Adapting HRM practices for the better management of Gen Y at Work (2)

10415484418301BUSN20019 – Profession Project

Course Coordinator: Dr. Catherine White

Weighting: 30%

Student: Maria Estela Chiu Neira (S0263990)

700000BUSN20019 – Profession Project

Course Coordinator: Dr. Catherine White

Weighting: 30%

Student: Maria Estela Chiu Neira (S0263990)

Adapting HRM practices for the better management of Gen Y at Work

Assessment 2: Literature Review and Methodology

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Adapting HRM practices for the better management of Gen Y at Work

Project Description

Aims

This research aims:

To examine how HRM practices need to be adapted to meet the needs of Gen Y employees;

To provide framework in order to help managers better manage a multi-age workplace.

Background

Nowadays, it is often the case that more than three different age generations are working together in the same work environment. These generations are identified as veterans, baby boomers, generation X, and generation Y (Millennials) (Weingarten, 2009). These people are not only divided by ages but also noted for their differences in values and viewpoints. Consequently, the workplace environment often experiences situations of conflict (Houlihan, 2016). For Example, Cogin (2012) reports that in organisations with 500 or more employees, around fifty-eight percent of HR managers reported conflict between younger and older employees, largely due to their different points of views of work ethics and their work-life balance requirement. Therefore, HR managers face new challenges such as identifying these differences and finding the best system to manage the workforce according to their differences- ‘one style does not suit all’ (Johnson, 2015).

The Millennials have different expectations about the workplace and the work itself. This generation is the most affluent generation raised during a period economic growth, wealth and violence (Smith & Clurman, 1997). Consequently, Millennials are likely to be planned children and a greater amount of resources were spent on them during their upbringing (Smola & Sutton, 2002). As a result, their mindset is widely different from their predecessors (Weingarten, 2009). For example, Generation Y unlike Generation X do not respect the idea of authority based on position or rank. They respect the ability and the accomplishment of an individual rather than their position within the organisation (Martin, 2005). According to Johnson (2015, p.11), ‘Organizations that learn to harness the differences present in today’s multigenerational and multicultural workforce will be the most successful’.

The workforce represents the key factor in any successful business, the correct administration of them is therefore vital to ensure the organisation’s survival, development and competitiveness (Lin & Chen, 2007). Human resource management (HRM) is the planned method of the workforce administration. The functions of HRM can be summarised as recruiting, managing and directing employees (Simons, 2011). Thus, understanding Millennial’s characteristics is fundamental to HRM practices. For efficient management of Gen Y at work, the need for flexibility, work-life balance, social relationships, and career development should be taken into consideration (Kultalahti & Viitala, 2014).

Significance

During the last ten years, the composition of the workforce has been changing rapidly. Millennials are growing in numbers while baby boomers are decreasing. The change in the labour composition brings challenges and opportunities for businesses (Kultalahti & Viitala, 2014). As a result, HRM functions should attract and commit the new generation (Generation Y) (Woods, 2016), as there is a link between HRM and organisational performance (Lin & Chen, 2007). In other words, Millennial will shape the workplace and HRM practices for years to come.

For HRM, Attracting the talent of millennial workers is a vital task for the future of organisations. Their attitudes about career aspirations, work-life balance, and knowledge of new technology will define the culture of this and the next century (Johnson, 2015). Attracting Gen Y workers is important because they are not only bringing more knowledge, but they are also more in numbers than any of the other generations (Kultalahti & Viitala, 2014). To illustrate, Generation Y forms 25% of the labour force in the US. By 2020, Gen Y will form 50% of the worldwide workforce (Fry, 2015).

Nowadays, CEOs believe that attracting and keeping generation Y workers is one of the biggest HRM challenges (Houlihan, 2016). It is clear that Generation Y will be a significant generation of employees, and their skills will be in high demand (Cogin, 2012) and therefore will influence HRM practices. For example, they will Require different benefit packages than that of the generations before (Martin, 2005). Moreover, It is likely that Millennials will change workplace characteristics as well as the job design (Morrison et al., 2006). HRM biggest challenges today is aligning the necessities of both the organisation that they support and the individuals that they manage.

The HRM should understand millennials behaviour. For example, Gen Y tends to expect an interesting career with challenging and meaningful tasks, and constant feedback (Lancaster & Stillman, 2002). Regarding HRM, millennials prefer a different management style and flexible corporate culture that meets their needs (Morrison et al., 2006). The particular characteristics of millennials require that HRM structures their practices on new perspectives. Regardless of the long-term aims and ambitions of an organisation, the main competitive advantage will be the ability of HRM to attract and retain young talent (Lin & Chen, 2007).

Research questions

The general purpose of this research is to examine the Generation Y workforce characteristics, their effects on organisations, and the resulting impact on HRM practices.

This research aims to answer the following research questions:

RQ1: Which are the characteristics of Generation Y that affect the workplace?

RQ2: How does HRM respond to the Generation Y workplace requirements?

These questions will support the central aim of this research: Providing the new trends that affect HRM in a multi-generational organisation and to attract and maintain the new generation of highly qualified workers.

Literature Review

The world workforce is currently comprised of three main generations that include generation Y which is the youngest generation, generation X which is the middle generation, born from 1965 to 1980, and baby boomer which is the oldest generation in the workforce born from 1946 to 1964. This workforce is currently experiencing changes such that baby boomers are reducing as generation Y increases. It is anticipated that percentage of individuals in generation Y will be increasing with time in the future, as baby boomers get to be removed (Tolbize, 2008). According to Simons (2011), the three generations are considerably different in the workplace based on their work-related behaviours. These generational differences are highly associated with increased at the workplace conflict (Johnson, 2015). According to Houlihan (2016), there is perceived a decrease in work ethics which is claimed to be among the major generation conflicts contributors in the workplace. For instance, Generation X has been branded as slackers, while generation Y are said to be uncommitted to their work, and that they only work for the required time without making any extra time sacrifices for the company (Cogin, 2012). Thus, boomers are regarded to be hard working compared to the other two generations. Another aspect bringing conflict in the current diverse workforce is the workforce loyalty to the employer. According to Weingarten (2009), Boomers are said to be more loyal to their employers while Gen Y is supposed to be less loyal. In addition, workers in Generation X feel that the managers ignore the employees’ ideas, while those in Generation Y feel that they are disrespected in the workplace (Houlihan, 2016).

There are other variations between the Generation Y workers and the older generations. According to Lancaster and Stillman (2002), Boomers like being trained on their areas of expertise while on the contrary, Generation X and Y like to be trained more on leadership as compared to their field of specialisation. Generation Y also prefers training on solving problems. Workers in the three generations also seem to vary based on their required feedback and supervision preferences. For instance, generation Y dislikes micromanagement, though they like strong leadership which is characterised with clear instructions. Another major variation is that while Generation Y highly prefers regular freedom, Boomers and Generation X can easily find this insulting. Additionally, respect is defined differently by generation Y compared to other generations. This generation prefers to be heard and to have their views considered. Thus, the generation hates autocratic or dictatorial form of leadership (Smola & Sutton, 2002). All these differences present new challenges to the HRM. Thus, improved HRM strategies for retaining, engaging, and attracting workers of all ages are of great strategic significance. Evidence proposes that there is considerable variation in the motivators and anticipations across generational associations. The three different generations do not only vary in their appearance, ways of dressing, and valuing technology, but they also differ in their perspective of the world (Cogin, 2015). Thus, HRM needs to consider their ability to enhance cohort harmony in the workplace and to develop effective skills and strategies to handle generation Y, which is considerably different from others in the workplace. HRM need to consider the rising need of being able to handle and manage Generation Y in the workforce effectively. This is because generation Y population will be increasing as the population of Boomers decrease through retirement with time (Fry, 2015).

Generation Y is goal-oriented, independent, and confident. Gen Y was born into technology and frequently understands more regarding the digital world compared to their parents and teachers (Houlihan, 2016). Generation Y contains high self-esteem, which permits every child to be praised or to acquire a medal, without leaving anyone behind (Lin & Chen, 2007). According to Johnson (2015), the most flexible and customised rewards, incentives and benefits will speak volume to Gen Y. Work according to Gen X, is what one does to have a life. On the other hand, Gen Y seems to demand a work-life balance with suppleness to describe themselves in their job. According to Morrison et al. (2006), managers are required to understand this novel generation of workers as they enter the workforce, and may be required to have a constant adjustment to be able to accommodate them as time changes.

According to Meier et al (2010), Gen Y gets into the workforce with radically varying goals and higher anticipations compared to individuals from other generations. Most students from this generation are advancing into college after completing secondary schools, and in many cases advancing their education even further to Doctorate or Masters Level. In addition, more women and individuals from the minority groups of this generation are highly educated compared to any other generation (Tolbize, 2008). Thus, Gen Y workforce is anticipated to be more diverse in terms of gender, culture, religion, and ethnicity among other aspects. Generation Y needs continuing education, personals goals, flexibility, and responsibility from their employer. Thus, according to Meier et al (2010), managers should consider employing a few techniques to motivate workers in Gen Y. These techniques include compensation, management style, work flexibility, and work relationships.

Generation Y workplace attitudes are influenced by the technology. This generation was born in digital era when the world experienced extensive growth in the use of technology, particularly internet, computers, and mobile technology. Thus, their form of communication and interaction is highly influenced by the available communication gadgets and social interaction platforms. In addition, this generation does not associate workers devotion or work quality with long working hours. The generation high belief in technology makes them convinced that they can still do quality work even while working away from the office (Kultalahti & Viitala, 2014).

Millennials career and work attitude is associated with three themes that include team-oriented work preference, continual learning desire, and flexibility desire. The generation according to Brown et al. (n.d.) desires career and work flexibility. It believes that more can be done with less and as a result, they do feel that they are justified to have the liberty to work on challenging jobs for fewer hours. However, they do not consider less payment for working fewer hours as an option. In their opinion they, should receive higher payment for the work done as long as work quality and efficiency are evident (Srivastava, 2013). Generation Y has demonstrated the willingness to hop from one organisation to another when they get a new chance, which might offer a higher degree of appreciation. This generation perceives failure not as a deterrent, but as a motivator (Woods, 2016). Therefore, they perceive failure as a chance to enhance job performance. In addition, Generation Y employs teams to attain independent task accomplishment. They are famous in valuing collective action and teamwork, they are adaptable to change, are optimistic, and they embrace diversity (Tolbize, 2008). Nevertheless, when interrelating with managers Millennials feel more worth if the manager operates with them in personal level. The team orientation in this generally demonstrates a desire to share and coordinate information with other members of the team, whereas their individualism denotes the desire to be coached and mentored at individual level (Brown et al., n.d.).

According to Martin (2005) Gen Y likes the challenge of establishing the best way to handle a job, both as team or as an individual. Thus managers are recommended to employ flexible management style that will offer them time for trial and error, considering their pacing and collaboration need. The generation is highly reliant on the technology and thus, normally has high technology expectation, such that they get impatient when the technology does not perform to their expectation. In this regard, managers should consider having swift and update systems, to keep up with this generation. This generation also contains a high sense of immediacy. They are not ready to wait for ages to make career advancement or salary increase among other things. They normally focus on current thing and they will only work based on the value they can add in the current time and not future time. Thus, for organisations to survive, they will need to customise their work responsibilities, training, incentives, and career path (Martin, 2005).

Methodology

The introduction of Generation Y in the workforce has been characterised by a number of challenges due to high variation between this generation and the preceding generations. This research focuses on examining the Generation Y workforce characteristics, their impacts on organisations, and the resulting impact on HRM practices. To accomplish this, the search will conduct a secondary research to obtain all the required research data that will assist the researcher in answering the proposed research question. This is a research technique that entails employing information which was collected by other researchers via primary research. The secondary research will, in this case, involve searching information in the previous drafted research work regarding Generation Y workforce characteristics and its impact of HRM. This information can be found in different HRM journals and databases. More data will be obtained from drafted reports. The researcher will also do an online search for publically available data regarding Generation Y workforce. This includes the drafted visual, demographic, and statistical data regarding this generation of workforce. The main advantage of employing this form of research technique is that it is cheap and quick, since the information is readily available and thus, it can be easily retrieved by use of a search engine or by reviewing the previous record stored in hard copies. The collected secondary data will be recorded in data sheets and analysed by the use of basic statistics which include probabilities, comparison, and percentages.

References

Brown, S., Carter, B., Collins, M., Gallerson, C., Giffin, G., Johnson, E., & Richardson, K. (n.d.). Generation Y in the workplace. Retrieved from < http://www.nslw.org/generation_y.pdf>

Cogin, J. (2012). Are generational differences in work values fact or fiction? Multi-country evidence and implications. International Journal Of Human Resource Management, 23(11), 2268-2294. doi:10.1080/09585192.2011.610967

D’Netto, B. (n.d.). Generation Y: Human resource management implications. Retrieved from < http://www.wbiconpro.com/452-Brian.pdf>

Fry, R. (2015). Millennials surpass Gen Xers as the largest generation in U.S. labor force. Facttank. Retrieved from http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/

Houlihan, A. (2016). The new melting pot: effectively lead different generations in the workplace. Supervision, 77(6), 3.

Johnson, M. (2015). Engaging a Multigenerational and Multicultural Workforce: One Style Does Not Suit All. Plans & Trusts, 33(5), 10-15.

Kultalahti, S., & Viitala, R. (2014). Sufficient challenges and a weekend ahead: Generation Y describing motivation at work. Journal Of Organizational Change Management, 27(4), 569-582. doi:10.1108/JOCM-05-2014-0101

Lancaster, L., & Stillman, D. (2002). When Generations Collide. New York: Harper Collins.

Lin, C., & Chen, M. (2007). ‘Does innovation lead to performance? An empirical study of SMEs in Taiwan’, Management Research News, 30 (2), 115 – 132.

Martin, C. (2005). From High Maintenance to High Productivity: What Managers Need to Know About Generation Y, Industrial and Commercial Training, 37, 39–44.

Meier, J., Austin, S. F., Crocker, M., & Austin, S. F. (2010). Generation Y in the workforce: Managerial challenges. The Journal of Human Resource and Adult Learning, 6(1), 68-78.

Morrison, R., Erickson, T., & Dychtwald, K. (2006). Managing Middlescence, Harvard Business Review, March, 1–11

Simons, R., (2011). Human Resource Management: Issues, Challenges and Opportunities. Oakville, Ont.: Apple Academic Press, 2011.

Smith, J.W., and Clurman, A. (1997). Rocking the Ages: The Yankelovich Report on Generational Marketing. New York: Harper Collins.

Smola, K.W., and Sutton, C.D. (2002), Generational Differences: Revisiting Generational Work Values for the New Millennium, Journal of Organizational Behavior, 23, 363–382

Srivastava, S. (2013). Performance of generation Y in workplace: A study of selected banks in Delhi NCR. International Journal of Computer Applications, 66(3), 33-36.

Tolbize, A. (2008). Generational differences in the workplace. Retrieved from < http://rtc.umn.edu/docs/2_18_Gen_diff_workplace.pdf>

Weingarten, R. (2009). Four generations one workplace: a Gen X – Y staff nurse’s view of team building in the emergency departmentt. JEN: Journal Of Emergency Nursing, 35(1), 27-30. doi:10.1016/j.jen.2008.02.017

Woods, K. (2016). Organizational Ambidexterity and the Multi-generational workforce. Journal Of Organizational Culture, Communications & Conflict, 20(1), 95-111.