BUS603: Managing People

Leadership is typically influenced by three component factors which are leader, follower, and context. Effective leadership is displayed when these three dimensions are appropriately aligned. Currently, the Western world is experiencing two challenges in the context of this triangle: the first one concerns leader-follower work relationships and the other arises from current challenges in the environment of the corporate world. One central challenge is the conflict between senior leaders in organizations and the so-called Millennials, the emerging leader generation born between 1980 and 2000. This cohort, known as Generation Y, will account for 50% of the global workforce, and will outnumber their Generation X predecessors quite quickly. For many employers and senior leaders, Generation Y presents a leadership challenge. The concerns and criticisms of parents and leaders stretch from a claim that this generation is dumber than previous generations, to the assertion that it is narcissistic or has no work ethics. Gelbart and Komninos argue convincingly that workforce managers always struggle with new generations and their different world views and values, and Gesell states that the current generational mix of Baby Boomers, Gen X, and Gen Y makes leadership more complex. The large difference between the generations results in traditional leadership approaches being less effective. Acknowledging this, authors such as Ferri-Reed suggest that contemporary employers need a transition "from a 'boomer-centric' workplace to a 'millennial-centric' workplace". As Kilber concludes, the conflict between the generations needs to be solved through embracing the different approaches that come with the new generation. Such an attitude will get the most out of this new generation for the benefit of the organization. Even if senior leaders find a leadership approach that fits the needs of the Millennials, the organizational environment still poses further challenges. Therefore, a leadership approach aimed at making Millennials more effective is not enough: the approach applied must also address the challenges of the environment. Currently, the term most frequently used to describe organizational environment is VUCA. The acronym VUCA, originally coined by the US Army, refers to an environment that is volatile, uncertain, complex, and ambiguous. Since all of these characterize our corporate world today, traditional approaches to leading organizations no longer work. The combination of these two leadership challenges [Millennials changing the way that relationships are formed, and therefore how work is carried out and knowledge transferred, and the prevailing characteristics of the VUCA world] demands enormous wisdom and a completely new leadership approach. This applies especially to senior leaders in contemporary organizations. The purpose of this chapter is to help senior leaders better understand the essence of the conflict between Millennials and the previous generations, and to explore the challenges that the current organizational environment poses for organizations. Its ultimate purpose is to determine whether there is a leadership approach that can help lead Millennials more effectively and can support organizations in facing a "dynaxic" (dynamic and complex) world.