The entrance of millennials and Generation Z have significantly impacted the labour force in today's world through their unique characteristics. With this change, it was found that younger employees had a higher turnover rate in employment than older employees as they experienced less job satisfaction (Leppert, 2023). The difference in job satisfaction can be attributed to the different desires between the old and the young.
With technological advancement, changing work culture and social convention, a generation gap is created where the youth places more emphasis on a healthy work-life balance and flexibility. For example, flexible working hours and locations. As supported in The Muse's recent job seeker survey, the primary focus of people who are looking for a new job was achieving a work-life balance, with learning and growth opportunities (self-actualisation needs) following closely behind (Borsellino, 2023). Therefore, the modern leader needs to be able to adapt to the changing employee requirements and take the initiative to reshape their workplace culture to retain and secure top talent. To better understand the employees’ needs, it is suggested that the modern leader should refer to the Hierarchy of Needs by Abraham Maslow (Mcleod, 2023). People nowadays are more focused on the purpose and meaning of their work and value respect and recognition from management (esteem needs).
Navigating the Future: The Dynamic Impact of Evolving Work Culture
Altering the work culture has the potential to cause both positive and negative effects, in the short-term and long-term, to the workplace.
In the short-term, a drawback that can occur is the reduction of productivity by older employees as they struggle with new technologies and the concept of remote work. Moreover, there is a potential risk that employees may take advantage of the concept of ‘flexibility’ and lead to procrastination and reduced concentration. The younger generation, who are new to the workplace may also find it a struggle to engage without the guidance of the supervisors. Furthermore, other factors that can hinder work performance include distractions or an inadequate work environment.
However, by establishing detailed policies and procedures, the previously stated challenges can be effectively addressed. It is essential to emphasise that the shifting of work culture can lead to cost savings since physical office space may no longer be necessary. While for employees, they can save up their transportation fees such as fuel and toll expenses. Flexibility helps promote a healthier work-life balance and encourages self-reliance as employees now have the freedom to make decisions on their own (Herrity, 2023).
The Top Challenges Leaders Face in Navigating Culture Change
There are many challenges faced by the leader to effectively navigate culture change:
1. Lack of Trust
The need for trust is the fundamental building block of a united and effective organisational structure. It plays a crucial role in enabling the shift towards a more adaptive work culture, thereby attracting and retaining top talent and ultimately enhancing the overall performance of the organisation. This assertion is substantiated by empirical studies conducted at the University of Sheffield, highlighting the significance of trust through evidence of a positive connection between employees' confidence in their supervisors and improved workplace outcomes (Brown et al., 2015).
There are two main reasons why followers lose trust in their leaders, a leader’s lack of transparency and failure to pay attention to their employees. The absence of transparency has a detrimental impact on the employee’s morale. Referring to a poll done by Forbes in 2014, 71% of employees did not receive a clear explanation from their managers regarding the company’s goal. Furthermore, 50% of these employees pointed out that the lack of transparency throughout the organisation was the primary reason that hindered the company's progress (Pozin, 2014).
2. Resistance to change
The resistance from employees is said to be an indicator of fear. According to Rehman et al., (2021), employees are likely to show resistance and refuse to leave their comfort zone as changes indicate the unknown and uncertainty and employees generally find it uncomfortable due to the fear of the unknown (Rehman et al., 2021). Therefore, it is asserted that employee resistance to change is a major factor that substantially contributes to the failure of an organisation (Rehman et al., 2021).
Strategic Solutions to Navigate and Overcome Culture Change Challenges
According to Daft (2018), authentic leadership refers to individuals who know and understand themselves, espousing and acting consistently with higher-order ethical values who empower and inspire others with their openness and authenticity.
As many people have a natural resistance toward change, leaders should set an example by demonstrating a high level of passion and commitment to inspire and motivate their followers. One real-life example of an authentic leader is Warren Buffet. He demonstrates authentic leadership by illustrating a real commitment, both through his words and actions to enhance “stakeholder value”. Therefore, by understanding the requirement of transforming the work culture, the leader should not perceive employees’ resistance to change as an obstacle or threat. Instead, the leader should maintain persistence towards the goal and put more effort into shaping employee attitude. Through influence and inspiration, the follower will be more willing to leave their comfort zone and adapt to change.
Moreover, the leader should establish a connected relationship with their followers by becoming a facilitator rather than a controller. Authentic leaders promote collaboration and empowerment, encouraging innovation and creativity while always listening to their team members actively and welcoming feedback. By doing so, followers feel inspired and motivated to optimise their work performance and always try to surpass their own limitations to meet their leaders’ expectations. The trust among leaders and followers could be enhanced by building a positive and enduring relationship. Furthermore, to foster trust, the leader should also encourage debate by sharing their thoughts and beliefs openly and transparently.
Self-reflection
When contemplating effective leadership styles to address identified challenges, authentic leadership is my immediate choice. To me, authentic leadership means staying true to oneself and fostering strong connections with the team.
In navigating challenges, especially amid significant changes, authentic leadership is essential as it involves maintaining an open mind, actively listening to others' opinions, and providing constructive feedback. For instance, during this assignment's second meeting, we discovered a lack of alignment, leading to miscommunication among team members. By being aware we were in need of assistance, we promptly scheduled a consultation with our lecturer. With his guidance, effective communication and collaboration among team members, we successfully realigned our flow and structure, completing the coursework well before the due date.
This experience highlights the applicability of authentic leadership beyond the workplace, emphasising its relevance for everyone. It has taught me that embracing authentic leadership fosters not only personal commitment but also effective collaboration, proving its value in various aspects of life.
References
Borsellino, R. (2023, April 18). Economic uncertainty isn’t stopping workers from eyeing new jobs. The Muse. https://www.themuse.com/advice/muse-user-survey-2023
Brown, S., Gray, D., McHardy, J., & Taylor, K. (2015). Employee trust and workplace performance. Journal of Economic Behavior and Organization, 116, 361–378. https://doi.org/10.1016/j.jebo.2015.05.001
Daft, R. L. (2023). The leadership experience (8th ed.). Cengage Learning Asia Pte Ltd.
Dolot, A. (2018). The characteristics of Generation Z. E-Mentor, 2(74), 44–50. https://doi.org/10.15219/em74.1351
Herrity, J. (2023, February 18). The pros and cons of working from home. Indeed Career Guide. https://www.indeed.com/career-advice/finding-a-job/the-pros-and-cons-of-working-from-home
Mcleod, S. (2023, October 24). Maslow’s hierarchy of needs. Simply Psychology. https://www.simplypsychology.org/maslow.html
Leppert, R. (2023, May 25). Young workers less satisfied with their job than others, but 85% are at least somewhat satisfied. Pew Research Center. https://www.pewresearch.org/short-reads/2023/05/25/young-workers-express-lower-levels-of-job-satisfaction-than-older-ones-but-most-are-content-with-their-job/
Pozin, I. (2014, April 2). How Transparent Is Too Transparent In Business? Forbes. https://www.forbes.com/sites/ilyapozin/2014/04/02/how-transparent-is-too-transparent/?sh=2e9ba16f7bac
Rehman, N., Mahmood, A., Ibtasam, M., Murtaza, S. A., Iqbal, N., & Molnár, E. (2021). The psychology of resistance to change: The antidotal effect of organizational justice, support and leader-member exchange. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.678952
Disclaimer: This blog is created to fulfill the academic coursework requirements of the subject MGT3073 Leadership conducted at Sunway University, Malaysia, and is for educational purposes only. It is not meant for commercial or consulting purposes, and is not for sharing and distribution.
Comments