Running head: GENERATIONAL DIFFERENCES Managing Generational Differences in the Workplace Cassandra Bezeau Siena Heights University 1 GENERATIONAL DIFFERENCES 2 Managing Generational Differences in the Workplace For the first time in history, managers are dealing with five different generations in the workforce at one time. These generations consist of Traditionalists, also known as Veterans, Matures and the Silent Generation born between 1925 and 1945; Baby Boomers born between 1946 and 1964; Generation X born between 1965 and 1980; and the Millennial also known as Gen Y, NGen, or GenMe born between 1981 and 1999 (Kapoor & Solomon, 2011). Mixing these generations within the workplace brings challenges not only for the managers, but also for the workers themselves. Different generations have different personalities and ways for relating which can cause conflict within the workplace. Organizations are seeing an influx of younger workers and they do not know how to recruit, retain, or motivate a multigenerational workforce (Twenge, 2010). Many managers are noticing the differences in priorities, values, and motivation among Baby Boomers, Gen X and the Milliennials, and they are unsure how to manage teams in the midst of all these differences. Millennials have received a bad reputation for being lazy, having a bad work ethic, being selfish, needing instant gratification and many other things. “Most studies…show that Gen X and especially GenMe [Millennials] rate work as less central to their lives, value leisure more, and express a weaker work ethic than Boomers”(Twenge, 2010, p. 2). But the popular reputation may be nothing more than a misunderstanding. If the other generations knew how to relate to these Millennials it might make a difference. Kapoor and Solomon (2011) say that Millennials are more affluent, better educated, technically savvy, and more diverse than any other generation before them. It appears that there is a gap between the perspective some people have on this generation and their true identity. Regardless of what people’s perceptions are, the truth of the matter is the Millennials are the future. GENERATIONAL DIFFERENCES 3 The purpose of this paper will be to develop an understanding of generational cohort differences within the workplace, and how to lead or manage multigenerational teams despite their differences. I hope to gain insight from this study about how to relate to individuals from all generations and the tools necessary to encourage synergy and cooperation among teams consisting of multigenerational people. Review of Literature Generations Defined The literature presents many different names and dates to define the generations. Before discussing the generations it is important to note that even though a generation may be known for certain characteristics, these may not apply to everyone within that generation. People are unique individuals and they possess their own personalities, characteristics, and values. In addition, there is controversy over the birth years of each generation (Kapoor & Solomon, 2011). However, the purpose of this review is to identify the common values and characteristics among generational cohorts. A generation can be identified as “an identifiable group of people who share birth years and experiences as they move through time together, influencing and being influenced by a variety of critical factors” (Davis, Pawlowski, & Houston, 2006, p. 43). Meriac, Woehr, and Banister (2010) state, “It has been widely postulated that generational cohorts develop similarities in their attitudes and beliefs based on shared life experiences” (para. 2). The first generation is known as the Veterans. The birth years determined for this generation are anywhere between 1922 and 1946 (Dwyer, 2008; Kapoor & Solomon, 2011). Most of this generation endured poverty and traumatic events like The Great Depression and World War II. These events have shaped the Veterans to be more frugal and risk-averse. They GENERATIONAL DIFFERENCES 4 appreciate security. This generation is also known to place importance on what is best for the group instead of what is best for the individual (Kapoor & Solomon, 2011). The next generation is known as the Baby Boomers. The birth years for Baby Boomers range between 1946 and 1964. The defining events of this generation include the Civil Rights Movement, Cold War, the Kennedy assassination, the Women’s Rights Movement, and Woodstock (Dwyer, 2008; Kapoor & Solomon, 2011). The Baby Boomers are known to be idealistic and willing to sacrifice to succeed. They are also known by the adage that “they live to work”, respecting authority and hierarchy. The generation succeeding the Baby Boomers is known a Gen X. The birth years for this generation range between 1965 and 1980 (Dwyer, 2008; Kapoor & Solomon, 2011). The defining events for this generation include The Challenger incident, Rodney King, the energy crisis, and the first personal computers (Arsenault, 2003; Dwyer, 2008). Gen X were latchkey kids spending more time in daycares and with babysitters due to living in single parent homes and the rising need of two incomes in the household. This generation grew up in a state of uncertainty seeing their parents being laid off during the economic recession in the 1980s. This is believed to be the reason for their lack of loyalty to companies. Gen X was also a time of rising personal debts, challenges to honesty of national leaders, and the emergence of the AIDS epidemic (Kapoor & Solomon, 2011). The final generation to enter the workforce is the Millennials. The birth years of this generation range between 1980 and 1999. The Millennials are said to be more affluent, more tech savvy, and better educated than any previous generation (Kapoor & Solomon, 2010). The defining events of this generation include increasing high school violence, scandals like GENERATIONAL DIFFERENCES 5 President Bill Clinton and O.J. Simpson, an increase in diverse families, reality TV, government scandals, and terrorist attacks including those of September 11th, 2001 (Dwyer, 2008). Generational Characteristics According to Haeberle, Herzberg, and Hobbs (2009), “Generational differences impact communication styles, technology needs, professional development preferences, workplace expectations, compensation and benefit needs, desired leadership styles, and the effectiveness of reward systems” (p. 64). Understanding generational differences is a very important aspect of any company’s success. In order to understand how to lead a multi-generational workforce one must first understand the characteristics and preferences of each generation. The Baby Boomer generation is more likely to have a career path, they relate working long hours to dedication and promotion, they are intensely loyal to their organizations, dress conservatively, use proper language, and are resistant to change. The younger generations, including Gen X and the Millennials, prefer to work flexible hours that correspond with their personal life. They have personal loyalty rather than loyalty to an organization, are concerned about work conflicting with family, are willing to embrace and value change, and individual development is important to them (Dwyer, 2008). Studies show that work centrality declines with each generation, as the younger generations become more family centric. Gen X and Millennials value more leisure time and having a work/life balance is very important to them. A member of these generations may sacrifice higher pay for more time off. These generations also value having freedom in their work by working with less supervision. However, they have less interest in working hard or putting in overtime and studies show that they take less pride in their work compared to previous generations (Twenge, 2010). GENERATIONAL DIFFERENCES 6 Baby Boomers on the other hand are characterized by their hard work and commitment to their employers. They take pride in their work and relate their self-worth to their work performance. Baby Boomers may view Gen X and Millennials as slackers because they do not conform to a culture of being overworked. This view may cause conflict within multigenerational groups due to the lack of understanding of each generation’s preferences (Kapoor & Solomon, 2011). The three key differences among the generational cohorts that were expressed throughout the literature pertained to communication, commitment, and compensation. Gen X and Millennials prefer to communicate through e-mail, social networks, and text messaging. Baby Boomers prefer face-to-face meetings or the telephone. These differences in communication preferences may also lead to conflict within multi-generational teams because they are unaware of how to communicate effectively with one another (Kapoor & Solomon, 2010). Need more information on differences in compensation Due to the differences between generational cohorts, each generation has a different preference for leadership style. Baby Boomers prefer a consensual style of leadership. They do not believe in a hierarchal system and favor participation and sharing of responsibility. Members of Gen X do not respect authority like the generations before them. They believe in being fair and straightforward, and they like to be challenged. The Millennials prefer a polite relationship with authority. They like leaders that pull people together and they believe in collective action. These differences within the generational cohorts require leaders to have a broad and flexible leadership style (Arsenault, 2003). Maybe comment on similarities between Boomers and Millennials GENERATIONAL DIFFERENCES 7 While the majority of the literature reviewed presented common themes and ideas about generational differences, generational cohorts may not be the issue. Davis et al. (2006) conducted a study within the IT profession that tells a different story. Their findings provide little support for generational differences within the topics of work involvement, job involvement, work group attachment, organizational commitment, and professional commitment. Davis et al. (2006) argue that even when generational differences are found, there are at least two other alternative explanations for the differences such as “cohort and lifecycle/career stage explanations” (p. 44). Baby Boomers and Gen X may have more in common than anticipated. The complaints that Veterans had about Baby Boomers are very similar to the complaints that Baby Boomers have about Gen X. Gen X is just as committed to their profession and organizations as Baby Boomers (Davis et al., 2006). Davis et al. (2006) state, “In light of the growing evidence, these differences can be attributed to other factors (e.g. stage of life) instead of a true ‘generational divide.’ Perhaps the only true difference between the generations is age” (p. 47). Leadership Theory The literature does not present a specific leadership theory when dealing with multigenerational teams. However, the literature repeatedly expressed the importance of leaders to be able to adapt to the leadership needs of their multi-generational subordinates. According to Dubrin (2010), “The essence of a contingency approach to leadership is that leaders are most effective when they make their behavior contingent on situational forces, including group member characteristics” (p. 133). Situational leadership may be an effective style of leadership for multi-generational teams. Situational leadership allows the leader to identify which leadership style is most effective for an individual or group. Those leadership styles include directive, supportive, coaching, and GENERATIONAL DIFFERENCES 8 delegating (Dubrin, 2010). According to the literature, Veterans prefer the directive style of leadership, Baby Boomers prefer participative leadership which would fall under a supporting leadership style, Gen X may fall under the delegating leadership style because they like to have freedom when they are working, and the Millennials may respond well to the coaching leadership style. Research Question This study will examine how to create synergy and cooperation within multi-generational teams. The guiding questions for this study include: 1) How does each generation define synergy and cooperation within a team environment? 2) What characteristics of a team member are preferred by each generation? 3) What triggers conflict within multi-generational teams? 4) What role does leadership play in creating synergy and cooperation? Method Participants There will be between 25 to 30 participants within the study. The group of participants will be multi-generational consisting of people between the ages of 29 and 67. The participants are employees from the credit union where the researcher is employed. Their positions within the credit union vary among executives, managers, tellers, accounting clerks, member service representatives, and loan officers. Data Collection This will be a qualitative study utilizing interviews with the participants as the main tool for data collection. Depending on the preference of the participant, the interviews will either be GENERATIONAL DIFFERENCES 9 conducted face-to-face or through an electronic resource such as e-mail or a website. Face-toface interviews will take place within the organization during work hours. If the participant chooses to complete the interview through electronic means, an e-mail will be sent to the participant inviting them to participate in the interview. Follow up e-mails will be sent as reminders to the participants as they are needed until the interviews are complete. All information gathered from the interviews will be recorded by hand written notes taken by the researcher. The notes from each interview will be kept separate and labeled with the participant’s name. Data will also be collected through observation. The participants engage in team activities frequently throughout the work week. The participants will be observed while working in teams to determine what works well and creates synergy within the team, and also what causes conflict within the team. The observations will be conducted with the researcher as a participant. The role of researcher will be secondary to the role of participant. The information gathered from the observation will be recorded by hand written notes of thoughts and observations. Data Analysis The data will be reviewed in order to gain an understanding of the information uncovered throughout the data collection. Similarities will be identified and organized into categories. Once the information is organized the researcher will look to identify four or five themes from the observations. Triangulation will be used to determine if the themes are consistent among the interviews and the observations. GENERATIONAL DIFFERENCES 10 GENERATIONAL DIFFERENCES 11 References Arsenault, P. (2004). Validating generational differences: A legitimate diversity and leadership issue. Leadership & Organization Development Journal, 25(1), 124-141. Davis, J. B., Pawlowski, S. D., & Houston, A. (2006). Work commitments of baby boomers and gen-xers in the IT profession: Generational differences or myth? The Journal of Computer Information Systems, 46(3), 43-49. Dubrin, A. (2010). Leadership research findings, practice, and skills. Mason, OH: South-Western Dwyer, R. J. (2009). Prepare for the impact of the multi-generational workforce! Transforming Government: People, Process and Policy, 3(2), 101-110. doi: 10.1108/17506160910960513 Gibson, J., Greenwood, R., & Murphy, E. (2009). Generational differences in the workplace: Personal values, behaviors, and popular beliefs. Journal of Diversity Management, 4(3), 1-7. Haeberle, K., Herzberg, J., & Hobbs, T. (2009). Leading the multigenerational work force. Healthcare Executive, 24(5), 62-67. Kapoor, C., & Solomon, N. (2011). Understanding and managing generational differences in the workplace. Worldwide Hospitality and Tourism Themes, 3(4), 308-318. doi:10.1108/17554211111162435 Meriac, J., Woehr, D., & Banister, C. (2010). Generational differences in work ethic: An examination of measurement equivalence across three cohorts. Journal of Business and Psychology, 25(2), 315-324. doi:10.1007/s10869-010-9164-7. GENERATIONAL DIFFERENCES 12 References Twenge, J. (2010). A review of the empirical evidence on generational differences in work attitudes. Journal of Business and Psychology, 25(2), 201-210. doi:10.1007/s10869-0109165-6 Twenge, J. M., & Campbell, S. M. (2008). Generational differences in psychological traits and their impact on the workplace. Journal of Managerial Psychology, 23(8), 862-877. doi:10.1108/02683940810904367