This document discusses several theories related to women in business: Vertical segregation views women as suited for lower-level roles due to emotional traits. The human capital explanation claims women invest less in education and experience. Stereotyping suggests women face assumptions about unsuitable roles. Personal preference theory proposes women choose lower-paying jobs due to family roles. Social role theory views gender roles formed in childhood carrying into the workplace. Entitlement theory argues women undervalue their work and avoid demanding higher pay.

1. Theories associated with
Women in Business

2. Vertical Segregation
 The view that women have fundamentally different
capabilities, skills and emotional strengths than men
do. Therefore, they are suited for different work.
 Vertical segregation reinforces the idea that women
are suited for lower-level roles with less
responsibility because they display emotional
sensitivity along with a passive and nurturing nature.
How do female leaders break through these barriers?

3. The Human Capital Explanation
 Due to investment choices, women have less human
capital than men, which leads to different
employment outcomes.
 Economist Gary Becker identified “one’s capital as
the result of such things as a person’s investment in
his or her education, work experience, and training.”
Do the women who become leaders in their field have
to invest more than men?

4. Stereotyping
 Stereotypes arise from impressions and assumptions
that can be inaccurate, unfair and superficial.
 Stereotypes can appear in a hiring and/or promotion
process in regards to what women are suitable for
and capable of. If a woman is non-confrontational
how effective will she be at discipline? Can a woman
compete when it comes to physical strength?
What are common female stereotypes?

5. Personal Preference
 The theory proposes that women choose lower-paid
occupations and stay in them because of personal
preference.
 A woman’s large role in the family has been seen as a
factor in personal preference and wage issues.
How does personal preference factor into women
climbing the corporate ladder while balancing family?

6. Social Role Theory
 The theory proposes that men and women abide by
the gender roles that they have obtained early in
childhood.
 These roles are formed by social expectations and
arise to varying degrees in the workforce.
Think about how female historical leaders defied social
expectations and secured their position when it wasn’t
a common occurrence.

7. Entitlement Theory
 Discussion surrounding this theory suggests that the
wage gap between men and women exists because
women often undervalue their work.
Therefore, women steer away from making demands
for higher pay.
How much does lack of female confidence factor into
this theory?

8. Reference
 Reeves, M 2010, Women in Business: Theory, Case
Studies, and Legal Challenges, Routledge
Publishing, Kentucky.