Management -MGMT1001 Essay 1 Should managers actively manage generational differences among their employees? Why or Why not?

Despite how organisations have evolved over the years, employees have always been the key to success in an organisation. The workplace is diverse and dynamic in terms of age and generational differences as for the first time in history; employees belonging to different generations are collaborating, cooperating and interacting to deliver the highest quality of service to customers (Gursoy et al, 2008 p.449). Generational differences are defined as the differences in attitudes, behaviour and perceptions arising from individuals born in different eras. According to Parry and Urwin (2011, p.79-80), the different generational groups consists of the Veterans (19251942), Baby Boomers; generation born after the Second World War (19431960), Generation X (19611981), and Generation Y (1981 onwards). The distinct expectations, experiences, personality and values of the various generations bring their own visions into the workplace. Thus, managers should actively coordinate and oversee the generational differences among their employees because significant differences in attitudes, job satisfaction, organisational commitment and job security exist between these groups due to the generation gap (Benson & Brown 2011 p.1843) and this eventually affects the efficiency and effectiveness of the workforce. This essay deals with the differences in attitudes, satisfaction and job security amongst the Baby Boomers and Generation X as these two generational groups are most prevalent in todays workforce. (Gursoy et al, 2008 p.450)

Managers should actively manage the generational differences among their employees since workers belonging to different generations respond differently in areas of their work. These generational differences generally create conflicts in the workplace by dividing the workforce into an us vs. them mentality (Yang and Guy, 2006 cited in Gursoy et al, 2008 p.449). In addition, Gursoy et al (2008, p.455) states that there has constantly been conflict between the Baby Boomers and Generation X in the workplace primarily due to misunderstanding of the generational differences. One of the major differences between these groups is the unique attitudes and values associated with each generation. The Baby Boomers have a competitive nature and value promotion based on seniority because seniority outweighs merit. Although they do appreciate rewards for their hard work, they do not put much emphasis on performance appraisals. On the other hand, Generation X are sceptical and strongminded, they expect to be rewarded for their outstanding performance at work and believe promotional opportunities are restricted; therefore they have a strong desire to be promoted quickly. They value autonomy and a balance between work and their personal life (Parry & Urwin, 2011 p.86). Gursoy et al (2008 p.451) highlights that each generational group has different attitudes towards

authority and perceive the importance of work in their lives differently. Baby Boomers, a dedicated group of individuals respect authority and hierarchy in the work place. The Boomers live to work while Generation X work to live. Generation X unlike the Boomers who wait for their turn to be promoted, they exhibit a strong desire for recognition and rewards for their effort. In comparison to the Boomers, Generation X has grown up with a variety of electronic appliances; therefore, they are proficient in technology. However, the Boomers typically refuse to work with technology. Lastly, Generation X tends to work best in an environment that is fun and free from supervision (Benson & Brown p.1845-1846). Evidently, different approaches are required in monitoring the different generational groups as attitudes and work ethics among the group of generations vary greatly. Therefore, managers should actively manage generational differences among their employees.

Subsequently, managers must be aware of the variations in job satisfaction and commitment among different generational groups to ensure increased productivity and employee retention (Cennamo & Gardner, 2008 p.904). Job satisfaction is defined by Benson and Brown (2011, p.1848) as the extent to which employees like their work. Benson and Brown (2011, p.1848) further elaborate that the Boomers display a higher level of commitment and satisfaction than Generation X and Generation Y. In general, Generation X aims more for personal satisfaction; in other words satisfying their own needs. In comparison to the Boomers who have a strong loyalty and set long-term goals, Generation X and Y generally lack company loyalty and appear to focus on short term goals (Petroulas, Brown & Sundin, 2010, p. 222). Thus, it is important for managers to actively manage generational differences among their employees because a high level of satisfaction improves employee commitment, increases productivity and reduces employee turnover.

Moreover, each generation has a different perception towards job security. The Baby Boomers are committed to steady long-term employment and are less likely to quit (Benson & Brown, 2011 p.1854). They have a higher organisational commitment and value company loyalty; therefore they tend to stay at a position longer. Whereas, Gen X are individualism dominated; they place less value on company loyalty, value more highly working for themselves and will capitalise on job opportunities elsewhere" ( Benson & Brown, 2011 p.1845). Similarly, Petroulas et al (2010, p. 233) identify that Generation X employees lack loyalty to a firm as they would not hesitate to quit if a better offer was available. Furthermore, according to Benson & Browns article (2011 p. 1846) , a research conducted by Jorgensen (2003) on the study of Australian defence force personnel, concluded that Generation X have a higher quit rate compared to the Boomers because they are likely to quit simply because of a sense of dissatisfaction towards their jobs. Thus, it is essential for managers to monitor generational differences in the workplace as employees have different intentions to quit.

In conclusion, the evidence presented in this essay suggests that managers ought to manage the generational differences present in the workplace among their employees. This is because; differences in attitudes, organisational commitment, job satisfaction and job security exist between the various generational groups in todays workforce. Hence, monitoring these differences in a diverse team would enable managers to successfully lead the workforce in an efficient and effective manner as well as preventing workplace tension and generational conflict (Gursoy et al. 2008 p.457) that would result from a failure to manage the differences.

References

Benson, J. & Brown, M., 2011. Generations at work: are there differences and do they matter? The International Journal of Human Resource Management, 22(9), p.1843.

Cennamo, L , Gardner, D, 2008. 'Generational differences in work values, outcomes and person-organisation values fit. Journal of Managerial Psychology, vol 23, issue 8, pp. 891906.

Emma Petroulas, David Brown & Heidi Sundin, 2010, 'Generational Characteristics and Their Impact on Preference for Management Control Systems' Australian Accounting Review, vol 20, issue 3, pp.221240.

Gursoy, D., Maier, TA & Chi, C.G., 2008. Generational differences: An examination of work values and generational gaps in the hospitality workforce. International Journal of Hospitality Management, 27(3), pp.448-458

Parry, E. & Urwin, P., 2011. Generational Differences in Work Values: A Review of Theory and Evidence. International Journal of Management Reviews, 13(1), pp. 79-96