Beruflich Dokumente
Kultur Dokumente
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Abstract
Purpose – The purpose of this paper is to provide an insight into differences in work values and
Person–Organisation (P–O) fit of Baby Boomers, Gen X and Gen Y in India and to understand the
relationship between (P–O) fit values and turnover intention of Generation Y employees.
Design/methodology/approach – The work values were measured using an adapted version of
Lyons Work Values scale. The generational differences in work values and P–O fit were studied using
multivariate analysis of variance and relationship between P–O fit values and turnover intention of Gen
Y employees was studied using polynomial regression and response surface methodology.
Findings – Significant differences in work values were observed between Generation Y and older
generations. Generation Y also reported significantly higher discrepancy in P–O fit values than
Generation X and Baby Boomers. This had an effect on their turnover intention.
Research limitations/implications – A cross-sectional design was used to study the generational
differences in work values where the generation effects may have been confounded with age effects.
Practical implications – The differences in work values and P–O fit values of Generation Y and
older generations provide input into designing organisation systems and structures more suitable for
younger generations to manage the high turnover among Generation Y in India.
Originality/value – This is one of the first studies on generational differences in work values and P–O
fit in the Indian context. It is also one of the first to investigate relationship between P–O fit and turnover
intention of Generation Y in India.
Keywords Generation Y, Turnover intention, Work values, Multigenerational workforce
Paper type Research paper
Introduction
Managing the dynamics of a multigenerational workplace is a key challenge for
managers today. Most workplaces have three generations of workers – Baby Boomers,
Generation X and Generation Y. Each generation is characterised by unique abilities
and competencies, and leveraging them is key to an organisation’s success (Hernaus and
Vokic, 2014; Culpin et al., 2015; Kultalahti and Viitala, 2015; Rentz, 2014; Reuteman,
2015). With many studies on generational differences, and Generation Y in particular, Management Research Review
being done in Western countries, a question arises about the influence of national culture Vol. 39 No. 12, 2016
pp. 1695-1719
(Yi et al., 2015) and its impact on generational characteristics. With more than half of its © Emerald Group Publishing Limited
2040-8269
population of over one billion aged less than 25 years, India is a young country. While DOI 10.1108/MRR-10-2015-0249
MRR many Western countries face the problems associated with an aging population, the
39,12 average age of Indians will be only 29 years by 2020. The IT industry in particular is
overwhelmingly Generation Y, with over 2 million people born after 1980 (NASSCOM,
2013). This large pool of new workers comes with a mindset that is very different from
that of earlier generations (Guillot-Soulez and Soulez, 2014). The difference in
approaches and attitudes to work can result in intergenerational conflict that
1696 compromises organisational performance (McGuire et al., 2007). To further understand
the Generation Y employee and how to manage intergenerational conflict, generational
differences must be considered. The most significant differences among generations are
related to work values (Lancaster and Stillman, 2002). Hence, to foster generational
synergy in the workplace, it is important for Indian managers to understand the
variations in value structures of the different generations. Understanding these
generational differences helps businesses develop policies to suit the needs of each
generation, which results in an inclusive workplace that celebrates individual
differences. This understanding also improves productivity and innovation in young
employees, who will soon fill managerial positions (Kupperschmidt, 2000; Lyons and
Kuron, 2013). Further, most organisations are run by older generations, which could
lead to a potential mismatch between the work values of Generation Y and the values of
the organisations, which could, in turn, lead to high turnover intention. The fit between
individuals and organisations has been shown to be an important factor influencing the
reasons why people are attracted to, are selected by and stay with organisations (Cable
and Judge, 1996, 1997; Chatman, 1991; Kristof, 1996; Schneider, 1987; Schneider et al.,
1998; Turban and Keon, 1993; Van Vianen, 2000). This paper aims to provide insight
into generational differences in work values and the person– organisation (P–O) value fit
of the three generations of workers in India and explore the relationship between the
P–O mismatch and turnover intention of Generation Y.
Objectives
The purpose of this study is to address the generational differences in work values in
India. The objectives are to:
• reveal the underlying dimensions of Indian work values;
• determine whether there are differences in the work values of the three
generations in the Indian workforce;
• determine whether there are differences in the P–O fit of the three generations in
the Indian workforce; and
• analyse the relationship between the P–O fit and turnover intention of Generation
Y employees.
Method
Data were collected from 800 members of various organisations across India. After
deleting the outliers, 779 responses remained. The members were identified using a
snowball sampling technique, and the questionnaire took about 15 min to complete.
Work values were measured using Lyons’ (2003) Work Values Survey (LWVS). This
survey comprised 25 items on a five-point Likert scale. This instrument was chosen
because it reconciles previous theory while reflecting recent developments in the field of
work values and has been validated in a large Canadian sample (Lyons et al., 2010). For
each value, respondents were asked to:
• “Indicate how important each item is to you in deciding whether to accept a job or
remain in a job” (to provide personal values, or P values).
• “Indicate the extent to which your organisation provides you with each item” (a
measure of perceived organisational values, or O values).
Responses were on the same five-point scale. P–O value fit was measured indirectly, and
at the individual level (Kristof, 1996). O values were subtracted from P values to create
discrepancy scores. A positive difference indicated that organisational supplies did not
meet individual values, while a negative score indicated that values supplied by the
organisation exceeded individual values (Verquer et al., 2003). The intention to leave the
organisation was measured by three items, following Mobley’s (1982) definition.
There is a discrepancy in the birth dates of different generations reported by various
studies. For example, Baby Boomers’ birth years are reported to begin anywhere from
1940 to 1946, and end in 1960 through 1964; Generation X-ers’ birth years are reported to
begin somewhere in the early 1960s and end in 1975 through 1982 (Kupperschmidt,
2000; Smola and Sutton, 2002). Based on a review of recent generation-related literature
(Lyons and Kuron, 2013; Laird et al., 2015), this study adopts Smola and Sutton’s (2002)
generation classifications (i.e. Baby Boomers: 1946-1964; Generation X: 1965-1977; and
Generation Y, born after 1977) for the following discussion and analysis.
Factors
Mean SD Intrinsic Extrinsic Prestige Social Communalities
1705
Figure 1.
Confirmatory factor
analysis model
dependent variables would be correlated with each other in the moderate range [i.e.
0.20-0.60 (Meyers et al., 2006)]. As can be seen in Table II, a meaningful pattern of
correlations was observed among most of the dependent variables, suggesting the
appropriateness of a MANOVA. Additionally, the Box’s M value of 39.855 was
associated with a p-value of 0.06, which was interpreted as non-significant based on
Huberty and Petoskey’s (2000) guideline (i.e. p ⬍ 0.005). Thus, the covariance matrices
between the groups were assumed to be equal for the purposes of the MANOVA.
As gender and marital status may have an effect on work values, a between-subjects
MANOVA was conducted to test the hypothesis that there would be one or more mean
Figure 2.
P–O fit of intrinsic
work values and
turnover intention
Figure 3.
P–O fit of extrinsic
work values and
turnover intention
MRR turnover intention is higher when the direction of the discrepancy is such that personal
39,12 intrinsic values exceed organisational intrinsic rewards. This implies that people
experience greater intent to leave an organisation when their expectations of intrinsic
rewards are not supplied by the organisation than when the organisation supplies
intrinsic rewards that exceed their expectations. Similar results were obtained for
extrinsic (b1 – b2 ⫽ 0.36, p ⬍ 0.05) and prestige values (b1 – b2 ⫽ 0.38, p ⬍ 0.05). This
1708 implies that people experience greater intent to leave an organisation when their
expectations of extrinsic rewards and prestige values are not met by the organisation,
thus supporting H4 and H5. H6 is supported by a positive (i.e. upward) curvature along
the P ⫽ ⫺O line (b3 – b4 ⫹ b5 ⫽ ⫺0.24, p ⬍ 0.05). To illustrate the finding, Figure 5
shows the estimated surfaces for personal and organisational social values and turnover
intention. Along the P ⫽ ⫺O line, turnover intention has a curvilinear relationship with
Figure 4.
P–O fit of prestige
work values and
turnover intention
Figure 5.
P–O fit of social
work values and
turnover intention
(P ⫽ O line) (P ⫽ ⫺O line)
Work values b1 ⫹ b2 b3 ⫹ b4 ⫹ b5 b1 ⫺ b2 b3 ⫺ b4 ⫹ b5
Theoretical implications
Given the scarcity of research on the multigenerational workforce in India, one
important aim for this investigation was to enhance generalisation of the generational
differences found in the Western organisational context to cultures outside of the USA,
and cross-validate the results in an Indian context. This study provides insight into P–O
fit as an explanation for the high turnover of Generation Y employees. Thus, our results
support the findings of Cennamo and Gardner (2008) that older generations report
higher levels of P–O fit than Generation Y employees do. The most important
implication of our findings is the joint effect of personal and organisational work values
on turnover intention, which shows that the fit and mismatch between organisational
and personal work values significantly affect the employees’ turnover intention.
Specifically, we found that as the intrinsic rewards supplied by the organisation
increased more than the expectations of the individual, turnover intention decreased.
The same trend was observed for extrinsic rewards and prestige values. These findings
suggest that the levels of Ps and Os significantly affect turnover intention. Various
studies have documented the high expectation of Generation Y employees regarding
intrinsic, extrinsic and prestige work values. This study also shows that Generation Y
employees rated all work values higher than older generations did, which indicates their
high expectations. Hence, the reward systems in place in organisations may be suitable
for older employees but may cause a significant mismatch, and consequently higher
turnover intention, for generation Y employees. Turnover intention decreases, as
organisational social values increase towards personal social values, and increase as
organisational social values exceed personal social values. This could be explained by
“interference”, whereby excess supplies on one-dimension interfere with needs-supplies
fit on another. Harrison (1978) illustrates this principle using contact with co-workers,
whereby supplies that exceed a person’s need for affiliation can interfere with their need
for privacy.
These results support and extend the current P–O fit research by examining fit
dimensions for a new employee group (i.e. Generation Y). Thus, our study advances the
existing knowledge of Generation Y’s reaction to the values of their organisations.
Managerial implications
This study offers practical implications on three fronts. The first important outcome of
this study was to provide an understanding of generational differences in work values in
India. With 58 per cent of human resource professionals reporting conflict among
employees as a result of generational differences (Society for Human Resources
Management, 2004), this understanding of the generational differences in an Indian
context will help professionals deal with such conflicts. It is recommended that
MRR organisations must be prepared to use generational diversity as an opportunity to
39,12 benefit the business in the long term. This can be done by aligning business goals with
the values of each generation so that employees within each generation are able to work
in synergy. McGuire et al. (2007) states that organisations must seek to optimise the
talents of all age groups by reconcile differences in the workplace. It is thus essential to
educate and develop employees to use this generational diversity for individual and
1710 organisational advantage. This will help create new organisational cultures that value
and optimise generational diversity.
One such tool that helps create cultures of intergenerational understanding is reverse
mentoring. Reverse mentoring is where the protégé shares their technological
knowledge to senior employees, and in return older employees gives administrative and
managerial training to the young employees. This may thus help in opening a dialogue
among members of different generations and promoting understanding of each others’
value system (Koster, 2013) while exchanging skills and knowledge. Further, training
employees on reducing intergenerational conflict and training leaders to effectively lead
younger generation of employees would be useful in managing the dynamics of the
multigenerational workforce.
The second important outcome of this study was to provide an insight into the values
and expectations of the Generation Y employees in India. These expectations were
grouped into four different work values. Results on intrinsic work values show that the
Generation Y employees value regular and consistent feedback and recognition. Thus, it
becomes important for superiors to provide instant feedback honestly and to have a
good rapport with the younger employees (Cennamo and Gardner, 2008; Gibson et al.,
2009; Lowe et al., 2008; Reynolds et al., 2008). Consequently, regular and informal
feedback may prove more beneficial than a traditional yearly performance appraisal
meeting.
Challenging jobs was also found to motivate the Generation Y intrinsically. They
look for jobs that that provide opportunities to use their abilities. It is thus recommended
that organisations look to provide Generation Y with jobs that are challenging and
involve greater responsibility (Plew, 2013). Opportunities for continuous learning and
development were also a part of the expectations of Generation Y. Thus, organisations
must act as a platform for their growth and improvement. Strategies such as Web-based
training, workshops, job shadowing, temporary assignments and functional moves
could help create an environment of continuous learning and development (Terjesen
et al., 2007).
Further, with regards to prestige values, Generation Y indicate the need to be
influential in their workplace. A participative decision-making style where their
opinions are considered is highly valued. Hence, they seek a participative leader who
respects their views, listen to them and is flexible in accepting their opinions (Beck and
Wade, 2004). Consequently, Generation Y’s preferred leadership would be more
consensus than command and more participative than hierarchical (McCrindle, 2010).
While considering the social values of Generation Y, it becomes important to create a
workplace that emphasises social relationships. Thus, organisations must focus on
creating a fun and exciting atmosphere at work (Rai, 2012). Organisations must invest in
facilities such as breakout areas, creative rooms and even sleep rooms which energise
them (Weyland, 2011). The use of technology cannot be overlooked to help Generation Y
maintain social connections. Social media has become a vital source for internal
communication between the employees in an organisation (Rai, 2012). Further, using Generational
tools such as company blogs and internet bulletin boards would not only help in better differences in
communication with the Generation Y but also satisfy their expectations regarding
technology use. It has also been suggested that due to their social nature, they would
work values
prefer to work in teams and collaborate through text messaging, instant messaging and
blogging with their peers (Skiba, 2006).
To cater to Generation Y’s expectations of extrinsic rewards, a quick and 1711
personalised reward system is recommended. Rewards that are easy to deliver, quickly
obtainable, easily customizable and meet individual desires are most effective. For
instance, rewards such as a food delivery service, a spa experience or a charitable
donation would be valuable. Generation Y also expect freedom and flexibility to do their
work in their own way and at their own pace (Martin, 2005). Providing autonomy in their
work to make their choice of when and where to work is critical (Weyland, 2011). Thus,
initiatives such as flexible working conditions result only work environments (ROWE)
and incentives such as extra vacation time would suit the younger generation.
The third outcome of the study was with regards to –P–O fit. Generation Y reported
the highest mismatch between personal and organisational work values. This
discrepancy between an individual’s work values and workplace norms may result in
decreased job satisfaction, withdrawal from work through absenteeism and tardiness
and an increase in employees’ intention to leave (Schneider, 1987; Chatman, 1991;
O’Reilly et al., 1991; Kristof, 1996; Saks and Ashforth, 1997; Werbel and DeMarie, 2005;
Cable and Edwards, 2004; Lara, 2008).
Given the complex patterns of employee reaction to organisational work values,
managers should not assume that more rewards (intrinsic and extrinsic) and higher
prestige and social values will result in higher employee retention. What matters most is
the feature of fit between employees’ individual work values and organisational work
values. Thus, managers should be aware of generational differences in terms of reacting
to organisational work values. In addition, our findings suggest that organisations need
to be strategic while communicating organisational work values to Generation Y
employees. This also means that managers need to be selective in hiring employees for
their organisation in order to ensure that employees actually “fit” with the company
culture.
The role of realistic job previews is especially important in communicating the
organisation’s values and deciding the “fit” of prospective employees. Various methods
may be used to give prospective employees a realistic job preview. These could include
providing a probationary hiring period, a realistic internship, job shadow, etc.
Organisations such as L’Oréal and Disney, use internships as one of the primary ways
of recruiting young talents. The interns are given serious responsibilities and
encouraged to participate in everyday work (Fields, 2008). This helps the interns assess
the organisation and creates realistic expectations regarding the workplace. Past
research also offers suggestions to effectively managing P–O fit, such as altering
communications and management practices, and providing cafeteria-style incentives,
training and mentoring programs (Deal, 2008).
Although value congruence should remain an important practical consideration,
results of study conducted by Edwards and Cable (2009) on the mediators of relationship
between value congruence and organisational outcomes suggest that the potential
benefits of value congruence might be obtained by implementing strategies that directly
MRR impact the key mediators of value congruence effects, as opposed to value congruence
39,12 itself. The outcomes of their research suggest that trust carried much of the relationship
between value congruence and outcomes. Hence, they suggest that managers must
invest in initiatives that focus directly on increasing trust. Such initiatives could include
clarifying reasons behind decisions made in the organisation, holding frequent meetings
between employees and senior management and ensuring that performance
1712 management processes are fair (Mayer and Davis, 1999). Likewise, they found that
communication is partly responsible for value congruence effects. Accordingly,
managers could achieve some of the benefits of value congruence by ensuring that
organisational communication is regular, open and consistent.
Limitations
One of the main limitations of this study is that all data were self-reported and collected
at a single point in time, raising questions about inflated inter-item correlations because
of common method variance, in which variance is attributable to the measurement
source rather than to the constructs that the measures represent (Podsakoff et al., 2003).
To examine this problem, we conducted Harman’s one-factor analysis, in which a
general factor is found if most variables are related. The result shows that variables
differ from one another, which indicates that the common method bias is not serious.
Further, the use of a cross-sectional study in understanding generational differences is
questionable because of the confounding effects of age. A longitudinal study may be
better suited for an in-depth examination of generational differences.
Conclusion
This study provides interesting implications for work values research, as well as
research on a multigenerational workforce. The differences in work values of
Generation Y and other generations, as documented by this study, suggest that
managers must be prepared to deal with a new breed of workers with a range of work
values. By understanding the specific drivers of a generational cohort, human resources
professionals, career counsellors and managers can develop policies aimed at improving
communication, satisfaction, commitment and retention, and advance organisational
knowledge management and productivity. Future studies may focus on industry-
specific patterns of P–O fit and turnover intention. Instead of considering the high
turnover of Generation Y as an unfortunate characteristic of this generation, this study
seeks to probe the underlying cause of such behaviour by examining the implications of
the P–O mismatch between the work values of Generation Y and the organisation.
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Further reading
Jurkiewicz, C.E. and Brown, R.G. (1998), “GenXers vs boomers vs matures: generational
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differences in volunteerism”, Social Forces, Vol. 82 No. 3, pp. 1091-1121.
Corresponding author
Nitya Rani can be contacted at: nitya.rani@yahoo.com
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