Synaptic

This place is a collaborative research paper on a topic from Dr. Jan Freed’s Organizational Behavior course.

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Abstract:

The purpose of this paper is to explore the issues associated with an aging workforce. The paper describes the different categories of workers based on age and generation. It discusses the four types of ageism and focuses on stereotyping and discrimination. There are problems that arise from an individual worker’s health and financial factors, as well as organizational factors such as organizational climate and the level of technology used. Older workers can face barriers dealing with entry to the workforce, job security, and also in relation to retirement.

Management must adapt to the changing demographics in the work-force and be aware that a significant proportion of their employees may retire in the next five to ten years. If managers are not prepared, they could run into a human-capital crisis. Conclusions include the notion that management is responsible for preventing and handling issues faced by their workers. Laws have been passed to aid management and protect employees, but it is ultimately in the hands of the organization to decide how they will resolve issues that arise related to aging.

Describing problems dealing with aging in the workplace is difficult, due to the fact that being “old” seems so far away for college students. Students are immersed in a lifestyle with peers of their own age and they have limited contact with older generations. This can cause students to have a limited perception of problems affecting older generations in the workplace. As future managers in the workplace, it is essential for students to become aware of the problems associated with aging.

Organizations consist of people working together to accomplish goals, but today’s demographic trends are changing the workforce composition. Even though younger workers are becoming part of organizations, the value of older workers’ talent cannot be underestimated. Since aging in the workplace is unavoidable, management must be aware of the age diversity in their organizations and use that knowledge to solve problems that arise.

There are a multitude of problems associated with workplace aging of which many people are not aware. These problems include different forms of ageism, generation gaps, stereotyping, institutional practices, and the barriers encountered. Problems exist for the aging worker and also for the manager. Clear solutions for these situations have not been established. However, employers are implementing new practices to improve work relationships.

Generations:

People alive today can be grouped into four different age/generational categories: Veterans, Baby Boomers, Generation Xers, and Generation Ys/Millennials. Veterans are senior Americans who were born before World War II. Baby Boomers are the offspring of these Veterans and were born shortly after World War II ended. Generation Xers were raised in the 1970-1980s and during a time of discovery. Generation Ys are the youngest generation (Wagner, 2007).

These categories do not describe just when a person is born, but it also reflects their values and goals in the workplace setting. The members of each generation share “similar attitudes towards family, culture, values, risk, and civic engagement” (Howe & Strauss, 2007, p. 45). “Each generational cohort has unique descriptors that help ‘explain’ why its members act the way they do in today’s workforce” (Wagner, 2007, p. 9). The events that these groups of people have encountered in their lives shape who they are. For example, the Veterans have war experience while the Baby Boomers grew up with the new device called the television, which brought them reality. Generation Xers lived in a time when the divorce rate soared along with the national debt Generation Ys are the technologically inclined ones who are growing up with many luxuries and technological capabilities (Wagner, 2007).

Howe and Strauss (2007) provide estimates of the years for each generation being born. The people in the Gl Generation (Veterans) were born from 1901-1924 and are now 83-106 years old. It is estimated that about half of this generation who are still alive are living in assisted care. Howe and Strauss (2007), along with Moeveg (2007), add another generational label: The people in the Silent Generation, born from 1925-1942, are now 65-82 years old. This generation grew up in the midst of the Great Depression and is now mostly in retirement According to O’Bannon (2001), the people in the Baby Boom Generation were born from 1946-1964 and are now 43-64 years old. This generation has suffered from declining economic prosperity. Generation X includes people born in the years 1961-1981 and who are now 26-46 years old. The largest percentage of immigrants are Gen Xers. Those born in this generation are technologically savvy, prefer free agency corporate structure, and believe in helping people one-on-one. The newest generation, The people in the Millennial Generation (Generation Y) were born from 1982 to the present and are 25 years old or younger. The Millennials are just entering the workplace and they seek teamwork, risk protection, and an appropriate work-life balance (Howe & Strauss, 2007; O’Bannon, 2007). Some people find themselves exhibiting characteristics of more than one generation (Spring, 2007).

Although there are slight variants- variations in. determining the cutoffs between generations, most versions are similar enough to grasp the concept The three generations that matter the most for the workplace seem to be Boomers, Xers, and Ys (Howe & Strauss, 2007; Wagner, 2007) because they are the three generations that make up the brunt of the workforce. In the next 20 years, they will still be strong forces in American society as the Veterans will no longer be active members of the workplace (Howe & Strauss, 2007).

Along with these generational labels, the life stages that the people are in contribute to their behavior at work. According to Wagner (2007) there are five life stages: Youth (age 0-21), Rising Adulthood (22-35), Midlife (35-50), Legacy (50-70), and Elderhood (70+). Workers are at different stages in their lives and have different priorities. An employee in Rising Adulthood may be more concerned with raising a family while an employee in Midlife seeks to rise to the top and gain more leadership power.

When an organization is comprised of members from different generational categories, problems can arise from misalignment of goals or miscommunication. J.T. O’Donnell (Sridharan, 2007) attributes the problems to the different expectations that each group has. For example, older generations believe that loyalty is defined as staying with one company for many years. On the other hand, younger generations see loyalty as committing themselves to tied down as they work for innovation and efficiency. Due to these facts, Gen Xers tend to make quick decisions and take creative risks. The more traditional Baby Boomers find difficulty with the whirlwind way of management and the fleeting employment of the Gen Xers (Howe & Strauss, 2007). Boomers are also more pessimistic and this affects their view of the Gen Xers (O’Bannon, 2007).

The different attitudes and behaviors exhibited by the generations can also complicate the situation in the workplace. Baby Boomers dominate the American culture and they seek environments, products, and services that coincide with their convictions and values. Even though they are aging, they wish to remain in the workplace and some scorn the term “retirement.” Part of the reason for Baby Boomers continuing to work is the fact that they have not saved as much, or as well, as the younger generations and they need the money. The other reason is attributed to the Boomer mindset: they want to be. self-sufficient Boomers are also set in their ways, and show resistance to the Gen X lifestyle. They believe that their cultural values are the best and will focus their energy on influencing the Millennials (Howe & Strauss, 2007). O’Bannon (2007) believes though, that Gen Xers are uniquely suited to help Boomer managers gain success.

Growing up with an ever-changing culture that was charged with pop influences, technology, and risk, the Generation Xers bring their experiences to the workplace. They can be impulsive and do not wish to be as spoiled and dependent but could afford to learn a thing or two from them. Howe and Strauss (2007)

Millennials have obviously followed the Baby Boomers and Generation Xers legacies, and they are determined to become their own person in the workplace. They are aware of the weaknesses in the organizational attitudes of the other generations and will strive to correct them. They welcome diversity and teamwork and will work in displaying manners and structure. The older generations view the company while they are there, but when the time comes to move on, they will. Expectations concerning corporate ladders are also different because younger generations, want to be promoted early, but Baby Boomers want them to pay their dues and wait until they are older. One last example is in the form of incentives. Generation Y, in particular, has become accustomed to achievement with incentives involved. Baby Boomers do not need the incentives to convince them that what they are doing is worthwhile (Sridharan, 2007). When a manager develops a reward system, it will have to be carefully balanced depending on the generations it is targeting believe that if the Boomers and Xers could adapt to the Millennial way of doing things in the workplace, economic productivity would skyrocket Millennials are viewed as confident and cooperative (World Almanac, 2008) which are excellent qualities to have in the workplace.

According to DeEtta Jones (Spring, 2007), a practice leader at Cockerham and Associates who does diversity work, “…generational challenges are one of the hot new topics” and “If you asked me what some of the really big issues that we need to figure out I would say that generational differences are definitely one of them, especially because it’s new to us” (p. 8). She also brings to attention the fact that organizations today are still stuck in the ways of the past as far as rewarding, recruiting, and promoting people in ways that do not account for generational differences.

Generational distinctions and differences will always be prevalent in the workforce. The events that have helped to shape each generation will not fade away and each generation forms their beliefs, values, and attitudes based on them. Such things are what make up a person’s personal system. It can be very tricky for one generation to relate to the other because of these differences, and conflict may arise in the work-place because of these differences. Once managers understand the differences between generations, they can focus on specific problems related to their aging workers.

Types of Ageism:

Four types of ageism have been defined in today’s literature. The first type of ageism is personal age-ism. Personal ageism is an individual’s attitudes, ideas, practices, and beliefs that are biased against persons or groups based on their older age (Dennis, 2007). An example of this would be exclusion or ignoring older persons based on stereotypical assumptions. Physical abuse and stereotypes about older persons and old age are both illustrations of personal ageism.

The second type of ageism is institutional ageism. This refers to established missions, rules, and practices that discriminate against individuals and or groups because of their older age (Dennis, 2007; Shore, 2004). Having a mandatory retirement at a particular age is an example of this particular age-ism. Other examples are absence of older persons in clinical trials and the devaluing of older persons in a cost-benefit analysis.

The third type of ageism is intentional ageism which states that ideas, attitudes, rules, or practices are carried out with the knowledge that they are biased against persons or groups based on their older age (Dennis, 2007; Shore, 2004). Intentional ageism includes practices that take advantage of the vulnerabilities of older persons. For example, marketing and media use stereotypes of older workers frequently. Targeting older workers in financial scams and denial of job training based upon age would also illustrate intentional ageism.

The fourth and last type of ageism in literature is unintentional ageism. This ageism incorporates the ideas, attitudes, rules, or practices that are carried out without the perpetrator’s awareness that they are biased against persons or groups, based on their older age (Shore, 2007). This ageism is also known as inadvertent ageism. Language used in the media is a great example of this. Also, lack of consideration concerning built-environments such as ramps, elevators and handrails could also be an illustration of unintentional ageism. One last instance is the absence of procedures to assist old and vulnerable persons living on their own in emergency situations, such as floods and heatwaves.

All of these types of ageism can be present in the workplace, especially targeting at older workers. The effects of ageism are usually unprovoked, thus the manager must take an active role in preventing and handling these issues. If not resolved, these issues can cause a decrease in productivity, satisfaction, and can affect relationships.

Stereotyping:

One form of common ageism is stereotyping. Due to the differences in age and generation between members of the workforce, stereotyping and discrimination can occur in the workplace. Discrimination is often reflected in actions that come from people, and their institutions, that harm groups disproportionately and systematically (Gee, Pavalko, & Long, 2007). The American Heritage® Dictionary (1996) defines a stereotype as “a conventional, formulaic, and oversimplified conception, opinion, or image” (Houghton Mifflin). Discrimination and stereotyping are common between age groups.

Discrimination is a problem because it affects the mental health of employees and can cause stress, distress, and functional limitations. The unique fact about age discrimination is that compared to racial or gender discrimination it is possible for all people to experience age discrimination in their lifetime. Generally, older workers face more age discrimination than do younger workers and the attitudes towards older workers are more negative, although younger workers are also subject to age discrimination says Butler (Gee, et al., 2007).

Common age stereotypes towards older workers indicate that the older generations do not have a good grasp of the changing world. Younger workers believe that older workers are unmoving and set in their ways, thus behind in diversity issues, proficiency in technology, pop culture, and social norms. On the other hand, older workers view younger workers as inexperienced and incapable of holding management positions. It is challenging for some older workers to defer to a younger boss (Sridharan, 2007).

Some stereotypes are true, such as the belief that older adults are not as proficient using computers. A test was performed by Czaja and Sharit with women ages 25-70 per-forming computer-interactive tests. The younger women completed the task much more efficiently and had fewer errors than the older adults (Hedge, Borman, & Lammiein, 2006). Although younger workers may be more proficient at tasks such as using computer, it is true that younger workers simply do not have the work experience that older workers do.

Given these stereotypes and this discrimination, managers are some-times swayed in their hiring decisions. Luckily for workers, primarily older adults, the Age Discrimination in Employment Act (ADEA) was enacted in 1967 to prevent such barriers in hiring and job security (Podgers, 2007). In 2003, 52-year-old Roger Kight was wrongfully fired from his job at Auto Zone as a result of age discrimination, though the reason given was that he partook in abusive behavior. He had always received exemplary performance reviews and there was no suitable explanation for his termination. Kight’s boss commonly referred to him as “old man” and “old fart” and generally put down him and other older employees. When Kight took his case to court, he won and was awarded $220,000 (Danaher, 2007).

Some firms have mandatory retirement policies, but as time goes on and workers wish to work past the “normal” retirement age, many of these policies are being rescinded. The American Bar Association (ABA) is pushing for law firms to follow suit, as many firms still enforce a norm of retiring at age 65. Mark Alcott, of the New York bar, comments that “mandatory age-based retirement has largely disappeared from the commercial realm in the United States, but it continues in the legal profession as an anomaly” (Podgers, 2007, p. 63). It is a good idea that firms are encouraging workers to remain as long as they wish, but this can also open the door for more opportunities for age discrimination cases against older workers.

It is important to realize that older workers have a great deal to contribute to an organization. At “Because Experiential Marketing”, management believes that older workers bring different skills to advertising campaigns which can be useful to the company. They also realize that sorpe products require older adults demonstrate them because they are often more successful in interacting with an audience (Hemsley, 2007). Age discrimination and stereo-types can hinder relationships in the workplace and ultimately affect productivity. For this reason, it is important to identify and eliminate these behaviors and ideas. Legislature, such as the ADEA, prevents age discrimination to some degree, but it is up to the manager to see that it does not occur. Problems related to stereotyping, ageism and discrimination tend to arise in the workplace; other issues, such as health and financial challenges, are brought to the workplace by individual workers.

Problems Caused by Personal Characteristics:

Robson and Hansson (2007) completed two studies that involved 265 participants. These participants were asked a range of questions in order to assess the content and range of strategies, used by employees to age successfully in the workplace. For the second study, the authors made this conjecture; “Predictors relating to success, both in terms of work productivity as well as successful aging in general, can be organized into two general categories: personal characteristics and organizational characteristics” (Robson & Hansson, 2007, p. 337).

Health is obviously a personal characteristic that can affect successful aging. As people age, they tend to encounter an increasing amount of health problems. Ability also plays a part in successful aging, as it goes hand-in-hand with health. Thus, as one experiences more health problems, their ability goes down which ultimately affects productivity. If we assume this to be true, serious health problems, which are threats to workers’ abilities, can decrease one’s motivation and thus, one’s work productivity (Robson & Hansson, 2007). As health affects abilities, it can affect older workers’ decisions about employment. Health can influence a worker’s feelings towards the meaning of work; it can either keep them in, or bring them back to, the labor force or push them into retirement (Robson & Hansson, 2007; Smyer & Pitt-Catsouphes, 2007; Szlnovacz & Davey, 2005). The Employee Benefits Research Institute (2004) reports that 35 percent of retirees who leave the workforce earlier than expected do so as a result of health conditions.

Many researchers have found these links between health and retirement. Over the last fifty years, there have been two important transformations that have affected these links. The first is simply that the percentage of jobs that require physically demanding work has decreased (Smyer & Pitt-Catsouphes, 2007). This can easily be seen in factories and other manufacturing jobs, where the use of robotics and other technology take the strain of the human body. The second transformation is that greater proportions of people in their late-midlife and senior years will be healthier when compared to those in earlier generations (Henretta, 2000). This again, is happening due to increased technology and science knowledge. Science has given us new medicines over the years that help treat our illnesses. New cures have come out in the last fifty years that have increased the survival rate of some diseases. All of this leads to healthier people, and healthier workers.

While health-related problems can push a worker out of the labor force, financial factors can force a worker to remain at a job, even after planned retirement age. Older workers must analyze their financial resources, and their assessment can influence their retirement decisions (Smyer & Pitt-Catsouphes, 2007). A 2002 survey asked older people when they intended to retire based on given time spans. Of those respondents who answered that they did not plan to retire in the next five years, two-thirds attributed financial needs as a major reason for not doing so (Parkinson, 2002). A large part of an older worker’s financial need comes from health care: With today’s rising costs of living, especially the costs of health care coverage, older workers have a great deal to worry about financially (Smyer & Pitt-Catsouphes, 2007). “The Employee Benefits Research Institute (2004) has found that 43 percent of workers who indicated that they plan to work during ‘retirement’ think they will do so in order to keep health and other benefits,” (Smyer & Pitt-Catsouphes, 2007, p. 25). Health is not the only cause of problems in an organization.

Organizational Characteristics:

One main characteristic of the organization that can cause problems, not just with older workers, but also with all workers, is organizational climate. Robson and Hansson (2007) define this as “employees’ shared perceptions of both formal and informal organizational policies, practices, and procedures” (p. 338). They say that this climate, or shared group perception, has been shown to be a major factor when analyz-ing job performance and employee outcomes. One study showed that an organization’s climate affected job performance, psychological well-being, and withdrawal behaviors (Robson & Hansson, 2007).

Technology is another organizational factor that can affect the outcomes an older worker gets from a job. Older workers may often lack the skills to utilize personal computers and various programs effectively, since they did not grow up with them. Willis writes (2006), “the proportion of elders in the workforce is anticipated to increase in the future, and, with this increase will come a need to provide opportunities for updating technology skills and learning new skills, including e-Learning venues specifically designed for the needs of the older learner.” (p. 45). She explains before that, “e-learning has been defined as learning experiences delivered or enabled by electronic technology” (Willis, 2006, p. 44). In addition to a manager interceding on behalf of employees facing these issues, legislation has been passed to further protect employees.

Barriers Encountered:

Evidence has shown that the Age Discrimination in Employment Act (ADEA) has bolstered employment of older workers; however, many stereotypes and other barriers to employment persist (Dennis, 2007). For example, bias in hiring is the most prevalent form of age discrimination in the workplace, yet only about 10 percent of age claims filed with the Equal Employment Opportunity Commission (EEOC) in 2004 were related to hiring (Embrace the aging workforce, 2007). This statistic suggests that most complaints are unreported, perhaps because age discrimination in the employment process is difficult to prove. Credentials prove each group of persons as equally qualified. However, there are stereotypical perceptions that the older workers are more resistant to change, less motivated to keep up with the technology, less creative, and less capable of handling stressful situations, which alter the perceptions among age groups (Embrace the aging workforce(2007).

Lack of effective enforcement bu the EEOC is a long-standing problem. In 2002, the EEOC filed only 29 lawsuits out of 19,921 age discrimination charges brought to court(EEOC, 2006a; EEOC 2007b). Since the EEOC litigates only a small number of cases, enforcement becomes the responsibility of individuals, who must hire a private attorney or law firm to pursue their case. Individuals are often discouraged with this because of the cost and the burden of evidence placed upon them by the federal courts. This in turn discourages them from even filind lawsuits.

Another barrier is the perception of age discrimination as an economic issue and not a fundamental civil right concern (Johnson, 2007; Shore, 2004). Freedom from discrimination due to race and gender is considered civil right guaranteed for all individuals, with violation t=of this right typically denounced and prompting corrective action. This is not the case with age discrimination. Many people believe the myth that age is a good predictor of performance and that performance predictably declines with age. (Dennis, 2007). Moreover, Title 7 of the Civil Rights Act both allow compensatory or punitive damages – neither of which are allowed under ADEA(Dennis, 2007, p. 87)

In the past, age discrimination claims could only be made adverse tratment and did not  protect against treatment and did not protect against adverse impact(Johnson, 2007). Other federal antidiscrimination legislation(Title 7 and ADA) covers adverse impact With disparate impact claims, the plaintiff is not required to prove discriminatory intent but only unjustified discriminatory effect (Dennis, 2007). In fact, the Supreme Court once ruled the disparate-impact theory could be applied in age discrimination cases. This ruling lowers the burden of proof necessary for employees to claim age discrimination, increases the scope of the protection of older workers, and forces employers to scrutinize and defend all of their employment policies in relation to age discrimination (Ageism the new sexism, 2004; Dennis, 2007 & Shore, 2004).

Employers React:

There is no However, there are stereotypical perceptions that the older workers are more resistant to change, less motivated to keep up with new technology, less creative, and less capable of handling stressful situations, which alter the perceptions among age groups (Embrace the aging workforce, 2007). There are, however, many ideas that may help employers better understand and accommodate the aging workforce. With the Baby Boomers nearing retirement age, the problem is becoming increasingly visible to employers. These employers see that a significant proportion of their workforce may retire in the next five to ten years and that if they are not prepared, they could run into a human-capital crisis (Pitt-Catsouphes, 2007).

Pitt-Catsouphes (2007) gives two reasons why employers have failed to start planning for the aging workforce. The first is because not all employers need to address the aging workforce in their particular organization. The second reason includes more traditional barriers to change. These barriers include com-mon discomfort with new ways and approaches, workplace cultures or norms that resist change, and a lack of understanding of the benefits that can be brought on by change.

One of the key steps for managers to respond to the aging workforce is to know their workforce demographics. One can obtain key information through demographics and it will help draw attention to what the effects of an aging workforce may be on one’s organization. The three main managerial efforts that will help increase an organization’s age diversity include efforts to recruit, efforts to retain and engage, and efforts to promote (Pitt-Catsouphes, 2007). T

he “efforts to recruit” mainly deal with an organization’s hiring process. An organization’s “efforts to retain and engage” is how they keep their employees from retiring or moving to a different company. Training programs or continuous development programs for older workers play an important role for organizations. There are different ways in which companies can implement these training programs. Most of these relate back to technological problems and would be computer/technology training pro-grams (Willis, 2006). Promotions and other things, such as employee benefits, can increase a person’s commitment to an organization and fall under “efforts to promote” (Pitt-Catsouphes, 2007). According to Pitt-Catsouphes (2007):

Organizations that truly value diversity demonstrate the conviction that workforce diversity can result in tangible benefits to organizations and that the benefits of diversity far exceed any challenges associated with the differences when managed in a thoughtful manner (p. 53).

Conclusion:

Aging in the workplace is a problem that is unavoidable and is becoming more prevalent The workforce is made up of people from many different generations who span a wide range of ages. Each generation/ age group has their own attitudes, beliefs, and values shaped by the culture in which they grew up. Their personal systems are different, which has an effect on their behaviors in the workplace. Problems can arise when one age group cannot relate to another, based on these differences.

Different forms of ageism, including stereotyping and discrimination, are problems associated with aging in the workplace. Older workers tend to encounter these problems more often, but all ages can be affected. One possible reason for the retirement of a worker may be that they want to avoid discrimination as they are becoming older, even though they may enjoy their job still.

Older workers can also face problems due to personal factors. These factors include health problems and the financial situation that the worker faces. Organizational factors also affect the older worker. Organizational climate affects a workers’ perception about an organization’s policies. The level of technology used by a company may cause older workers to “fall behind the curve” because younger generations are very fluent in current technology. Hiring biases can also keep older workers out of the workforce.

It is up to each individual organizations to decide how they will address the above problems affecting their workers. Productivity and welfare may suffer when these problems are prevalent Becoming informed about the make-up of one’s workforce and how these age problems can affect the organization is the first step to counter these problems. The next steps are to actually prevent future problems and thwart existing problems. It is important to remember that happy workers are productive workers.

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