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High Performance Leadership

Prof Nilesh Kulkarni

Adrea Jung : Giving Avon a much needed Makeover

Can one person make a difference in an organizations performance? Andrea Jung, Chairman and CEO of Avon Products, is proving one can. Jung joined Avon in 1994 after working for retailers such as Niemen Marcus and Bloomingdales. her original task at Avon was to create a global brand. And thats what she did. Jung integrated and standardized the companys logo, packaging and ads to create a uniform image; and she pushed for the current corporate slogan the company for women based on her success in improving Avons marketing focus, the companys board appointed her chairman and CEO in November 1999. The company that Jung took over was in deep trouble. The day of the Avon Lady seemed to have passed. Fewer women were signing on as Avon representatives and sales were sagging. But only after 4 weeks in her new job, Jung had a turnaround plan worked out. Avon would launch an entirely new line of business, develop blockbuster products, begin selling Avon products in retail stores, and significantly expand international sales. She added 46 percent to Avons research and development budget to get blockbuster to market faster. This led to the launch of Retroactive, an antiaging skin cream that has become a runaway hit, and new lines of vitamins and therapy oils.

To rebuild the companys sales force, she created a multi level program that rewards current sales people for signing up new representative. The number of sales representative is now increasing for the first time in years. Finally, by aggressively moving in to international markets, Avon now gets almost two thirds of its $6.2 billion in sales from outside united states. After 6 years on the job, Jungs leadership has truly made a difference in Avons performance. Since Jung took over as CEO, profits have grown by an average of 21.5 percent per year.

Adrea Jung : Giving Avon a much needed Makeover

What is Leadership
Leadership and Management are two terms that are often confused. Whats the difference between them? John Kotter of the Harvard Business School argues that management is about coping with complexity. Good management brings about order and consistency by drawing up formal plans, designing rigid organization structures, and monitoring resulting against the plans. Leadership , in contrast, is about coping with change. Leadership establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles. Robert House of Wharton School at the university of Pennsylvania basically concurs when he says that managers use the authority inherent in their designated formal rank to obtain compliance from organizational members. Management consists of implementing the vision and strategy provided by leaders, coordinating and staffing the organization, and handling day to day problems.


Leadership as the ability to influence a group toward the achievement of a vision or set of goals. Leadership is the process of encouraging and helping others to work enthusiastically towards objectives. Leadership is the behavior of an individual when he is directing the activities of a group towards a shared goal. Leadership is interpersonal influence, exercised in a situation and directed, through the communication process, towards the attainment of a specified goal or goals. Leadership is an interaction between persons in which one presents information of a sort and in such a manner that the other becomes convinced that his outcomes will improve if he behaves in the manner suggested or desired Leadership is the relationship in which one person(the leader) influences others to work together willingly on related tasks to attain goals desired by the leader and / or group.


The core points that run through all these definitions and which constitute the essence of leadership are the following: 1. Leadership refers to the ability of one individual to influence others. 2. The influence is exercised to change the behavior of others. 3. Behavior is changed through non coercive means. 4. Change of behavior is caused with an objective of achieving a shared goal. 5. The person influencing others(leader) possesses a set of qualities or characteristics which he or she uses to influence others, as the opening case indicates. 6. Leadership is a group phenomenon. It involves interaction between two or more people.

Theories of Leadership From the beginning of the 20th century , many distinguished authors and researchers have contributed to the rich knowledge on leadership. Without the forward looking visions of past generations, we would not have the insights that we have today. While, examining all the earlier contributions is rather unnecessary, we focus on certain works, which are relevant even today. Historically, focus on leadership in theories shifted from one dimension of leadership to another. Early leadership research focused on the leader himself or herself to the virtual exclusion of other variables. As the years went by the focus shifted from the personality of the leader to his or her behavior while delegating tasks to subordinates and communicating with them. It was believed by the behaviorists that a leaders effectiveness depended upon behaviors and not on traits alone. More recently the situation in which the leader operates has been given much importance. It is believed that the leadership effectiveness depends on the situation in

Review of Leadership Theory

A review of the leadership literature reveals an evolving series of 'schools of thought' from Great Man and Trait theories to Transformational leadership (see table). Whilst early theories tend to focus upon the characteristics and behaviors of successful leaders, later theories begin to consider the role of followers and the contextual nature of leadership. Based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term 'man' was intentional since until the latter part of the twentieth century leadership was thought of as a concept which is primarily male, military and Western. This led to the next school of Trait Theories

Great Man Theories

Trait Theories

The lists of traits or qualities associated with leadership exist in abundance and continue to be produced. They draw on virtually all the adjectives in the dictionary which describe some positive or virtuous human attribute, from ambition to zest for life.

B e h a v io rist T h e o rie s S itu a tio n a l L e a d e rsh ip

T h e se co n ce n tra te o n w h a t l a d e rs a ctu a l y d o ra th e r th a n o n th e i e l r q u a l ti s. D i re n t p a tte rn s o f b e h a vi r a re o b se rve d a n d i e ffe o ca te g o ri d a s ' ze styl s o f l a d e rsh i ' T h i a re a h a s p ro b a b l a ttra cte d e e p . s y m o st a tte n ti n fro m p ra cti n g m a n a g e rs o ci T h i a p p ro a ch se e s l a d e rsh i a s sp e ci c to th e si a ti n i w h i i s e p fi tu o n ch t i b e i g exe rci d . Fo r exa m p l , w h i st so m e si a ti n s m a y re q u i s n se e l tu o re a n a u to cra ti styl , o th e rs m a y n e e d a m o re p a rti p a ti a p p ro a ch . c e ci ve I a l p ro p o se s th a t th e re m a y b e d i re n ce s i re q u i d l a d e rsh i t so ffe n re e p styl s a t d i re n t l ve l i th e sa m e o rg a n i ti n . e ffe e s n za o

Review of Leadership Theory

C o n tin g e n cy T h e o ry Tra n sa ctio n a l T h e o ry

Tra n sfo rm a tio n a l T h e o ry

T h is is a re fin e m e n t o f th e situ a tio n a l v ie w p o in t a n d fo cu se s o n id e n tify in g th e situ a tio roa l v aeriap hle si w s ich T h i a p p n a ch m b a s ze h th e s b e p o rta n ceict th e re l st n sh i st p re d o f th e m o ti i m a o p a e twroe nria te e r a n d fo l o w e rs, p p e p l a d o r e ffe ctiv e b e l le cu sirshoip th e le uto a lb th e fi fo a d e n g n sty m tu fit e n e ts p e ri d la rmcircu m sta nco nstra ct d a rticu fro a fo rm o f 'ce . ve

T h e ce n w h ch ce t a d e r d l ve rs co s i th ro u g h tra li nth epl h e re i ech a n g e e a n d th n g s e l a a rd s ir n e su chth eiro l aosfre w d e rshop i e nco si i i n i n re tu rnlfo re n ti g th e o tin n m re vig n n o g a d i p e m th e n tra n m irm a ti n lf o rgty if th o o co m sfotm e n t o ro o ya la noza tie n a l pel e a rfo fo l o wrm rs.n ce .

Theories of Leadership

The Trait Approach to Leadership:

The Trait Approach arose from the Great Man theory as a way of identifying the key characteristics of successful leaders. It was believed that through this approach critical leadership traits could be isolated and that people with such traits could then be recruited, selected, and installed into leadership positions. This approach was common in the military and is still used as a set of criteria to select candidates. Individuals like Margaret Thatcher, South Africas Nelson Mandela, Virgin Group CEO Richard Branson, Bajaj Auto CMD Rahul Bajaj and American Express Chairman Ken Chennault are recognized as leaders and described in terms such as charismatic, enthusiastic and courageous. The problem with the trait approach lies in the fact that almost as many traits as studies undertaken were identified. After several years of such research, it became apparent that no consistent traits could be identified. Although some traits were found in a considerable number of studies, the results were generally inconclusive. Some leaders might have

The trait approach to leadership

Although there was little consistency in the results of the various trait studies, however, some traits did appear more frequently than others, including: technical skill, friendliness, task motivation, application to task, group task supportiveness, social skill, emotional control, administrative skill, general charisma, and intelligence. Of these, the most widely explored has tended to be charisma. The table below lists the main leadership traits Traits and skills identified by Stogdill in 1974. Skills

Adaptable to situations. intelligent Alert to social environment. Conceptually skilled Ambitious and achievement creative oriented. Cooperative, Assertive, Diplomatic and tactful Decisive Dependable, dominant, Fluent in speaking energetic self confident Persistent, Knowledge about group task Tolerance to stress, willing to Organized, persuasive, accept responsibility. socially skilled

2. The Behavioral School The results of the trait studies were inconclusive. Traits, amongst other things, were hard to measure How, for example, do we measure traits such as honesty, integrity, loyalty, or diligence? Another approach in the study of leadership had to be found. Beginning in the 1940s and continuing through the early 1960s researchers moved away from an emphasis on traits and towards the study of leader behaviors. This new approach differed from the trait oriented research in at least two ways. First, actual leader behaviors instead of personal traits were the main focus. Second, where as most trait studies sought to separate leaders from non leaders, leader behavior studies wanted to determine how various kinds of specific behavior affect the Theories Emphasis End performance and satisfaction of followers.Result

Trait Theories

Study personal characteristics Behavior Theories Study how a leader behaves

Separate leaders from non leaders Followers performance and

Behavioral Theories

C o n si e ra ti d o n b e h a vi r o

2.1 Ohio state university studies: These will publicized studies were started shortly after world war II. The main objective of the study was to identify major dimensions of leadership and to investigate the effect of leader behavior on employee performance and satisfaction. From a list of leader behaviors in wide variety of situations, two leadership dimensions were identified : 1. The initiating structure, which refers to leader behavior that defines and organizes the group tasks, assigns the tasks to employees and supervises their activities. 2. Consideration refers to leader behavior that can be characterized by friendliness, respect, supportiveness, openness, trust and concern for the welfare of the Human Relations employees. Democratic

Laissez Faire
I i a ti g n ti n stru ctu re


Behavioral Theories


The University of Michigan Studies:

These studies were conducted during the same period as those at Ohio State and resulted in identical conclusions. As in Ohio State University studies, researchers at the University of Michigan distinguished between two dimensions of leadership production centered and employee centered. Production centered leaders set rigid work standards, organized task down to the last detail, prescribed the work methods to be followed and closely supervised subordinates performance. Employee centered leaders, on the other hand, encouraged employee participation in goal setting and in other work related decisions, and helped ensure high performance by inspiring respect and trust. Production employee Centered leadership

Behavioral Theories

After the publication of the late Douglas McGregor's classic book The Human Side of Enterprise in 1960, attention shifted to behavioral theories. McGregor was a teacher, researcher, and consultant whose work was considered to be "on the cutting edge" of managing people. He influenced all the behavioral theories, which emphasize focusing on human relationships, along with output and performance. 2.3 McGregors Theory X & Theory Y Managers Although not strictly speaking a theory of leadership, the leadership strategy of effectively-used participative management proposed in Douglas McGregor's book has had a tremendous impact on managers. The most publicized concept is McGregor's thesis that leadership strategies are influenced by a leader's assumptions about human nature. As a result of his experience as a consultant, McGregor summarized two contrasting sets of assumptions made by managers in industry.

2. The Behavioral School

T h e o ry X m a n a g e rs b e lie v e th e t:ve ra g e h u m a n b e in g h a s a n Th a a T h e o ry Y m a n a g e rs b e lie v e th e t:xp e n d i re o f p h ysi la n d m e n ta l Th a e tu ca

i h e re n t d i i o f w o rk a n d w i la vo i i e ffo rt i w o rk i a s n a tu ra la s p l y o r n sl ke l d t n s a i f re st, a n d th e a ve ra g e h u m a n b e i g , n p o ssi l . b e u n d e r p ro p e r co n d i o n s, l a rn s n o t o n l ti e y to a cce p t b u t to se e k re sp o n si i i . b l ty B e ca u se o f th i h u m a n ch a ra cte ri c , s sti m o st p e o p l m u st b e co e rce d , e co n tro l e d , d i cte d , o r th re a te n e d w i l re th p u n i m e n t to g e t th e m to p u t fo rth sh a d e q u a te e ffo rt to a ch i ve e o rg a n i ti n a l za o o b j cti ra g e h u m a n b e i g p re fe rs to b e e ve T h e a ve s. n Pe o p l w i le xe rci se l - d i cti n a n d e l se f re o se l -co n tro lto a ch i ve o b j cti s to f e e ve w h i th e y a re co m m i d . ch tte

T h e ca p a ci to e xe rci a re l ti l ty se a ve y d i cte d , w i e s to a vo i re sp o n si i i , h i h l ve lo f i a g i a ti n , i g e n u i , a n d re sh d b l ty g e m n o n ty h a s re l ti l l ttl a m b i o n , a n d w a n ts cre a ti ty i th e so l ti n o f a ve y i e ti vi n u o se cu ri a b o ve a l l . ty le se o rg a n i ti n a lp ro b l m s i w i e l , n o t za o e s d y n a rro w l , d i b u te d i th e p o p u l ti n , y stri n a o a n d th e i te l e ctu a lp o te n ti l ti s o f th e n l ai e a ve ra g e h u m a n b e i g a re o n l p a rti l y n y al u ti i d u n d e r th e co n d i o n s o f m o d e rn l ze ti i d u stri ll fe . n a i

2. 4 The Behavioral School

2. The Behavioral School The Managerial Grid developed by Robert Blake and Jane Mouton focuses on task (production) and employee (people) orientations of managers, as well as combinations of concerns between the two extremes. A grid with concern for production on the horizontal axis and concern for people on the vertical axis and plots five basic leadership styles. The first number refers to a leader's production or task orientation; the second, to people or employee orientation. Blake and Mouton propose that Team Management - a high concern for both employees and production - is the most effective type of leadership behavior.

3. The Contingency Theories of Leadership

It became increasingly clear for people studying the leadership phenomenon that predicting leadership effectiveness was more complex than identifying a few traits or preferable behaviors. The failure to obtain consistent results led to a focus on contingency theories of leadership. As the name it self implies, contingency theories of leadership are derived from the basic proposition that the most effective behavior for leaders to engage in is contingent upon characteristics of the situation in which the leaders find themselves. Thus the type of questions we must ask ourselves regarding leadership range from those such as is an employee oriented leadership more effective than a production oriented one ? To new questions such as under what conditions (in what type of situation) will employee oriented leadership be effective, and under what different types of conditions will production oriented leadership be effective?

3. The Contingency Theories of Leadership

3.1 Fiedlers Theory : Fiedlers models postulates that effectiveness of a leader depends upon (1) his motivational style, and (2) the favorableness of the situation. Leaders are motivated by either interpersonal relations or task goal accomplishment. The situational favorableness is the extent to which the leader has control over the situation. Leaders Motivational Traits: Leaders differ in their motivational styles. Some believe in getting the task doe and are naturally task oriented. They are essentially authoritarian in their approach. Others are relations motivated leaders and they believe in getting along with others. These leaders believe in participative style. Situational Factors: according to Fiedler the situation is favorable to the leader when he has influence and control over his subordinates performance. Three factors are important to determine situational favorability :

3. The Contingency or Situational School

1. Leader member relations: How well do the manager and the employees get along? When the relationship between the leader and the subordinates is good and leader can count on the loyalty of his subordinates, the leaders influence and control are high. Poor leader member relationships, on the other hand, impair the leaders control and contribute to an unfavorable situation to the leader. 2. Task structure: Is the job highly structured, fairly unstructured, or somewhere in between? This factor describes the extent to which the task has a well defined goal, has methods of operation that can be easily defined, whose accomplishment can be easily measured, and also can be lead to a unique solution. A high degree of task structure contributes to a favorable situation for the leader as it enables him to influence and control the behavior of a subordinate on a structured task. When the task is unstructured, the situation is not favorable to the leader who is less likely to have any influence and control over his subordinates behavior.

3. The Contingency School

3. Position Power : it comprises formal authority and reward power. Authority exists to command needed resources for task accomplishment and reward power to award a reward for good performance and punishment for laxity on the part of subordinates. The greater the power, the greater the leaders control over the subordinates and more the favorable the situation is to the leader. Overall, situational favorableness is determined by the contribution of these three situational factors. A high control situation occurs where the leader has good leader-member relations, highly structured tasks, and strong position power. A low control situation exists when the leader has poor relationships with subordinates, unstructured tasks and weak position power. Between these two situations exists a moderate control situation.

The situational Theory of leadership

Paul Hersey and Kenneth Blanchard have developed a situational model of leadership that adds maturity of followers as a variable which deserves due consideration. The two authors feel that situational leadership requires adjusting the leaders emphasis on task behaviors (i.e., giving guidance and direction) and relationship behavior (i.e., offering socio- emotional support) according to the maturity of follower in performing their tasks. Maturity in this context is understood not as age or emotional stability but as desire for achievement, willingness to accept and task related ability and experience. The goals and knowledge of the followers are important variables in determining effective leadership style. Hersey and Blanchard believe that the relationship between leader and subordinates moves through four phases- a kind of life cycle- as subordinates develop and mature and that managers need to vary their leadership styles with each phase.

4. Situational School

The Hersey-Blanchard Model of Leadership : The Hersey-Blanchard Leadership Model takes a situational perspective of leadership. This model posits that the developmental levels of a leader's subordinates play the greatest role in determining which leadership styles (leader behaviors) are most appropriate. Their theory is based on the amount of direction (task behavior) and socio-emotional support (relationship behavior) a leader must provide given the situation and the "level of maturity" of the followers. Task behavior: It is the extent to which the leader engages in spelling out the duties and responsibilities to an individual or group. This behavior includes telling people what to do, how to do it, when to do it, where to do it, and who's to do it. In task behavior the leader engages in one-way communication. Relationship behavior : It is the extent to which the leader engages in two-way or multi-way communications. This includes listening, facilitating, and supportive behaviors. In relationship behavior the leader engages in two-way communication by providing socioemotional support.

4. The Situational Theory Of Leadership

Maturity: It is the willingness and ability of a person to take responsibility for directing his or her own behavior. People tend to have varying degrees of maturity, depending on the specific task, function, or objective that a leader is attempting to accomplish through their efforts. Directive Behavior Supportive Behavior

One way Two way communication communication Followers role clearly Liste n in g , p ro vid in g su p p o rt a n d communicated e n co u ra g e m e n t. Close supervision of performance

Fa ci i te i te ra cti n l ta n o I vo l fo l o w e r i n ve l n d e ci o n -m a ki g si n

The situational theory of leadership

In the initial phase when subordinates first enter the organization- a high task orientation by the manager is most appropriate. Subordinates must be instructed in their tasks and familiarized with organizations rules and procedures. At this stage a non directive manager causes anxiety and confusion among new employees, however , a participatory employee relationship approach would also be inappropriate at this stage because subordinates can not yet be regarded as colleagues. This style is called the directing of telling approach of leadership. As subordinates begin to learn their tasks, task oriented management remains essential, as subordinates are not yet willing or able to accept full responsibility. However, the managers trust in and support of subordinates can increase as the manger becomes familiar with the subordinates and desires to encourage further efforts on their part. Thus manager may choose to initiate employee- oriented behaviors. This style is called selling or coaching approach to leadership.

The situational theory of leadership

In the third phase, the subordinates ability and achievement motivation are increased and subordinates actively begin to seek greater responsibility. The manger will no longer need to be directive (indeed, close direction might be resented). However , the manager will continue to be supportive and considerate in order to strengthen the subordinates resolve for greater responsibility. Delegating is the style which the manager follows in the final stage. Here, the manager, can reduce the amount of support and encouragement as subordinates gradually become more confident, self directing and experienced. For Blanchard the key situational variable, when determining the appropriate leadership style, is the readiness or developmental level of the subordinate(s). As a result, four leadership styles result: Directing: The leader provides clear instructions and specific direction. This style is best matched with a low follower readiness level.

4. The Situational Theory of Leadership

Coaching: The leader encourages two-way communication and helps build confidence and motivation on the part of the employee, although the leader still has responsibility and controls decision making. Selling style is best matched with a moderate follower readiness level. Supporting: With this style, the leader and followers share decision making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level. Delegating: This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level. To determine the appropriate leadership style to use in a given situation, the leader must first determine the maturity level of the followers in relation to the specific task that the leader is attempting to accomplish through the effort of the followers. As the level of followers' maturity increases, the leader should begin to reduce his or her task behavior and increase relationship behavior until the followers reach a moderate level of maturity. As the followers begin to move into an above average level of maturity, the leader should decrease not only task behavior but also relationship behavior. Once the maturity level is identified, the appropriate leadership style can be determined.

Contemporary Issues on Leadership

Topics of contemporary interest relating to leadership are transformational leadership, women as leader and charismatic leadership. Transformational leadership: In explaining the concept of transformational leadership, two styles of leadership are talked of. They are : transactional and transformational. Transactional leaders determine what subordinates need to do to achieve their own and organizational objectives, classify those requirements and help subordinates become confident that they can reach their objective by expanding the necessary efforts. The type of leadership we discussed till now belong to the transactional leadership. Transformational leadership implies a process whereby an individual attempts to elevate his or her consciousness (chetana) so that various common place conflicts and dualities begin at higher levels of synthesis. Stated differently transformational leadership attempts to change the whole organization from one style or culture to another. Transformational leadership has the ultimate aim of raising the level of human conduct and ethical aspiration of both the leader and the led. The leaders main thrust is to elevate, inspire and evangelize his or her followers and

What does it mean?

Till now we have discussed the nature and theories of leadership. The relevant questions now are what does this discussion mean? In what way will the discussion help a practicing manager discharge his or her functions more effectively? The manager must understand that leadership is a two way influencing process. Just as the leader influences his followers, the actions and performances of subordinates will influence the behavior of their leader. The leader must realize this and accept the influence of followers on him. Whatever may be the criticism against the trait theory of leadership, there is no gainsaying the fact that effective leadership demand certain unique qualities. One such quality is competence. The leader must be competent enough to perform a task better than what his or her followers are capable of. This earns him or her enormous respect from his or her team. Competence gives confidence. A leader needs to intellectual. He or she needs to understand not only the intricacies of the immediate task before him or her, but also have knowledge about the political, economic, social and cultural milieu operating beyond his or her companys gate. A leader must also be a visionary, good communicator and also must possess selflessness.





What does it mean?

The lesson from the behavioral theories is that the behaviors of successful leaders can be learnt even if a leader is short on some of the traits listed above. He or she can still be successful in his or her job provided he or she can learn appropriate behaviors while delegating duties to their subordinates, communicating and motivating them. A leader can learn a valuable lesson from contingency theories; the effectiveness of leadership depends on situations- the tasks to be accomplished, the skills and expectations of subordinates, the organizational environment, the past experiences of the leader and his or her followers and the like. An individual who is successful as a leader in one situation may do poorly in another.

Contemporary Issues on Leadership

Transactional Leadership Builds on mans need to get a job done and make a living. Transformational Leadership Builds on a mans need for meaning and values.

Is preoccupied with power and position, Is preoccupied with purposes and values, politics and perks morals, and ethics Is mired in daily affairs Is short-term and hard data orientated, Focuses on tactical issues Transcends daily affairs

Is orientated toward long-term goals without compromising human values and principles Relies on human relations to lubricate Focuses more on missions and strategies, human interactions Releases human potential identifying and developing new talent. Follows and fulfils role expectations by Designs and redesigns jobs to make them striving to work effectively within meaningful and challenging current systems Supports structures and systems that Aligns internal structures and systems reinforce the bottom line, maximize to efficiency, and guarantee short-term reinforce overarching values and goals profits

Women as Leaders Historically, women have been discriminated against in our male dominated society. Most girls were married when they were in their teens; widow remarriages were considered to be a social taboo; education beyond the primary or at the most school level was rare; girls, especially in rural and small towns , were deliberately undernourished and denied access to outside world; and women were considered to be fit to cook food but not to work in business establishments. The picture is not totally different today. The report of national committee on the status of Women has made startling revelations. Major findings in the report are : a decline in the sex ratio due to excessive mortality among women and female children; disparity in access to health care and widening gap between women and men in literacy; education and training for employment. Daily newspapers publish about rape, bride burnings, dowry deaths and wives to death. Women are afraid of going out alone after dark and can not go for shopping without male escorts.

Women as Leaders As we go in to the future, discrimination against women will certainly go and they will sure occupy equal status along with male counterparts. Seeds for better tomorrow have already been sown. Todays girls are better educated, more assertive. Business and other professional activities are multiplying, demanding the services of talented people, including women.