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Journal of Leadership in Organizations Vol.1, No. 2 (2019) 96-111 JOURNAL OF LEADERSHIP IN ORGANIZATIONS Journal homepage: https://jurnal.ugm.ac.id/leadership HOW TO LEAD THE MILLENNIALS: A REVIEW OF 5 MAJOR LEADERSHIP THEORY GROUPS Bernadeta Cahya Kumala Putriastuti1*, Alessandro Stasi2 1 Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia 2 Mahidol University International College, Thailand ARTICLE INFO ABSTRACT Millennials are currently taking over the global workforce. While Keywords: practitioners and scholars have recognized their different work values from previous generations, research on this topic is still Millennials; scarce. Furthermore, the current leadership theories have tended Neo-charismatic to focus mainly on the characteristics of leaders without Leadership; Leadership and adequately examining the leadership styles that work best for the information millennials. Using a literature review from the top tier leadership processing; journals, this paper aims to provide a more comprehensive Social exchange; framework to provide new directions for the development of Ethical leadership; leadership theory by understanding the millennials’ perspective E-leadership. on leadership. This study thus contributes to the current literatures by using five thematic leadership groups to develop the most Article History: optimum leadership style for leading the Millennials. The Received 2019-06-16 advantages and disadvantages of using neo-charismatics, Revised 2019-08-04 leadership and information processing, social exchange/relational Revised 2019-08-09 Revised 2019-08-13 leadership, ethical/moral leadership, and e-leadership theories in Accepted 2019-08-12 leading millennials are assessed. Results show that no single leadership theory is adequate for leading the millennials optimally. Hence, mixing the dimensions of different leadership theory groups is suggested. As for the leadership theory aspects, it is recommended to scholars to consider developing more flexible leadership theory models that can accommodate different generational groups. ___________ * Corresponding Author at Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada, Jalan Socio Humaniora No. 1, Yogyakarta 55182, Indonesia. E-mail address: [email protected] B.C. K. Putriastuti, and A. Stasi Journal of Leadership in Organizations Vol.1, No. 2 (2019) 96-111 1. Introduction In this context, our paper aims to Millennials are projected to constitute nearly provide a critical analysis of the current one-third of the American population by leadership theories regarding Millennials 2020 and 75% of the workforce by 2025 generation as the majority of the workforce. (Winograd & Hais, 2014), replacing Rather than presenting a new theory which Generation X and Baby Boomers. According can prepare the Millennials to become to most literature sources, the term leaders like some other studies, the aim of Millennials refers to people born between this article is to guide the development of 1980 and 2000 (Rudolpha et al., 2018). This leadership theory to be effective in leading generational shift in the workforce brings the Millennials. Also, although many opportunities and challenges to companies researchers have examined Millennials’ since Millennials hold different values, perception of leadership (Faller & Gogek, expectations, and attitudes from the previous 2019; Omilion-Hodges & Sugg, 2019; generations. As a consequence, companies Graybill, 2014), not many articles have have to implement various strategies to explained its relation to the effectiveness of manage Millennials employees more the current leadership theories. effectively and efficiently so that they can As stated previously, literature achieve the highest standard of performance review is used as a basis to develop such (Stewart et al., 2017). This may be done, for analysis. More precisely, this paper will instance, by changing the current leadership evaluate the Millennials leadership strategies. phenomenon by integrating perspective Notwithstanding nearly all of the from different leadership theories following studies in the academic literature agree that the approach suggested by Dinh et al. (2014). adapting leadership strategies is essential for This paper will also advance Anderson et al. modern organizations, this is easier said than (2017) findings by analyzing leadership done. As a number of authors point out, the theories based on their thematic categories. current leadership theories are not adequate Firstly, empirical findings of Millennials for engaging and motivating Millennials characteristics and perspective on leadership employees (Faller & Gogek, 2019; Anderson from top tier journals are collected and et al., 2017). According to Anderson et al. reviewed. Secondly, the current most used (2017), the changing values, personalities, leadership theory groups are analyzed and work attitudes, and motivations of the compared to Millennials’ attitudes and current majority of the workforce decreases behaviors. Finally, a direction for theoretical the effectiveness of major leadership theories framework to develop leadership strategies in 21st century organizations. Furthermore, that can be applied to Millennials are leadership is a research area that always need proposed. This paper will answer the to be continuously developed since following questions: (1) how Millennials’ employees’ characteristics determine the characteristics affect the effectiveness of type of leadership that can be successfully current leadership theories (2) how to lead implemented. Therefore, reconsidering the Millennials optimally (3) how current current leadership theories is necessary. leadership theories should be advanced in 97 B.C. K. Putriastuti, and A. Stasi Journal of Leadership in Organizations Vol.1, No. 2 (2019) 96-111 order to be effective for modern 2008). Therefore, recognition and respect are organizations. important to them. However, although 2. Literature Review Millennials have high level of self- The Millennials confidence, they are more likely to seek for There’s a current generational shift in today’s directions and role models (Chen & Choi, workforce where Millennials (Generation Y), 2008; Gursoy et al., 2008). replacing the Generation X and Baby Millennials are similar to Generation Boomers, become the majority of the X in that they are not very loyal to their workforce. According to Winograd and Hais employer. According to Gursoy et al. (2008), (2014), Millennials will constitute 75% of the they like to keep their career options open. If workforce by 2025. Although there is no there is any better career opportunity, they agreement to define the exact date range of are willing to leave their job position and millennials, most literature refers to current employer. Unlike other generations, Millennials as individuals who were born Millennials’ job satisfaction and workplace between 1980 and 2000 (Rudolpha et al., culture are not associated with their 2018). However, following Stewart et al. organizational commitment (Stewart et al., (2017), this paper defines Millennials as 2017). What keeps them committed to their individuals who were born within the year organization is mostly their own 1981-1995. performance and the organization retention Due to the unique technological program. timeframe into which Millennials were born, In term of work centrality, Millennials have acquired specific and Millennials are less willing to dedicate most unique work skills and preferences. Growing of their time for working. They prioritize up in a rapidly evolving technology their social life and work-life balance plays a landscape and as an intensive users of high key role for them (Chen & Choi, 2008). Way technologies (Chen & Choi, 2008), of life is ranked by Millennials as the most Millennials are more tech-savvy and good at important work value. It follows that flexible multi-tasking than previous generations working schedule is considered as a stepping (Gursoy et al., 2008). They tend to believe in stone to success (Gursoy et al., 2008). Having collective action and teamwork. Also, they flexible working schedule means that the have the tendency to question rules and work is not measured by the time they spend challenge workplace norms (Gursoy et al., on it. What matters the most is whether the 2008). work is completed and the required goals are According to Chen and Choi (2008), achieved. Millennials are idealist, highly optimistic, Millennials are also found to be more and confident. They have high expectation motivated by extrinsic rewards (Twenge et and are very proud of themselves. In al., 2010). Millennials consider economic addition, they believe that they give huge returns as a much more important working contributions to their work and managers are value compared to other generations (Chen expected to acknowledge their good work & Choi, 2008). When deciding between jobs, (Gursoy et al., 2008). They also expect rapid retirement benefits will be one of the most promotion and development (Chen & Choi, important factors to be considered. This 98 B.C. K. Putriastuti, and A. Stasi Journal of Leadership in Organizations Vol.1, No. 2 (2019) 96-111 might be related to the fact that Millennials achieve goal”, “leadership is the art of are financially smart (Chen & Choi, 2008). bringing others in new directions”, and Therefore, it is suggested by Chen and Choi “leadership is the ability to achieve goals (2008) to design strategy which transform with the assistance