Corporate Restructuring and Sex Differences in Managerial Promotion

Abstract

Women have made significant inroads into management in recent decades, yet remain underrepresented in leadership positions in large firms. In this article, I assess the critical but seldom analyzed role that widespread corporate restructuring may play in generating these inequalities. I build on social-cognitive research and the opportunity structure for discrimination framework to develop contrasting predictions of the effects from two forms of restructuring—reductions in force and reorganization of human resource management systems—on sex differences in managerial promotion. Analyses of longitudinal personnel records from a Fortune 500 manufacturing firm-a firm that restructured multiple times over the period examined–are consistent with the opportunity structure for discrimination framework and suggest that the firm responded to gender equity pressures to promote women when afforded the opportunity to do so. Women's promotion rates were higher than men's during restructuring, relative to previous years, with a greater difference at higher-status job levels. Importantly, however, few women transitioned into upper management positions in the firm during the restructuring period because (1) reductions in force slowed promotion rates for all managers, (2) women began their careers in lower-status jobs to begin with, relative to men, and (3) women's promotion advantages were often short-lived. I conclude by discussing implications of my findings for research on organizational dynamics and gender inequality.