Generational Change and its Implications for Leadership

1
Generational Change and its Implications
forLeadership

• Emeritus Professor Leonie Still
• University of Western Australia

2
Introduction

• The number of generations in the workplace and
  society is creating tensions, caused by factors
  such as
• Changes to traditional careers and lack of
  promotion positions due to globalisation,
  technological changes, downsizing, restructuring
  etc.
• Generations speak a different language and have
  different values, attitudes and opinions due to
  era of birth and defining moments which shape
  their experiences.

3

• Depending on status, position, nature of work and
  industry, generations may not come into much
  contact with each other very big divisions in
  some organisations/industries e.g. dot com era.
• Younger generations see the older ones as
  blocking their path, being ossified and out of
  date.
• Leadership is needed in society, the workplace,
  education and the family to deal with the
  generational divide.

4
Presentation Deals With

• Definition of generations
• Overview of Matures/Veterans, Boomers. Gen. X
  and Gen.Y
• Issues in Workplace
• What to Do? Individuals and Organisations
• LeadershipTasks

5
Definitions of Generations

• Mannheims (1952) distinction between
• generational location (i.e. individuals born in
  the same historical and cultural region such as
  birth cohort)
• _ actual generation (i.e. individuals exposed to
  the same concrete historical experiences)
• generational units (i.e. individuals within the
  same generations who interpret their similar
  experiences in different ways, or a generational
  consciousness).

6

• A generation was originally thought of as a 20
  year age gap (between birth of parents and
  birth of offspring) McCrindle
• Social change in educational opportunities,
  delayed marriage, rate of technological change
  etc. has made this largely redundant
• There is also a blending at the cusp of the
  generations - called leading edge or trailing
  edge Boomers, GenX etc.

7
Impact of Technological Change

• Pre 1956 literal (word) generation
• 1956 introduction of television and the
  beginning of visual generation
• 1995 internet made available to general
  population (i.e. no longer just
  academia/military)
• 2005 introduction of You Tube, My Space, Social
  Networking, Blogs, Text Messaging etc

8
Generations

• Matures
• Baby Boomers
• GenX
• GenY
• Gen Z, Next? Etc

• Born pre-1946
• Born 1946-1964
• Born 1965-1980
• Born 1981-1994
• Born 1995 - 2008

9
Generational Study

• A holistic study of generational change amongst
  managers, both men and women, aged between 30
  and 59. Dealing with achievers and
  aspirationals.
• Covered three generations matures, baby
  boomers and generation X.
• Examined six age cohorts 30s, 40s, 50s x gender
  approximately 300 managers in total.

10
Methodology

• Questionnaire covered personal background and
  career history.
• Interview covered career and management
  experiences, retirement, retrenchment,
  involvement in professional associations, health,
  signs of aging, financial security, private and
  social life, elder care, outside interests,
  political involvement and travel.

11
Matures/Veteran Managers

• Mainly children of WW2 or immediately before.
• Organisation Man socialisation
• Respected authority
• Loyal and committed
• Strong work ethic
• Believed in long-term planning and delayed
  gratification (served an apprenticeship)

12
Matures

• Now aged 63 and over. Approaching retirement, if
  not already retired.
• Can survive for a while longer if MD, CEO or
  Chairman although tenure becoming shorter.
• Most feel a need to do something meaningful in
  retirement
• Potential roles? Boards, manage equity
  investments (not all can do this). Women have a
  different future part-time work, volunteer
  work, charity work, not-for-profit boards

13
Baby Boomers Overview

• Raised in time of phenomenal national wealth.
• Expanded the economy more than any other
  generation
• Command generation
• Challenged hierarchies
• Communicate freely
• Share responsibilities freely

14
Baby Boomers

• Not a homogeneous grouping consist of a number
  of sub-sets span an age range from 44 to 62.
• Large number now retiring or have already
  retired from 50 onwards.
• Many could live to be 90 or more
• Are they prepared for 30-40 years
  post-retirement? Looming social and economic
  issue. Prolonged employment now being considered
  by policy makers

15
Baby Boomers issues ...ctd

• 45-50 year olds looking for a sea-change
• Financial constraints
• Divorce
• Second families
• Potential unemployment
• are there alternatives?
• Most want to keep working
• but what are realistic expectations?

16
Boomers Motivated By

• Adventure
• Independence and risk
• General goals
• Creativity
• Moderate stimulation

17
Boomers Demotivated By

• Aging evaluations
• Hitting the glass ceiling

18
Boomers Workplace Ideals

• Control
• Compensation
• Competence

19
Gen X Overview

• Children of dual career couples. Record divorce
  rates of parents
• Characterised by pragmatic and cynical realism
• Have little respect for authority
• Little loyalty to the organisation
• Deeply competitive

20
Generation X issues

• Aged between 28 and 43
• Better educated
• Pursue work-life integration
• Like to work
• but not at expense of families, friendships and
  freedom
• Women not prepared to sacrifice careers
• want flexibility in workplace if have family

21
Generation X issues .ctd

• Rights skills are paramount
• Less interested in
• long-term careers, corporate loyalty or job
  status
• Comfortable with fast paced change
• One parent should stay home
• not necessarily the mother

• .

22
Generation X issues .ctd

• Traditional gender roles are less important
• Have considerable disposable income
• Are financially savvy
• Work finances travel, luxury items etc
• Work to live rather than live to work

23
Role of Generation X

• The transition generation between the old way of
  doing things and the new way.
• Are searching for a better balance between work
  and personal life have pushed for part-time
  jobs, telecommuting, self-employment and other
  alternative work arrangements. Have discovered
  the nontraditional alternative.
• Gen Y will make it mainstream.

24
GenX Motivators

• Recognition and praise
• Opportunities to learn new things
• Individual time with managers
• High stimulation
• Time with family and friends
• High levels of reward

25
GenX Demotivators

• Disparaging comments about their generation
• Long work assignments, feeling disrespected

26
GenX Workplace Ideals

• Capitalise on skills
• Adequate funds for training
• Short training events

27
Generation Y(P.Sheahan,2005)

• Now aged 15 to 27 years
• Technologically savvy (great text messengers
  -developed a text language , plus Facebook users)
• Influenced by music, TV and movies
• High internet and video game usage
• Are the most materially endowed and entertained
  generation ever
• Boredom is a big factor for them want instant
  gratification

28

• Live by peer influence and tight friendships, but
  often fail to experience love and connection with
  them.
• Live in a culture encouraging them to embrace
  community values, and to reach consensus
• Want to be understood, accepted, respected and
  included.
• High social networking through technology

29

• Work to live, not live to work
• A job merely provides an income to do what they
  want to do
• They are on a search for fun, for quality
  friendships, for a fulfilling purpose and for
  spiritual meaning
• Becoming involved in causes such as
  environmentalism, social issues etc.

30

• Expect people to be real (authentic)
• Communicating to them requires openness,
  vulnerability, genuine interest and
  understanding
• Leave jobs quickly if the boss is nasty, the
  hours inflexible or the pay unsatisfactory
• Many still live at home for convenience
• Are the most formally educated generation ever

31

• Are pragmatic and only concerned with what is
  relevant
• Are creative, innovative and resourceful
• Want to be independent and carve their own path
  in life, but are the most over-parented, most
  indulged, over-educated and welfare-dependent
  generation ever

32
Issues in Workplace

• Boomers are struggling to relate to their younger
  colleagues. Often breakdowns in communication
  with members of GenY and to a lesser extent GenX.
  Boomers react badly to their employees
  perceived lack of values and unwillingness to
  make sacrifices.
• GenX would just like the Boomers to move on so
  that they can stake their own claim to fame
  seem to be too many Boomers above them
• GenY want respect, recognition, responsibility
  without experience and to be able to do their
  own thing their way

33
Workplace issues - boomers

• Are feeling the push of GenX and worried about
  job security and future.
• Will there be any jobs?
• Having to work for someone younger
• Issues around older workers

34
Workplace issues - boomers

• Are GenX and Gen Y committed?
• IF not - who will carry the future?
• Mid-Boomers want a sea change
• To do unspecified other things!
• Really need a sabbatical to refresh

35

• Neither Boomers or GenX planned their careers
  Boomers now left with wondering what to do in
  retirement, while GenX have not really settled
  down like former generations want much more
  excitement, challenge and change, instant
  gratification of needs and wants.
• Both generations having difficulty with GenY and
  their approach to work and life in general.
• Gen X also feeling pressure from GenY re
  promotions and instant rewards etc without
  experience

36
Other Findings from Study

• Boomers are not a homogeneous group variations
  exist every five years
• Distinct differences exist between male and
  female participants across three generations
  because of social times/conditioning and rate of
  change (technological, economic etc)

37

• Career and managerial experiences show only
  marginal differences between generations although
  practices may vary
• Greatest change will come with GenY and other
  external changes occurring during their time e.g.
  environmental, economic, technological

38
Womens Issues
Boomers
GenX

• Age discrimination
• Second double burden (elder care)
• truncates career like children did
• Second marriages (some third)
• burden of educating children.

• Want a career,
• Want a relationship but
• financial security
• no children
• Hence are investing in property market at great
  rate.

39
Implications for Leadership

• Generations and people in leadership or aspiring
  to leadership have to recognise that the old
  boundaries, certainties, constraints are
  changing rapidly.
• While this is obvious, we all tend to perceive
  things from our generational mind-set and
  rigidities and biases are a natural outcome.
• Authenticity is becoming more important in a
  culture of spin, glitz and celebrity with
  little substance.

40

• Organisations are going to have to
  promote a merging
  of the generations - requires new thinking re
  how work is organised, people work together (?),
  with training assisting flexibility and
  adaptability more than mission statements,
  milestones etc.
• While good at demanding and negotiating, Gen Y
  needs to be made aware of the other side of the
  employment contract accountability,
  expectations, performance and how organisations
  function.

41
What can individuals do?

• Obtain advice or counselling on how to take
  charge of their own future.
• Has to be done early.
• Undertake programs in life skills
• Schools should start delivering these concepts

42
What can organisations do?

• Better policies/practices
• Phasing people out of untenable positions.
• Employment of older workers
• Meaningful roles
• Attitudinal /cultural resistance
• Flexible work practices
• Organisational sustainability
• commitment of younger people
• succession planning

43
What can organisations do (cont)?

• Supervision
• Train GenX to supervise/ manage older, younger
  workers
• Help older workers take orders from younger
  managers
• Differential performance reviews
• GenX vs Baby Boomers etc
• Age-discrimination (plus law suits)
• Improved job design for the aging/younger worker

44
What can organisations do?

• Recognise the changing family situation and its
  impact on workplace e.g.
• dual career parents
• single parents
• smaller families
• elder parent care
• long commutes to work
• fast-paced life styles
• sharing (or reversing) of roles at home
• Assist employees with integration of lives
  (balance)

45
Leadership Tasks

• Have to devise the new policies and strategies
  implement them or organise for them to be
  implemented e.g. training, counselling etc.
• Need to view organisations/employees/society in a
  holistic way e.g. the employee/organ./family
  interface (parenting and elder care), plus the
  social and economic cost to society when employee
  skills are left to wither (older workers) or not
  utilised effectively (younger workers).
• Devise proactive rather than reactive strategies
  and policies

46

• Need to recognise that both GenX and Gen Y are
  lifestyle driven and accommodate that will view
  commitment, work ethic etc differently to the
  past
• Major issues for boomers include preparation for
  retirement and elder care how to manage lives
  for next 30 to 40 years
• Leaders need to recognise that these groups are
  not homogeneous or sequential - need
  differentiated policies according to age,
  affluency and social conditioning.

47

• Baring catastrophies, major social and economic
  issue for society in the future is finding
  meaningful work and activity for the Boomers,
  GenX and GenY population

48
Any Questions?