GENERATIONAL DIFFERENCES IN THE WORKPLACE: PERCEIVED VS. ACTUAL A THESIS Presented to The Faculty of the Department of Economics and Business The Colorado College In Partial Fulfillment of the Requirements for the Degree Bachelor of Arts By James Rajasingh May 2017
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GENERATIONAL DIFFERENCES IN THE WORKPLACE: PERCEIVED VS.
ACTUAL
A THESIS
Presented to
The Faculty of the Department of Economics and Business
The Colorado College
In Partial Fulfillment of the Requirements for the Degree
Bachelor of Arts
By
James Rajasingh
May 2017
GENERATIONAL DIFFERENCES IN THE WORKPLACE: PERCEIVED VS.
ACTUAL
James Rajasingh
May 2017
Economics
Abstract
Generational interactions have been discussed in both popular literature and previous
research; yet they predominantly focus on differences that arise between different
generations. This paper focuses on generational interactions in the workplace by
assessing the presence of actual differences and differences based off of incorrect
perceptions. The study finds that while actual differences exist, they are outnumbered by
incorrect perception-based differences. Of the ten tested workplace characteristics, the
study finds actual differences in teamwork and collaboration, challenging assignments,
and involvement in decision making, while differences within perception are present in
work-life balance, flexible work arrangements, challenging assignments, teamwork and
collaboration, and a financially rewarding job. The implications of these findings show
that incorrect perceptions are present within the workplace across generations.
KEYWORDS: (Generations, Workplace, Perceptions)
ON MY HONOR, I HAVE NEITHER GIVEN NOR RECEIVED
UNAUTHORIZED AID ON THIS THESIS
James Rajasingh
Signature
TABLE OF CONTENTS
ABSTRACT
INTRODUCTION………………………………………………………… 1
LITERATURE REVIEW…………………………………………………. 3
Expected Actual and Perceived Differences……………………… 6
Differences in Actuality…………………………………... 7
Expected Areas for Possible Differences in Perception….. 10
METHOD…………………………………………………………………. 14
RESULTS…………………………………………………………………. 15
Actual Differences………………………………………………… 17
Perceptions Across Generations…………………………………... 18
Perceptions within Generations…………………………………… 24
DISCUSSION……………………………………………………………... 27
Limitations………………………………………………………… 30
Implications……………………………………………………….. 31
Directions for Future Research……………………………………. 31
CONCLUSION……………………………………………………………. 32
REFERENCES…………………………………………………………….. 33
1
Introduction
Everyday in the workforce interactions take place between workers to educate or
collaborate in ways that increase an organization’s productivity. These interactions are
the bases of transmitting knowledge, skills, and resources to other workers for future use.
Workers from all sides bring different attitudes and behaviors to the workplace that
define how they interact in these instances. Understanding these attitudes and behaviors
is essential for management within firms to maximize the potential of each interaction.
Research on race and gender has proven to be a valuable indicator for adjusting
management in order to create productive, positive interactions. However, research on the
influence of workers’ age has been developed and presented in a confusing variety of
forms, methods, and perspectives. Another indicator of management adjustments is the
impact of age on workplace interactions. This study seeks to increase the knowledge of
generational beliefs within the workplace. The workforce currently comprises of three
generations, Baby Boomers, Generation X, and Millennials. Each of these generations
was formed from different economic, social, and historical events and shifts that
prompted reactions from people to process and embrace the severity of the event or
shift’s impact on their respective lives. These reactions served to create skills, new
patterns of social organization, and alterations in values and life styles (Eyerman &
Turner, 1998).
Interpretation of generational characteristics has skewed towards a cohort
perspective, which describes generations as collections of people born in a given time
period (Foster, 2013). However, this perspective serves to fence generations into
stereotypes by using simplistic characterizations. This often leads to an “us versus them”
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mentality amongst different generations, which can lead to resistant interactions (Joshi,
Dencker, Franz, & Martocchio, 2010). New theory seeks to move the field toward an
alternative perspective called the social forces perspective. Here, generations are viewed
as interrelated and multi dimensional social groups that take shape within the flow of
history (Lyons & Huron, 2013). This transition requires research on two fronts: research
into repealing and discrediting stereotypes based on generational differences and then
researching into finding empirical data that supports the theory.
My research seeks to do the former and uncover false stereotypes formed from
generational differences. By comparing actual and perceived ratings of workplace
characteristics this research tests the presence of generational differences and
commonalities in the workplace. Examining categories pertaining to work ethic, altruistic
values, extrinsic versus intrinsic values, social values, and job satisfaction, this study
provides management divisions with a clearer view of the actual work characteristics at
play during interactions between workers.
Comparing actual versus perceived beliefs is carried out through survey responses
of subjects across various industries using scales to value different workplace
characteristics. This study empirically tests the validity of perception versus actuality by
comparing values given by one generation on work characteristics with the values that
other generations believe the initial generation would provide on those same
characteristics. Further, respondents’ perception of their own generation is compared with
their actual response, in order to test for incorrect perceptions within individual
generations. By asking for age, responses can be associated with different generations
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and used to compare cross-generational perceptions on characteristics with the actual
characteristics reported.
Next, I review previous literature on generational theory. I then discuss the
expected results in both actual and perceived characteristics. From there I move into a
discussion on where differences in perception and reality manifest, and why such
differences outweigh commonalities. I finish by proposing ways in which management
can create greater transparency in workplace interactions in order to uncover these
commonalities.
Literature Review
To begin the literature review I will explain why the workforce provides a
lucrative location to study generational interactions and how stereotypes form between
these interactions. Then I will discuss the role of workplace interactions in transferring
human capital. Finally, I will discuss different approaches to generational theory and the
ways this study incorporates previous generational theory.
Generational research in the workplace is a popular place of study due to the
dispersion of ages across the labor force. Along with diverse ages, the workplace allows
generational identities to grow from collective memories that workers share within their
generation (Dencker, Joshi, & Martocchio, 2008). Further, by identifying with a
generation, workers begin to create work-related expectations that draw from the
stereotypes associated with their generation. Previous literature refers to these
expectations as psychological contracts (Dencker et al., 2008). The formation of
psychological contracts highlights differences between generations within the workplace.
Violations of these contracts represent moments in which workers do not act within the
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mold of their generational identity. Such violations can lead to dissatisfaction, a lack of
commitment, and an intention to quit (Dencker et al., 2008). Previous literature asserts
that tensions and conflicts arise between generations when differences in values,
cognitions, and behaviors lead to resistive interactions. Within an organization, such
interactions can negatively affect working dynamics (Lester, Standifer, Schultz, &
Windsor, 2012; Twenge & Campbell, 2008).
Companies that can facilitate transmittable interactions and deter resistive ones
will gain an advantage in workplace communications. Interactions between generational
identities are essential to an organization hoping for a transmission of values, skills, and
resources across generations (Joshi et al., 2011). Interactions between workers of
different age groups are referred to as chronological interdependencies between
generations (Joshi et al., 2010). Interdependencies represent an essential phenomenon in
the workplace where knowledge bases, skills, and resources are passed across generations
within organizations. Organizations can access higher levels of talent and performance by
implementing human resource and management mechanisms that promote transmitive
interactions, rather than resistive (Petroulas, Brown, & Sundin, 2010).
Understanding the effects of age on the interdependencies has required extensive
research into generational theory. Research on generations has predominantly been
approached from two distinct perspectives: a cohort perspective and social forces
perspective (Lyons and Kuron, 2014). Cohort perspective, developed by Laufer and
Bengston (1977), sees generations as collections of people born in a given time interval.
The implied time barriers used within a cohort perspective bring empirical precision to
the “ambiguous construct of generation” (Lyons & Huron, 2013). Three different
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generations currently comprise the labor market, those born after World War II up until
the mid 1960s referred to as Baby Boomers; those born from the mid 1960s to the 1980s
referred to as Generation X; And finally those born in the mid 1980s until the late 1990s
referred to as Millennials. By creating generations through time boundaries, the cohort
perspective expects homogeneous attitudes and behaviors within generations (Ryder,
1965).
Research using the cohort perspective assumes generational differences are
manifested within psychological and behavioral differences. Therefore, findings focus on
establishing differences between generations’ values and traits (Lyons & Huron, 2013).
However, evidence concerning generational differences in work values is mixed. Many
studies find no differences, while several find contradicting evidence (Parry & Urwin,
2011). Overall roughly half (52.5%) of the items used in US cross-sectional studies show
significant differences (Lyons & Kuron, 2013). Another complication of evidence
supporting generational differences is whether such differences will hold as generations
begin to age. Previous research shows that work values are under constant change during
the transition from adolescence to adulthood (Jin & Rounds, 2012; Johnson, 2001).
Lyons and Huron (2013) state that “whether observed differences will remain stable or
shift over time as generations move through their respective life courses and career stages
is therefore an open question.”
The cohort perspective loses validity if the values of a generation evolve over
time. If values associated with a generation are changing then it should be presumed that
apparent differences are also changing. In order to account for the constant evolution of a
generation and consequently the evolving differences, some researchers have adopted the
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social forces perspective. This perspective observes generations as inter-related and
multi-dimensional. Within the workplace, this perspective allows research to focus on the
interactions between old and new ideas that catalyze change within organizations (Lyons
& Huron, 2013). Using the social forces perspective allows researchers to assume that
generations are evolving and thus are constantly forming and breaking stereotypes.
This study challenges the cohort perspective while enforcing the social forces
perspective by providing empirical evidence of generational commonalities, especially in
regards to neighboring generations (Generation X & Baby Boomers, Millennials &
Generation X). Generations consist of members that vary in terms of how they identify
with generational stereotypes on a scale of strong identification to relative indifference
and even strong opposition (Lyons & Huron, 2013). Within a generation, the leading unit
does not need to be the largest in terms of size but merely the loudest such that its
attitudes and behaviors become prototypical of the generation as a whole. For managers
and leaders of organizations it is essential to not just see through these stereotypes, but
also eliminate false perceptions that may be prevalent throughout the organization.
Previous research has sought to detect the severity of false perceptions across
generational differences and has noted that perceptions of generational differences do in
fact exist, and are not always empirically supported (Foster, 2013; Lester et al., 2012).
Next I review the literature that has examined the characteristics used in the study.
Expected Actual and Perceived Differences
While there is a plethora of evidence for changing attitudes and behaviors
amongst generations, much of that evidence lacks empirical evidence to show how it
transitions to the workplace. (Macky, Gardner, & Forsyth, 2008). Backing up the
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perceptions and assumptions about generations will require further empirical research
into those very interactions. The purpose of this study is to gather data in the form of
human responses and test it across generations. The findings will help show where
previous research is valid and where it is not, based upon whether perception matches
reality.
In order to test for differences in generational characteristics the study will use 10
workplace characteristics that are all assumed to be desirable, however may vary on level
of desirability. Using previous literature, inferences can be made on characteristics that
will show actual differences amongst generations compared to those that are merely
perceived. Three interactions are observed in the study, Baby Boomers and Generation X,
Generation X and Millennials, and Baby Boomers and Millennials, I expect less than half
of the characteristics to show significant differences in value.
Differences in actuality. Across literature it is still widely accepted that
fundamental differences do exist between generations in regards to preferred workplace
characteristics. Specifically, previous research has identified two prevalent determinants
in creating these differences, technology (Lester et al., 2012) and personality (Twenge &
Campbell, 2008). Each of these determinants has shown linear increases with successive
generations, reinforcing the social forces perspective that all generations are part of a
social change over time (Twenge, 2010). The majority of Boomers grew up without
much exposure to technology, while Generation X experienced gradual integration, and
Millennials have lived a life completely integrated with technology. Likewise previous
studies have shown that younger generations score higher in both positive and negative
personality characteristics, such as self-esteem and assertiveness, (Gentile, Twenge, &
8
Campbell, 2010) and narcissism and neuroticism (Twenge & Campbell, 2008),
respectively. I predict that the importance of these factors within the workplace has
created significant differences between generations in continuous learning, career
advancement, immediate feedback and recognition, and diversity.
Continuous learning. Continuous learning refers to the training and educational
programs companies offer employees to further develop skills and knowledge. Such
programs are seen as opportunities to ensure employability, while potentially opening
doors for future positions. Millennials have grown up believing education is the strongest
source of success and have thus adopted a mentality of life long learners (Lancaster &
Stillman, 2002). Conversely, Baby Boomers, while understanding of the role education
plays in success, are farther down their careers timeline and therefore have already
satisfied many of the promotions and trainings needed for growth (Mencl & Lester,
2014). Narcissistic tendencies and higher self-esteem increase the likely hood that
Generation X and Millennials view continuous learning as a way to improve future
earnings. Further, given these personality shifts, I predict younger generations to be more
responsive to motivations that are intrinsically based, such as increasing the level of ones
human capital. Therefore, I predict that Generation X and Millennials will assign more
value to continuous learning than will Baby Boomers.
Career advancement. Prior research has shown that promotions and speed of
promotions provide greater career satisfaction amongst all generations (Dries,
Pepermans, & De Kerpel, 2008). However, larger increases of satisfaction have been
shown in younger generations. Generation X and especially Millennials are driven by
high-level expectations that translate to a need for quicker, more meaningful promotions
9
(Twenge & Campbell, 2008). Again, given the position that Baby Boomers find
themselves on the career timeline, the importance of promotions is lessened and thus their
value of career advancements will be less important (Mencl & Lester, 2014). Thus, I
predict that Generation X and Millennials will value career advancement to a larger
extent than Baby Boomers.
Immediate feedback and recognition. Millennials have grown up in an era where
instant feedback and gratification is normal due to technology increasing the speed of
communication (Lester et al., 2012). In contrast, Boomers did not have the same
exposure to technology when they were young and are therefore not as dependent on
frequent feedback from superiors (Mencl et al., 2014). Generation X will likely fall in the
middle, meaning they prefer feedback in a timely manner while trusting transparent
management techniques that make self-assessment through measurement controls valid
(Petroulas et al., 2010). I hypothesize to see differences between Baby Boomers and
Millennials in immediate feedback and recognition, due to the technology gap between
the two being the largest.
An organization that values diversity. Over the course of time the workforce has
incurred increases in diversity. Specifically, women and minorities have seen surges in
their makeup of labor forces. Of women between the ages of 25 and 54, 25% more were
participating in the workforce in 2005 compared to 1970 (Mosisa & Hipple, 2006).
Similarly in 2005, 77% of African American women, 70% of Asian women, and 65% of
Hispanic women were part of the labor force within the United States (Mosisa & Hipple,
2006). Over time, these gradual increases have translated to younger generations
expecting diversity within the workplace compared to older generations viewing it as one
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of the many transitions labor has undertaken. Prior research shows that generations differ
in regards to comfort with diversity, 78% of Millennials showed comfort compared to
27% of Baby Boomers (Hewlett, Sherbin, & Sumberg, 2009). Further, I expect to see
Millennials place a significantly greater importance on diversity than Baby Boomers,
while Generation X will show no significant differences between either.
Expected areas for possible differences in perception. While the study expects
to find empirical evidence supporting actual differences between generations in the
workplace, it also expects to find a greater amount of perceived differences between
generations. Recent research shows that perceptions of generational differences are
prevalent in the workplace even though these perceptions lack empirical support (Foster,
2013). Perceptions can be inhibitors to inter-generation interactions if they work to create
negative views amongst other generations. The essence of perceived differences stems
from attribution theory that states individuals are always searching for explanations for
other people’s behavior (Heider, 1958). Another source of resistive interactions is
discriminative stereotyping (Lester et al., 2012) that creates defensive strategies amongst
conflicting groups such as maximizing benefits for fellow group members at the
detriment of out-group members (Joshi et al., 2010).
Thus, generational interactions can become based on popular generational
stereotypes rather than personal observation. Popular opinion does not even need a
majority but rather can manifest from the loudest and most profound part of a generation,
such that its attitudes and behaviors come to be prototypical of the generation as a whole
(Lyons et al., 2013). Examples of these incorrect perceptions can be seen when “older”
workers are described as rigid and inflexible, while “younger” workers are seen as
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irresponsible and entitled, and the middle generation is left misunderstood by both
(Lester et al., 2012). Many of these perceived differences could be traced back to linear
changes of technology and personalities across time. The influence of new technologies
and changing personalities on workplace factors have been described above, however
those influences may effect perceptions in other areas (Lester et al., 2012).
For instance, someone that places less importance on email may reply to emails in
a slower, less detailed manner than in person. A lessened importance on electronic
communication may lead others to question that person’s willingness to work with a
team, be adaptable, and/or embrace technology (Lester et al., 2012). Thus it is apparent
how actual differences in feedback or communication influences how others perceive
ones value of teamwork, adaptability, and technology. These mistaken conclusions only
serve to reinforce generational stereotypes.
I expect to uncover that many of the stereotypes discussed lead to incorrect
perceptions among generations. Next I explain why I expect to not find actual differences
in work-life balance, flexible work arrangements, involvement in decision-making,
teamwork and collaboration, and a financially rewarding job, and thus view these
characteristics as potential areas for perceived differences.
Work-life balance and flexible work arrangements. Evidence that asserts work-
life balance or flexible work arrangements are valued differently between generations is
mixed. For instance, four North American studies have shown increased values in
successive generations, including two time-lag studies (Twenge et al., 2010; Wray-Lake,