CHAPTER II

REVIEW OF RELATED LITERATURE

Generational diversity

Generational diversity simply means having people of a wide range of different ages

represented in a work place. Ideally, the company should roughly reflect the composition of the

overall population of the country or region. The generations actually have more in common than

people tend to think. As with other types of diversity, generational diversity can help the

company perform better in many ways. Diverse team tends to be better at problem solving. Not

only are there two or more heads, but those heads are also different. They have got different

ideas, perspective and life experiences,

People of different ages can bring very different viewpoints particularly in this age rapid

technological process. There is a great benefit to bringing together people who spent most of

their lives without the internet and those who have never known anything else along with people

nowadays who are somewhere in the middle. Additionally, the potential customers will be spread

across that broad age spectrum unless the product is particularly age-specific. It is more effective

to have people on staff that can bring in the perspective of different generations from the start

(Blackman, 2018).

One of the best ways of helping the employees develop aside from job training is by

encouraging mentoring relationships where one employee provides guidance to a colleague.

People being mentored experience faster career advancement, increase productivity, better time

management and higher job satisfaction. And the mentors themselves gained greater satisfaction
and developed their coaching and management skills among other benefits. Having a mix

younger and older employee provides a perfect opportunity for mentoring to take place within

the organization, facilitating the flow of knowledge and allowing people to learn and become

better at their jobs (Blackman, 2018).

However, thousands of employees bring age-discrimination cases against their employers

annually. People will help to protect themselves from expensive payouts by taking generational

diversity seriously. Many benefits of generational diversity are also linked to the benefits of

diversity in general (Blackman, 2018).

Challenges of Generational Diversity

With all the benefits to having a diverse workforce, some potential challenges people

may experience when trying to achieve greater generational diversity are also being discussed

including the inter-generational conflict, recruitment difficulties and different working styles.

Sometimes, older employees can struggle reporting to a younger boss and it can also work the

other way round. Problems may also come about due to the nature of the job. Broadly speaking,

workers from different generations are not as different as they are often portrayed but studies

found some differences in working style (Blackman, 2018).

One of the survey found that job candidates from generation X are most like to ask for

higher pay, hiring bonus and higher job title. On the other hand, millennials ask for training, job

perks such as free drinks or time off to volunteer and flexible work hours. To embrace

generational diversity in the workplace, it is important to review the hiring practices. Also, not

letting age as a barrier will provide plenty of opportunities. It is also advisable to not making

age-based assumptions to embrace generational diversity. In addition to watching the language,

(Blackman, 2018).

The importance of generational diversity

Diversity, as it fosters a variety of thoughts is known to be a positive force within any

enterprise leading to more and faster innovation. It comes in many shapes and colours. There is

another dimension of diversity that enterprises need to have on their agenda, the generational

diversity. Youth tends to attract the most attention while all generations within the workplace

have their individual strengths from the baby boomers to generation X, Y and Z (Seddik, 2019).

In addition to the widespread tendency within popular culture and the media to favor

youth, young people always bring new perspectives to the workplace however adapting to a new

perspective can be a challenge for all enterprises. Thus, companies invest time and effort in the

integration of new generations into the workplace. While generation Y and Z are known for their

internet, social media and mobile app skills, previous generations have years sometimes decades

of work experience. They have long relationships with customers and partners and have often

acquired leadership expertise (Seddik, 2019).

Creating a work environment that is more supportive of generational diversity is a

complex, long term project that involves all business units. To develop a corporate multi-

generation strategy and to communicate it to everyone in the company are the necessary step. To

improve generational diversity, enterprise should redefine the hiring process, create a continuous

education and training strategy, foster multi-generational team building, expand work flexibility

and redesign the workspace (Seddik, 2019).

Nowadays, workplace has started to embrace diversity and inclusion programs to enhance

company culture. While many people think diversity is only related to gender, race, and culture,

it goes way beyond including disability and socioeconomic status. Workplace diversity has many

forms which includes the race and ethnicity, age and generation, gender and gender identity,

sexual orientation, religious and spiritual beliefs and disability. An organization that prioritizes

diversity will have a workforce that consists of people from different backgrounds and sections

of society. It is also a place where everyone is treated equally in spite of everyone's differences

(Gayan, 2021).

The forms of diversity in a social construct are theoretically infinite. It encompasses

every characteristic that appears with variations amidst a group of people. With regards the

workplace, there are seven primary types of diversity which includes the race and ethnicity, age

and generation, gender and gender identity, sexual orientation, religious and spiritual belief,

disability and the socio-economic status and background (Gayan, 2021).

Post millennial

Americans as a new generation begins to take shape and move toward adulthood, and

there is mounting interest in their attitudes, behaviors and life style. Post millennial generation is

already the most racially and ethnically diverse generation as it was found out in several studies.

Also, the parents of post millennials are more well educated than the parents of previous

generations and this pattern is most likely contributes to the relative influence of the households

which post millennial lives. More broadly, the post millennial generation is being shaped by

changing immigration patterns. Though post millennials are more likely to be Hispanic and
Asian compared with prior generations, they are not more likely, at this point to be immigrants.

Further, post millennial are more likely to be enrolled in college than older generations (Fry and

Parker, 2018).

However, they are entering adulthood with less experience in the labor market than prior

generations. They are slower to enter the labor force. Post millennial also is likely to be detached

from school or work than older generations. A common indicator of at risk behavior in the

transition to adulthood is the share of youth who are neither enrolled in school nor working. Post

millennial women are more likely to be engaged in school and work than earlier generations in

part because they have fewer parenting responsibilities. Post millennials’ family lives are just

similar to those of millennials when they were young. Some measures of economic well-being

indicate that post millennials are growing up in more affluent circumstances than previous

generations did (Fry and Parker, 2018).

Organizational commitment

Organizational commitment is defined as the view of an organization’s member’s

psychology towards people to attachment to the organization that they are working for. It plays a

pivotal role in determining whether an employee will stay with the organization for a longer

period of time and work passionately towards achieving the organization’s goal. An

organizational commitment helps predict employee satisfaction, employee engagement,

distribution of leadership, job performance, job insecurity, and similar such attributes. An

employee’s level of commitment towards people work is important to know from a

management’s point of view to be able to know their dedication to the tasks assigned to them on

a daily basis (Bhat, 2020).

Accordingly, the three distinct component of organizational commitment are the affective

commitment, continuance commitment and normative commitment. It is important to understand

that the level of commitment depends on multiple factors and can vary from one individual to

another. On the other hand, since organizational commitment determines how long employees

will stay with your organization, committed employees are any and every organization’s assets.

The benefits of organizational commitment are the high employee productivity, reduced

absenteeism, excellent team players and strong advocates (Bhat, 2020).

Committed employees are highly productive. They believe in the organization, its goals,

vision, mission and the leadership team. Also, a committed and motivated staff will report much

lesser absenteeism than their peers. Committed employees look forward to going to work,

helping out projects and contributing toward organizational goals. Since dedicated employees are

heavily invested in the organization and its success, they are great at collaborating with and

working in teams. They are the strong believer and supporters of their employer’s products,

services, and policies (Bhat, 2020).

High levels of organizational commitments are related to superior business performance,

increased profitability, improved productivity, employee retention, customer satisfaction metrics,

reduced customer churn and above all improving the workplace culture. Some tips to improve

organization commitment are also discussed including the create a strong teamwork culture,

communicate clear goals and expectation to the employees, be transparent and encourage open

communication, maintain work ethics, foster a positive work culture, develop trust, encourage

innovation, provide constructive feedback and not criticism, efficiently delegate task and offer

incentives (Bhat, 2020).

people who show dedication and commitment to the organization. Organization needs to dig

deeper and find the root cause of issues faced to reduce employee take over (Bhat, 2020).

Analysis of empirical personality traits

The impact of five-factor model personality on organizational commitment in the higher

educational institution of Pakistan was investigated in this study. It has been shown that

extroversion, agreeableness and conscientiousness are positive linked to affective commitment.

On the other hand, neuroticism and openness has negative association with affective

commitment. Moreover, extroversion and agreeableness were found to be negatively link

between neuroticism and continuance commitment while no relationship between

conscientiousness, openness and continuance commitment was also found (Farrukh, et.al., 2017).

Furthermore, several implications for the personality and commitment literature have also

resulted. This study provided comprehensive empirical evidence regarding the dispositional basis

of organizational commitment notably. The big five personality traits have found to be

significantly associated with organizational commitment as a whole. The findings underscore the

role of agreeableness in shaping organizational commitment. Agreeableness was the strongest

predictor of both affective commitment and continuance commitment. It may be especially

relevant for predicting employee outcomes that are reliant on strong interpersonal or social

exchange relationship. The big five traits which include the extroversion, agreeableness,

conscientiousness, neuroticism and openness play an important role in understanding employee

commitment to the organization (Farrukh, et.al., 2017).

Role of effective communication

any organizational can be associated to the commitment and dedication of the employees to

provide time and effort in increasing the performance, productivity and profitability of the

company to attain specific targets through its vision and mission. Organizational commitment

brings meaning and significance for the employees to pursue their career in a certain work

environment where they find satisfaction to participate in various programs of the institution

(Buenviaje, et.al., 2016).

Having an effective communication is something that the company should value and give

support in disseminating information to the entire community to understand the issues and

challenges that need address by any members of the organization. Effective communication is

vital to any company’s success. Organizational commitment is one of the best products of

exercising equality in the academic community, making the members loyal to the institution with

demonstrated high improvement in job performance and financial aspect of the operations.

Respecting the rights of and giving appropriate privileges of the employees are essential

component of having best practices in human resource management to maintain good and

qualified people in the workforce (Buenviaje, et.al., 2016).

Effective organization management has an effective communication process that defines

the functions, responsibilities and limitations in handling and disseminating any kind of

information would it be confidential or for public consumption. Employee behavior towards

work and organization might also suffer in misinterpretation. There should always be a balance

of communication and collection of information and opinion for all viewpoints (Buenviaje, et.al.,

2016).
Organizational commitment and turn over retention

The unrelenting migration trend of Filipino nurses to other countries has threatened the

quality of patient care services in the country. The extent of nurses’ commitment and turn over

retention in the Philippines has been explored in this study. Labrague and Gloe, (2018) also

identified the predictors of nurses’ organizational commitment and turn over retention. It has

been revealed that Philippine nurses were moderately committed to and were undecided whether

or not to leave the organization.

Nurses’ age, education, rank and experience also correlated significantly with the

organizational commitment. Nurses’ age and education on the other hand are correlated

significantly with turnover retention. An inverse relationship was also identified between the

organizational commitment and turnover retention. Additionally, the need for formulation and

implementation of interventions to promote life-long commitment in nurses and to reduce

turnover rates are also highlighted in findings of this study (Labrague and Gloe, 2018).

Leading a multi-generational workforce

Most organizations today prioritize having a diverse workforce due to the numerous

benefits it brings to their company. Age has been one of the protected characteristics in the

workplace since 1967, when the Age Discrimination Employment Act (ADEA) was passed.

While ageism is predominantly reported by older workers it can cut both ways. When leading to

multigenerational workforce, it is important to have effective strategies to successfully attract,

hire and retain the different generation (Johnson, 2020).

While it is good to consider generational differences in the workplace when attracting,

hiring, engaging and retaining the employees, relying on the stereotypes should be avoided.
Perhaps now is the time to remind employees what ageism look like so every employee can be

alert to it, to watch out for the signs of it and know what the options are available, should occur.

Also, for starter, it is need to implement inclusive recruitment strategies. Most organization

employ up to four different generations which include the baby boomers, Gen X, millennials and

Gen Z (Johnson, 2020).

Every generation have a different mindset from the others, with different aspirations,

different needs and wants and even different values. Managing a multigenerational workforce

means offering employee benefits that cater to all, including both the employees they would like

to attract and those they want to retain. In a multigenerational workplace, adopting a one size fits

all policy won’t work. Building a multigenerational workforce will give your company a

powerful competitive advantage. The only way to target effectively each generation is by having

a clear understanding of who each one is and how they differ (Johnson, 2020).

Essentially, the employer branding should be an honest reflection of what employees can

expect if they join the organization no matter which generation they are trying to attract. One of

the major benefits of a multigenerational workforce is the breadth of knowledge and experience.

It is need to work on creating a culture where these are shared and where employees are

encouraged to learn from each other. Keeping on top employee engagement, employee

experience and satisfaction for every member of the workforce is important now more than ever.

With the vast majority of employees currently working from home, keeping coworkers feeling

connected is a big part of it (Johnson, 2020).

Moreover, when hiring employees, managing their workplace expectations throughout

the hiring and on boarding process should also be done. The more the employer can manage
expectations prior to starting work, the easier new employees will find their early days with

them. Also, checking whether the company policies are inclusive and mindful of the

multigenerational workforce is advisable. Leading a multigenerational workforce needs to be

done thoughtfully if people want it to be successful (Johnson, 2020).

Managing five generation in the workplace

In the workplace, bridging the generational gap does not have to be a difficult task.

Business environment today may be the first to include in different five generations working side

by side toward shared economic and commercial goals. Managing multiple generations in the

workplace for business owners and executives may not be easy as it sounds. Each defined

generations can have a different expectations, communication styles, and perspective.

Nonetheless, adapting a management strategy that addressed the distinctive characteristics of

different generations in the workplace can allow employers to harness the respective strengths of

their workforce and better compete in the market place (Paychex, 2019).

Broadly speaking, the generational gap in the workplace is the difference in behavior and

outlook between groups of people who were born at distinctly different times. Problems in

managing generational gaps in the workplace can arise from misunderstanding. Each generation

have its own preferences and expectations when it comes to completing job responsibilities.

Knowing the employees’ general framework of experience can help understand their point of

reference and set management appropriately while there are expectations in every generation.

Managing across generations can be as simple as bringing in free coffee for employees once a

month or creating a project with teams of people possessing various levels of expertise (Paychex,

2019).
The five generations in the workplace

One of the five generations in the workplace is the generation Z. Members of Generation

Z were born between 1997 and 2012. They may view phones and other devices as they are raised

as digital natives. Compared to previous generations, they can be more focused on the essence of

a person funny, witty and smart versus issues like race or ethnicity due in large part to how

technology has shaped their relationship (Paychex, 2019).

The largest generations in the current workforce are the millennials who were born

between 1981 and 1996. They grew up as the internet revolutionized society and they are more

comfortable communicating digitally than previous generation. They also tend to adopt new

social media platforms more quickly than older generations. In the workplace, members of this

organization may prefer to send instant messages, emails, or texts rather than walk across the

room to chat with someone if only for efficiency purposes (Paychex, 2019).

On other hand, squeezed between the baby boomers and millennials, Gen Xers were

shaped by the evolution of personal computers. This generation born between 1965 and 1980 and

is generally more educated than previous generations. In addition to that they viewed as self-

reliant and hardworking, Gen Xers often viewed as fiscally responsible. They are comfortable

using technology and online recruitment and hiring tools but they are also comfortable with face

to face interactions. They typically prefer less supervision and greater autonomy when it comes

to completing job responsibilities (Paychex, 2019).

Born after World War II, through 1964, baby boomers have been long known for their

strong work ethic and goal-centric tendencies. They tend to be hard working and value face to

face interaction. They did not grow up using computers although they will use technology for job
related functions. Older employees may be more comfortable with traditional recruiting process

that includes creating formal resumes and holding face to face interviews. They may also

appreciate a more formalized structured environment than younger generations would (Paychex,

2019).

The oldest generation currently in the workforce is the silent generation. They were born

between 1928 and 1945. They grew up without today’s technology and many other modern

conveniences younger generations take for granted. Many members of this generation have

overcome adverse economic conditions in their lifetimes and thus have established diligent

financial habits. They are also hard workers with strong core values. As tenured employees,

silent generation employees may be focused on health care and retirement benefits (Paychex,

2019).

Boomers, Gen X, Y and Z

A common source of confusion when labeling generation is their age. Generational

cohorts are defined by birth year, not current age. The reason is simply generation get older in

groups. Baby boomers were born between 1946 and 1964. They are currently between 57 to 75

years old. Generation X was born between 1965 and 1980 and is currently between 41 to 56

years old. Generation Y or the millennials were born between 1980 and 1996 and they are

currently between 25 and 40 years old. On the other hand, Generation Z is the newest generation,

born between 1997 and 2015. They are currently between 6 and 24 years old (Kasasa, 2021).

The term millennial has become the popular way to reference both segments of Gen Y.

And as for zillennials whose wedged at the tail end of millennials and the start of Gen Z are

sometimes labeled with the moniker, a group made up of people born between 1994 and the year
2000. Each generation label serves as a short hand to reference nearly 20 years of attitude,

motivations, and historical events. They are useful terms for marketers and tend to trickle down

into common usage. It is important to emphasize that referring to a cohort only by the age range

gets complicated quickly (Kasasa, 2021).

Generation difference

The baby boomers are the biggest consumers of traditional media like television, radio,

magazines, and newspaper. Despite being so traditional, 90% of baby boomers have a facebook

account. This generation has begun to adopt more technology in order to stay in touch with

family members and reconnect with old friends. Moreover, they prefer to go into a branch to

perform transactions. This generational cohort still prefers to use cash especially for purchases

under five dollars. This is also experiencing the highest growth in student loan debt (Kasasa,

2021).

Generation X still reads newspapers, magazines, listen to the radio and watches

television. However, they are also digitally savvy and spend roughly seven hours a week on

facebook. Since they are digitally savvy, Gen X will do some research and financial management

online but still prefer to do transactions in person. They believe banking is a person to person

business to demonstrate brand loyalty. Also, they are trying to raise a family, payoff student debt

and take care aging parent (Kasasa, 2021).

In Generation Y or millennials, 95% are still watching television, but Netflix edges out

traditional cable as the preferred provider. Their popular choice is cord cutting in favor of

streaming services. This generation is extremely comfortable with mobile devices but 32% will

still use a computer for purchases. They also typically have multiple social media accounts. They
have less brand loyalty than previous generations. Additionally, they prefer to shop product and

feature first and have little patience for inefficient or poor services. Millennials are powering the

workforce but with huge amounts of student debt (Kasasa, 2021).

The average member of Generation Z received their first mobile phone at age 10.3 years.

Many of them grew up playing with their parents' mobile phones or tablets. They have grown up

in a hyper-connected world and the smart phone is their preferred method of communication. On

average, they spend 3 hours a day on their mobile device. This generation has seen the struggle

of Millennials and has adopted a more fiscally conservative approach. They have a strong

appetite for financial education and are opening savings accounts at younger ages than prior

generations (Kasasa, 2021).

Ways of millennial managers lead older employees

Diversity in the workforce is observable today than before. The present workforce may

be classified as a multigenerational workforce consisting of employees from different

generations. The leadership styles of millennial managers have been explored by this study. The

results show the emergent themes revolved around leadership traits obtained through education,

technology and social forms. Styles are similar to transactional and transformational leadership

characteristics popularized by the Contingency theory (Alcantara, et.al., 2020).

Team work and strong working relationship are also associated with the need to develop

respect for older subordinates. Millennial leaders’ ability to acquire competence in the use of

technology in the workplace provides them the advantage to undertake reverse mentoring of the

older employees which serves as the central foundation of their power and authority to manage

subordinates. As millennial workers enter and dominate the global workforce by 2025,
understanding their leadership styles is vital to bring about higher level of performance and

productivity in the workplace (Alcantara, et.al., 2020).

The millennials, the next generation of leaders are entering the workforce and assuming

leadership positions in a relatively short period. They found themselves more often leading

employees than are older themselves and yet their leadership traits and styles are not fully

understood. Central to these leadership styles is a focus on building interpersonal relationships,

respect for older employees, mentoring, delegation and managing expectations and performance.

Millennial leaders believe that strong positive relationships and respect are keys to inciting

effectiveness that will allow them to establish authority and credibility among their older

subordinates (Alcantara, et.al., 2020).

Seven American generations

For opposing generations to fight, it is natural to blame one another for either the ways in

which the world has changed or the social, political, or economic messes they were born into. It

begins by introducing the seven living generations of Americans. It includes the greatest

generation who were born from 1901 to 1927, the silent generation who were born from 1928 to

1945, the baby boomers who were born from 1946 to 1964, the Generation X who were born

from 1965 to 1980, the millennials who were born from 1981 to 1997, the Generation Z who

were born from 1998 to 2010 and the burgeoning generation alpha who were born from 2011 to

2025 (Colburn, 2017).

It then breaks down the formative events that helped shape these distinct areas providing

statistics and information as to how those particular moments in history rippled throughout both

that generation and the ones that came after. It also uses accumulated data and trend outlooks to
forecast the behaviors of the next generation, the generation alpha which so far is defined by the

era of technological discovery they have been born into (Colburn, 2017).

Generation in the Philippine work place

Work place today is becoming more diverse and there is a growing sense that this new

workforce is quite different. The differences in generations may lead to discord, conflict and

have detrimental effects on relationships and productivity, although the diversity can actually be

productive and lead to innovation, when not handled well. There is a greater sense that leaders

and companies need to better understand this new generation of workers. Generations are defined

by the social, economic, political, and social events that occur during their formative years

(Hechanova, 2017).

It is commonly hear the labels baby boomers, Generation X and Generation Y. Baby

boomers, those born from 1945 to 1964 are said to be shaped by Vietnam War, Civil Rights

movement, the John F. Kennedy and Martin Luther King assassinations, Watergate scandal, and

the Woodstock festival. They are described as goal-oriented, competitive, optimistic, accepting

of diversity, liberal, and workaholics. Generation X, those born from 1965 to 1980 is defined by

the collapse of communism in the Soviet Union, AIDS epidemic, the rise of MTV, and

emergence of personal computers. They are described as independent, achievement-oriented,

have strong technical skills, entrepreneurial, naturally questioning of authority figures and are

not intimidated by them, and individualistic (Hechanova, 2017).

Millennials or Generation Y, those who were born from 1981 to 2000 is defined by

events such as September 11 Terrorist Attacks, Second Gulf War, Iraq War, and Columbine

High School Shootings, the birth of the Internet together and rapid technology change. They are
described as technology savvy, adaptable to change, able to multi-task, highly educated,

opinionated, demanding, and have less direction. Although these labels are now commonly used

across the world, it is important to note that the categories are based on the collective memory,

recollections and experiences were developed in the West and using western milestones

(Hechanova, 2017).

A study in the Philippines was conducted about the political generation and technology

generation as they are labeled according to what events they appeared. The political generation

described themselves as work-centered, family-oriented, multi-tasker and decisive. The

technology generation described themselves as being tech-savvy, carefree, laid-back, proud,

individualistic, self-centered, arrogant, energetic, and adventurous. The political generation

identified the following ideal leadership schemas as important to them: one who cares about

people’s welfare, delegates, and is controlling. On the other hand, the technology generation’s

schemas of effective leaders are those who give clear instructions, listen to and recognize their

followers (Hechanova, 2017).

Organizational culture, commitment and job satisfaction

In any organization, amidst an increasingly competitive environment, the quality of

human resources is a key to sustainability and productivity. Committed employees are necessary

most likely due to the concept that loyal employees hold many implications in the organization.

Organizational culture has a profound influence on individual employee precisely because it is a

general accepted set of values rather than thinking merely as an explicit, written set of values.

The organizational culture, organizational commitment and job satisfaction of the faculty

members of the St. Paul University System were explored in this study (Batugal, 2019).
 It has been concluded that the culture develops over some time and in the process of

developing, acquires significantly deeper meaning. Creating organizational culture that values

and respects each member of the organization is effective in producing higher levels of

organizational commitment. Satisfied employees increase organizational loyalty and more likely

to talk positively about their organization, help others and go beyond the reasonable expectation

in their job (Batugal, 2019).

Moreover, organization culture provides the glue which holds the employees together,

stimulates their commitment to common mission and galvanizes their creativity and energy. It

plays a significant role in shaping the responsiveness, quality, problem solving ability and

distinctive competence of every organization. The higher level of organizational commitment is

associated with more favorable organizational culture and job satisfaction (Batugal, 2019).

BPO company policy factors

Millennials are becoming the prevailing generation in the workforce today. In the

Philippines, millennials are the one third of country’s population which means they are

occupying a significant part of the workforce. BPO industry specifically the call center is facing

a challenge on how to handle its millennial employees. This study was conducted to identify the

extent of four company policies which include the compensation and benefits, performance

management, attendance and working hours and employee discipline on turnover rate on

millennials (Lompot, 2019).

It has been stated that a proposed retention program that focused on developing company

policies to limit the turnover rate of millennial employees. The great extent specifically is on the

policies of compensation and benefits and performance management. Hence, the companies have
to look unto these policies to improve the retention rate of millennial employees. There is also a

need to address the concerns and desires of this generation which urges the companies to adjust

their compensation, benefits, performance management, work schedule and disciplinary action to

maintain good corporate partnership with their millennial employees (Lompot, 2019).