Dung Luu
There is no clear rule, and all CEOs have their own approach to decision-making. However, some studies have shown that female and male CEOs have different approaches to decision-making.
Focus on community concerns rather than financial indicators
Some studies have shown that women tend to focus more on community concerns than financial indicators. They also tend to seek consensus and discuss more before making decisions. In addition, women often place emphasis on building a good working environment for employees, ensuring gender equality, and promoting diversity.
Meanwhile, men tend to focus on revenue and profit growth. They often apply different management methods and may become more resolute in decision-making.
Although there are many studies on the differences in decision-making between male and female CEOs, the results are often inconsistent and may vary depending on the scope, method, and purpose of each study.
More concern for employees and society
A 2018 study by the Korn Ferry Institute on the world’s 57 largest CEOs found that female CEOs tend to be more concerned about employees and society than male CEOs. This study also showed that female CEOs often apply a friendly leadership style and motivate employees rather than a rigid leadership style.
More focus on company restructuring and change
A 2019 study by the Chinese Alibaba Group of over 2,000 CEOs in China found that female CEOs tend to focus more on the company’s ability to restructure and change, while male CEOs tend to focus more on growth and development.
Better cost and risk management
A 2020 study by the Research and Education Institute of the National Economics University in Ho Chi Minh City on 224 companies in Vietnam found that female CEOs tend to have better cost and risk management, while male CEOs tend to focus more on growth and expansion.
However, it should be noted that these studies are only a part of understanding the differences in decision-making between male and female CEOs, and their results may not apply to all male and female CEOs globally. In addition, each study’s methodology and sample size should be carefully analyzed to ensure the accuracy and reliability of the results.
Currently, there is no study that proves that female and male CEOs make different decisions based on their gender. However, some studies have shown that gender diversity in a company’s leadership team can lead to better decision-making and better outcomes in difficult situations.
Better financial performance
Another study by McKinsey & Company also shows that companies with gender diversity in their leadership team tend to have better financial performance than those without such diversity.
This study was conducted on more than 1,000 companies in 12 different countries and showed that companies with at least 30% women in leadership positions had an average profit margin that was about 6% higher than companies without gender diversity in their leadership team.
Enhancing competitiveness, creating value for customers
This study also suggests that gender diversity in leadership can help companies enhance their competitiveness and create value for customers. Female CEOs are also said to have traits such as determination, discipline, and a strong sense of responsibility, which can help them make better decisions in difficult situations and create value for the company.
Another study by the Peterson Institute for International Economics also shows that gender diversity in leadership can improve a company’s financial performance. This study was conducted on over 21,000 companies from 91 countries and showed that companies with more women in leadership positions had better profits and were more competitive.
In addition, a study from Harvard Business Review also shows that female CEOs tend to make better decisions in difficult situations and make better investment decisions. This study was conducted on over 600 senior managers and showed that female CEOs typically make better decisions and have a higher degree of determination in risk management.
It is important to note that not all female CEOs make decisions in the same way. Each CEO has their own management style and decision-making approach, which depends on various factors such as experience, knowledge, personality, and leadership style.
These are just some general aspects and do not apply to all male and female CEOs. What is more important is that the CEO’s decisions should be based on careful analysis, complete information, and long-term vision for their business.
