old to participate in the rebelliousness of the 1960’s. These kids of the Great Depression learned that “children are to be seen and not heard”. They value thrift, hard work and respect for authority. They built on work ethic on commitment, responsibility and conformity as tickets to success. A command and control approach comes naturally to the members of this generation.

Journal of Business Diversity vol. 13(1/2) 2013 65 "They are loyal to employers and expect loyalty in return. They expect to receive promotions and raises based on tenure and time with the company, not productivity, and to be taken care of into retirement - what some describe as a cradle-to-grave mentality," Johnson said. The Baby Boomers, born 1943-60 (some say 1946-65), grew up in economic prosperity at a time when children's needs and wants were at center stage. They grew up with the Cleavers, the can-do optimism of John F. Kennedy and hopes of the post World War II American Dream. But the social and political upheaval from Vietnam, Watergate and Woodstock spurred them to rebel against authority and carve lifestyles based on personal values and spiritual growth. While some have called them pampered and self-centered; baby boomers also like teamwork and were taught "to play well with others" in school. In the workplace they are optimistic, service-oriented and willing to do whatever it takes to get the job done. They've witnessed the recession, layoffs and mergers since the 1980s. "You have to remember that 51 million of theses workers hit the job market at the same time, so they are fiercely competitive. Some call them workaholics," Johnson said. With their vast numbers, baby boomers dominate the workplace. There are now more workers over 40, than workers under 40. Another generation has been identified more recently called Generation Jones. Generation Jones is a term typically used to describe the younger baby boomer generation (people born between 1954 and 1965). The term was brought to life by cultural historian Jonathan Pontell to help explain what he considered a generation lost between Generation X and the Baby Boomers. Generation Jones stems from the line “keeping up with the Joneses” and can be understood mostly within the American culture. It marks a competitive generation. Individuals born in these years typically had children early, are internet and technologically savvy (despite the reputation of not being so, due largely to their older Baby Boomer counterparts) and were one of the first generations to look at their work more as a career than a job. Many Joneses feel that they share some things with Gen X and some things with Boomers, but they feel there are some major differences. Over 80% of people born between 1954 and 1965 say they fell “in-between” these two generations. Because of this, usage of the Generation Jones term is growing rapidly. In fact, Yale University now teaches Generation Jones in a course called: Managing a Multiple Generation Workforce. In his article, “Generation Jones: Between the Boomers and Xers”, John Lang indicates that there are fifty-three Americans that are practically invisible. It has been difficult to keep up with them both as a group and individually. But they exist; they have not been properly recognized, ignored but ready to claim their place. Next we have Generation X'ers, born 1960-80 (some say 1965-79, especially after Generation Jones), were street-savvy survivors of latch-key two-income families or were affected by divorce as well as AIDS, violence and low expectations. They saw the stresses of their baby boomer parents and learned to be self-reliant at an early age. They have been labeled “at risk” and denounced as slackers, but they embrace free agency over company loyalty. They are technologically savvy, adaptable, informal and globally oriented. "Having watched their parent’s burn out, they are interested in a work/life balance and more loyal to people than companies. They will go wherever they see the best opportunities, which mean they're not afraid to job-hop," Johnson said. "They also believe that promotions and raises should come from productivity and results." The echo-boom, Nexters, Generation Y or Millennials, born 1980 to the present, are the youngest and hardest to categorize. They grew up with computers in their homes, are more tolerant of a diverse society, and have an amazing capacity for multitasking. They benefited from the backlash against hands-off parenting and the cultural elevation of stay-at-home moms. Coming of age during a shift toward virtue and values, they set their sights on meaningful goals. In many ways, their work ethic resembles that of the grand-parents who welcomed authority. In seeking personal and professional fulfillment, they adopted a can-do attitude that characterizes their work ethic. "Some say they've been coddled and doted on and expect lots of feedback and recognition," Johnson said. "But they are hard-working, confident, [and they] value individual relationships and personal satisfaction. They believe they can work well and do good simultaneously."

66 Journal of Business Diversity vol. 13(1/2) 2013 With such diverse perspectives, it is expected that the majority of workers experience some type of generational clash of attitudes, ethics, values and behaviors. Despite the differences, workers of all four generations in the 2005 Randstad Employee Review agreed on the importance of "delivering operational excellence with fewer resources" in their companies. They just don't always agree on how to do it. In Puerto Rico, there has been some research regarding generational differences although not as many as in other parts of the world. A survey conducted in 2007 by Gaither International, it was found that there were basic differences in answering the survey, although there is great similarity in the issues faced by each generation. Wong, Gardiner, Lang and Coulon (2008) found that developed a research on generational differences and their findings suggest that the differences observed where better explained by age than by generational differences. On the other hand, Macky, Gardner and Forsyth (2008) stated that managerial time could be better spent considering employee needs in relation to age (maturity), life- cycle and career stage differences than developing generationally specific management policies and practices. Significant methodological problems remain in generational research. With that in mind, the question is, are generational differences something that we need to address? Does it affect the workplace? Many interactions between generations in the workplace are positive and often go unnoticed. It’s the negative experiences that get noticed and cause people to expend time, energy and emotional resources. Workplace issues between members of different generations are generally not pleasant or productive. Research indicates that these types of experiences are taking place more often resulting in decreased productivity and employee satisfaction. In short these negative experiences represent a real cost (i.e. falling productivity, increased turnover and lost opportunities) to organizations. Research into multi-generational issues across a wide variety of different organizations is an active field of study. Current research seems to suggest that varying levels of employee disenchantment, miscommunication and ill will attributed to generational differences exists in all organizations. The research specifically identifies the following:

Generational Differences Are Real The ideals, values, traits, goals and characteristics held by the four generations currently in the workforce are increasingly different from one another. These differences are often substantial and play a significant role in how members of each group relate to one another. Specific differences between generations include communication styles, work expectations, work styles, attitudes about work/life balance, comfort with technology, views regarding loyalty/authority and acceptance of change.

Generational Differences Cause Misunderstanding It is widely recognized and accepted that people of different generations are often not on the same page. The lack of commonly held beliefs and experiences across the generations is often the root cause misunderstandings between the generations. Misunderstandings lead to tensions and these misunderstandings are often difficult for co-workers to settle on their own without some form of management/external intervention.

Generational Issues Impact the Workplace Misunderstandings and strife within an organization negatively impact employee interaction and productivity. Consequently, the entire organization suffers as valuable time, energy and emotions are wasted dealing with crises rather than managing the business. Differing work and life expectations can also create tensions. An example of this is Beutell and Wittig-Berman (2008) findings that mental health and job pressure are two of the strongest predictors of work-family conflict in generational groups.

Generational Differences Can Be Minimized Having a solid understanding of all generations in the workplace is critical. Though differences between generations seem to be increasing, steps can be taken to minimize the negative outcomes. Other research have also highlighted that there another issue and that is how different generations approach

Journal of Business Diversity vol. 13(1/2) 2013 67 ethics. The authors point out that “with value systems and motivation at the heart of ethics, and divergent values systems inherent within the four generational groups, the existed of varied ethical perspectives among co-workers is not a surprise. A common complaint among generations focuses on work ethic. Much of the conflict stems from how the term work ethic is defined and interpreted. The survey “2004 Generational Differences Survey" conducted by SHRM finds that 40 percent of human resource (HR) professionals have observed conflict among employees as a result of generational differences. In organizations with 500 or more employees, 58 percent of HR professionals reported conflict between younger and older workers, largely due to differing perceptions of work ethic and work/life balance. Overall, the HR professionals surveyed are generally positive about relationships among the generations with half saying they work effectively together and 27 percent saying the quality of work frequently improves with a variety of generational perspectives. However, 28 percent of HR professionals said conflict among generations had increased over the last five years and 33 percent expect it to increase over the next five. Nearly a quarter of HR professionals say differences over acceptable work hours are the primary sources of conflict, which reflects different perceptions of work ethic and benefits like telecommuting and flextime. Frequently, these complaints came from older workers about younger employees' willingness to work longer hours. Past SHRM research finds that work/life balance is among the most important job- satisfaction factors for younger employees and is typically not as important among older workers. Other common issues that has been documented, specifically by Len Rothman, an executive and diversity business coach with Action International, is: minimal connections among generations, there are few incentives for boomers to stay, older generations don’t feel valued, younger generations feel discounted, older generations don’t know the full value of their business experience, younger generations don’t appreciate the value of their older generations wisdom, and younger generations are not told of their value in the workplace. Forty-two percent of HR professionals said their organization had lost GenXers and Nexter employees who believed they could not advance in their careers because veterans and baby-boomers held top positions. HR professionals reported implementing succession-planning programs, offering training or increasing compensation in order to retain younger workers. From all of these recent studies, it had to be assumed that the Puerto Rican workforce was in the same situation. However, nonetheless this might be the case; it was worthwhile addressing the local population to see if the generational issues, and in the long run, the strategies to be used, are similar to those in other areas.

PURPOSE OF THE RESEARCH

There is increasing interest in examining the strengths and challenges of the four generations in the workplace. Skill shortages coupled with higher rates of employee turnover and an increase in grievance claims have led employers to look for reasons behind these alarming trends. Employers need to be aware of factors contributing to generational differences in the workplace, acknowledge the challenges and strengths to work towards building capacity in their organizations. In Puerto Rico, during the past five years, there has been increasing pressure in the workforce due to other constraints such as plant closings, government employee layoffs, exodus of qualified professionals, among others. It is critical at this point that the remaining workforce remains focused on achieving organizational success and performance. The purpose of this research is to measure generational differences in the workplace but from the perspective of both younger and older workers. By doing this, managers and other interested in organizational behavior will be better placed to understand the sometimes complex human resources issues found in organizations. Building the capacity of our generations at work through training is an integral piece of the puzzle that will bridge the gaps in our workplace and improve the quality of service and production of our workforce.

68 Journal of Business Diversity vol. 13(1/2) 2013 RESEARCH QUESTIONS

Understanding that there are four generations in the workplace and the concept that there is a “generation gap”, the first and most important question is simply: “Do workers feel that there is that “gap” or difference between younger/older workers in the different aspects related to their jobs? Further to this, “Do they perceive that the organization treats them differently because they are of the younger/older age group?” This study, therefore, seeks to extend our knowledge of generational differences in the workplace by identifying employee perceptions. If results reveal that there are potential issues to work with, then the following question would follow: “What are the steps that organizations need to take to bridge these differences?”

METHODOLOGY

To examine the research questions, we closely examined the research conducted by Elaine Eng Choo in 2002 titled Intergenerational tension in the Workplace: a multidisciplinary and factor analytic approach to the development of an instrument to measure generational differences in organizations. In order to develop the questionnaire, Dr. Choo developed a 25-item questionnaire and was administered first to an informal group utilizing a small sample of adults ranging from 21 to 70+ years. A second pilot study questionnaire was constructed and administered to a small, stratified random sample of employees from the Western Australia Police Service. Following the data analysis obtained from this questionnaire, the final questionnaire was developed. After requesting the pertinent approval for use in Puerto Rico in 2007, the questionnaire was developed using the 25 questions from the Choo study containing items about the perceptions about adapting to change, influence in the organization, comfortable with working with people in the organization, have in common with the other generation, feeling disadvantaged because of the other generation, among other questions. In addition, various demographic items were requested, such as age, gender, background characteristics, education, length of service in their organization, etc. This adaptation of the Intergenerational Tension Questionnaire (ITQ) (Choo, 2002) was administered to human resources managers of approximately 500 companies of a variety of types of businesses: manufacturing, service, educational, in Puerto Rico. The survey was divided between employees under 40 years of age and employees over 40 years of age. This way we could easily identify a workers generation. The survey was administered via a mailing list. In the following month, a second mailing was carried out. The next month follow-up telephone calls were made to the companies who had not yet delivered their completed questionnaire. The completed questionnaires were then be tabulated and analyzed accordingly to study the perception of generational difference among workers. Seventy- six companies have answered the questionnaire. The process has taken more than two years to complete, starting from the original documents sent to the last document received. A total of seventy- six companies have answered the questionnaire. The survey was administered through the human resources directors and it was requested that they give out an equal number of questionnaires to employees under forty years old and to employees over forty years old.

SURVEY DESIGN

Although the survey was designed after Dr. Choo’s Intergenerational Tension Questionnaire, it is important to explain the design methodology. Responses to the variables were scored using an Lickert scale, respondents ranked the variables in each section from “1” to “5” (being 1 the most important) according to the extent that they thought each variable contributed to the intergenerational differences in the workplace.

Journal of Business Diversity vol. 13(1/2) 2013 69 TERMS AND ASSUMPTIONS

Definition of Younger Worker and Older Worker Forty years of age was chose as the point at which one becomes an older worker. This is especially true in Puerto Rico, where both the Federal and local labor laws specify the age discrimination in the workplace mostly affects labor practices to those over 40 years old. Therefore, the younger worker is deemed an employee under 40 years of age. There is however, apart from the labor laws indicated, no consensus regarding the point at which one ceases to be a younger employee and becomes an older employee. There are certain specifications for retirement purposes (ex. Social Security Administration), but there are variances to this in private company-owned pensions programs. However, the old saying that “life begins at 40” has suggested that 40 years of age is generally accepted as the yardstick differentiating old from young.

Item Construction As mentioned earlier, Dr. Choo took the necessary steps to construct the questionnaire. Regarding the survey wording, she took into consideration that survey wording is a highly complex process with the choice of words having the power to determine the exact nature of the construct actually measure. To that end, the term intergenerational tension was never specifically referred to preferring generational differences as the desired term. It was necessary to write items specifically for younger or older workers. The items included in the questionnaire were constructed considering generational differences (GD) or organizational practices (OP). The twenty five items that were included in the questionnaire were as follows:

TABLE 1 QUESTIONNAIRE

Under 40 questions Over 40 questions GD/OP Older workers are good team members Younger workers are good team members OP My organization provides more opportunities My organization provides more OP for older workers than it does for workers of opportunities for younger workers than it my generation does for workers of my generation My organization uses change as a way of My organization uses change as a way of OP replacing workers of my generation replacing workers of my generation Older workers show little respect for workers Older workers show little respect for GD of my generation workers of my generation I feel more comfortable working with people I feel more comfortable working with GD of my generation people of my generation My generation works harder than the older My generation works harder than the GD generation younger generation Older workers should retire at the earliest Younger workers should retire at the OP opportunity in order to create openings for earliest opportunity in order to create the younger workers openings for the older workers Older workers contribute positively to my Younger workers contribute positively to OP organization my organization I prefer working in teams with people of my I prefer working in teams with people of OP generation my generation My organization is more supportive of older My organization is more supportive of OP workers of my generation younger workers of my generation

70 Journal of Business Diversity vol. 13(1/2) 2013 Employees of my generation are more Employees of my generation are more GD supportive of change than are younger supportive of change than are older workers workers Older workers have little regard for the skills Younger workers have little regard for the GD and experience of my generation skills and experience of my generation Older workers have negative view of my Younger workers have negative view of GD generation my generation I have little in common with older workers I have little in common with younger GD workers There are too many older workers in my There are too many younger workers in GD organization my organization Older workers have little regard for the Younger workers have little regard for the GD values of my generation values of my generation Older workers adapt to organization change Younger workers adapt to organization OP better than do workers of my generation change better than do workers of my generation In my organization, I feel disadvantaged In my organization, I feel disadvantaged OP because of my age because of my age Older workers have too much influence in Younger workers have too much OP my organization influence in my organization My organization values older workers more My organization values younger workers OP that it does workers of my generation more that it does workers of my generation I get angry because older workers have too I get angry because younger workers GD much power have too much power Older workers prefer to work with people Younger workers prefer to work with GD their own age people their own age Older workers have less commitment than Younger workers have less commitment GD workers of my generation than workers of my generation Older workers show little enthusiasm for Younger workers show little enthusiasm GD their work for their work In my organization there is little difference In my organization there is little OP between the generations difference between the generations

RESULTS

Survey Demographics Of the 500 questionnaires distributed, a total of 76 questionnaires were completed and returned. This is a total of 15.2% of the total distributed and it exceeded the minimum size sample of 10% expected. Despite the flexibility of the sample, it was not possible to achieve an equal distribution of respondents per age group or gender (Table 2). Even though there were a greater number of respondents over 40 that were male, as well as under 40 that were female, this did not compromise the integrity of the data. We also found that the majority of the respondents were full time employees (Table 3), with undergraduate degrees (Table 4) both in the Under 40 and Over 40 categories.

Journal of Business Diversity vol. 13(1/2) 2013 71 TABLE 2

Gender Under 40 Over 40 Male 36.6 55.8 Female 63.4 44.2 Total 100.0 100.0

TABLE 3

Category Under 40 Over 40 Part Time 36.6 1.3 Full Time 63.4 97.4 Contract 0.0 1.3 Total 100.0 100.0

TABLE 4

Education Under 40 Over 40 Technical Degree 10.3 11.2 Associate Degree 8.1 8.0 Bachelor’s Degree 74.0 65.3 Post Graduate 7.6 15.5 Total 100.0 100.0

It is important to note the respondent age distribution for these questionnaires (Table 5). As indicated previously, there were specific, non-scientific factors that were considered to determine the age that is considered a “younger” versus an “older” worker for the purpose of this study. In our literature review, we also pointed out the age groups that determine the so-called “generations”. These are factors that need to be kept in mind due to the age distribution resulting from the research conducted. In the Under 40 group, the greatest percentage of the respondents belonged to the 31- 35 age group, while in the Over 40 group; the greatest percentage was in the 46-50 age group. This is not necessarily a significant difference in ages among the participants and may affect the final results of the study.

TABLE 5

Age Group Percent Age Group Percent Under 40 Over 40 Under 20 1.4 40-45 32.9 21-25 11.0 46-50 36.7 26-30 24.5 51-55 12.6 31-35 36.9 56-60 11.3 36-40 26.1 60+ 6.4 Total 100.0 Total 100.0

SURVEY ANALYSIS

Each of the questions was tabulated and then the results for Under 40 and Over 40 were compared using the Independent Samples t-Test. According to Vogt (1999) the strength of the independent samples

72 Journal of Business Diversity vol. 13(1/2) 2013 t-test lies in its robustness against violations of its assumptions. The following describes the assumptions and how they were met: 1) The test variable is normally distributed in each of the two populations. This assumption was met. 2) There is homogeneity of variance. Despite homogeneity of variance being assumed, the p-value should be treated with caution when the former is violated (Green, 2000). Therefore in addition to the traditional t-test, an approximate t-test that did not assume equal population variance was computed. It was thus possible to obtain two p-values for all independent samples t-tests. Where there were differences, the more conservative (homogeneity not assumed) was used. 3) Randomness of the sample and independence of the scores violations were met as the members of each group were chosen randomly and the score on the test variables were independent of each other.

Since the basic purpose of this questionnaire was to compare the variable data on younger workers and older workers, comparisons were made for responses to each item. Using this criterion, the following questions were not significant either as demonstrating generational differences or problems with organizational practices: • Younger/older workers adapt better to organizational change than do the older/younger generation. • Older/younger workers have too much influence in the organization. • Younger/older workers contribute positively to my organization. • Older/younger workers have less commitment than workers of my generation. • In my organization, I feel disadvantaged because of my age. • Younger/older workers have little regard for the skills and experience of my generation. • Younger/older workers have little regard for the values of my generation. • Older/younger workers have negative views of my generation. • The organization is more supportive of younger/older workers than workers of my generation. • Employees of my generation are more supportive of change than are younger/older workers. • Younger/older workers prefer to work with people of their own age. • I prefer working with people of my own generation. • I feel pressure to retire at the earliest opportunity to create openings for younger/older workers. • Younger/older workers show little enthusiasm for their work. • Younger/older workers show little respect for workers of my generation. • I prefer working in teams with my generation. • I get angry because older/younger workers have too much power. • My organization uses change as a way of replacing workers of my generation.

It is interesting to note that it had been pointed out earlier, that the age differences for the largest percentage of respondents could certainly affect the results of the survey. It is here that we note that the age differences do not necessarily mean that there is a “generation” between them and therefore, when answering the questionnaire, they would not answer negatively to the question. Therefore we find here that in general, both younger and older workers see each other similarly rather than differently in the organization. The questions that did test significantly, or that did prove the assumption, either under generational differences or organizational practices were the following: • I feel more comfortably working with people of my generation (Workers over 40 feel more comfortably working with their generation). • My generation works harder than the older/younger generation.

Journal of Business Diversity vol. 13(1/2) 2013 73 • I have little in common with older/younger workers. (Workers over 40 feel they have little in common with the Under 40). • There are too many older/younger workers in my organization. (Workers over 40 feel that there are too many younger workers in their organization). • In my organization, there is little difference between the generations. • My organization provides more opportunities for the younger workers than that of the older generation. • Younger/older workers are good team members (Data shows that people under 40 think that older workers are not good team members).

These results suggest that although there is fairly an equal amount of components for perception of generational differences, this suggests that organizational practices rather than underlying generational differences are responsible for the existence of a generation gap in the workplace.

DISCUSSION AND CONCLUSION

Generational differences are a feature of human nature. In the simplest form, generational differences are mostly manifested in personal preferences between generations. However, on a broader scale, researchers have reported generational differences in the context of transmission of culture and clash of values. This approach to the impact of generational differences formed the basis of the literature review, which focused on the extent to which underlying generational differences affect workplace relationships. This was based on research conducted in Puerto Rico. A questionnaire was developed to measure age-related differences along with a number of dimensions to underlie generational differences or organizational practices. The items were based on a questionnaire by Elaine Eng Choo who developed it with reference to the literature on generational differences, the opinions of experts and lay people on intergenerational issues in the workplace and personal experiences of the researcher.

DISCUSSION OF RESULTS

Research Question 1 Do workers feel that there is that “gap” or difference between younger/older workers in the different aspects related to their jobs? The answer to this question is based on the results of the 18 questions that resulted as “not significant”. In this sense, the findings demonstrate that the younger/older workers do not find that this lack of respect or value from the other generation, nor negative views, etc. As indicated previously, this outcome could be because of the lack of “real” generational age difference between the age groups that answered.

Research Question 2 Do they perceive that the organization treats them differently because they are of the younger/older age group? The answer to this question is based on the results of the 7 questions that resulted as “significant”. Organizational practices, particularly those associated with recruitment, training, promotions and transfer systems, could alienate older workers to a greater extent than they would younger workers. Literature has dealt with this in the context of the psychological contract and with reference to business practices to demonstrate that organizational practices, even those in secure employment, that younger workers are treated more favorably by the organization than the older workers.

74 Journal of Business Diversity vol. 13(1/2) 2013 Research Question 3 What are the steps that organizations need to take to bridge these differences? This questions needs to be answered by the following section.

RECOMMENDATIONS FOR IMPLEMENTATION AND FUTURE RESEARCH

This paper began with what appeared to be an obvious but simple question: Do workers feel that there is that “gap” or difference between younger/older workers in the different aspects related to their jobs? If so, will the different generations currently present in the workplace present strategic challenges for managers? An extensive literature review and primary research reveal that, however obvious, the question is anything but simple. It is expected that the experience of the generations at work will suggest that generational factors do provide a common frame of reference. Other questions that may possibly arise from the research such as: Does the impact of generational factors moderate or accentuate as a worker ages? Does gender, race, or income strongly affect the perceptions and satisfaction of the various generational workers? At least, from the perspective of the Puerto Rico population under the research conducted, we find that organizational practices are the underlying factors that accentuate generational differences. With this in mind, what are the steps or practices then that organizations need to take or develop, to assist workers from all ages, to work together and achieve the organizational goals and effectiveness? In his article Bridging the Gap: Reaching Different Generations Effectively, John Buchanan presents what he understands is necessary for successful interactions among generations in the workplace. He stresses that the workplace needs to change and that managers need to be more flexible and creative. He mentions that even the term “meeting” must be challenged and addressed. “The demand now is for meetings that are closer to home,” he said. “Another trend is shorter duration. Gen X and Gen Y attendees can take in a lot of information very quickly, because they’re used to multitasking. So, if you can make the meeting two days long instead of three, not only does that work as far as their learning style is concerned, but it’s also going to fit into their lifestyle and allow them to get home to their families.” Another article, Harnessing Multi-Generational Energy (2009) by Dr Bob Rausch, a noted American author and motivational speaker views multi-generations in the workplace in terms of the energy they provide to the organization. The way in which a single person uses his/her personal energy impacts everything from performance to productivity and ultimately to the success of the company. The actions taken by management and supervisors are a crucial role for success in supporting multiple generations. There are similarities and differences among generations and many of these are not ingrained within individuals but dependent upon the context in which it is formed. Individuals within generations are also a diverse group and preferences associated with a particular generation are not necessarily true of all its members. In addition, conflict among generations also stems from errors of attribution and perception rather than from valid differences. Therefore, effective communication is also vital for effective management of the multiple generational workforce.

Managerial Flexibility Organizations that have been successful in managing multiple generations have identified what they call the ACORN imperatives. These are approaches that contribute to generational comfort. These approaches include accommodating employee differences by learning about their unique needs and serving them accordingly; creating workplace choices such as permitting the workforce to shape itself around the work being done; nourishing retention, training, coaching opportunities, etc. As a manager in today’s workforce you have to be flexible to the needs and wants of the different generations employed today. As each generation enters and exits the workforce their motivation changes, what motives one generation does not necessary hold true for the others. As a manager being flexible will enable each generation to find a common ground.

Journal of Business Diversity vol. 13(1/2) 2013 75 Provide Training Generational differences in training needs and training styles do exist. Although many employees learn “soft skills”, when formal training is needed, the use of multiple modes of teaching is recommended to address the needs of most workers. Another important aspect to consider is to develop new training programs, so that the older generation will have the opportunity to learn and grow with the company. Also, it will provide the younger generation the opportunity to learn their new job at a faster pace. Developing new training programs will also encourage the company to update its current processes so that the new ideas being submitted by the younger generation will not fall on deaf ears.

Encourage Mentoring An equally useful tool managers can use is mentoring, since there are four generation in the workforce today, it is a good opportunity for the more experienced workers to pass down their knowledge and skills they have accumulated over the years to the new and up and coming workforce. This transfer of knowledge along with the technical expertise of the younger generation will provide a new workforce for companies to build around. That means that when a “boomer” suggests that a love bug has corrupted your files, you better listen. When a Silent suggests you’re shooting yourself in the foot, realize that there may be a memory and wisdom behind the advice.

Embrace Diversity Through Communication and Respect Generational conflict is most likely to arise from errors of attribution and perception than from valid differences. In addition, generational clashes often stem from miscommunications in tone or style. The Veteran or Silent Generation, for example, are aware that they might be technologically-challenged; empathy is a better strategy than derision. The younger generations, on the other hand, might have shorter attention spans than their seniors, so they benefit from verbal training than reading documents. Therefore, effective communication is critical in dealing with generational conflict. Poor teams allow generational differences to divide them; effective teams leverage generational knowledge to better understand and serve their customers and clients. In this sense, a four-generation team can produce stronger results than any single generation. Therefore, managers have to appreciate each generation’s differences, their work ethic, commitment, training needs, and priorities are all different. Although we have four generations in today’s workforce they all can learn from one another. The experienced workforce can appreciate the technology age of the younger generation, and the younger generation can appreciate the commitment and work ethic from the more experienced workers. Because of the similarity of issues in the Puerto Rican workforce, the recommendations that have been presented are pertinent to this demographic group. It is recommended that research be conducted every five years to determine if the actions taken and the changes that have been implemented develop a healthier workforce that values each of the strengths of the generations on equal terms.

REFERENCES

Alliance Work Partners (2006), Bridging Generation Gaps: Four Generations at Work, Working Solutions.

Alsop, R. (2008), The Trophy Kids Grow Up: how the millennial generation is shaking up the workplace, Jossey-Bass: San Francisco.

Bagby, M. (1998), Rational Exuberance: The Influence of Generation X on the New American Economy, Penguin Group: New York.

Baird, J. (1998), Day Job: A Workplace Reader for the Restless Age, Allen & Osborne: Boston.

76 Journal of Business Diversity vol. 13(1/2) 2013 Beaudoin, T. (1998), Virtual Faith: The Irreverent Spiritual Quest of Generation X, John Wiley & Sons: New York.

Beck, J. C. and Wade M. (2004), Got Game: How the Gamer Generation is Reshaping Business Forever, Harvard Business School Press: Boston.

Bernhard, N. (2000), Best of Baby Boomer Trivia, Vantage Press: New York.

Beutell, N. J. and Wittig- Berman U. (2008), Work-family conflict and work-family synergy for generation x, baby boomers and matures: Generational differences, predictors and satisfaction outcomes, Journal of Managerial Psychology, 23 (8), 507.

Bradford, L. J., Raines, C. and Martin J. L. (1992), Twenty something: Managing and Motivating Today’s New Workforce, Master Media Limited: New York.

Bauerlein, M. (2008), The Dumbest Generation: How the Digital Age Stupefies Young Americans and Jeopardizes our Future (or, Don’t Trust Anyone Under 30), Penguin Group: New York.

Buchanan, J., Bridging the Gap: Reaching Different Generations Effectively.

Chester, E. (2005), Getting Them to Give a Damn: How to Get Your Front Line to Care About Your Bottom Line, Dearborn Trade Publishing.

Chester, E. and Carlson L. (2002), Employing Generation WHY? Tucker House Books: Lakewood.

Choo, E. E. (2002), Intergenerational tension in the workplace: a multidisciplinary and factor analytic approach to the development of an instrument to measure generational differences in the workplace, Murdoch University.

Comer, J. (2004), Parenting your Parents: What to do When It’s Your Turn, Historical Publications, Inc: Austin.

Coupland, D. (1990), Generation X: Tales for an Accelerated Future, St. Martin’s Press: New York.

Dalzell, T. (1996), Flappers 2 Rappers: American Youth Slang, Merriam- Webster: Springfield.

DeLong, D. W. (2004), Lost Knowledge: Confronting the Threat of An Aging Workforce, Oxford University Press.

Dent, H.S. Jr. (1993), The Great Boom Ahead: Your Comprehensive Guide to Personal and Business Profit in the New Era of Prosperity, Hyperion: New York.

Dent, H.S. Jr. (1998), The Roaring 2000s: Building the Wealth and Lifestyle You Desire in the Greatest Boom in History. Simon & Schuster: New York.

Dorsey, J. R. (2007), My Reality Check Bounced: The Gen-Y Guide to Cashing In on Your Real-World Dreams. Broadway Books: New York.

Dychtwald, K. and Flower, J., (1990), Age Wave: How the Most Important Trend of Our Time will Change Your Future, Bantam Doubleday Dell: New York.

Journal of Business Diversity vol. 13(1/2) 2013 77 Dychtwald, K. (1999), Age Power: How the 21st Century Will be Ruled by the New Old, Jeremy Tarcher/Putnam: New York.

Dychtwald, K. and Kadlec, D. J. (2005), The Power Years: A User’s Guide to the Rest of Your Life. John Wiley & Sons, Inc: Hoboken.

Erickson, T. (2008), Plugged In: The Generation Y Guide to Thriving at Work. Boston: Harvard Business School Publishing, 2008.

Fox, W. M. (2001), American Values in Decline: What We Can Do, First Books.

Furman, E. (2005), Boomerang Nation: How to Survive Living with your Parents… the Second Time Around, Fireside: New York.

Goodstein, A. (2007), Totally Wired: What Teens and Tweens are Really Doing Online. St. Martin’s Press: New York.

Green, S. B., Salkind, N. J. and Akey, T. M. (2000), Using SPSS for Windows: Analyzing and understanding data, 2nd ed., Prentice-Hall: New Jersey.

Greenberg, E. with Weber, K. (2008), Generation We: How Millennial Youth are Taking over America and Changing our World Forever, Pachatusan: Emeryville.

Halberstam, D. (1993), The Fifties, Villard Books: New York.

Hankin, H. (2005), The New WorkForce: Five Sweeping Trends That Will Shape Your Company's Future. AMACOM: New York.

Herman, R. E. (1995), Turbulence! Challenges and Opportunities in the World of Work, Oakhill Press: Akron.

Hersch, P. (1999), A Tribe Apart, Random House: New York.

Hicks, R. & Hicks, K. (1999), Boomers, Xers and Other Strangers: Understanding the Generational Differences that Divide Us, Tyndale House Publishers: Wheaton.

Howe, N. and Strauss, W. (1993), 13th Gen: Abort, Retry, Ignore, Fail? Random House: New York.

Howe, N. and Strauss W. (2000), Millennials Rising: The Next Great Generation, Random House: New York.

Galinsky, E. (1999), Ask the Children: What Americas Children Really Think About Working Parents, William Morrow & Co: New York.

Goldberg, B. (2000), Age Works: What Corporate America Must do to Survive the Graying of the Workforce. Simon & Schuster: New York.

Gordinier, J. (2008), X Saves the World: How Generation X Got the Shaft but Can Still Keep Everything from Sucking, Penguin Group: New York.

78 Journal of Business Diversity vol. 13(1/2) 2013 Hankin, H. (2005), The New Workforce: Five Sweeping Trends that will Shape your Company’s Future, AMACOM: New York.

Izzo, J and Withers P. (2001), Values Shift: The New Work Ethic & What It Means for Business, Fair Winds Press: Lions Bay BC.

Jennings, P. and Brewster, T. (1998), The Century, Doubleday: New York.

Kelsey, C. M. (2007), Generation Myspace: Helping your Teen Survive Online Adolescence, Marlowe & Company: New York.

Kotlikoff, L. and Burns, S. (2004), The Coming Generational Storm: What You Need to Know about America's Economic Future, The MIT Press: Cambridge.

Lancaster, L. C. and Stillman, D. (2002), Bridging the Generational Divide: Understanding Generational Differences in your Workplace, When Generations Collide, Harper Collins: New York.

Lewis, S. (1996), “A Totally Alien Life-Form” – Teenagers, The New Press: New York.

Losyk, R. (1996), Managing a Changing Workforce: Achieving Outstanding Service With Today’s Employees. Workplace Trends Publishing: Davie.

Macky, K.; Gardner, D. and Forsyth, S. (2008), Generational differences at work: introduction and overview, Journal of Managerial Psychology, 23 (8), 857.

Marano, H. E. (2008), A Nation of Wimps: The High Cost of Invasive Parenting, Broadway Books: New York.

Martin, C. A. and Tulgan B. (2001), Managing Generation Y: Global Citizens Born in the Late Seventies and Early Eighties. HRD Press: Amherst.

Marston, C. (2007), Motivating the “What’s In It for Me?” Workforce: Manage Across the Generational Divide and Increase Profits. John Wiley and Sons: Hoboken.

McNeal, J. U. (1992), Kids as Customers: A Handbook of Marketing to Children, Lexington Books: New York.

Meredith, G. E., Schewe, C. D., and Karlovich, J. (2002), Defining Markets, Defining Moments: America’s 7 Generational Cohorts, Their Shared Experiences and Why Businesses Should Care. Hungry Minds, Inc: New York.

Milner M. Jr. (2004), Freaks, Geeks, and Cool Kids: American Teenagers, Schools and the Culture of Consumption, Routledge: New York.

Mitchell, S. (2000), American Generations: Who They Are. How They Live. What They Think. New Strategist Publications: Ithaca.

Morrison, D. (2004), Marketing to the Campus Crowed: Everything You Need to Know to Capture the $200 Billion College Market, Dearborn Trade Publishing: Chicago.

Journal of Business Diversity vol. 13(1/2) 2013 79 Moses, E. (2000), The $100 Billion Allowance: Accessing the Global Teen Market, John Wiley & Sons: New York.

Muchnick, M. (1996), Naked Management: Bare Essentials for Motivating the X-generation at Work, St. Lucie Press: New York.

Meyer, S. H. and Meyer J. (2000), Teen Ink. Health Communications: Deerfield Beach.

Nelson, R. and Cowan, J. (1994), Revolution X: A Survival Guide for Our Generation, Penguin Books: New York.

Owen, R. (1997), Gen X TV: The Brady Bunch to Melrose Place. University Press: Syracuse.

Putnam, R. D. (2000), Bowling Alone: The Collapse and Revival of American Community, Simon & Schuster: New York.

Queenan, J. (2001), Balsamic Dreams: A Short but Self-Important History of the Baby Boomer Generation, Henry Holt & Co: New York.

Raines, C. (1997), Beyond Generation X: A Practical Guide for Managers, 188 Tips, Tools and Techniques that Narrow the Gap at Work, Crisp Publications: Menlo Park.

Raines, C. and Hunt J. (2000), The Xers & the Boomers: From Adversaries to Allies-A Diplomat’s Guide, Crisp Publications: Menlo Park.

Raines, L. (2000), Bridging the Generation Gap, www.generationsatwork.com

Rall, T. (1998), Revenge of the Latchkey Kids: An Illustrated Guide to Surviving the 90s and Beyond, Workman Publishing Company: New York.

Reich, R. B. (2000), The Future of Success: Working and Living in the New Economy, Random House: New York.

Richard, J. W. and D’Amico C. (1999), Workforce 2020: Work and Workers in the 21st Century. 5th printing. Hudson Institute, Inc: Indianapolis.

Ritchie, K. (1995), Marketing to Generation X, Lexington Books: New York.

Rushkoff, D. (1994), The GenX Reader, Ballantine Books: New York.

Sacks, P. (1996), Generation X Goes to College: An Eye-Opening Account of Teaching in Postmodern America, Open Court Publishing: Chicago.

Savage, J. (2007), Teenage: The Creation of Youth Culture, Penguin Group: New York.

Schneider, B. and Stevenson D. (1999), The Ambitious Generation: America’s Teenagers, Motivated but Directionless, R.R. Donnelley and Sons: US.

Schor, J. (2004), Born to Buy: The Commercialized Child and the New Consumer Culture, Scribner: New York.

80 Journal of Business Diversity vol. 13(1/2) 2013 Sennett, R. (1998), The Corrosion of Character: The Personal Consequences of Work in the New Capitalism, W.W. Norton & Company: New York.

Settle, R. B. and Alreck, P. L. (1989), Why They Buy: American Consumers Inside and Out, John Wiley & Sons: New York.

Shelton, C. and Shelton, L. (2005), The Next Revolution: What Gen X Women Want at Work and How Their Boomer Bosses Can Help Them Get It, Davies-Black Publishing.

Shenk, D. (1997), Data Smog: Surviving the Information Glut. HarperCollins: New York.

SHRM, Generation Gap at Work – The Cost, July 22, 2009. SHRM Research Quarterly, The Multigenerational Workforce: Opportunity for Competitive Success, First Quarter 2009.

Simon, R. (1996), Too damn old, Money. 25(7), 118-126.

Smith, C. with Denton, M. L. (2005), Soul Searching: The Religious and Spiritual Lives of American Teenagers, Oxford University Press, Inc: New York.

Smith, J.W. and Clurman, A. (1997), Rocking the Ages: The Yankelovich Report on Generational Marketing, Harper Collins: New York.

Stark, S. D. (1997), Glued to the Set: The 60 Television Shows That Made Us Who We Are Today, Bantam Doubleday Dell: New York.

Stein, L. and Yoskovitz, B. (1998), The Buzzword Bingo Game: The Complete, Definitive, Guide to the Underground, Workplace Game of Corporate Jargon and Doublespeak, Villard Books: New York.

Strauss, W. and Howe, N. (1991), Generations: The History of America’s Future, 1584 to 2069, William Morrow: New York.

Strauss, W. and Howe, N. (1997), The Fourth Turning: An American Prophecy: What the Cycles of History Tell Us About America’s Next Rendezvous with Destiny, Bantam Doubleday Dell: New York.

Sykes, C. J. (1995), Dumbing Down Our Kids: Why American Children Feel Good About Themselves but Can’t Read, Write, or Add, St. Martins Press: New York.

Tapscott, D. (1998), Growing Up Digital: The Rise of the Net Generation, McGraw Hill: New York.

Text Me: Everything You Need to Know About Text Messaging (2002), American edition. Bantam Books: New York.

Thau, R. D. and Heflin, J. S. (1997), Generations Apart: Xers vs Boomers vs The Elderly, Prometheus Books: Amherst.

Tulgan, B. (2001), Winning the Talent Wars: How to manage and compete in the high-tech, high-speed, knowledge-based, super fluid economy, W. W. Norton & Company Inc: New York.

Turkle, S. (1997), Life on the Screen: Identity in the Age of the Internet, Simon & Schuster: New York.

Journal of Business Diversity vol. 13(1/2) 2013 81 Twenge, J. M. and Campbell, S. M. (2008), Generational differences in psychological traits and their impact on the workplace. Journal of Managerial Psychology, 23 (8), 862.

Twenge, J. M. (2006), Generation Me: Why Today's Young Americans are more Confident, Assertive, Entitled -- and more Miserable Than Ever Before. Free Press.

Vogt, W.P. (1999), Dictionary of Statistics and Methodology: A nontechnical guide for the social sciences, (2nd ed), Sage Publication: Thousand Oaks.

Wesson, V. (1997), Generation X: Field Guide & Lexicon, Orion Media: San Diego.

Winograd, M. and Hais, M. D. (2008), Millennial Makeover: MySpace, YouTube & the Future of American Politics, Rutgers University Press: Piscataway.

Wong, M.; Gardiner E.; Lang, W; Coulon, L. (2008), Generational differences in personality and motivation, Journal of Managerial Psychology, 23 (8), 878.

Zemke, R., Raines, C., and Filipczak, R. (1999), Generations at Work: Managing the Clash of Veterans, Boomers, Xers and Nexters in Your Workplace, AMACOM: New York.

Zollo, P. (2004), Getting Wiser To Teens: More insights into marketing to teenagers, New Strategist Publications, Inc: Ithaca, New York.

82 Journal of Business Diversity vol. 13(1/2) 2013

What Lies Ahead: Emerging Trends in the Diversity Pipeline Among New Entrants in the Workforce

Arlise P. McKinney Coastal Carolina University

This paper reviews the changing demographics in the US population and workforce that have implications for the diversity pipeline into the workforce. The diversity pipeline represents the anticipated new entrants into the workforce from both population trends but also the increasing number of women and ethnic minority college graduates. To examine the outcomes associated with higher college enrollment for women, this study examined gender and race differences in academic measures from nearly 4,000 students and discusses anticipated challenges for managing workforce diversity. The findings are discussed with recommendations for diversity management practices.

INTRODUCTION

The landscape of the US population and workforce has changed significantly over the past twenty- five years. The shifts in race and gender representations in the population and workforce have focused more attention on diversity issues in all aspects of the employment relationship. As of July 2007, women represented 50.7% of the US population and ethnic minorities accounted for 34% of the population (US Census Bureau, 2007) and that trend has remained fairly stable over the past five years. As of March 2008, women outnumbered men in employment in the civilian workforce (US Bureau of Labor Statistics, 2008). Specifically, women accounted for 51.6% of workers and 59% of eligible women participate in the workforce. Among ethnic minority groups, the workforce participation rates are increasing across all groups and increasingly more by women in these groups. African-Americans and Latinos are the most represented ethnic minority groups in the US workforce (US Bureau of Labor Statistics, 2010). These findings solidify the projections of workforce diversity made by the Workforce 2000 project (Johnston & Packer, 1987) more than twenty years ago. Similar trends in diversity representations in higher educational institutions mirror those of the workforce. According to the American Council on Education, women outnumber men in college enrollment by nearly two to one in undergraduate enrollment programs (www.acenet.edu). In addition, women dominate enrollment in graduate degree programs, including traditionally male-dominated disciplines in medicine and other health professional programs. The population demographics and educational enrollment trends suggest that women may continue to outpace men as new entrants in the workforce. While these numbers may be promising for reflecting a diverse workforce, a closer examination of workplace outcomes reveal significant disparities in managerial positions, salary, and diversity (Cocchiara, Bell, & Berry, 2006). Women still lag behind men in leadership positions and pay despite gains in educational attainment. The purpose of this paper is two-fold. First, we review the employment outcomes and experiences of women and ethnic minority groups in terms of placement,

Journal of Business Diversity vol. 13(1/2) 2013 83 salary, and discriminatory experiences. Second we assess whether differences in educational performance measures may account for the disparities observed in employment. We evaluate these differences through an analysis of nearly 4,000 potential applicants.

HISTORICAL PERSPECTIVES ON DIVERSITY MANAGEMENT

The 1960’s marked a period of significant workplace legislation aimed at reducing discrimination against women and ethnic minorities in education and in the workplace. The Equal Pay Act was passed in 1963 to address gender disparities in pay. Essentially, this act required employers to provide equal pay for comparable work and that gender should not factor into the decision-making process. Today, women still earn roughly $.78 for every $1 men earn (U.S. Census, Income, Poverty, and Health Insurance Coverage in the United States: 2007), though the gap appears to be narrowing. In 1964, Title VII of the Civil Rights Act was enacted to provide the broadest level of protection to prohibit workplace discrimination and establish protected group status based on race, color, sex/gender, religion, and national origin. As protected groups, women and ethnic minorities have remedies under the law for discriminatory acts in most aspects of the employment relationship. Discriminatory practices include but are not limited to disparate treatment (i.e., treatment based on group membership), adverse impact, sexual harassment, and retaliation. Despite these laws being enacted in the 1960s, race and gender complaints account for approximately 64% of annual charges filed with the US Equal Employment Opportunity Commission (EEOC, 2011; www.eeoc.gov/charges). The specific discriminatory acts that affect employment equity can be purposeful (i.e., disparate treatment) or inadvertent (i.e., adverse impact). Adverse impact discrimination is more salient in personnel selection resulting in organizational entry barriers for women and to a greater extent ethnic minorities (Ployhart & Holtz, 2008), while disparate treatment can include subtle to blatant acts generally arising from racial and gender stereotypes. It is unknown whether the discriminatory complaints filed with the EEOC can attributed more or less to adverse impact or disparate treatment. Research spanning human resource management and global diversity research suggests that both are prevalent (Kossek & Zonia, 1993; Kunze, Boehm, & Bruch, 2011). The representations of diverse groups in terms of race and gender have sparked research and social programs designed to understand the challenges represented by differences as well strategies to effectively manage groups in the workplace (DiTomaso, Post, & Parks-Yancy, 2007; Konrad, 2003). Some of the issues concerning race and gender in the workplace include organizational entry barriers, pay disparities, and promotional opportunities. On the one hand, women and ethnic minority groups face unique challenges in equal employment opportunity in terms of access and successful entry despite significant gains in educational attainment (Cocchaiara et al., 2006). On the other hand, women and ethnic minorities report a different set of challenges within organizations in terms of inclusion and fairness that suggest current diversity management practices may not be well suited to address these issues. The focus of the current paper is on adverse impact issues that can serve as organizational entry barriers that negatively impact diversity management.

GENDER AND RACE DIFFERENCES IN EMPLOYMENT

Research has consistently shown that increased diversity alone does not create productive work environments where employees share information and experiences that enhance outcomes for all employees (Kossek & Zonia, & Young, 1996; Konrad, 2003). As part of employment equity initiatives by the Equal Employment Opportunity Commission, they compile and evaluate employment trends for women and minorities in both private sector and state and local government entities. As shown in Table 1 below, the representations of women and ethnic minorities in the workforce are roughly 46% overall in public sector employment yet pay disparities, an important component of workplace-employee congruity, are quite evident.

84 Journal of Business Diversity vol. 13(1/2) 2013 TABLE 1 PUBLIC SECTOR FOR NATIONAL SUMMARY OF STATE AND LOCAL GOVERNMENT EMPLOYMENT STATISTICS FOR THE FISCAL YEAR ENDING 2009

Men Women Whites Blacks Hispanic Asian Native

Workforce 54.2% 45.8% 66.5% 19.2% 10% 3.6% .67% Participation Women - - 43% 56% 47% 50% 47%

Median salaries1 $50,254 $41,474 - - - - - Men - - $51,519 42,691 49,499 61,525 47,812 Women 42,236 38,550 40,648 54,217 40,739

Source: Equal Employment Opportunity Commission. 1Workforce participation is the overall workforce, while median salaries are reported for public sector organizations.

As shown in Table 1, women represent 46% of public sector employees in state and local government yet earn 17% less than men. The outcomes are most promising for Asians who have a relatively low participation rate yet reflect significantly higher salaries for both genders. The contrasts are even more startling when examining within- and between-race variability of workforce participation and salary differences. For instance, African-American women have the highest workforce participation rates among all women (e.g., 56%) yet earn less than their female counterparts across all races. This suggests a great deal of variability among women and ethnic minority women, in particular, possibly experiencing slower gains from their human capital investments in higher education. In addition to this data collected by the EEOC, they report discriminatory complaints have continued to increase over the past ten years with race and gender complaints accounting for the majority of cases reviewed (www.eeoc.gov). Thus, there are significant business necessity mandates for effectively managing diversity. The finding of pay disparities coupled with the rising trends in workforce discrimination complaints provide sufficient evidence that more research is needed. Workplace diversity issues for women and ethnic minorities can generally be classified into two broad categories – organizational entry barriers and within-organization workplace experiences. Organizational entry barriers deal with issues stemming from sex and race stereotyping (Bell, 2007), sex segregation into occupations (Wooten, 1997), and personnel selection practices that span from standardized testing to subjective evaluations that allow biases to influence the decision-making process (Ployhart & Holtz, 2008). Prior research has shown that women and ethnic minorities are disproportionately affected by standardized tests and additional research has been spurred to search for alternatives that accomplish the objective of decision-making accuracy yet minimizing the impact to protected groups (Ployhart & Holtz, 2008; Schmitt, Rogers, Chan, Sheppard, & Jennings, 1997). Women traditionally score lower than men on SAT tests, which is an important predictor in college admissions decisions. Ethnic minority groups, namely Latino and African-American, score lower than Whites. Standardized tests are also widely used in the workplace in personnel selection decisions. Tests of cognitive ability have shown the largest discrepancies in scores for women and ethnic minority groups that may impact participation and more importantly, equal access. Though there have been many recent calls to explore alternatives to personnel selection that would minimize organizational access issues, this research have not progressed significantly to adequately address these disparities. A second barrier occurs within organizations involves issues that women and ethnic minorities face once they become a member of the organization. Specifically, there is significant research examining gender stereotypical attitudes (Wood, 2008) and barriers to advancement attributed to glass ceilings and concrete walls (Cocchiara, et al., 2006). In addition, sex discrimination and sexual harassment of women

Journal of Business Diversity vol. 13(1/2) 2013 85 in the workplace continues to be an issue with the alarming increase of nearly 25% of additional complaints filed with the EEOC over the past ten years (www.eeoc.gov/stats). Finally, recent research on turnover and exits from corporate America reveal that women quit at rates higher than men and quit rates are significantly higher for African-Americans, Hispanic Americans, and Asian Americans (Hom, Roberson, & Ellis, 2008). Whether organizational entry barriers or the internal barriers within organizations are the primary determinants of the differential outcomes and women and ethnic minorities needs to be explored in diversity management research. For example, though, women are participating in the workplace at some of the highest rates in history and account for the greater percentage of college graduates, they are still underrepresented in leadership positions and experience greater pay disparities (Cocchiara et al., 2006). The purpose of this study was to examine whether workforce diversity outcomes may be precipitated by the performance levels of women and ethnic minorities in education compared to Whites and male counterparts. The study seeks to make two contributions to the body of research in diversity and personnel selection. First, recruiters widely report their use of academic measures and in making initial screening decisions yet there is limited research on its use in personnel selection contexts and this science-practice gap needs to be examined (Brown & Campion, 1994; Cole, Rubin, Feild, & Giles, 2007; McKinney, Carlson, Mecham, D’Angelo, and Connerley, 2003; Rynes, Orlitsky, & Bretz, 1997). Second, the inclusion of academic performance measures may reduce the likelihood of adverse impact and thus mitigate organizational entry barriers that have resulted from personnel assessments (Ployhart & Holtz, 2008).

DIVERSITY IN ACADEMIC AND EMPLOYMENT MEASURES

Personnel selection is the process of hiring qualified applicants who are predicted to perform well on the job, which ultimately determines who is allowed to join the organization. The most commonly used measures include cognitive ability, personality, integrity tests, assessment centers, and situational judgment tests. A review of selection practices with the United States and 20 countries revealed that cognitive ability and personality tests were two of the most widely used assessments (Ryan, McFarland, Baron, & Page, 1999). There are several comprehensive reviews of selection practices that have evaluated group differences in assessments and the potential outcomes to the groups that may be disproportionately affected (e.g., see Hough, Oswald, & Ployhart, 2001 and Ployhart and Holtz, 2008 for comprehensive reviews). Collectively, women tend to score lower on quantitative ability, spatial ability, physical ability, and selected personality traits (Hough et al., 2001; Ployhart & Holtz, 2008). On average, women score lower on quantitative ability tests, conscientiousness and agreeableness tests, situational judgment tests, and biodata measures (Hough et al., 2001; Ployhart & Holtz, 2008). For ethnic minorities, the group differences are markedly higher than gender differences. The majority of research in ethnic group differences has focused on Black-White differences in which the differences vary considerably by test type. Significant black-white differences were also prevalent in interviews, biodata, and situational judgment tests creating the greatest likelihood of adverse impact for Blacks that would screen them out of applicant pools at a higher rate than other groups (Hough et al., 2001; Ployhart & Holtz, 2008). The finding of gender and ethnic group differences is particularly important in selection contexts because of the implications for creating barriers to organizational entry and subsequent differential employment outcomes in the occupational representation of men and women. Researchers seeking alternative methods of selecting individuals to reduced adverse impact have advocated the use of measures that also aid decision-makers (Ployhart & Holtz, 2008). The current study examines academic performance as an alternative measure to assess whether group differences exist that would minimize or adverse impact potential for women and ethnic minorities. The focus on academic measures given is supported by recruiters’ use as a screening mechanism in entry-level personnel selection decisions among recent college graduates (Roth & Bobko, 2000; Rynes, et al., 1997; Cole, et al., 2007), though; academic measures have generally been excluded in empirical research of selection practices. Given the projected increase in college graduates entering the workforce, it is important to examine academic measures for

86 Journal of Business Diversity vol. 13(1/2) 2013 their use in personnel selection and whether group differences exist that may not be captured in prior selection and adverse impact research.

STUDY RATIONALE

Few studies in selection contexts have included academic performance measures despite the reported use by recruiters in college recruiting contexts (Rynes et al., 1997; Trank, Rynes, & Bretz, 2002). Given the diversity in college graduates that will influence workforce diversity representations, it is timely to examine group performance in academic settings for use in the workplace. Often there is very little information available on newly minted college graduates, hence, college GPA becomes an important decision-making tool. The present study seeks to examine (1) gender and ethnic differences in college GPA that would be applicable in selection contexts and (2) the likelihood of adverse impact for college graduates when GPA is used as a selection screening tool. This current study will specifically focus on college GPA because of its use in employment decisions and adverse impact implications if group differences exist in these measures.

METHOD

Sample This study examined academic measures for sample groups over a four-year timeframe. Participants were approximately 4,000 undergraduate students representing two graduating classes in a large Southeastern U.S. public university. Sample 1 (N=1,879) consisted of students from the Spring 2005 graduating class, while Sample 2 (N=2,120) were students in the Spring 2006 graduating class. Race and gender demographics were coded based on self-reports from the college admissions application. Sample 1 demographics were 72% female, 71% White, 22% Black, with a mean age of 24 and Sample 2 was 69% female, 72% White, 20% Black, with a mean age of 22. White and Black students account for 89% of the sample are generally the two focus groups of comparison in prior studies (Roth & Bobko, 2000; Sternberg, 2006), thus the current study only examined Black-White differences among ethnic groups in addition to gender differences.

Measures Though college GPA is the primary focus of this study, we were able to capture SAT and high school GPA data to evaluate race and gender differences in these assessments. SAT data were reported directly from the College Board to the university and high school GPA was extracted from high school transcripts that were submitted as part of the college application process. Only the math and verbal sections of the SAT were scored for admission resulting in scores ranging from 200 to 1600. Both high school GPA and college GPA were coded on a 4.0 scale. Cumulative college GPA data were gathered over four years for enrolled students to examine the level and stability of changes in group differences over time. Each of these data (e.g., SAT, high school GPA, cumulative college GPA) were obtained from the Office of Institutional Research and not based on self-report data.

Analyses First, descriptive statistics and the intercorrelations between all study variables (e.g., high school GPA, SAT, and cumulative college GPA for four years) were calculated. To determine whether and at what level group differences exist, means were computed for men and women. To evaluate the nature of gender and ethnic group differences, the d statistic (reported as d-values) is commonly used and represents the mean differences between two groups (e.g., Black/White or male/female) divided by their pooled standard deviation (Hunter & Schmidt, 2004). The d-statistic (d-value) allows one to compare the level of differences across groups in standard deviation terms (Hunter & Schmidt, 2004). D-values range from -1.00 to +1.00 and based on absolute values. To evaluate d-values, there are general rules of thumb for interpreting such that d≤.25 is considered small, d’s of .30 to .45 are considered moderate, and d≥.6 is

Journal of Business Diversity vol. 13(1/2) 2013 87 considered strong (Roth & Bobko, 2000). We used the same criteria as suggested by Roth and Bobko (2000) to evaluate group differences using d-values for assessing adverse impact potential. The two samples were analyzed independently for two reasons. First, the samples represent two different cohort groups which were not equivalent in terms of tenure within the university. Second, evaluating Samples 1 and 2 independently allowed us to evaluate the generalizability to Sample 2 which lagged one year behind Sample 1. Thus, separate analyses further allowed us to evaluate the consistency of group differences from Sample 1 to Sample 2.

RESULTS

The descriptive statistics for study variables are reported in Table 2. For Sample 1, the mean SAT score was 1034 (SD=137.37) with a mean high school GPA of 3.43 (SD=.41). The mean college GPA at the end of year one was 2.58 (SD=.88). The mean cumulative college GPA level ranged from 2.58 to 2.62 over the four years examined, with the highest value in year four. The findings were similar with Sample 2 which revealed mean SAT scores of 1035 (SD=137.09) and high school GPA of 3.44 (SD=.41). College GPA levels ranged from 2.58 to 2.62 with the highest level in year four. The intercorrelations among study variables are also reported in Table 2. Across both samples, we found that high school GPA had the strongest associations with academic performance outcomes. The correlation of high school GPA with college GPA ranged from .42 to .49, compared to SAT correlations which ranged from .20 to .30.

TABLE 2 DESCRIPTIVE STATISTICS AND CORRELATIONS AMONG STUDY VARIABLES

SAT HSGPA Year 1 GPA Year 2 GPA Year 3 GPA Year 4 GPA

SAT - .13 .24 .22 .21 .20

HSGPA .20 - .48 .49 .48 .48

Year 1 GPA .30 .42 - .96 .94 .92

Year 2 GPA .27 .43 .96 - .98 .97

Year 3 GPA .26 .42 .94 .98 - .99

Year 4 GPA .26 .42 .92 .97 .99 -

MSample1 1034 3.43 2.55 2.55 2.58 2.60 SDSample1 140.59 .40 .87 .85 .84 .85

MSample2 1035 3.44 2.58 2.58 2.59 2.62 SDSample2 137.09 .41 .88 .87 .86 .87 Note: N for Sample 1=1879; N for Sample 2=2128 . Correlations for Sample 2 are reported above the diagonal.

Group Differences Table 3 reports the mean levels of SAT, high school GPA, cumulative college GPA over four years, and d-values by gender and race independently in each of the study variables. As shown in the first table, raw mean values were higher for men on all SAT data. Women had higher scores on high school GPA

88 Journal of Business Diversity vol. 13(1/2) 2013 and college GPA over each of the four years examined. Whites also scored higher than Blacks on study variables. The results are discussed concerning group differences using d-values.

TABLE 3 GENDER AND ETHNIC DIFFERENCES AND D-VALUES IN SAT, HIGH SCHOOL GPA, AND CUMULATIVE COLLEGE GPA

Sample 1 Sample 2 Overall Men Women d- Overall Men Women d- (N=541) (N=1338) values (N=674) (N=1446) values SAT 1034 1081 1015 .47 1035 1073 1017 .41

HSGPA 3.43 3.29 3.49 -.50 3.44 3.30 3.50 -.49

Year 1 2.55 2.41 2.61 -.23 2.58 2.39 2.67 -.32 GPA

Year 2 2.55 2.39 2.62 -.27 2.58 2.36 2.68 -.37 GPA

Year 3 2.58 2.39 2.66 -.32 2.59 2.36 2.70 -.40 GPA

Year 4 2.60 2.40 2.68 -.33 2.62 2.37 2.73 -.41 GPA

Sample 1 Sample 2 Overall White Black d- Overall White Black d- (N=1301) (N=411) values (N=1451) (N=408) values SAT 1034 1067 926 1.00 1035 1061 944 .87

HSGPA 3.43 3.44 3.39 .13 3.44 3.44 3.40 .10

Year 1 2.55 2.62 2.33 .33 2.58 2.61 2.45 .18 GPA

Year 2 2.55 2.61 2.37 .28 2.58 2.61 2.44 .20 GPA

Year 3 2.58 2.64 2.41 .27 2.59 2.63 2.45 .21 GPA

Year 4 2.60 2.65 2.43 .26 2.62 2.65 2.48 .20 GPA

Note. Negative d-values favor women and blacks.

The d-values assessing gender group differences for SAT, high school GPA, and college GPA are also reported in Table 3. Across both samples, the d-values favored men for SAT scores (d=.47) and (d=.41). In contrast, d-values favored women on both high school GPA and college GPA, with the

Journal of Business Diversity vol. 13(1/2) 2013 89 highest difference in high school GPA (d=.50) and (d=.49), respectively. Among college GPA variables, d-values actually increased over the four-year timeframe examined. Though college GPA increased for both groups over time, the gains were greater for women. In sample 1, the group differences favored females in college GPA during their academic tenure (d=-.23 for year one, d=-.27 for year two, d=-.32 for year three, and d=-.33 for year four). Consistent with sample 1, d-values increased over time in college GPA measures. The group differences favored females in college GPA across the four year timeframe (d=-.32 for year one, d=-.37 for year two, d=-.40 for year three, and d=-.41 for year four). The d-values assessing Black-White differences for SAT, high school GPA, and college GPA are also reported in Table 3. Across both samples, d-values favored Whites in SAT (d=1.00) and (d=.81) and high school GPA (d=.13) and (d=.10), though the magnitude was significantly lower in high school GPA. The d-values in college GPA also favored Whites from Year 1 (d=.33) and (d=.10) as well as Year 4 (d=.26) and (d=.20). The Black-White group differences in college GPA were lower than those for gender and remained fairly stable over time. Overall, the d-values found here were moderate in size based on gender and race, this level of difference increases adverse impact potential for the lower scoring group. In selection contexts, the higher the d-value between groups on a particular assessment, the more likely adverse impact would be expected for the lower scoring group. As shown in both samples and across all timeframes, females generally had higher college GPAs and the level of differences was consistent over time. Thus, adverse impact potential would be greater for men to the extent that college GPA is used as a primary selection tool. For race, Whites had higher GPAs and thus adverse impact potential would be greatest for Blacks in selection contexts.

TABLE 4 WITHIN-RACE VARIABILITY IN COLLEGE GPA FOR BLACK-WHITE AND MALE- FEMALE CATEGORIZATIONS

Sample 1 Sample 2 SAT HS_GPA Year 1 Year 4 SAT HS_GPA Year 1 Year 4 GPA GPA GPA GPA White 1104 3.30 2.43 2.42 1091 3.30 2.38 2.38 Male (N=404 & 490)

White 1050 3.51 2.70 2.76 1046 3.52 2.73 2.79 Female (N=897 & 961)

Black Male 956 3.22 2.20 2.23 971 3.30 2.30 2.23 (N=71 & 101)

Black 920 3.43 2.36 2.48 936 3.44 2.50 2.56 Female (N=340 & 307) Note. N=representation in Samples 1 & 2, respectively. Because d-values represent differences between 2 groups, d- values are not computed for the four categorizations of group differences. Mean values represent similar information without presenting the magnitude in standard deviation terms.

90 Journal of Business Diversity vol. 13(1/2) 2013 One purpose of this study was to examine within-race variability in these measures to determine whether differential outcomes existed for both genders within a given race. In table 4, we examine within- race variability for the following: white males, white females, black males, and black females to determine whether the level of group differences was consistent. In examining these differences, we revert to using comparative mean differences because d-values are limited to two groups compared to the four examined in this analysis. As shown in table 4, we found that mean SAT levels were higher for both white males and white females compared to black males and females. This finding was consistent across both samples. However, when examining high school GPA and college GPA levels, the results suggest an interesting pattern that is likely obscured by prior research that only examine black-white and male- female differences. For high school GPA, white females and black females were the higher scoring groups followed by white males and black males, respectively. The findings were similar with college GPA where white females scored the highest in year 1 (e.g., 2.70 and 2.73) and year 4 (e.g., 2.76 and 2.79) across both samples. The second highest scores were among black females but the findings were mixed for year 1 across both samples. In the first sample, year 1 GPA for black females was 2.36, compared to 2.43 and 2.20 for white males and black males, respectively. By year 4, black females outscored both white and black males. In sample 2, black females outscored white and black males in both year 1 and year 4. The year 4 college GPA is important for personnel selection contexts because it represents the GPA recruiters are likely to use when making screening decisions. Thus, when college GPA is used in personnel selection, it would favor both White females and Black females over males of either race.

DISCUSSION

This study sought to address a gap in the literature examining academic performance measures to assess whether differential employment outcomes may result that can account for pay disparities and employment differences observed for women and ethnic minorities. With the increasing amount of diversity in terms of race and gender among new entrants to the workforce, it is critical that organizations examine decision processes for their impact on employment outcomes for all employees. This study specifically examined factors that may influence employment outcomes and informs academicians as well as practitioners of the potential unintended consequences of various selection practices but more importantly highlights an aspect of group differences not previously examined. The within-race variability in performance represents a significant contribution of this study. The finding of White and Black females outscoring males in college GPA within and between races suggests a greater likelihood of adverse impact against men across both races when college GPA is used in employment screening. This finding is in line with research demonstrating a gender gap in educational attainment favoring females in higher education. Though women outnumber men in undergraduate enrollment, the participation rates are quite variable within-races. The greatest discrepancies in higher education are for Latino and African- American males who participate at rates lower than their female counterparts (American Council on Education, 2007). The trends change somewhat when examining workplace participation such that African-American women outpace men but Latino males outpace females. It appears that ethnic minority women have unique challenges in workplace equity not linked to differences in educational success. The findings of the current study suggest that gains in salary and placement should follow particularly for African-American women; however, these employment outcomes have not yet materialized.

Limitations While the current study demonstrated group differences in college GPA that were consistent over time, there were study limitations. First, the results were based on a single source sample that may not generalize to other populations of college students that would be expected in future applicant pools. Specifically, the current sample was 72% female. Additional research is needed to determine whether the results of the current study are generalizable to different university environments and work settings. Second, the current study only examined group differences that would create the likelihood of differential

Journal of Business Diversity vol. 13(1/2) 2013 91 employment outcomes for women or ethnic minorities. There are many other factors that influence the employment outcomes of women and ethnic minorities which should be explored in future research. The study was conducted in part to explore potential factors that may explain salary discrepancies for women and ethnic minorities. While the public sector employment data was used and demonstrated disparities, there are likely other reasons that are associated with the differences observed. For example, based on the data provided, we have no information about differences in education levels for the public sector workforce that would coincide with the participation rates and salaries provided. There is also no information on status or job title that may explain salary disparities within or between groups, so we cannot conclude which factors impacted these outcomes.

Conclusion and Future Research In terms of organizational entry in personnel selection contexts, future research needs to explore alternative measures that demonstrate lower group differences such as academic performance. Prior research has also shown that when standardized measures of cognitive ability are used, it underpredicts the performance of women and ethnic minorities (Gardner & Deadrick, 2008; Manley & Benavidez, 2008). We also need to expand research to include Hispanic and Asian groups which have received less research attention in this area. According to the EEOC’s employment data, Hispanic groups now account for the largest growth percentage of workers in the private sector (http://www.eeoc.gov/eeoc/ statistics/employment/jobpat-eeo4/2009/table1/table1.html). Given the changing demographics in the workplace, it is timely to examine these issues to avoid having organizational entry barriers in the form of selection tests that would negatively impact any group. Personnel selection is the process of hiring qualified applicants who are projected to perform well on the job. This generally involves identifying diverse members and recruiting them into applicant pools. In the contexts of recruiting and diversity, organizations have focused on both applicant reactions (Ployhart, 2006) and targeted diversity recruitment efforts (Avery, 2003) to address diversity enlargement initiatives. In these studies, there is a predominate focus on employment outcomes in terms of adverse impact to women and ethnic minorities and to a lesser extent on applicant and employee reactions to diversity management and personnel selection that influence both organizational attraction and retention issues. Given the findings in the current study that examining within-race variability results in markedly different outcomes than examining between-race differences alone, future research is needed to explore these differences in other selection measures that are widely used in personnel selection. Very little is known about group differences in non-cognitive selection assessments as prior studies have not examined within- group differences that will likely affect the employment outcomes predicted in prior research. Additional research is needed on the various selection tests and criteria used in employment settings to further examine within-race variability and whether those differences actually prove favorable for diversity initiatives.

REFERENCES

American Council on Education (2007), Minorities in Higher Education, Twenty-second annual status report: 2007 supplement, available at www.acenet.org (available at http://www.acenet.edu/news- room/Documents/Minorities-in-Higher-Education-2007-Supplement-22nd.pdf, accessed December 2012).

Avery, D. R. (2003). Reactions to diversity in recruitment advertising: Are differences black and white? Journal of Applied Psychology, 88, 672-679

Bell, M. P. (2007). Diversity in Organizations. South-Western Publishing Co., Mason, OH.

Brown, B. K., & Campion, M. A. (1994). Biodata phenomenology: Recruiters’ perceptions and use of biographical information in resume screening. Journal of Applied Psychology, 76, 897-908.

92 Journal of Business Diversity vol. 13(1/2) 2013 Carr-Ruffino, N. (2007). Managing Diversity: People Skills for a Multicultural Workplace (7th ed.). Boston, MA: Pearson Custom Publishing.

Cocchaiara, F., Bell, M. P., & Berry, D. P. (2006). Latinas and Black women: Key factors for a growing proportion of the US workforce. Equal Opportunities International, 25, 272-284.

Cole, M. S., Rubin, R. S., Feild, H. S., & Giles, W. F. (2007). Recruiters’ perceptions and use of applicant resume information: Screening the recent graduate. Applied Psychology: An International Review, 56, 319-343.

DiTomaso, N., Post, C., & Parks-Yancy, R. (2007). Workforce diversity and inequality: Power, status, and numbers. Annual Review of Sociology, 33, 473-501.

Gardner, D. & Deadrick, D. L. (2008). Underprediction of performance for US minorities using cognitive ability measures. Equal Opportunities International, 27, 455-464.

Hom, P. W., Roberson, L., & Ellis, A. D. (2008). Challenging conventional wisdom about who quits: Revelations from corporate America. Journal of Applied Psychology, 93, 1-34.

Hough, L. M., Oswald, F. L., & Ployhart, R. E. (2001). Determinants, detection, and amelioration of adverse impact in personnel selection procedures: Issues, evidence, and lessons learned. International Journal of Selection and Assessment, 9, 152-194.

Hunter, J. E. & Schmidt, F. L. (2004). Methods of meta-analysis: Correcting error and bias in research finding (Second edition). Thousand Oaks, CA: Sage.

Johnston, W. B., & Packer, A. H. (1987). Workforce 2000: Work and workers for the 21st century. Indianapolis: Hudson Institute. Eric Document Reproduction Service No. ED 290 887.

Konrad, A. M. (2003). Defining the domain of workplace diversity scholarship. Group & Organization Management, 28(1), 4-17.

Kossek, E. E. & Zonia, S. C. (1993). Assessing diversity climate: A field study of reactions to employer efforts to promote diversity. Journal of Organizational Behavior, 14, 61-81.

Kossek, E. F., Zonia, S. C., & Young, W. (1996). The limitations of organizational demography: Can diversity climate be enhanced in the absence of teamwork. In M. N. Ruderman, M. W. Hughes-James, and S. E. Jackson (Eds.), Selected research on work team diversity. Pp. 121-150. Washington, DC: American Psychological Association.

Kunze, F, Boehm, S. A., & Bruch, H. (2011). Age diversity, age discrimination climate and performance consequences – a cross-organizational study. Journal of Organizational Behavior, 32, 264-290.

Manley, G. G., & Benavidez, J. (2008). Using g alternatives to reduce subgroup differences when predicting US public-sector performance. Equal Opportunities International, 27, 337-354.

McKinney, A. P., Carlson, K. D., Mecham, III, R. L., D’Angelo, N. C., & Connerley, M. L. (2003). Recruiters’ use of GPA in initial screening decisions: Higher GPAs don’t always make the cut. Personnel Psychology, 56, 823-845.

Journal of Business Diversity vol. 13(1/2) 2013 93 McKinney, A. P. & Miles, A. K. (2009). Gender differences in US performance measures for personnel selection. Equal Opportunities International, 28, 121-134.

Mor Barak, M. E., Cherin, D. A., & Berkman, S. (1998). Organizational and personal dimensions of diversity climate: Ethnic and gender differences in employees perceptions. Journal of Applied Behavioral Science, 34, 82-104.

Ployhart, R. E. (2006). Staffing in the 21st century: New challenges and strategic opportunities. Journal of Management, 32, 868-897.

Ployhart, R. E, & Holtz, B. C. (2008). The diversity-validity dilemma: Strategies for reducing racioethnic and sex subgroup differences and adverse impact in selection. Personnel Psychology, 61, 152-172.

Roberson, Q. M. (2006). Disentangling the meanings of diversity and inclusion in organizations. Group & Organization Management, 31(2), 212-236.

Roth, P. L, & Bobko, P. (2000). College grade point average as a personnel selection device: Ethnic group differences and adverse impact. Journal of Applied Psychology, 85, 399-406.

Roth, P. L., & Clarke, R. L. (1998). Meta-analyzing the relationship between grades and salary. Journal of Vocational Behavior, 53, 386-400.

Ryan, A. M., McFarland, L., Baron, H., & Page, R. (1999). An international look at selection practices: Nation and culture as explanations for variability in practice. Personnel Psychology, 52, 363-391.

Rynes, S., Orlitzky, M. O., & Bretz, R. D. (1997). Experienced hiring versus college recruiting: Practices and emerging trends. Personnel Psychology, 50, 309-339.

Schmitt, N., Rogers, W., Chan, D., Sheppard, L., & Jennings, D. (1997). Adverse impact and predictive efficiency of various predictor combinations. Journal of Applied Psychology, 82, 719-730.

Sternberg, R. J. (2006). The Rainbow Project: Enhancing the SAT through assessments of analytical, practical, and creative skills. Intelligence, 34, 321-350.

Trank, C. Q., Rynes, S. L., & Bretz Jr., R. D. (2002). Attracting applicants in the war for talent: Differences in work preferences among high achievers. Journal of Business & Psychology, 16, 331-345.

U.S. Census Bureau (2008), unpublished tabulations from United States fact sheets for race, ethnicity, and gender, available at: www.factfinder.census.gov.

U.S. Census, Income, Poverty, and Health Insurance Coverage in the United States: 2007, available at www.census.gov/prod/2008pubs.

US Bureau of Labor Statistics (2008), Household data annual averages of employed persons, available at www.bls.gov/news.release.

US Equal Employment Opportunity Commission (2012), Charge statistics through fiscal year 2011, available at http://www.eeoc.gov/eeoc/statistics/enforcement/charges.cfm, retrieved December 2012.

94 Journal of Business Diversity vol. 13(1/2) 2013 US Equal Employment Opportunity Commission (2009). Job Patterns for Minorities and Women in Private Industry (EEO-1); available at http://www.eeoc.gov/eeoc/statistics/employment/jobpat- eeo1/index.cfm, retrieved December 2012.

US. Equal Employment Opportunity Commission (2009). Job Patterns for Minorities and Women in State and Local Government (EEO-4), available at http://www.eeoc.gov/eeoc/statistics/employment/jobpat- eeo4/index.cfm, retrieved December 2012.

Warren, A. K. (2009). Cascading gender biases, compounding effects: An assessment of talent management systems, available at www.catalyst.org (accessed April 2009).

Wood, G. (2008). Gender stereotypical attitudes: Past, present, and future influences on women’s career advancement. Equal Opportunities International, 27, 613-628.

Wooten, B. H. (1997). Gender differences in occupational employment. Monthly Labor Review, available at www.bls.gov/opub/mlr/1997/04/art2full.pdf.

Journal of Business Diversity vol. 13(1/2) 2013 95

The Role of Gender in Explaining Motives for Business Informality and Formalization

Justina Lucas Utouh The Institute of Finance Management, Dar-es-Salaam, Tanzania

This research work sought to explain how motives for business informality and formalization are explained by gender. Data was collected through plain interviews, in-depth interviews, interviewee triangulation, participant observation, and documentary analysis. Data was analyzed using open, axial and selective coding Straussian grounded theory procedures. Findings suggest that access to education and subsequent positive perception of formalization whether it is worth doing or not are crucial in determining motives for business informality and formalization. It is necessary therefore, to ensure equitable access to education and to address simultaneously awareness, capacity, regulatory and gender issues in fostering formalization of businesses in developing countries.

INTRODUCTION

Female entrepreneurs are over-represented in the informal economy in developing countries (Chen, 2001; Blackden and Canagarajah, 2003,). Research shows that a higher percentage of entrepreneurs are found in the informal economy than in the formal economy, which is not good as average incomes of both females and males are lower in the informal economy than in the formal one. (Chen, 2001; Chen and Heintz, 2006). Business informality is a concern for a number of reasons, including denying enterprise access to formal markets and critical support, as well as lowering the tax base. Virtually all (98 %) businesses in Tanzania are extra-legal (URT, 2008). The flourishing informal economy in developing countries including Tanzania could provide the means for dealing with this challenge if entrepreneurs could meet the conditions for accumulating business resources, generating surplus and growth as well as formalizing their business enterprises (Nelson, 2003). What drives the process of formalization is crucial for informing policy. Unfortunately such knowledge is lacking to a great extent, so this study sought to make a contribution to providing such knowledge. Previous research had established that, gender affects the strategic choices and performance of female entrepreneurs and prevents them from achieving high economic growth (Hurley, 1999; Rutashobya, 2000; Bruni et al 2004). This motivated the researchers to find out more about the role of gender in relation to entrepreneurship. The main objective of this study was to examine the role that gender plays in business formalization. The specific objectives were: to explore, compare and explain how business formalization occurs in female and male-owned enterprises and to gain an insight into how gender leads to intrinsic and extrinsic barriers to formalization. The study sought to answer the following main and specific questions:

96 Journal of Business Diversity vol. 13(1/2) 2013 The main question: What role does gender play in the process of formalizing business enterprises? Specific questions: i. What meanings do female and male entrepreneurs attach to business and business formalization?

ii. How does gender inform the meanings attached to business formalization?

iii. What triggers the desire and decision to formalize or not to formalize businesses for female and male entrepreneurs and why?

iv. What paths to formalization do female and male-owned businesses take and why?

v. What inhibits females and males from formalizing their business enterprises?

vi. What is female and male entrepreneurs' perception and experience of the nature and intensity of these inhibitors and how do they deal with them ?

It was envisaged that findings from this study would extend the knowledge on factors that motivate business formalization and the role played by gender and show how institutional and socio-cultural environment influence challenges to business formalization for female and male entrepreneurs. It was expected also that the research findings would inform and influence policy-makers to improve the business environment with gender sensitivity.

LITERATURE REVIEW

For the purpose of informing this study, the theoretical and empirical literature was reviewed on the motives for initiating and formalizing businesses, process of business formalization, the gender perspectives and major factors for formalizing and growing female-owned businesses. Azjen’s theory of planned target behavior (1987; 1991) and the framework that was developed by Kruegger and Casrud (1993) to apply this theory, state that intentions toward target behaviour including formalization are a function of the perceived attractiveness of the target behaviour, perceived social norms and behavioural control which are all influenced by personality, demographic characteristics, the environment and the endowment of resources. This theory suggests that the levels of endowment of resources owned by entrepreneurs such as knowledge, business experience, crucial business networks and capital have a bearing on their attitudes, motivation and decisions. As such the theory is partly relevant in explaining entrepreneur’s motivation to formalize or not to formalize their businesses. The Resources Based View (RBV) perceives businesses as a bundle of factors of production or resources for deployment to add value to attain sustainable competitive advantage (Hitt et al 2002). According to this theory, tangible and intangible resources, competencies and luck explain firm’s performance. A recent extension of RBV is the Knowledge Based View (KBV) which describes firms as knowledge bearing entities that leverage knowledge for competitive advantage. This theory reinforces the importance of resources for facilitating the success and growth of enterprises. According to the rational choice theory of new institutional economics, all social and economic action including formalization is rationally motivated; as such people calculate the likely costs and benefits of any action before deciding what to do. This theory indicates that the application of this theory to socio- economic interaction takes the form of exchange theory (Scott, 2000).Therefore, formalization is perceived to be an exchange transaction between the government and business operators, in the sense that the government offers informal operators rights and protection gained by registering or licensing lawful activities as well as investment in infrastructure that facilitates business success and growth. The informal operators in exchange, agree to comply with state regulations and laws when running enterprises including the payment of taxes (Nelson, 2003). This theory fails to take into consideration the socio-

Journal of Business Diversity vol. 13(1/2) 2013 97 cultural and socio-economic factors, thereby offering a partial explanation for business informality. The Reviewed literature indicates that, imposing a law that does not take into consideration the norms and socio-cultural values of a particular locality, loses legitimacy and individuals create and use an alternate informal system to safeguard their needs, expectations and interests (De Soto, 2000). The structural gender perspective views gender as a multi-level structure, of social practices that involves mutually reinforcing processes at the macro-structural / institutional, interactional and individual levels (Czarniawska 2006; Acker, 2009; Ridgeway, 2009; Risman, 2009; Vespa, 2009). According to this perspective, gender as a primary frame for social relations is at root a micro-interactional approach that owes much to the ''doing gender'' account.'' Doing gender'' is conceptualizing gender as a routine accomplishment embedded in every day interaction. Candace and Zimmerman (1987) define ''doing gender'' as ''to engage in behavior at the risk of gender assessment''. ''Doing gender'' is a useful theory for pointing out that gender is continually created in ongoing social interactions and alerting us to the taken- for-granted expressions of difference that appear as natural but are not. However, by referring to ''doing gender'' as an accomplished state it denotes an accomplishment of gender difference rather than the possibility of dismantling such difference. It is necessary to shift from social interactions that reproduce gender difference to social interactions that reduce gender difference or change from ''doing gender'' to ''un-doing gender'' (Deustch, 2007). According to the gender identity perspective, there are intuitive gender schemas about the behaviours, traits and preferences of men and women which influence how females and males are perceived in life. These schemas characterize men as assertive, self-sufficient, courageous, confident, rational, logical, and goal or work driven. Women are characterized as nurturing, cooperative, emotional, sympathetic, modest, gentle and relationship-driven (Lorber and Farrell 1991; Foldy, 2006). It is argued that these traits come from two different orientations toward identity and relationships and so females are more likely to find their identity in their web of relationships and seek attachment, while males are more likely to seek independence, with their identity coming largely from their work (Lorber and Farrell 1991; Foldy, 2006). The gender role perspective is based on the assumption that an individual’s behavior is influenced significantly by the traditional social roles that are scripted differently for females and males by society. Such roles perpetuate a division of labor that is based on sex, where females are considered to be home- makers, child-care givers and general nurturers while males are bread-winners. These scripted roles influence perception, skills and interests that individuals develop in their childhood and adult lives. (Lorber and Farrell, 1991; Nchimbi, 2003). The ILO carried out studies in Tanzania, Zambia and Ethiopia to determine the main processes female entrepreneurs go through when developing small enterprises including formalizing them and to determine the strategies they adopt to ensure the survival and development of their enterprises. The studies comprised sample surveys and in-depth case studies (ILO, 2003).The studies established that most female entrepreneurs start informal activities at home either as a hobby or to meet household needs, which they later develop into serious business activity. Early socialization and role–models play a major part in motivating them to start a business. The studies found that female entrepreneurs in the samples tended to establish and run a number of businesses concurrently, partly as a strategy for spreading risk. General constraints to upward mobility were found to include limited access to finance, limited business skills and experience, excessive bureaucracy, competition, high tax levels, harassment and corruption by licensing and tax officials. Gender–related problems included the time taken to fulfill household responsibilities, lack of property rights over assets for pledging as collateral and lack of confidence in females by bank officers. Some females in the studies, whose personal environment was favourable, managed to formalize and grow their enterprises significantly and created jobs for themselves and others (ILO, 2003). These studies informed this research that female entrepreneurs unlike their male counterparts have to grapple with the general and gender-specific barriers to formalization and to growing their businesses and that the favorability of their personal context in terms of education, managerial experience, business knowledge and business networks has an influence on their decisions and ability to formalize and to grow their businesses.

98 Journal of Business Diversity vol. 13(1/2) 2013 The review of literature suggests that sufficient levels of endowment of resources such as education, knowledge, managerial experience, capital, land and crucial networks are very important in determining an enterprise's performance and an entrepreneur's behavior including the inclination to business informality or business formalization. Therefore, the difference in access, use of and control over resources for females and males and the power relations between the stronger and weaker members of society such as most females and marginalized males partly explain gender differences in the process and barriers to business formalization. It is necessary to address effectively gender differences in the process of and barriers to formalization and to provide everyone with an equal opportunity to ensure the success and growth of businesses so as to foster equitable and sustainable socio-economic development and to alleviate poverty in developing countries. The following section describes how this study was undertaken.

RESEARCH METHODOLOGY AND DESIGN

This study sought to identify and explain female and male entrepreneurs’ meanings, motives, processes and barriers relating to the formalization of their businesses. These concepts lend themselves better to qualitative research designs, therefore they were investigated by means of the qualitative research approach. The Straussian grounded theory approach was chosen for this study because of the nature of concepts that were investigated and also due to its usefulness in integrating the emergent key categories. To begin with, the researcher reviewed the literature and established the knowledge gap namely that the gender perspective in relation to business informality and formalization had not been adequately addressed by previous studies. Hence the researcher desired to partly fill this knowledge gap by undertaking this study. The literature review facilitated determination of the research problem which was to explore and to explain the role of gender in the business formalization processes in Tanzania. To tackle this problem, the aforementioned main and specific questions were developed. Thereafter, the researcher selected the study sites which were Da-es-Salaam, Kibaha, Kisarawe and Bagamoyo in Tanzania. These sites were chosen for two reasons. First they were sources of diverse and information rich cases. Secondly, the researcher resides in Dar-es-Salaam so it was convenient and economical for her to contact respondents as and when required, taking into consideration the nature of data collection methods and analysis that involved repeated interviews until the theoretical saturation point was reached. This study was conducted in two phases; a preliminary one and the main one in which Straussian grounded theory was used. The preliminary phase involved 33 female entrepreneurs; 18 in the formal economy, 12 in the informal economy and 3 in the semi-formal economy and 28 male entrepreneurs; 15 in the formal economy, 9 in the informal economy and 4 in the semi-formal economy. The sectors within which the preliminary study took place were; food, trade, furniture, personal services and education. The traditional food, trade and personal services sectors were chosen because most female entrepreneurs with less favourable personal contexts than males operate in these sectors. The non-traditional sectors of education and furniture were chosen because some females with contexts that are comparable to males, venture into such sectors. The intention was to make a theoretical comparison and to gain an insight into the similarities and differences between female and male entrepreneurs in the sectors in the process of formalizing their businesses. The main part of the study involved 4 male and 6 female entrepreneurs in the trade and education sectors with varied personal contexts. This sample which was obtained from the preliminary study, involved very well educated and lesser educated female and male entrepreneurs as well as very successful and lesser successful ones. The respondents in the sample were chosen because variation in their backgrounds and experiences was expected to provide rich information relating to business informality, formalization and gender from which a deep understanding could be gained. To collect data, plain and in-depth interviews, participant triangulation, documentary analysis and observation were utilized. In the preliminary phase, 61 plain interviews were conducted. For the full study, 15 in-depth interviews were conducted with 10 respondents in the trade and education sectors. The

Journal of Business Diversity vol. 13(1/2) 2013 99 plain interview duration ranged from 30 to 45 minutes while the in-depth interview duration ranged from one to one and a half hours. The researcher also interviewed officers from regulatory institutions. At the beginning of the study, some of the questions and some of the interviewees were purposely determined by the researcher. However, subsequent interviews and choice of respondents were guided by insights from the theory that was emerging through theoretical sampling.

DATA ANALYSIS AND THEORY BUILDING

The data were analyzed using Strauss and Corbin’s (1967; 1998; 2008) grounded theory procedures that involved open, axial and selective coding. Field memos and analytical memos were also written and employed to keep track of emerging categories, their properties and dimensions, to determine information gaps and to direct the subsequent collection of data until the theoretical saturation point was reached. At the open-coding level the researcher conducted fifteen (15) in-depth interviews with 10 respondents for the main study, which implies that some respondents were interviewed more than once as the researcher sought to obtain information from them. These in-depth interviews were taped and transcribed verbatim. Each transcript was then read carefully from beginning to end to get a general understanding of what took place. After which the researcher analyzed each sentence and later each paragraph to derive concepts and meaning from the data. Thereafter, similar concepts were grouped together and labeled. At this level, 24 open categories were derived from data analysis. The researcher then moved to the axial coding level which involved determining related open categories among the 24 categories that emerged at the open-coding level and grouping them together. At this stage the researcher pasted 3 pages of paper and obtained a big chunk of paper on which she drew 24 boxes and posted each of the 24 open categories derived at the open-coding level into them with a brief description of their main attributes. From the memos that had been written and through thinking and using her intuition the researcher discerned and drew the flow of relationships among the open categories. At this juncture the researcher was able to see several flows of relationships among the categories and to determine which categories were related. Consequently, the related categories were grouped together and given abstract labels. At this stage the 24 categories identified at the open-coding level were condensed into the following 8 key categories: contextual factors, founding businesses, perception of formalization, enculturation, business formalization processes, motivation to operate within the informal-formal economy continuum, gender roles in relation to founding and running businesses and paths to business formalization. The following is a brief explanation of the aforementioned 8 key categories:

1. The Contextual Factors Category: This category involved the personal, external and societal organizational contexts within which initiation, formalization and growth of female and male owned businesses took place. The personal context involved the individual entrepreneurs' endowment of resources such as education, business knowledge, business experience, capital and business networks. The external environment comprised of endowment of resources of significant others such as spouses, partners or parents that could influence individual entrepreneurs' formalization motives and decisions. Societal organizational context included the economic, regulatory and socio-cultural environment in which businesses operate. The category was found to have an influence on the availability of resources, values and norms as well as on the motives for founding, formalizing and growing a business. 2. Founding a Business Category: Involved the role of gender in motivation for business start-up, choice of business and processes of initiating a business. Participants were motivated by various factors to start a business, ranging from survival/necessity, to being interested in entrepreneurship and the need to establish a base for wealth creation. Female entrepreneurs were also motivated to initiate businesses to avoid work-place sexual harassment, need to respond to community problems and to have alternate employment due to frequent transfers of spouses. Gender differences in business start-up

100 Journal of Business Diversity vol. 13(1/2) 2013 appeared to be based on differential access to resources and opportunities including access to education and employment opportunities, the characteristics of socio-economic networks in which female and male entrepreneurs operated and socio-cultural values including gender. 3. The perception of Formalization Category: This category was about how respondents perceived formalization in terms of whether or not it would facilitate the success and growth of their businesses or not. Depending on their understanding of what was involved in formalization and the different levels of endowment of resources including education and knowledge, the perception of participants was that business formalization was; an un-necessary burden, a deliberate strategy for business stability, growth and success, an outcome of harassment and pressure from formalization enforcers and formal customers, a delay in initiating the running of a legal business, the means by which an entrepreneur is recognized by the government, business services providers and a catalyst for conducting businesses efficiently and effectively. It was found that for female entrepreneurs with less favorable personal context their perception of formalization was influenced significantly by their spouses or partners. 4. The Enculturation Category: This category involved the role of gender in the socialization process within families and the gendered education systems. Female and male entrepreneurs were socialized within the family that ascribed different roles and rights to them as well as sensitized them to power relations that caused females to be subordinate and submissive. Whereas females were socialized to assume responsibilities within the households, males were prepared to a greater extent for the public arena including venturing into jobs and businesses. The education system also appeared to socialize them in accordance with the responsibilities ascribed to them by society. 5. The Business Formalization Process Category: It involved the steps through which entrepreneurs went through in formalizing their businesses. Which included entrepreneur's perception of formalization, their motivation to formalize, formalization planning, sequence of activities for obtaining legal business ownership, determining and handling barriers and assessing the outcomes of licensing. Perceived barriers to formalization included the many and time consuming beauracratic procedures involved in business formalization, the inefficiency of public officials in handling the process, un-necessary delays, high taxes that were charged arbitrarily, lack of on-line formalization services, corruption, limited financial resources to pay for registration and licensing fees and costs, their ignorance of formalization procedures and negative perception of formalization. 6. Motivation to Operate Within the Informal-Formal Economy Continuum Category: This category involved factors that explained female and male entrepreneurs’ decisions to either operate entirely in the informal or formal economies or to choose a location that involved an appropriate combination of informal-formal economy characteristics in which their businesses operated. These factors included the extent of endowment of business resources and perceived advantages and disadvantages of operating informally and formally. 7. Gender Roles in Founding and Running a Business Category: It involved the perception of how masculinity and femininity and the associated ascription of rights and roles influenced negatively or positively the founding, running and growing of businesses. It was perceived that female's engagement in business is a recent phenomenon. As such, the possession of critical business resources like capital, networks, business knowledge, land and suitable business premises was a bigger challenge for them, particularly for the lesser educated and un-employed females. Consequently, they were more dependent on their spouses or partners for generating business ideas, deciding business options they should pursue and for providing capital. 8. Paths to Business Formalization Category: The category involved the stages through which businesses went through from initiation and formalization, to growth. Such paths were found to be determined by the perception of

Journal of Business Diversity vol. 13(1/2) 2013 101 formalization, the level of endowment of business resources such as business networks, knowledge, experience, business premises, capital and land and the motive to grow.

After determination of these key categories, the researcher effected selective coding, the last analytical level in the Straussian grounded theory procedures as explained in the section that follows.

Selective Coding This stage involved determining the core category and integrating it with the other categories. Strauss (1967) provided a list of criteria that can be applied to determine a core category. These include; centrality, in the sense that the core category should be able to pull together the other key categories to form an explanatory whole and the explanations that emerge should be logical and not forced. It must appear frequently in the data and the phrase used to describe it should be adequately abstract so that it can be used to do research in other areas leading to the development of a more general theory. According to Strauss and Corbin (1998; 2008), the central category may evolve from existing main categories or it may not. The core category in this grounded theory study emerged from the existing main categories. ''The perception of business formalization'' among entrepreneurs emerged as the central category or the theme of the study as it contains most of the qualities that have been explained previously. The different meanings and value that entrepreneurs attached to business formalization explained their motivation and decisions to formalize or to remain operating informally. Strauss and Corbin (1998) proposed a paradigm model for integrating the key categories in order to develop a theory from a grounded study. Its main components are conditions, actions/interactions and consequences. Conditions constitute the structure and the circumstances within which studied phenomena are imbedded. Actions / interactions refer to the strategies employed by participants for managing or responding to the phenomena under specific conditions. Consequences are the outcomes of the phenomena resulting from participants’ actions and interactions. This study employed an adapted paradigm model presented below to summarize and present the emergent grounded theory for this study which proposes that, the role of gender in the formalization process involves an interplay between the ''perception of formalization'', entrepreneurs’ motives for founding and formalizing their business enterprises, the internal environment of such enterprises and the external environment as fig.1 indicates: As an adapted paradigm model indicates, the external environment is a source of business resources for enterprises. Within the external environment there are socio-cultural factors including gender as well as regulatory bodies and business services providers. Gender determines the difference in access to, use of and control over resources and the subsequent perception of formalization. Regulatory institutions have the capacity to influence perception of formalization through monitoring, enforcement and provision of education while business services providers can do so through the provision of education, checking-up and counseling. Motives for which businesses are found and the influence of significant others also have a bearing on entrepreneurs’ perception of formalization. Depending on their perception of formalization and different levels of endowment of resources, entrepreneurs get the motivation and decide to formalize or not to formalize. When entrepreneurs have a positive perception of business formalization as a strategy for business growth and possess a high level of business resources, they tend to voluntarily formalize businesses out- rightly because they are assured of the survival of their businesses and ability to meet contractual conditions. When they perceive business formalization to be a means of avoiding harassment from formalization enforcers and of attracting and retaining important formal customers and suppliers, they tend to formalize involuntarily because of pressure put on them. When they perceive business formalization to be an un-necessary burden they tend to refrain from formalization and to stick with the informal economy because their paramount concern is to meet basic human requirements. The presented grounded theory implies that, the motives for founding a business, the perception of formalization and subsequent motivation and decisions to formalize or not to formalize are to a great

102 Journal of Business Diversity vol. 13(1/2) 2013 extent a function of the performance of the economy, its organization and culture including gender relations and socialization patterns in particular localities. If the performance of the economy is good, income is equitably distributed and everyone has an equal chance to access, use and control resources irrespective of sex, this means that there are more business opportunities and greater opportunities for investment as well as a healthier internal environment for the growth of many more businesses. Such a situation stimulates entrepreneurs to grow their businesses and to be inclined to perceive business formalization positively as a strategy for business growth that affects their motivation to formalize.

FIGURE 1 THE PARADIGM MODEL FOR INFLUENCE OF GENDER IN BUSINESS FORMALIZATION PROCESS

A. MACRO B. MICRO C. CORE D. CONSEQUENCES CONDITIONS CONDITIONS CATEGORY

Female and male entrepreneurs’ Motivation and motives for decision to founding their formalize or not to businesses and formalize business influence of significant others

External Environment Economic Motivation and Perception of Socio – Cultural decision to exercise formalization (gender) formalization Institutional voluntarily or involuntarily

Internal Environment Capital Land Affordable business premises Motivation and Education decision to choose an Business appropriate location in knowledge informal-formal Business economy continuum experience Business networks

Source: Adapted from Strauss A. and Corbin J. 1998. Basics of Qualitative Research Techniques and Procedures for Developing Grounded Theory. 2nd Edition Sage Publications.

Journal of Business Diversity vol. 13(1/2) 2013 103 FINDINGS OF THE STUDY

Research findings indicate that a key trigger of formalization motivation is the meaning and value that an entrepreneur attaches to business formalization or “perception of formalization". Which is dependent on how an entrepreneur is informed about business formalization, understands it and accepts it as being fundamental for survival, well-being and meeting motives for which businesses were initiated and formalized. Followed by the level of endowment of business resources such as business knowledge, experience, land, affordable business premises, capital and crucial business networks. General knowledge and subsequent understanding of the meaning, role and benefits of formalization is dependent on access to education and exposure. In patriarchal societies like Tanzania, there have been tendencies to favour males in accessing resources and opportunities; including accessing education particularly when the financial resources are limited as indicated by the following lived experiences: Mbeleko is a female entrepreneur, she explained that her father died when she was two (2) years old, while her brother was five (5). They lived in a village with their mother who was illiterate, but very hard- working. Their mother struggled hard to bring them up by engaging in petty businesses and casual labour. Due to financial constraints, she only managed to provide education to one child. Priority was given to the boy because in patriarchal societies it is expected that males would take care of parents in old age and inherit property, while females would be married off, as such it is considered less prudent to invest in education for them. Consequently Mbeleko did not get access to formal education at all. While her brother was going to school, she helped her mother to make the ends meet by participating in petty businesses and casual-labour at an early age. As such Mbeleko and her mother, who were illiterate and un-exposed, were ignorant about formalization of businesses and perpetually drawn into the informal economy driven by the survival motive when she was growing up. Luckily enough Mbeleko was married into an entrepreneurial family that played an important role in developing her business skills and knowledge including exposing her to the role and benefits of business formalization. Mbeleko is currently a prominent business woman who appreciates the importance of business formalization in facilitating the well being and growth of businesses. The explained lived experiences indicate that illiterate females that are not as lucky as Mbeleko to come across spouses that are entrepreneurial and who do not understand and appreciate the role and benefits of formalization are disadvantaged. As such they are less likely to understand the role and benefits of formalization or to be motivated and supported to formalize their businesses. The same is likely to apply to marginalized males. Consequently such individuals tend to be trapped into the informal economy driven by the survival motive. On the other end female and male entrepreneurs that are well educated, exposed and endowed with sufficient business resources, tend to perceive business formalization as a means to grow robust businesses that are a base for wealth creation and leaving a legacy for future generations as the following lived experiences indicate: Mwerevu is a very well educated and well to do female entrepreneur who perceives licensing of businesses as extremely crucial for survival and growth of businesses. She specifically mentioned that after licensing her schools, it was possible for her to advertise them nationally, resulting in enrolment shooting from mere 35 to 600 pupils in a span of 8 years. She is currently grooming her well educated daughter to take over the ownership, management and control of her business after she retires. Similarly, Msomi is a well educated and wealthy male entrepreneur who owns several businesses including a big whole-sale shop and a hostel for pupils. He perceives business formalization as a means to be recognized as a real entrepreneur by different stake holders including banks that can provide loans for business expansion. He has benefitted substantially from bank loans in expanding his businesses. The two scenarios indicate the effect of access to education and lack of it, resultant awareness and positive perception of business formalization. This study established also that the government of Tanzania resorts to a great extent to employ legal and regulatory means to motivate entrepreneurs to formalize businesses. As such it launched the Business Environment Strengthening for Tanzania Programme (BEST) in 2001 and the Property and Business Formalization programme (“MKURABITA”) in 2004. Whereas the BEST programme was intended to

104 Journal of Business Diversity vol. 13(1/2) 2013 improve the business environment of Tanzania by reducing the legal and regulatory burdens and improving service delivery to the private sector, MKURABITA was set to facilitate the transformation of real estate, businesses and business assets in the informal economy to formal entities within the formal market governed by law. Specifically MKURABITA advocates for amending the existing company law and introducing limited single shareholder company as well as amending Village Land Act No. 4 of 1999 along with legislations that have a bearing on the property rights regime so as to facilitate the formalization of businesses and real estate in Tanzania (URT, 2001, 2004).

CONCLUSION AND IMPLICATIONS

Research findings indicate that access to education and exposure or lack of it and subsequent awareness of role and benefits of business formalization (i.e. ''perception of formalization'') as well as access to capital, land, crucial networks and affordable business premises are crucial in determining motives for business informality and formalization. It is established that, gender determines differential access to education for females and males particularly when financial resources are scarce, subsequent perception of formalization and motives for indulgence in the informal and formal businesses. Specifically this study indicates that females with un-favorable personal context in terms of lack of formal education or low education and low level of other business resources such as capital, crucial business networks and affordable business premises tend to be trapped into the informal economy and are driven by the survival motive. The same is likely to apply to marginalized males. For the educated, exposed and well to do males and females, findings indicate that they tend to perceive business formalization as a means to grow their businesses driven by motives to create wealth and to leave legacies for future generations The findings of this study indicate too, that the government of Tanzania resorts to use legal and regulatory means to motivate female and male entrepreneurs to formalize their businesses. These findings imply that legal and regulatory means alone are insufficient to motivate female and male entrepreneurs to formalize their businesses. It is necessary to address other factors such as access to education, awareness, capacities and gender. It is also crucial to foster positive perception of business formalization among powerful members of society such as most males, even if they are not operating informally because they can influence females in developing economies.

REFERENCES

Acker, J. (2008).'' Feminist Theory's Unfinished Business: Comment on Anderson'', Gender & Society, 22: 104-101.

Azjen, I.(1991).''The Theory of Planned Behavior'', Organizational Behavior and Human Decision Processes, Vol. 50: 179-211.

Bruni et al,( 2004). '' Entrepreneur-Mentality , Gender and the Study of Women Entrepreneurs'', Journal of Organizational Change Management, 17 (3) 256-269.

Candace, W. and Zimmerman, D.H. (1987). '' Doing Gender.'' Gender & Society Vol. 1 No.2. 125-151.

Corbin, J. and Strauss, A. (2008). Basics of Qualitative Research Techniques and Procedures for Developing Grounded Theory. Sage Publications.

Chen, M. and Heintz, V.J. (2006). “Informality, Gender and Poverty: A Global Picture”, Economic and Political Weekly Vol. 41 No.21: 213-239.

Journal of Business Diversity vol. 13(1/2) 2013 105 Chen, M.A. (2001). “Women in the Informal Sector: A Global Picture, the Global Movement” SAIS Review Vol. XX1 No.1: 71-82.

Cutura, J., Ellis, A. Blackden, M. (2007). ''Gender and Economic Growth in Tanzania, Creating Opportunities for Women'', Washington D.C. World Bank Report.

Czaniawska, B. (2006). ''Doing Gender Unto the Other: Fiction as Mode of Studying Gender Discrimination in Organizations'', Gender, Work and Organizations, 13 (3); 234-253.

De-Soto, H. (2000). The Mystery of Capital, Why Capital Triumphs in the West and Fails Everywhere Else. Basic Books.

Deustch, F.M.(2007). ”Un-Doing Gender”, Gender & Society Vol. 21;106-127.

Hurley, A. (1999). “Incorporating Feminist Theories into Sociological Theories of Entrepreneurship” Women in Management Review, Vol. 14 No.1: 83-94.

1Foldy, E.G. (2006). '' Duelling Schemata: Dialectical Sense-Making About Gender'', Journal of Applied Behavioral Science, 42 (3): 350-372.

ILO, (2003). Tanzanian Women Entrepreneurs: Going for Growth , ILO: Geneva.

ILO, (2003). Zambian Women Entrepreneurs: Going for Growth, ILO: Geneva.

ILO, (2003). Ethiopian Women Entrepreneurs: Going for Growth.

Krugger, N.F. and Carsrud, A.L. (1993). ''Entrepreneurial Intentions: Applying the Theory of Planned Behaviour,'' Entrepreneurship and Regional Development , 5:315-330.

Lorber, J. and Farrell, S.(1991). The Social Construction of Gender. Sage Publications.

Hitt, M.A. Ireland, R. D. Camp ,S.M. Sexton, D.L. (2002). Strategic Entrepreneurship Creating a New Mindset. Blackwell Publishing.

Mascarenhas, O. (2007). Gender Profile of Tanzania: Enhancing Gender Equity. TGNP.

Nchimbi, M. (2003). Gender and Entrepreneurship in Tanzania: A Comparative Analysis of Male- Female’s Start-Up Motivation, Individual Characteristics and Perceptions of Business Success. PhD Dissertation Umea School of Business and Economics.

Nelson, G. (2003). The Voluntary Formalization of Informal Enterprises in a Developing Economy, PhD Dissertation Twente, The Netherlands.

Ridgeway, C.L.(2009).'' Framed before We Know It: How Gender Shapes Social Relations'', Gender & Society, 23 145-160.

Rutashobya, L. (2000). “Female Entrepreneurship in Tanzania and Strategic Consideration”, Business Management Review, Vol.7 No.1.

Risman, B. J. (2009). “From Doing to Undoing Gender As We Know It”, Gender & Society, Vol. 23 (1) 81-84.

106 Journal of Business Diversity vol. 13(1/2) 2013

Scott, J. (2000). “Rational Choice Theory”, American Journal of Sociology Vol. No. 94; 502-535.

Strauss , A. and Corbin, J. (1967). Grounded Theory. Sage Publications.

Strauss, A. and Corbin, J. (1998). Basics of Qualitative Research Techniques and Procedures for Developing Grounded Theory. 2nd Edition. Sage Publications.

URT, (2008). Property and Business Formalization. A Paper Presented to Principal Secretaries and Regional Administrative Secretaries.

Vespa, J. (2009). '' Gender Ideology Construction: A Life Course and Intersectional Approach’’, Review of Educational Research, 79 (2): 912-945.

Journal of Business Diversity vol. 13(1/2) 2013 107

Family Business Succession: The Impact of Customer Relationship Management and Customer Based Brand Equity on Firm Success or Failure

Catherine Ashley-Cotleur Frostburg State University

Sandra K. Kauanui Florida Gulf Coast University

Carol J. Gaumer Frostburg State University

This paper addresses second generation family business and the necessary nurturing required to sustain current customer relationships and existing brand equity. As power is transferred from the founder to the next generation, family stresses, organizational issues, and leadership characteristics of the successor take center stage. Established relationships with customers, suppliers, and employees may not receive the necessary attention, thus negatively impacting hard-earned brand equity. Failure to nurture customer relationships may cause the loss of key stakeholders, contributing to second generation business failures. Reasons for relationship and equity deterioration are examined, along with suggestions for future research. The purpose of this paper is to reconcile two distinct marketing strategies: customer relation- ship marketing with brand equity.

INTRODUCTION

The death or retirement of the first generation owner of a family business is a critical point in the family business and may be fraught with peril. The literature suggests that only 30% of businesses survive into the second generation and even less (about 13%) into the third generation (Reckhard & Dyer, 1983; Ward, 1987; Kets de Vries, 1993). It is at the point of transition, like the death of the owner, that many successful enterprises begin a period of stagnation and decline (Birley, 1986; Handler, 1990). One of the primary reasons for the difficulties experienced during succession is the founder's unwillingness or inability to prepare the next generation for the leadership position (Churchill & Lewis, 1983; Dyer, 1986; Levinson, 1971). As a result, the successor's poor leadership and organizational skills have generally been associated with the decline in the business (Ibrahim & Ellis, 1994). An issue not often discussed is the successor's ability to maintain the unique relationships that have developed between the creator of the business (the entrepreneur) and his customers, employees and suppliers. These relationships are oft fragile at the time of succession, and

108 Journal of Business Diversity vol. 13(1/2) 2013 inattention to the nurturing required may result in significant financial loss. This paper looks at the issue of merging two distinct marketing strategies: customer relationship marketing with brand equity (or customer based brand equity). Both rely on established strong customer relationships at the point of business succession. In addition to developing the conceptual framework, suggestions are made for a research study to confirm or disprove the propositions advanced by the authors. As such, the paper begins with an overview of the nature of family business that includes a discussion of the characteristics of the founder's personality, the unique relationships established by the founder and the family issues relevant to the succession process. Following this discussion, there is review of the literature on relationship marketing, customer based brand equity, and the impact on family business. In the final section, there is a discussion of how the theoretical frameworks can be applied in the field of family business.

THE NATURE OF FAMILY BUSINESS

In examining the nature of family business, it is important to begin by defining what constitutes a family business since there are a number of competing definitions in this area.

Definition of a ‘Family Business’ Generally, a business is considered family-owned if it owns 50% or more of the equity and more than one family member works in the business (Shanker & Astrachan, 1995). However, some researchers also refer to family businesses when a member of a founder's family manages the business, after a succession has taken place, and the family still owns a controlling interest (Ibrahim & Ellis, 1994). For purposes of this paper, family businesses will be defined as those businesses that have two or more family members working in the business, who have financial and managerial control, and/or an intergenerational transfer has taken place.

Definition of ‘Family Business Succession’ According to Ward, business succession is when the business is passed on to the family’s next generation to manage (1987). Too often succession in a thriving family business leads to stagnation or financial failure (Handler & Kram, 1988). Ward (1987) found that only one-third of family-owned businesses survived the retirement or death of their founders and only 13% made it to a third generation. These significant failure rates are accounted for in all sorts of ways: lack of business knowledge, skills, and commitment on the part of successor generations, lack of planning for succession, and family problems that impact business operations (Birley, 1986; Ibrahim & Ellis, 1994; Frishkoff, 1994; Handler & Kram, 1988; Rosenblatt et al, 1985). As discussed below, the founder's personality and the unique relationships established by the founder may also be relevant factors in the succession process.

Definition of the ‘Founder's Personality,’ the Entrepreneur The founder of the business, the entrepreneur, has been portrayed to have high levels of commitment to the business (Cyert & March, 1963) and customers (McClelland, 1987), a propensity for anticipating problems and dealing with them proactively (Hornaday & Aboud, 1971). According to Stevenson, a business founder, i.e., an entrepreneur, possesses: 1. Intuition (Stevenson et. al, 1989) 2. Willingness to T ake Risks (Hornaday et. al, 1971) 3. Creativity (Drucker, 1985) 4. Independence (Goodman, 1994) 5. Flexibility / High Tolerance for A mbiguity (Ibrahim & Goodwin, 1986; Fernald & Solomon, 1996) 6. Proactive Management Style, seizes opportunities as they arise (Stevenson et. al, 1989)

Journal of Business Diversity vol. 13(1/2) 2013 109 As a result of these personality traits, the founder has built a successful business (Ibrahim & Ellis, 1994). Due to the founder's strong personality, a dependency culture is often fostered (Dyer, 1988) among family members, suppliers, customers and employees who become fearful that the loss of the founder means disaster to the business (Bork, 1986; Dyer, 1986; Schein, 1985). As a result, it is very common that no one discusses or confronts the succession issue in a family business until it is almost too late, resulting in problems for successor generations (Dyer, 1986; Rosenblatt et. al, 1985). In order to understand the problems facing the second generation during succession, it is important to understand how the first generation grew the business.

Definition of ‘The First Generation Family Business’ The first generation family business is willed into existence and sustained by the personality and talents of its founder, the entrepreneur (Adizes, 1989; Lansberg, 1988; Peiser & Wooten, 1983). It is a fragile institution. It normally starts out with little capital and few customers. At the beginning, the growth of the business is mainly dependent on the founder (Levinson, 1971). Absence of a track-record forces the founder, and his customers and suppliers, to take risks (Churchill & Lewis, 1983). For example, the entrepreneur may be forced to take on marginal customers and suppliers, while customers and suppliers must rely on promises that may or may not be fulfilled. As a result, a certain level of trust must be established in the relationship between the entrepreneur and those he must depend on to grow the business (Ward & Arnoff, 1991).

Relationship Building, First Generation The interdependence that develops in the entrepreneur's professional life may spill over to his/her personal life (Kets de Vries, 1993). Friendships may develop out of business relationships or, alternatively, an entrepreneur's first customers may actually be his/her personal friends and/or family members (Donnelley, 1965). The same situation often occurs for employees of entrepreneurial firms. The employees sign up for a dream (Conger, 1990). They share the entrepreneur's vision of creating something out of nothing. Consequently, they work long hours at less pay for the opportunity to reap benefits in the future when the business is prosperous. These relationships, among founder, customers, suppliers and employees, are unique at the beginning of a new business (Churchill & Lewis, 1983). One could argue that they are stronger because of the risks involved, the founder's unique characteristics and/or the need to trust in each other's integrity and goodwill. Ward and Aronoff (1991) vouch for the importance of trust in business relationships and indicate that family businesses can be particularly trustworthy because of the importance of protecting the family's name and economic future. They argue that family firms, which retain values such as commitment, loyalty and trust as guides to decisions and operations find themselves at a strategic advantage (Ward & Aronoff, 1991).

Second Generation Leadership Depending on the stage and the role requirement of the business, the second generation may or may not be required to carry on in the entrepreneurial mode established by the founder (Churchill & Lewis, 1983; King et. al, 1996). For example, in Dyer's research (1988), he found that approximately 80% of first generation firms were managed through a paternalistic culture. On the other hand, he found that in order for the new leadership to take over, it was necessary for the culture to change. Therefore, it appears that it is extremely important for the successor to establish a positive future direction, while maintaining the gains of the past. eAs th research clearly demonstrates, many successors are not capable of such leadership and will be unable to manage effectively (Jaques & Cason, 1994; King, 1997). In addition, the successor may lack the commitment and/or training to maintain and/or develop customer, supplier or employee relationships into the next generation (Dyer, 1988; Rosenblatt, 1994).

110 Journal of Business Diversity vol. 13(1/2) 2013 Family Problems in Succession Along with the capability of the successor, there have been numerous family problems associated with the succession process. Messy succession fights, which can deplete energies and cause hard feelings in families, may distract the successor's attention (Levinson, 1971). In an attempt to treat children fair and equal, an increasing number of founders are leaving their businesses to more than one child (Arthur Andersen, 1995). As a result, there are often problems with sibling rivalry. Because the successors are spending more time fighting, than managing the business, it is becoming evident that sibling rivalry is destroying many successful family businesses (Kets de Vries, 1993; Miller, 1998). In addition, a successor may feel pressure to perform better than his/her predecessor, which can often lead to reckless decision-making (Ibrahim & Ellis, 1994). Peter Davis says "the need to equal or outdo an entrepreneurial father is one of the most compelling forces" in a second generation business, setting up the "need to create something bigger, to remove themselves from dad's shadow" (Ibrahim & Ellis, 1994, p. 35). If motivated in this way, a successor may change the organization too quickly or unnecessarily to establish his/her own mark on the business. Competition with ‘dad's legacy’ can also lead to a disregard for the advice of non-family senior management still within the firm (Ibrahim & Ellis, 1994). This lack of respect for authority may cause some senior managers to bolt when the second generation takes over.

Maintaining Customer Relationships The inability to maintain the pre-existing customer relationships, following a succession, may in fact be a major issue in the succession process for many family businesses. The issue of how to maintain and support those relationships can be further understood when examined through the literature in relationship marketing. The latest research combines relationship building/marketing and the hard- earned brand equity of a firm.

CUSTOMER BASED BRAND EQUITY

The decades of the 1980s and 1990s saw a shift in marketers' attention away from attracting new customers and towards the retention of customers already captured by the company. Dubbed relationship marketing, the new emphasis is on "building long-term satisfying relations with key parties, customers, suppliers, distributors -- in order to retain their long-term preference and business" (Kotler, 1997, p. 12). In short, relationship marketing is about "transforming indifferent customers into loyal ones" (Berry, 1995, p. 236). The new focus occurred for a number of reasons, but was primarily driven by competitive pressures and financial realities. For example, new customers were harder and harder to come by and it was cheaper to serve already existing customers than to attract new ones. This focus on customer retention and loyalty measurement led to customer based brand equity (CBBE). CBBE stems from fiercely loyal customers who serve as ambassadors for a firm. Kotler defines a brand as, “a name, term, sign, symbol, or design, or combination of them which is intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competitors” (1991, p. 442). Firms, to stay competitive, want to be identified as something or known for something. Small businesses often use customer relationship management as a defining asset. Brand equity research emerged in the early 1990s where the focus of branding started moving away from a branded product toward the desires of the consumer. It was this consumer-based perspective that Aaker (1991) and Keller (1993) based their research and coined the phrase, consumer based brand equity (CBBE). Aaker defines brand equity as, “a set of brand assets and liabilities linked to a brand, its name and symbol, that adds or subtracts from the value provided by a firm” (1991, p. 15). Brand loyalty lies in a consumer’s propensity to be loyal, both attitudinal and behavioral loyalty, both studied in relationship marketing frameworks. From the beginning, customer loyalty was the primary behavioral goal when relationship marketing strategies were considered.

Journal of Business Diversity vol. 13(1/2) 2013 111 Benefits to Companies and Customers The long term view of ‘customers for life,’ is similar to that of brand equity since the CBBE components are built-up over time. Relationship marketing was conceptualized as marketing to existing customers where the value to firm is that maintaining existing customers is cheaper than attempting to obtain new customers (Berry and Parasuraman, 1991). Both customers and companies benefit from customer based brand equity (or fierce loyalty). The primary motivation for businesses to engage customers in long-term relationships is that it positively affects the bottom line. Heskett et. al (1994) postulate a Service-Profit chain operating in businesses that directly links revenue growth and profits to customer loyalty. Customer loyalty, thus CBBE, is built through a chain of events that begins with the company providing a good product and work environment, which leads to employee satisfaction and results in employee retention and productivity. Thus, long-term productive employees provide the customer with good service value that leads to customer satisfaction and loyalty. Loyal customers, Heskett argues, are the primary determinants of financial success. Support for Heskett's theory comes from a number of studies. The link between employee retention and customer satisfaction is reflected in customer satisfaction scores, which drop as much as 20% when valued employees leave a business (Heskett, 1994). The impact of customer loyalty on revenue growth and profits is demonstrated by Reichheld and Sasser (1990), who estimate that a 5% increase in customer loyalty can produce profit increases of 25-85% depending on the industry. Additional research indicates that loyal customers can result in market share gains of 6% a year (Gerson, 1992); it costs five times as much to attract a new customer as it does to keep an old one (Lele & Sheth, 1987; Glanz, 1994); primarily because loyal customers generate better quality sales, cost less to serve, and are an important source of referrals (Reichheld & Sasser, 1990). Heskett’s Service-Profit Chain is particularly relevant to first generation family businesses because it gives them a blueprint for how to grow and maintain a successful second generation business. Customers can also benefit from relationship marketing. For example, Bagozzi (1995) argues that the primary reason customers develop long-term relationships with sellers is to realize goals related to product or service acquisition. Secondary reasons include benefits associated with the relationship itself, regardless of “what the relationship may lead to in an instrumental sense” (Bagozzi, 1995, p. 273). Bagozzi indicates that consumers will, at times, even act contrary to their best interests for ethical or moral purposes (1995). An example would be when an individual will purchase only Ben & Jerry’s Ice Cream, even if he/she thinks it’s too expensive, because she agrees with social causes supported by the company and its corporate governing philosophy. As will be discussed later, establishing relationships with family businesses can be particularly beneficial to consumers who value the personal nature of the relationship, which has developed because of the founder’s strong commitment to his/her customers. The depth of the relationship developed between consumer and company, as discussed in the next section, also contributes to how beneficial the overall relationship is.

Levels of Customer Relationship Management The purpose of this paper is to attempt at the reconciliation of two distinct marketing strategies: customer relationship marketing and brand equity. Berry and Parasuraman (1991) identify three different levels of customer relationship marketing. The first is a relatively easy and transitory way to encourage customers to repurchase the product through price incentives. Frequency marketing programs are good examples of such efforts in which a customer is rewarded with frequent flier miles or free merchandise after so many purchases. To call these customers loyal, however, may be stretching it since most of them will bolt for a better price. Social bonding, the second level, is a different and a more permanent way to tie a customer to the business. In this scenario, customers and suppliers become friends. For example, first names are used, contact is made outside the business world in social settings, and written greetings are exchanged at birthdays and holidays.

112 Journal of Business Diversity vol. 13(1/2) 2013 The third level, structural relationships, is the most enduring because it ties buyers and sellers together in a mutually beneficial relationship, which significantly affects how each does business. The most obvious example of this is the relationship between a company and its computer hardware/software provider. Once a certain technology is chosen, businesses will resist changing because the switching costs associated with using another vendor are high. Additionally, the vendor may have invested significant dollars in customizing the products for the customer, so s/he is equally committed to continuing the relationship.

Establishment of Long Term Relationships Long term relationships can be established by offering a product or service, which meets customers' needs, that is delivered in a friendly, caring, responsive, convenient, and flexible way. Provide this and the payoff, as LeBoeuf (1987) and Sewell (1990) explain, is “Customers for Life.” In essence, customers are asking for what family businesses do best - particularly when they first start out and every customer has the potential to make or break the business. How is it done? The answer goes back to Heskett's Service-Profit Chain. The company must become a partner with the customer, anticipating needs and developing a level of trust that commits the customer to staying in the relationship (Bell, 1994). To do this, companies must empower their employees to respond quickly and substantively to customers' requests. Employees must be able to solve customers' problems without asking permission to do so. They must be able to throw away the rulebook and make up new rules on the spot that deliver what the customer wants. They must be able to correct mistakes immediately so the customer is satisfied that the company cares and is willing to stand behind its products. In short, employees must be allowed to treat customers as friends and to use common sense in responding to requests (Whiteley, 1991). Heskett found that a key component of employee satisfaction is a feeling that they are able to solve customers’ problems. Employees who can solve customers' problems is what creates loyalty (LeBoeuf, 1987). For example, the Forum Corporation (Eggers, et. al, 1993; Whiteley, 1991) found that 70% of customers leave one company to buy from another because of problems associated with inadequate service and poor treatment by employees; only 30% leave because the product does not meet their expectations or the price is too high. Even if a product or service is faulty, seven out often customers will return if the problem is solved to their satisfaction. A whopping 95% will return if the problem is solved on the spot (Glanz, 1994). Unfortunately, this is easier said than done. As a company gets larger, and management gets farther away from its front line employees, the trust level between management and employees becomes less and less. As a result, these employees are denied the power to act and the customer ends up frustrated.

Trust in Relationships The issue of trust deserves further mention because it is so critical in relationship marketing. Berry (1995, p. 242) asserts that "relationship marketing is built on the foundation of trust." He finds this to be particularly true in the service business because of the intangible nature of services. In their examination of buyer-seller interactions, Doney and Cannon (1997) indicate that "as business marketers placed greater emphasis on building long-term relationships, trust has assumed a central role in the development of marketing theory and practice" (p. 35). Trust operates on a number of different levels: between the business and the customer, between the supplier and the business, and between the employees and management. This relationship is not one way. For instance, not only must management trust its employees, but employees must also trust management. Family businesses are particularly adept at relationship marketing because of the way the business grew up and the founder’s entrepreneurial style. The next section will explore the unique connection between the two, followed by an examination of how the succession process may impact those initial relationships.

Journal of Business Diversity vol. 13(1/2) 2013 113 DISCUSSION

The first generation of a family business is built on developing relationships with customers, suppliers, and employees. As discussed previously, the entrepreneur's need for customers, understanding of their importance, commitment to their well-being and willingness to take risks is instrumental in starting the business. In addition, closeness to employees, and the establishment of trust with all members of the business ‘family’ contribute to helping the founder establish a viable business and brand equity in the marketplace. As demonstrated earlier, social relationships, established at the beginning of the business, tie customers and suppliers to the business. For this reason some customers, because they value the friendship and/or feel a commitment to the founder, may buy from the firm past the time when it is in their best interests to do so. Introduction of the second generation changes the dynamics of the relationships. It is at this point that customers, suppliers, and employees become anxious about the new leadership. This anxiety becomes exacerbated if the successor is distracted by transference of power issues and is not able to alleviate their fears. At the very time when long term associates of the firm need the most comforting, the successor may be least prepared to do so. In addition, the agenda of the second-generation business owner, as explained previously, may be different than the founder. In the interest of showing up "the old man," some successors choose to emphasize growing the business (Danco, 1982; Ibrahim & Ellis, 1994) at the expense of serving the current customers. This assumes that the current customers will always be there. Unless relationships have gone beyond social bonding, based on friendships, into the arena of structural bonding where partnerships develop on the basis of mutual dependencies, this is a dangerous assumption (Berry & Parasuraman, 1991). Another strain on the existing relationships occurs when the new leader does not honor special financial arrangements negotiated by the founder for established customers. In addition, any special access accorded these customers may be limited in the second generation. This will compromise the trust that previously existed between the founder and his customers, eroding relationships that have taken years to establish. Studies have also shown that the successor's relationship with long term employees may not be as strong as the founder's, resulting in these employees leaving the firm. Much like the founder, the employees have built up associations with customers and suppliers that will be jeopardized when the employees no longer work for the business. As Heskett's Service-Profit Chain indicates, employee turnover leads to customer dissatisfaction and a falloff in customer loyalty that ultimately affects revenues and profits. Failure of the second-generation family business owner to nurture the relationships, which have been established with customers, suppliers, and employees, can place the loyalty of these groups at risk. For those customers and suppliers who are doing business with the firm primarily because of the relationships established with the owner, they may use succession as the trigger to sever the relationship.

Research Recommendations The comments above are suppositions. However, they are based on grounded research from both the family business and marketing literature. T he next step will be to test the propositions using both qualitative and quantitative research. Qualitative research would involve a longitudinal study, beginning with interviews of second generation family business owners/managers at the point of succession. The interviews would test the successor generations' attitudes and behaviors toward established customers, suppliers, and employees. Attitudes would be measured on a Likert Scale and would explore how important the new managers felt current customers, employees, and suppliers were to the business. Issues of commitment, responsibility, loyalty, friendship, respect, and caring would also be measured to evaluate how relationship friendly these attitudes were. Success or failure of the business would then be tracked to

114 Journal of Business Diversity vol. 13(1/2) 2013 see if successors who scored higher on relationship aspects of the business were more likely to maintain successful businesses into the next generation. Specific behaviors toward established customers, suppliers, and employees at the point of transition would also be measured. For example, the new managers would be asked if they had taken any special steps to ensure that: (1) customers, suppliers and employees were reassured about the transference of power; (2) special arrangements between the founder and his customers and suppliers continued to be honored; and (3) relationship ties had been maintained. Again, these behaviors would be scored as to how positive or negative they were in continuing the relationships built up by the founder. Scores on the behavior variables would be correlated with the future success or failure of the firm to see if behavior friendly actions toward loyal customers, suppliers, and employees positively impacted the firm's ability to financially succeed. In addition to the qualitative research, quantitative research would entail identifying customers, suppliers, and employees at the point of succession and then tracking the retention of individuals in these groups into the successor generation. Levels of retention of these individuals would then be correlated with the financial success or failure of the firm to see if there is a significant statistical relationship between the two.

CONCLUSION

Relationship marketing is about building a business one customer at a time over time. This slow and steady build-up of loyal customers creates a phenomenon known as customer based brand equity (CBBE). It's something that comes naturally to family businesses because they generally start out small and understand the value of each customer. But, as the business passes from the founder to the second generation, these loyal customer relationships are often tested. As a result, it is up to the successor to assure customers, suppliers, and employees that they are still a valued part of the operation. An inability to do so may lead to an erosion of the business' loyal customer base and may precipitate or contribute to the failure of the firm for the second generation. Brand equity may become deteriorated to a point of no return. Consequently, it is extremely important for empirical research to follow this study.

REFERENCES

Aaker, D. (1991). Managing Brand Equity. New York: Free Press.

Adizes, I. (1989). Corporate Lifecycles. Engelwood Cliffs: Prentice Hall.

Arthur Andersen Center for Family Business. (1995). American Family Business Survey. St. Charles, II.

Bagozzi, R. (1995). "Reflections on Relationship Marketing in Consumer Markets," Journal of the Academy of Marketing Science, Special Issue on Relationship Marketing, 23 (4), pp. 272-277.

Beckhard, R. and Dyer, W.G. (1983). "Managing Continuity in the Family-Owned Business," Organizational Dynamics. 12(1), pp. 5-12.

Bell, C. (1994) Customers as Partners. San Francisco: Berrett-Koehler Publishers.

Berry, L. (1995). "Relationship Marketing of Services-Growing Interest, Emerging Perspectives," Journal of the Academy of Marketing, 23 (4), 236-245.

Journal of Business Diversity vol. 13(1/2) 2013 115 Berry, L. and Parasuraman, A. (1991). Marketing Services: Competing Through Quality. New York: Free Press.

Birley, S. (1986). Succession in the family firm: The inheritor's view. In Aronoff, C. Astrachan, J. and Ward, John (Eds.), The Family Business Sourcebook II, Georgia: Business Owners Resources.

Bork, David (1986), Family Business, risky Business: How to Make It Work. New York: AMACOM.

Churchill, N., and Lewis, V. (1983). ''The five stages of small business growth, " Harvard Business Review, 61 (3):30-50.

Conger, J. A. (1990). "The Dark Side of Leadership,'' Organizational Dynamics, 19 (2): 44-55.

Cyert & March, (1963). A behavioral theory of the firm. Englewood Cliffs, Prentice-Hall.

Danco, 1982 . Beyond Survival. Cleveland: The University Press.

Doney, P. and Cannon, J. (1997) "An Examination of the Nature of Trust in Buyer-Seller Relationships," Journal of Marketing, Vol. 61 (April), pp. 35-51.

Donnelley, Robert (1965). The Family business, A 42(4) pp. 93-105. In Aronoff, C. Astrachan, J. and Ward, John (Eds.), The Family Business Sourcebook II, Georgia: Business Owners Resources,.

Drucker, P. (1985). Innovation and Entrepreneurship in the American Corporation. New York: Harper & Row.

Dyer, W. G. (1986). Cultural change in family firms: Anticipating and managing business a nd family transitions. San Francisco: Jessey-Bass.

Dyer, W. Gibb (1988). Culture and Continuity in Family Firms.. In Aronoff, C. Astrachan, J. and Ward, John (Eds.), The Family Business Sourcebook II, Georgia: Business Owners Resources.

Eggers, J., & Leahy, K. (1993). "Entrepreneurial Leadership in the U.S." Issues and Observations: Center for Creative Leadership. 14 (1).

Fernald L. W., Jr. & Solomon, G. T., (1996). Entrepreneurial leadership: Oxymoron or new paradigm? The Journal of Management Systems, 8, 2-16.

Frishkoff, P.A. (1994). Succession need not tear a family apart. Best's Review, 95(8).

Gerson, K. (1992). Coping with Commitment: Dilemmas and Conflicts of Family Life,” in Sociology: Exploring the Architecture of Everyday Life Readings, 8th ed., Thousand Oaks, CA: Pine Forge Press. p. 162-75.

Glanz, B. (1994). Building Customer Loyalty. New York: Irwin Professional Publishing.

Goodman, J. P. (1994). What makes an entrepreneur? Inc., 16 (10), 29.

Handler, W, & Kram, K (1988). Succession in family firms: The problem of resistance. Family Business Review, 6(1).

116 Journal of Business Diversity vol. 13(1/2) 2013 Handler, W. C. (1990). Success in family firms: A mutual role adjustment between entrepreneur and next-generation family members. Entrepreneurship: Theory and Practice, 15 (1).

Heskett, J., Jones, T., Loveman, G., Sasser, W. E., & Schlesinger, L. (1994). "Putting the Service- Profit Chain to Work," Harvard Business Review, March-April, pp. 164-174.

Hornaday, J. and Aboud, J. (1971). "Characteristics and Role Demands of Entrepreneurship," Personal Psychology, 24, pp. 141-153.

Ibrahim, A. and Ellis, W. H. (1994). Family Business Management: Concepts and practices. Dubuque, Iowa: Kendall/Hunt Publishing Company.

Ibrahim, A., and Goodwin, J. (1986). Perceived causes of success in small business. American Journal of Small Business, 11, 41-50.

Jaques, E. and Cason, K (1994). Human Capability. Falls Church, VA: Cason Hall & Co.

Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.

Kets de Vries, M.F. (1993). "The Dynamics of Family controlled Firms: The Good and the Bad News." In Aronoff, C. Astrachan, J. and Ward, John (Eds.), The Family Business Sourcebook II, Georgia: Business Owners Resources,.

King, S., Solomon, G. & Winslow, E. (1996). "Entrepreneurial Leadership: Interrelationships among Adult Development, Leadership Characteristics and Organizational Lifecycle." Journal of Management Systems, Volume 8, No. 1-4.

King, S. (1997). Managerial Leadership Capability and Organizational Performance: The Relationship Between Predecessors' and Successors' Potential Capability and Organizational Performance Following a Succession in Family-Owned Businesses, Washington, D.C.: The George Washington University.

Kotler, P. (1991). Marketing Management, 7th ed. Englewood Cliffs, NJ: Prentice-Hall, Inc.

Kotler, P. (1997) Marketing Management, 9th Edition. Englewood Cliffs: Prentice Hall.

Lansberg, I.S. (1988). "The Succession Conspiracy," Family Business Review. 1(2),pp. 119-143. LeBoeuf, M. (1987) How to Win Customers and Keep Them for Life. New York: Berkley Books.

LeBoeuf, M. (1987) How to Win Customers and Keep Them for Life. New York: Berkley Books.

Lele, M. & Sheth, J. (1987) The Customer is Key. New York: John Wiley.

Levinson, H. (1971). "Conflict That Plague Family Businesses." In Aronoff, C. Astrachan, J. and Ward, John (Eds.), The Family Business Sourcebook 11, Georgia: Business Owners Resources,.

Miller, Warren (1998, January-February). "Siblings and Succession in the Family Business." Harvard Business Review.

Journal of Business Diversity vol. 13(1/2) 2013 117 McClelland, D. (1987). "Characteristics of Successful Entrepreneurs," The Journal of Creative Behavior. 21 (3) 219-233.

Peiser, Richard and Wooten, Leland M. (1983). "Life-Cycle Changes in Small Family Businesses," Business Horizons. 25(3), pp. 58-65.

Reckhard, R. and Dyer, W.G. (1983). “ Managing Continuity in the Family-Owned Business," Organizational Dynamics. 12(1), pp. 5-12.

Reichheld, F. and Sasser, W. E. (1990) "Zero Defections: Quality Comes to Services," Harvard Business Review, 68 (5), pp. 105-111.

Rosenblatt, P., Mik, L., Anderson, r., & Johnson, P. (1985). The Family in Business. San Francisco: Jossey-Bass.

Rosenblatt, P. C. (1994). Metaphors of family systems theory: Toward new constructions. New York: Guilford Press.

Schein, Edgar H. (1985). Organizational Culture and Leadership. San Francisco: Jossey-Bass Publishers.

Sewell, C. (1990). Customers for Life. New York: Pocket Books.

Shanker, M.C. & Astrachan, J.H. (1995, Oct.). Myths and realities: Family businesses' contribution to the U.S. economy. In Stephen B. Swartz (Ed.), Family business: Gateway to the Future. 1995 Family Firm Institute Conference. St. Louis: Family Firm Institute.

Stevenson, H., Roberts, M., and Grousbeck, H.I., (1989). New Business Ventures and the Entrepreneur 3 rd ed., Homewood, Ill.: Richard D. Irvwin.

Ward, J. L. (1987). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. San Francisco, Calif: Jossey-Bass.

Ward, J. L. and Arnoff, C. E. (1991). Choosing among siblings, Nation's Business. In Aronoff, C. Astrachan, J. and Ward, John (Eds.), The Family Business Sourcebook II, Georgia: Business Owners Resources.

Whiteley, R. The Customer Driven Company. Reading, Massachusetts: Addison-Wesley Publishing Company, Inc.

118 Journal of Business Diversity vol. 13(1/2) 2013