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1

Selection, implementation and influence of gender-based HR initiatives on women’s representation in Australian project-based organisations

Marzena Baker School of Management, Queensland University of Technology, Brisbane Australia

m9.baker@hdr.qut.edu.au

Dr. Erica French School of Management, Queensland University of Technology, Brisbane Australia

e.french@qut.edu.au

Dr. Muhammad Ali School of Management, Queensland University of Technology, Brisbane Australia

m3.ali@qut.edu.au

2

Selection, implementation and influence of gender-based HR initiatives on women’s

representation in Australian project-based organisations

ABSTRACT

Organisations take different approaches in promoting workplace equality. Most develop policies and programs driven by legal requirements and/or a business case for equality and diversity. These approaches affect how organisations select and implement gender-based HR initiatives and ultimately their effectiveness in addressing representation. Project-based organisations in traditionally male-dominated industries in Australia are some of the least equitable with fewer women in management and fewer on boards. This study builds on previous research by interviewing 13 HR and Senior Managers of project-based organisations to identify their perspectives that underpin policies and programs of influence in gender representation. We consider the insights of institutional theory to explain how the process of organisational isomorphism may affect the decisions behind the selection and implementation of workplace diversity initiatives in the Australian property sector. Our findings suggest the ongoing underrepresentation of women can be attributed to a lack of consistency in implementation; a traditional culture of favouritism; and, a lack of monitoring of equity outcomes in representation.

Keywords: gender equality, HR policies, institutional theory, organisational isomorphism

BACKGROUND

In Australia, a variety of equal employment opportunity (EEO) and anti-discrimination

legislation promotes increasing women’s representation to achieve a diverse and inclusive

workforce. This delivers tangible business benefits, such as increased efficiency, productivity,

innovation and improved employee engagement (WGEA, 2016).

Women’s representation in the Australian project-based property sector, including property

development, construction and engineering organisations, is still limited. This sector has a

significant importance to the country’s economy and employment (The Australian Trade

3

Commission, 2015; WGEA, 2014, 2015). It is also a growing area requiring a skilled workforce. The

representation of women in the sector is consistently low, with specifically low numbers of women

in leadership and management roles (WGEA, 2014, 2015).

Baker, Ali and French (2018) identified that gender-based HR initiatives have no impact on

women’s representation in project-based organisations. This echoed previous research findings by

French and Strachan (2007, 2009). The current study examines why, and specifically aims to explore

how organisations select and implement gender-based HR initiatives and how those influence the

workplace equality in the project-based property industry. Burgess, French and Strachan (2009,

p.89) suggest that little is known about the factors influencing the management choices in

determining their equality approach. The equality and diversity paradigms are believed to guide

organisations in the selection and adoption of equality policies, also affecting their impact

(Podsiadlowski, Gröschkeb, Koglera, Springera & van der Zeec, 2013; Verbeek & Groeneveld, 2012).

However, equality initiatives may be lacking in support from implementation processes and practices

(Verbeek & Groeneveld, 2012) leading to lack of effectiveness (Creegan, Colgan & Robinson, 2003).

This presents a gap in understanding of organisational equality policy design and implementation

(Kirton, Robertson & Avdelidou-Fischer, 2016; Verbeek, 2011). To address this gap, this study aims to

answer the key research question of: How and why the Senior Managers of project-based

organisations in the property industry in Australia design and implement workplace equality policies

and programs, and how those influence the workplace equality in those organisations?

Australian Equal Employment Opportunity (EEO) legislation

The Workplace Gender Equality Act 2012 aims to remove barriers to women’s workplace

participation, eliminating gender-based discrimination and fostering consultation in relation to

gender equality issues to improve productivity and competitiveness of Australian business (Chang,

2014). The Act requires all private sector organisations with 100 or more employees to report

annually against a set of standardised gender equality indicators (GEIs) concerning gender equality in

4

the workplace. The employers must have a policy or strategy in place that specifically supports

gender-based equality in relation to one, or more of the GEIs (WGEA, 2016). The organisations can

choose the policies and practices and the extent to which they will implement them.

Equality vs managing diversity

Addressing the business case premise, gender equality policies and programs within

Australian organisations are increasingly being developed under the umbrella of managing diversity

(Burgess, French, & Strachan, 2009). Diversity is defined broadly as including gender, age, ethnicity

and cultural background, but with a focus on gender diversity (ASX, 2014). Managing diversity “seeks

to recognise, value and utilise differences between individuals rather than dilute or deny that the

differences exist” (Burgess et al., 2009, p2). This approach is based on the utilitarian concepts of

mutual benefit (Shaw, 1995) and productive advantage (Cope & Kalantzis, 1996) rather than social

justice. However, it is also argued that without recognition the social structure itself is unequal and

unjust, the possibility of achieving equality is questionable (Poiner & Wills, 1991). Researchers thus

challenge the notion that the business case for diversity can be an efficient means of driving or

achieving equal opportunity (Burgess et al., 2009).

Diversity perspectives guiding policy decisions

Research suggests that different organisational perspectives or paradigms on diversity

motivates and effects the selection and implementation of equality and diversity policies differently

(Podsiadlowski et al., 2013; Verbeek & Groeneveld, 2012). The ‘diversity paradigm’ relates to

organisation’s normative values, and beliefs about diversity and diversity management (Dass &

Parker, 1999; Kulik, 2014; Podsiadlowski et al., 2013). Thomas and Ely (1996) identified three distinct

diversity paradigms underlining organisations’ approaches to diversity management: the

discrimination and fairness; access and legitimacy; and learning and effectiveness. The

discrimination and fairness or “moral” perspective suggests that organisations make decisions to

5

adopt equality policies out of a commitment to fighting discrimination and doing the right thing. The

pressure from the legislation and industry groups is perceived to lead to the “legal” rationale and

motivation identified as the access and legitimacy perspective. The “business case for diversity”

refers to a motivation for diversity management based on a belief that equality and diversity is good

for business, representing the learning and effectiveness perspective (Verbeek & Groeneveld, 2012).

It is the organisation’s diversity paradigm that drives its diversity policies and leads their choice of

diversity HR programs (Kulik, 2014), ultimately affecting their effectiveness (Podsiadlowski et al.,

2013; Verbeek & Groeneveld, 2012).

Theoretical underpinning

Institutional theory provides a means to explain the complexities of organisational practices

and behaviours (DiMaggio & Powell, 1983; Milliken & Martins, 1998). An organisation’s structure,

policies and procedures are determined by its conformity to the norms, values and expectations of

the environment on which it depends for resources and legitimacy (Meyer & Rowan, 1977). The

institutional perspective suggests that organisations within the same organisational field tend to

become isomorphic (homogeneous) in structure, processes and behaviours as they compete for

resources; customers; and institutional legitimacy (DiMaggio & Powell, 1983). Isomorphism is

defined as a “constraining process that forces one unit in a population to resemble other units that

face the same set of environmental conditions” (DiMaggio & Powell, 1983) and can be created by:

coercive, mimetic, and normative pressures. Coercive isomorphism results from pressures for the

need for legitimacy; mimetic isomorphism arise from pressures due to market uncertainty and

organisations modelling themselves on effective units in their marketplace; and normative

isomorphism arises from pressures for professionalization of the industry that drives conformity and

professional standards (Baker & French, 2018; DiMaggio & Powell, 1983). This study investigates the

processes leading to design and implementation of workplace equality policies and programs in

6

project-based organisations and their influence on women’s representation in the Australian

property industry.

METHODOLOGY

This is an exploratory study with an interpretive research approach that aims to develop a

deep understanding of the equality and diversity decisions of senior managers responsible for the

selection and implementation of gender-based HR equality policies and programs in project-based

property organisations. This study seeks to explore a known gap in knowledge of the reasoning

behind senior staff decisions in equality and diversity design and implementation and a lack of

information on why HR equality strategies are not realising equality in representation in project-

based organisations in the property industry. Miles and Huberman (1994) and Burrell and Morgan

(1979) support an interpretive approach that allows insights into how people construct meaning in

the natural settings of work.

Thirteen (13) semi-structured interviews (across 6 project-based organisations) were

conducted using purposeful sampling of business leaders including HR managers and senior

managers from private and publicly listed project-based organisations from the property industry.

The participants were recruited through the Property Council of Australia (PCA). The depth and

breadth of respondents enabled adequate exploration of the research questions and analytic

saturation to be reached. The semi-structured nature of the interviews also enabled the interviewer

to probe salient issues such as the participants’ interpretation of gender equality and their

awareness and understanding of HR policies and programs in the business. Table 1 provides a

summary of the characteristics of participants by gender, position and responsibilities for HR policies

implementation.

Insert Table 1 here

7

The interviews were recorded and their transcripts analysed and coded with the support of

qualitative analysis software, NVivo, to identify themes that illuminated the factors affecting the

selection and implementation of gender-based HR initiatives and why they are not realising equality

in representation. The data was triangulated by examining all responses in light of literature sources

to validate them and by leveraging the input of subject matter experts, improving the accuracy of

the study (Creswell, 2002). The findings presented in the following section focus on the significant

points raised in the narrative of the interviews, building a picture of respondents’ perspectives in

designing and implementing equality HR policies.

FINDINGS

Diversity paradigms were evident and affected the design and selection of gender-based HR

policies and programs. Several factors were identified as affecting the implementation including:

lack of consistency in implementation; a traditional culture of favouritism; and, a lack of monitoring

of equity outcomes in representation. Both the diversity paradigms in selection of HR equality

policies and gaps in implementation lead to poor equality outcomes in representation.

HR policies and programs offered

Project organisations that participated in this study had a moderate number of gender -

based HR policies and programs in place with the main focus on recruitment, retention and training

and development. Table 2 shows the summary of HR policies and programs offered in the

organisations of those interviewed.

Insert Table 1 here

In total, eight different gender-based recruitment initiatives were offered, ranging from 1-2

initiatives per organisation. Under retention initiatives, the main focus was on salary review, offered

by 50% of organisations. Within training and development programs, 83% of organisations offered

mentoring and/or sponsorship programs with only one organisation offering gender diversity training

8

for their managers and staff. Further, 50% of organisations set gender-based diversity targets and

KPIs for their leaders and only one had those extended to their teams.

HR policies and programs selection

HR managers with support from the executive teams are charged with the development and

selection of the workplace equality HR initiatives. Their role was also to communicate the policies to

line managers and to support them in implementation of the policies. The motivation for developing

the gender-based HR policies varied across the organisations. While increasing women’s participation

was the main organisational objective across most of organisations (83%), two distinct diversity

perspectives were showcased in participants’ interview responses influencing the decisions about

specific workplace equality initiatives. We found the access and legitimacy paradigm at 100%, and

the learning and effectiveness paradigm at 67%, were dominant in our respondents.

Access & legitimacy perspective

Pressure from legislation and industry groups are perceived to lead to a ‘legal’ rationale and

motivation for equality initiatives. This influence was demonstrated through initiatives that were

driven by the reporting requirements to WGEA focusing on workplace composition and anti-

discrimination initiatives:

“So we did use that framework of the WGEA basically for those things. So every year, obviously, you have to report to the agency and each year you're expected to do more essentially” (Female, HR manager, company B)

“I mean we do have an EEO policy which really just sets out that we don't...we did certainly determine not to discriminate in terms of any you know factors that are...you're required as a business not to discriminate” (Female, HR manager, company D)

It was also evident through participants’ concerns over company’s reputation within the industry and compliance to industry standards:

“Now our policy that we’ve got at the moment was communicated to those associations and shared with those associations so they do know that we have a position which is good. So we get viewed as a business that has diversity on the radar” (Female, senior manager, company D)

“So, our policies more than adequately meet industry standards” (Female, HR manager, company E)

9

Learning and effectiveness diversity paradigm

Feedback from 67% of respondents indicated that the equality and diversity initiatives were

also largely based on a business case rationale. Respondents discussed the imperative for business’

growth and innovation to encompass a broad and diverse mix of people from differing backgrounds,

gender and cultures, acknowledging the learning and effectiveness diversity paradigm:

“It's better to get some diverse views and points of view within our industries, by having that it also creates a different environment within the team” (Male, senior manager, company A)

“I guess it’s like everything, it just gives it diversity of view, and everyone looks at things with a different lens. So I think it really just gives a better blending of skills, we all learn from others differently … I think it just creates a more robust and broader view as a business to better be able to engage with clients, with other business, stakeholders” (Male, senior manager, company D)

Some respondents indicated that workplace equality programs in their organisations reflected

the shortage of skilled labour driving an equity and diversity strategy. The participants (23%) spoke

about the benefits of talent attraction to the organisation:

“Talent is a limited resource particularly for good talent so we always sort of reinvent ourselves about the best way to go and get those good people and bring them into our business” (Male, senior manager, company C)

“There’s a lot of benefits I think to having that participation rate. One is its availability of candidates” (Male, senior manager, company A)

In summary, the findings reinforce the notion that diversity paradigms are evident in the

design and/or selection of the equality and diversity policies and initiatives undertaken. Further, there

is support for the recognition of institutional isomorphism created through the coercive pressures

including the need to address legislation and the need for legitimacy in the market, identified as

reasons for designing and selecting specific policies and programs.

Implementation of equality policies and programs

When considering the implementation of equality policies and programs, it was evident that

all respondents understood the gender equality policies to be the same as diversity policies. The term

‘diversity’ was used across all the organisations and represented all aspects of diversity, from gender

10

to ethnic background and sexual preferences, etc. This indicates a limited understanding and

differentiation between equality and diversity, again reinforcing the legal and business case approach:

“We've got an overarching diversity and inclusion policy. Um, so obviously that's about ensuring that we're encouraging a diverse and inclusive workforce...And diverse thinking at all levels of the organisation and obviously with the purpose of engaging and improving employee engagement … So we don't have gender diversity policy as such” (Female, HR manager, company A)

“So that was an area although I know our CEO felt strongly about diversity as a whole, not let's just pick one group. So it was more about we want a multi-pronged approach” (Female, HR manager, company B)

The respondents (50%) had developed strategic diversity targets and objectives captured in

the KPIs of senior managers. However, only one respondent indicated diversity targets cascaded

down to the line managers and teams:

“Um, that we set and it's mainly with the Business Leaders and they will set targets each year as to what to achieve in terms of increasing their female representation” (Female, HR manager, company A)

Respondents from four organisations (67%) indicated that their recruitment process was

guided by merit underscored by the business case approach, with a focus on fulfilling the skills

requirements of the organisation and irrespective of gender:

“So certainly we do have a recruitment policy and that certainly talks about you know, our aim is basically to get the right skills set for the job and that we really need to focus on getting the right person with the right skills set and the right background and the right capability “ (Female, HR manager, company D)

“We're all about talent and the right person for that job description... (Male, senior manager, company C)

Only two respondents (33%) identified initiatives that aimed to set frameworks for

responsibility and accountability for diversity, although these were not specifically for gender

diversity or equality initiatives:

“We're also establishing a Diversity Inclusion Committee this year... that's just one committee and then that will have different elements to it as well...I mean this is moving away from I guess gender but you know, there will be a women's committee and then there'll be a cultural committee, there will be a parents committee you know, those kind of..” (Female, HR manager, company A)

“We have a Diversity and Inclusions Steering Committee and that is our Executive group … There's Gender Equity, there's Flexibility, there's LGBTI and there's Wellbeing and Cultural

11

Inclusion that are together and so for each of those 4 groups there is what we call a stream lead and an EXCO sponsor” (Female, HR manager, company F)

Some recruitment and promotion practices still appear to adopt informal selection and gender-

based favouritism described by Bazerman (2006) as a tendency to favour the members of groups one

belongs to, pointing to the presence of normative isomorphism:

“He's looking for good culture fit and what he doesn't recognise is potentially when he's saying somebody like me and here are some of the things that I've done, who's taken the same pathway that I've had and it precludes difference coming into the organisation” (Female, HR manager, company F)

“The men in the business will often look to promote and advocate for the other men in the business …so they would often, for example in developments they will just look at you know, oh that guy's really good and he should be promoted, without necessarily looking at other option” (Female, HR manager, company D)

Impact of gender-based HR equality policies and programs of representation

Organisation’s diversity paradigm and diversity policies drive the choice of diversity HR

programs (Kulik, 2014) and affect their effectiveness (Podsiadlowski et al., 2013; Verbeek &

Groeneveld, 2012). Organisations use many different policies and practices to address workplace

equality without assessing outcomes or undertaking any tracking or measurement of change. When

asked about measuring the outcomes of gender-based HR programs, half of the respondents wasn’t

aware of any measurements used and the other half reported that annual staff engagement surveys

were used for this purpose:

“That's not specifically gender so therefore we also have specific diversity inclusion questions in there as a check-in really just to see you know, how people are feeling about that as well and you know, if it is high or … um, and the areas that we need to focus on” (Female, HR manager, company A)

“Yes there were...well there was an annual staff survey and the results of which I believe they took seriously and that would've given them input to develop programs and focuses” (Male, senior manager, company A)

The main exception to this observation was the measurement of workplace composition. The

WGEA compliance report includes a workplace profile including the gender composition of the

workforce and the data on equal remuneration between women and men. The respondents were aware

of the progress made in that area:

12

“That was set a couple of years ago and we have a target that we're trying to get towards in terms of the KPI by 2020...Which is 50/50 women in management, and so I guess that gives us the yardstick of where we're trying to head” (Female, HR manager, company F)

“We are a Pay Ambassador so we are, you know, closely monitoring our pay equity ratio which sits at 99%” (Female, HR manager, company B)

DISCUSSION & CONCLUSION

The findings from this study provide support for institutional theory as having an impact on

how gender-based HR initiatives and policies are designed and implemented in project

organisations, and in turn how they influence the workplace equality outcomes. The project-based

organisations in the property sector are undergoing various degrees of organisational change in

response to institutional pressures to adopt workplace equality. They offer a number of diversity

policies and programs, however, the “implementation gap” blamed for lack of outcomes (Verbeek,

2011) is also evident. We found that the key challenge in the implementation is lack of consistency

driven by differences between intent (designing EEO policies and strategies) and practice (delivering

diversity programs). The intent was mostly motivated by legal and business case diversity paradigms,

offering workplace equality strategies and policies addressing the legislative expectations. Further,

the organisations were also responding to market forces such as shortages of skilled workers what

drove commitment to introducing diversity programs, reinforcing the influence of the institutional

environment. In addition, while a strong business case accompanied the equality initiatives in those

organisations, there was a limited tracking and auditing of the organisational processes and

outcomes of those initiatives.

Various levels of management can also affect the implementation quality and effectiveness

to different degrees (Wright & Nishii, 20113). Research confirms that appointing managers and

committees with responsibility for change has better chances of being effective (Kalev, Dobin &

Kelly, 2006; Myer & Rowan, 1977). However, only half of the property organisations adopted

diversity committees with responsibility for workplace equality adoption. Further, only 50% set

13

targets and accountabilities such as KPIs, expressly for the purpose of implementation of workplace

equality initiatives, with focus only on the top tier of senior management.

Favouritism and the merit bias was also evident in recruitment and promotion practices.

Some line and team manager’s recruited people with similar gender, background and experience.

The traditional culture of merit based on mantra of ‘the best person for the job’ reinforces

favouritism in influencing the recruitment and promotion decisions. This occurs despite efforts of

multiple gender-based HR policies and initiatives aiming to even the playing field for women.

Overall, the organisations in the property industry embraced the legal (access and

legitimacy) and/or business case for diversity (learning and effectiveness) motivation towards

workplace equality selection, supporting the view of institutionalisation as a process through which

environmental forces create organisational change. However, in practice the implementation of

workplace equality policies and programs was challenged by lack of consistency in approach and

strong influence of the prevalent culture of favoritism.

French & Strachan (2015, p.238) indicate that equal employment initiatives are ‘minimal in

design, implementation and outcomes’ in project industries. Indeed, this study confirms that existing

diversity policies have limited impact on the representation of women as mainly compliance is

driving implementation of workplace equality initiatives and leaving a significant implementation

gap. Instead, genuine gender-based equality initiatives with robust implementation processes have

the capacity to combat women’s underrepresentation in those organisations.

Contributions to theory and practice

The findings of this study extend the application of the institutional theory by broadening our

understanding of the isomorphic (homogeneous) forces associated with the selection and

implementation of gender-based HR initiatives in project-based organisations. The process of

organisational isomorphism continues to encourage female underrepresentation in project-based

14

property organisations.

The results also have a practical implication for the industry; its leadership and human

resource (HR) management. In order to see positive effects, organisations must develop execution

plans that are grounded in business strategy, implemented across all layers of organisation and

measured for effective outcomes. The outcomes evaluation is necessary to provide feedback to the

process for successful implementation. Project-based organisations could also look outside their own

industry to find suitable female candidates from outside of the core skills range and support them in

development of industry-based proficiencies. They could also focus on HR initiatives such as

succession planning and retention to provide women with better career development opportunities and

encourage greater retention of people who follow different career trajectories. Finally, overcoming the

inherent industry biases exhibited in favouritism in recruitment and promotion practices will open the

doors to more diverse workplaces.

15

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Table 1 Summary of participants

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Table 2 Summary of gender-based HR policies and practices