An Age-diverse Workforce - Literature review Example

Case Study Analysis: An Age-diverse Workforce [Client’s Name] [Subject] [Professor] [Date] As the case material discussed, the need for experienced and productive workforce demands that organizations should consider hiring or retaining individuals in the workforce that are already in the retirement age. Apart from the fact that the population of the baby boomers in the workforce is steadily increasing, there is also a gap in skills, experience, and workplace maturity between baby boomers and the workers from generations X and Y (Hanks and Icenogle, 2001). While it is true that an age-diverse workforce can both be a reward or a threat to the organization, depending on how the organization handles it, there are certain issues that can be associated in managing workforce coming from a very diverse age group. From the perspective of organizational behavior, a strong and effective workforce management is required to tap the potential of a diverse workforce (Johns, 2006). This is because handling a diverse workforce – whether cultural diverse, gender diverse, or age diverse workforce – can be a daunting task. A heterogeneous workforce translate to strong conflict potential in the workforce as differences in views, opinions, idealisms, and workforce methodologies could disrupt workplace efficiency and productivity (Mowday and Sutton, 1993). Moreover, these multi-layered differences can cause strains in workforce relationships as individuals clash and fail to cohere to produce good results. There are at least three possible issues that could occur in handling generational diversity in the workplace. First, the workplace orientation between and among individuals from different age bracket may conflict with each other and could potentially result to stressful and counter-productive situations. More specifically, these differences can lead to poor communication, misunderstanding of workplace attitudes, and lack of motivation or fewer interpersonal engagements between generations. Flynn (1996) argued that the age gap between generations as well as the workforce environment they came to grow up with sets them apart from each other, whether in the workplace or in the domestic settings. For example, Baby Boomers (or those who were born in the early 1940’s to late 1950’s) are seen as highly optimistic and result driven individuals who have made huge successes in their careers. The strong adherence on loyalty and work ethics of the baby boomers could come in conflict with the job-hopping attitude of the Millennial (those who were born in the 1980s). It is highly certain that workplace conflicts could arise because of the disparity between perspectives, values, and ideas between individuals from different generations. As Lancaster et al (2002) puts it, communication does not always flow coherently when there is a wide age gap between individuals. Certain situations in the workplace are sure to tap these generational differences and stretch parties involved to their limits. A good example is in the decision-making process. Baby Boomers typically would prefer decisions and actions that are thoroughly and carefully considered whereas the Generation Y and the Millennial would jump on the next best opportunity. These differences in opinion could lead to difficult situations and the failure to resolve these differences may result to inter-personal conflicts (Hou et.al., 2005). For certain, ANZ would not want to encounter unnecessary workplace conflicts. Secondly, organizations may fail to address all the needs of their diverse workforce which could result to low retention and high turnover rates. Different generations have their different sets of values, work practices, and things that they consider important. For example, Baby Boomers would want to have secure retirement benefits whereas Millennial would want a fast tracking career growth. Another example is that Generation X is more individualistic than baby boomers when it comes to performing their jobs or in making decisions. Whenever a decision is to be made, baby boomers consider the opinions of the team whereas Generation Xers resolve things on their own. Clearly, generational diversity in the workplace brings potential threats to workplace productivity and efficiency. An organization with too diverse workforce may find itself unable to meet these differing and often conflicting demands (Lancaster, Stillman and Mackay, 2002). Organizations that fail to address the needs and demands of its workforce, whether these demands are career growth, financial stability, or flexibility in schedule may find negative organizational behavior developing among its employees (Dittman, 2005). Negative collective behaviors within the organization disrupt workplace efficiency and deter workplace progress (Salas, Stagl and Burke, 2004). Lastly, generational diversity is probably the least understood type of workplace diversity which makes it quite difficult to manage. Unlike racial and gender diversity, generational diversity in the workplace did not become an issue until recently (Lancaster et al, 2002). Although various legislations have been instituted in Australia to address the age discrimination issues in the workplace and to protect the workplace rights of individuals from various generations, there is too little literature that explores the organizational implication of a generationally diverse workforce. Moreover, since this issue is fairly recent, literature that address methodologies and techniques for organizations to cope with the potential problems brought about age differences are not yet too many. While ANZ is a very established organizational structure with a management that is capable of handling complicated organizational issues, it might have some problems in handling generational diversity in the workplace for the reasons stated previously. Although there are no concrete solutions to the organizational problems that could arise in a generationally diverse workforce, there are three strategic steps that can be used to keep and maintain a productive generationally diverse workforce. These are (a) linking individuals through effective communication, (b) building strong links between the workforce and the management, and (c) design outline policies and critical activities like training programs, work schedules, and compensation and benefit packages that would suit the needs and could motivate the different age groups in the workforce. Poor communication fortifies biases and biases leads to misunderstanding and conflict (Gardner and Jones, 1999). Poor communication erect barriers to workplace efficiency and productivity as individuals fail to communicate which is a necessary requirement in today’s fast-paced working environment (Thiederman, 1996). An organization that gives strong emphasis on open communication encourages participation and facilitates productivity. By creating a training and development program that is geared towards understanding and appreciating generational differences and is focused on establishing role dependency as seen fit by the organization, ANZ would not only be able to resolve issues on poor communication, it can also be able to empower its generationally diverse workforce to work together and create better teams. A good way to satisfy the different needs of individuals from various generations is for ANZ to discuss expectations – be they compensations, workplace management, job motivations, or work-life balance. Organizations that is able to openly discuss expectations to their employees as well as outline its capabilities of meeting workforce expectations find themselves in lesser stress compared to organizations that leave their workforce in the dark (Caspar and Buffardi, 2004). This is because an open line communication between the management and the workforce would eliminate unrealistic assumptions and bargain for possible adjustments. Lastly, it is necessary to design HR policies and critical activities that would motivate efficiency and productivity in the workplace, eliminate potential workplace conflict brought about by generational diversity, and encourage a more generationally diverse workforce. The following are suggested HR Policies and Programs that could address the potential issues of a generationally diverse workforce. (a) Work/Life Benefits – Each generation of workforce are characterized by their social, cultural, and economic needs and demands. One age bracket may prefer to have a strong thrust towards their career while the other brackets may opt for work-life balance. Thus, it is just appropriate for employers to design job roles and functions that give personal satisfaction, understand the importance of family to its workforce, and open different choices in terms of work schedules to better accommodate the needs of its workforce from various generations. Work/Life benefits is a very useful option for Baby Boomers and Millennial categories. Some of the activities set for this policy include telecommuting, family leave, flexible working hours, work/life balance programs (like integrating gym equipments in the company’s facilities, free healthy food and meals during Fridays, napping bunkers, etc), and allowances for religious holidays among other things. By integrating these work/life benefits in the HR policy, organizations declare their support to generationally diverse workforces, encouraging and motivating them in return to be fiercely loyal, productive, and efficient part of the workforce. (b) Competitive rewards and recognition policies – In a generationally diverse workforce, the need to compete and be rewarded is common. Individuals from generation X and generation Y would typically fall into this HR policy. As individuals trying to establish themselves and create their own names, they are driven by the challenge of the pursuit and the possible rewards. To keep these two categories challenged and motivated, HR policies should include policies on competitive rewards and recognition to boost workforce performance. Moreover, this strategy could also be advantageous for the organization as efficiencies and productivities can be translated to profits. Some of the programs that can be instituted for these policies include attractive compensation and benefit package and performance rewards (like bonuses for absenteeism and tardiness). (c) Variable healthcare policies– Unlike regularly diverse workforce, generationally diverse workforce has a very wide scope of healthcare needs. This is because different generations have different healthcare requirements and thus require different types of healthcare benefits. For example, baby boomers expect to acquire elder care by the time they retire whereas those from the Generation Y and the Millennial would appreciate dependent care programs. Some other programs that could be helpful for generationally diverse workforce (apart from the regular healthcare benefits offered by companies) include long-term care, wellness and fitness programs, and employee assistance programs (Caspar and Buffardi, 2004). (d) Training and Development – One of the keys to an empowered workforce is the training and development policies that are instituted by the organization. While training and development programs are typically designed to maximize the potential of the human resource which can be used to optimize the performance of the company, training and development policies for generationally diverse workforce is somehow different in two ways. First, training and development departs from an entirely professional development and focuses on mentorship and succession. Second, outgoing workforce like the baby boomers are also included in the training and development program to facilitate easy and smooth transition (Baldiga, 2005). (e) Succession Planning Policy – In recognition to the invaluable service contributed by the different generations, a policy on succession ensures that whenever it is time for these individuals to retire or to transfer to new works, all knowledge, skills, and expertise are left to the company for future utilization. A succession planning policy basically fast tracks the careers of the generations that would follow, particularly the future leaders, by allowing them to work closely with the seniors and do collaborative works so that knowledge and learning can be integrated and shared between and among teams. It is an outline of what the organization should do and what the workforce should expect whenever someone with the leadership and competence is to leave the company in any event of retirement. Some of the activities designed for the succession planning policies include formal leadership training programs, shared workspaces, creation of multi-disciplinary teams, and the likes. (f) Transfer of Technology – Transfer of technology policy is very similar to succession planning policy. Their only difference is that succession planning policies focus on leadership transition whereas technology transfer is focused on the knowledge, skills and technology that must be transmitted and transferred to the workforce. A transfer of technology policy is beneficial to all generations as the workforce will be assured that whatever processes and methodologies that worked in the past can be repeated and modified to allow the changes in the circumstances in the equation. In a way, the transfer of technology policy acts as a support to the succession planning policy. References Baldiga, N. (2005). Opportunity and Balance: Is your Organization Ready to Provide Both? Journal of Accountancy. May. Pp.39-44 Caspar, W and Buffardi, L. (2004). Work-Life Benefits and Job Pursuit Intentions: The Role of Anticipated Organizational Support. Journal of Vocational Behavior . 65: 391–410. Dittman, M. (2005). Generational Differences at Work. Monitor on Psychology. 36(6). 54 Flynn, G. 1996.“Xers versus Boomers: Teamwork or Trouble? Personnel Journal, 75(11): 86-89. Gardner, M. and Jones, E. (1999). Problematic Communication in the Workplace: Belief of superiors and subordinates. International Journal of Applied Linguistics. 9(2) – 185-203. Hanks, R. and Icenogle, M. (2001). Preparing for an Age-diverse Workforce: Intergenerational Service Learning in Social Gerontology and Business Curricula. Educational Gerontology. 27(1): 49-70. Hou, Y., Molina, L., Sawahata, R. and Deang, J. (2005). Leadership and the Management of Conflicts in Diverse Groups: Why Acknowledging versus Neglecting Subgroup Identity Matters. European Journal of Social Psychology. 35(2): 237-254 Johns, G. (2006). The essential impact of context on OB. Academy of Management Review, 31, 386-408. Lancaster, L. Stillman, D. and Mackay, H. (2002). When Generations Collide: Who They Are. Why They Clash. And How to Solve the Generational Puzzle at Work, Harper Business. Mowday, R.T., and Sutton, R.I. (1993). Organizational behavior: Linking individuals and groups to organizational contexts. Annual Review of Psychology, 44, 195-229. Salas, E., Stagl, K.C., and Burke, C.S. (2004). 25 years of team effectiveness in organizations: research themes and emerging needs. In C.L. Cooper and Ivan T. Robertson (Eds.),International Review of Industrial and Organizational Psychology, 19, 47-91.  Thiederman, S. (1996). Improving communication in a diverse Healthcare Environment. Healthcare Financial Management, 50(11), 72–74. Read More