Saturday, November 08, 2008

Nissan's gender quota

Nissan's CEO Carlos Ghosn is a kind of superstar in an auto industry, as he had turned around a failing motor company into one of the most profiting ones, but hee too, as a Wester-educated CEO of this generation, is not immune from being contaminated by political correctness.

In a magazine interview he gave some years ago, he set a goal of having 5% of senior managers women.

Good. But it begs a lot of questions for this legendary guy whose life was portrayed in a popular comic book.

First, if having women as senior managers is so important, why this wasn't the first thing Mr. Ghosn did when he took over the job at Nissan? Instead, he waited until the company's performance turned around and got firmly on track for further growth. What does it mean? To me, it only means that "affirmative-actioning" women into senior positions is a luxury that only a few large companies could afford. You can make a political gesturing like this only when company is in good order.

Second, he seems to exhort other auto companies to do the same,but it strikes as odd, as if getting more women into senior positions is the success for suto company, you would rathr NOT other companies to do the same, since in this way, you can be rest assured that only Nissan will benefit from the supposed benefit derived from the increased female managers, while other companies do not. Why do you want to reveal key for success in trade, and ask that competitors follow suit?

Actually what is going on here is that Mr. Ghosn know that affirmative-actioning more female managers, and setting numerical target and gender quaota, will put his company in disadvantage, as 5% of the managers will be sub-standard ones, who are articifially promoted for their jobs. If its rivals pack their senior manager posts with 100% compitent people who won their posts on merit, guess which one has more compitent manager team as a whole? Nissan, with 95% managers chosen on merit and 5% filled in as quota, or Toyota, with 100% managers chosen on merit and 0% quota people?

In this sense, it might not be "fair", if other companies fo not set up the same 5% gender quota and fill it with sub-standard people. One analogy would be gender mixed sports that are a staple of intramural sports events. In these mixed sports, typically a ballgame like basketball or a volleyball, the number of men and women who can play in one team is strictly set. So, let's say, in volleyball, if the rule says one team should consist of 3 men and 3 women, then that raito has to be observed. You cannot field a team of 4 men and 2 women, because it will give an unfair advantage to such a team that have a higher ratio of men. In sports, obviously women's weaker physical fitness level is a liability, and therefore, to be fair, all teams must have equall number of women, not less. Similarly, in a corporate world, if one company wants to show chivalrish side and adopt a gender quota, in order not to be put in a disadvantegous position in a cut-throat competition in the market, that company will naturaly wish that other companies adopt similar measures.