While male bosses outnumber female bosses in the world of small business, a survey of more than 600 board directors suggests women are better in this role than their male counterparts.
The survey, conducted by a professor of strategic management at the Degroote school of Business at McMaster University and a senior executive associate dean at Still University’s school of Osteopathic Medicine, showed “women are more likely to consider the rights of others and to take a more cooperative approach to decision-making.”
The ramifications of these findings are explored by Barry Moltz in this article in Open Forum.
He discusses additional ways in which women are more effective bosses than men:
Women are more effective listeners than men, “exactly the skill that is most critical for managing employees and customers,” Moltz says. In general, women are “discussion-oriented,” while men just want to take action.
“Employees want their managers to hear their point of view, and customers want everyone to empathize with their problems.” By being a good communicator, you build a stronger relationship built on trust, “which is critical to establishing loyalty.”
Unlike men, women “don’t have the need to direct everyone in what to do.” This is an increasingly important quality, as “the traditional top-down, male-dominated authoritarian leader is being replaced by a more collaborative and connected manager.”
Effective managers lead by building collaboration “rather than straight force or all-out competition."
According to the survey findings, women “acknowledge and consider the rights of others in the pursuit of fairness.” This is an important skill for everyone, Moltz says, because operating a small business “is a minefield of ethical choices.” Owners need a strong moral code to handle challenges “which will certainly push them to their limit.”
Generally speaking, women have much more patience than men and, Moltz says, “are less likely to jump to an immediate conclusion or make a quick decision or take action too soon.”
This key attribute comes in handy when you realize successful business owners must have patience enough to take “small steps towards a specific goal.”
Women seem instinctively more adept at building loyalty through passion. “Motivate your employees, and they’ll in turn be passionate about your product or service and company,” Moltz says.
Do you agree that women make better bosses than men?
For all the hard work it takes to start a business and make it profitable, it is remarkable how quickly a few bad decisions can cripple a business and drive it into the ground.
Barry Moltz, a frequent contributor to OPENForum, offers what he calls the five most common mistakes “that will quickly put you out of business” (with suggestions on how to avoid them).
“Every company goes out of business for exactly the same reason,” Moltz notes. “They run out of cash.”
Building a business is not just about growing sales or profit. It is about closely tracking your company's financials, and eventually increasing, the cash your company can retain.
Make sure to read your cash flow statement every month “... and figure out the sources and uses of cash in your business.”
At the very least, Moltz says, look at a reconciled bank statement to determine whether your business has more or less cash at the end of the month. (more…)
