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Managing Generational
Differences in a Utility's
Workforce
Presentation at
NYSAWWA Water Event and Expo 2014
May15, 2014 at the Rochester Riverside
Convention Center, Rochester, NY
1 1
Presenters
Frank Fletcher, Ed.D./MBA
 1235 Alexander Road, Crittenden, KY 41030
 (859) 903-9800 – iiiorg@twc.com
Roy W. Mundy II, P.E.
 Eastern US Region Sales Engineer Marketing
and Specifications Department
 McWane DI Pipe Group
 (859) 361-8585
 roy.mundy@mcwane.com
McWane Ductile
2
Bond . . . James Bond
3
http://www.007james.com/articles/who_played_james_bond_part_2.php
4
1962-1967
Sean Connery
1995-2002
Pierce Brosnan
1973-1985
Roger Moore
2006-2012
Daniel Craig
AWWA 2014 State of
the Water Industry Report
 “Overall, how prepared do you think the water sector is to
address issues related to talent attraction and retention in
the next five years?”
 Only 1 per-cent indicated that the water industry was
fully prepared to address issues related to talent
attraction and retention in the next five years
 15 percent thought the industry not at all prepared
 35 percent thought it was only slightly prepared.
2014 AWWA State of the WATER INDUSTRY Report
5
AWWA 2014 State of
the Water Industry Report
 “Overall, how prepared do you think the water sector is to cope with
any expected retirements in the next five years?”
 Only 1 percent of 2014 SOTWI respon-dents indicated that
the water industry was fully prepared to cope with any
expected retirements in the next five years while
 12 percent thought the industry not at all prepared and
 30 per-cent thought it was only slightly prepared. (AWWA,
2014)
2014 AWWA State of the WATER INDUSTRY Report
6
Possible financial impact on Operations
 Operational costs directly affect the bottom line
through a wide variety of forces, including:
 Lost revenue due to extended outages
 Penalties from regulatory agencies, higher
maintenance costs; and
 Increased frequencies of forced outages and
accidents caused by human error as highly
experienced operators retire (since human error rates
would be expected to significantly decrease with
experience). Bruffy & Juliano (2007)
7
Possible financial impact on Productivity
 Productivity costs are being incurred over a
wide variety of areas, including:
 Increases in the duration of planned outages
as new hires gradually build the expertise and
efficiency that the current workforce has; and
 Work time lost in recovery from injuries is
expected to be much greater for older
workers. Bruffy & Juliano (2007)
8
Possible financial impact on
 Lost or delayed opportunities to take costs
out of the business are the opportunity costs of
the aging workforce, including:
 Executing performance programs that end up
costing more than budgeted and which extend
planned ROI time frames
 Internal resources may be limited and act to
prevent the performance program from ever
beginning. Bruffy & Juliano (2007)
9
Today’s Take-aways
 What generations are and how they evolve
 Causes of today’s generation gap
 Management strategies for multi-generational
workplace:
 Motivation
 Technology
 Knowledge Management
10
Generations Ketter & Taylor (2009)
Life Cycle Effect: The biological impact of aging and the changing roles
that people play as they grow older
Cohort Effect: Unique historical circumstances that impact cohort as
adolescence and young adulthood that imprint itself, producing differences
that persist even as the cohort ages.
Period Effect: The major events that are likely to have a simultaneous
impact all age groups, but have the greatest impact among the young
because values and habits are less fixed than those of other age groups.
The Generation Gap
―The term Generation Gap was used mostly to describe conflicts
between parents and children. Today, the ―Gap‖ has more of a
presence in the workplace, where employees from different
generations are finding it difficult to work side by side because their
experiences, goals and expectations are different‖.
Kogan, M. (2001)
Four distinct generations
Silent
Generation
(1928 –
1945)
Baby
Boomers
(1946 –
1964)
Generation
X (1965 –
1980)
Millennials
(After
1981)
Have conducted Five Surveys
Spring 2009: 15 companies in Central KY – 1,000 mix
audience
Spring 2011: 100 Graduate and undergraduate students at
Midway College
Fall 2012: 200 Utility Company in Central, KY
Fall 2013: 50 Surgery Nurses in Lexington, KY
Winter 2013: 800 Restaurant workers in KY, TN & GA
Key Findings
Consistent pattern of generational differences in
relations in the workplace
However, there is also overlap between the
generations in terms of support for basic issues
like job security, career advancement, and a
secure retirement
Baby Boomers Traits
 More work focused then family focused
 Loyal to the current organization & important that
organization is loyal to them
 Like to communicate in person
 Company funded retirement is important
 Comprehensive health insurance is important
 Key: Hard work and are team players
Gen X Traits
 Enjoy attending company events
 Competition among co-workers is a strong motivator
 Prefer group projects to individual projects
 Believe teams are more effective that individuals
 Having a strong voice in decision-making
 Key: Life balance and respect for
individuality
Millenials Traits
 Close supervision improve my performance
 Job security is my top priority
 Special recognition is a strong motivator
 Teams are more effective then individual efforts
 Tangible awards (trophies, plaques, and parking spaces)
strong motivators
 Key: Making a difference in the world and
respecting diversity
Significant Impacts on the Workplace
Work-style
Recognition
and Reward
Authority /
Leadership
Work /
Family
Communication
Loyalty
Technology
19
Focus on Three Areas in a
Multigenerational Workplace
Motivation
Technology
Knowledge
Management
20
Motivation
BABY BOOMERS GENERATION X GENERATION Y
WORK ETHIC & VALUES  Workaholics
 Working efficiently
 Crusading causes
 Personal fulfillment
 Desire for quality
 Questioning Authority
 Eliminate the task
 Self-reliance
 Want structure and
direction
 Skeptical
 Asking what is next
 Multitasking
 Tenacity
 Entrepreneurial
 Tolerant
 Goal oriented
LEADERSHIP STYLE  Consensual
 Collegial
 Believe everyone is the
same
 Challenging others
 Asking why
 Will be better
determined as this
generation gets older
INTERACTIVE STYLE  Team player
 Loves to have meetings
 Entrepreneurial  Participative
21
Motivation
BABY BOOMERS GENERATION X GENERATION Y
WORK AND FAMILY
LIFE
 No balance
 Work to live
 Balance  Balance
FEEDBACK AND
REWARDS
 Don’t appreciate
feedback
 Money
 Title recognition
 “Sorry to
interrupt, but
how am I
doing?”
 Believes
freedom is the
best reward
 “Whenever I want it,
at the push of a
button.”
 Meaning work
MESSAGES THAT
MOTIVATE
 “You are valued.”
 “You are
needed.”
 “Do it your
way.”
 “Forget the
rules.”
 “You will work with
other bright, creative
people.”
22
Technology
23
 Pew Research notes that today’s young are history’s first
generation of digital natives.
 The online world isn’t something they’ve had to adapt to
— it’s all they’ve ever known, and it’s their indispensable
platform for social interactions and information
acquisition.
 Take advantage of your millennial employee’s computer,
cell phone, and electronic literacy
Technology
 So how can businesses take advantage of the
tech-skills that younger workers bring?
 One effective strategy is reciprocal mentoring. Reciprocal
mentoring takes that concept a step further by creating a two-
way conversation.
 As the mentor teaches the newcomer valuable business
information, the young person can help their older colleague
master the techniques of new technology, including how to avoid
the embarrassing ―newbie‖ mistakes that inhibit a lot of
inexperienced users from participating in online activities.
24
Knowledge Transfer
 Personal dynamics and communication between source
and receiver can make or break the transfer of
knowledge, especially between generations.
 Identify where it is most vulnerable
 Evaluate current processes and practices for
transferring critical knowledge to determine how its
culture, systems, and processes enable knowledge
loss
Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1).
25
Knowledge is a Strategic
Business Issue
 Define losing knowledge as a strategic business issue,
and articulate changing workforce threats to the
management team—don’t assume they get it
 Northeast Utilities developed a five-year corporate
development program and funding plan. One of its
components is the business case for retaining critical
knowledge: to ensure that operational performance does
not suffer as a result of known workforce transitions.
Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1).
26
Knowledge Transfer Process Steps
Step 1:
Identify
and
evaluate
the
knowledge.
Step 2:
Validate
and
document
the
knowledge.
Step 3:
Publish and
share the
knowledge.
Step 4:
Transfer
and apply
the
knowledge.
Step 5:
Learn and
capture the
knowledge.
27
Channels for Knowledge Transfer
 Telling: meetings, teleconferences, mentoring
 Showing: on-the-job training, mentoring
 Background Prep: reports, guides, manuals
 Decision-Making: persuasive documents, evidence
(documents, statistics, cores, lab results, cuttings, gas
analysis, etc.)
 Sharing: e-mail, list-serves & feeds, texting
 Training: workshops, classes, webinars, presentations
Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1).
28
Essentials for Knowledge Transfer
 Create awareness in older employees of the benefits they
stand to gain, such as recognition.
 Build the human element into the process. After all, you
can’t force people with knowledge to share it, and you
certainly can’t force people who need someone else’s
knowledge to use it.
 Reciprocity and recognition are the foundation for
changing the way we transfer knowledge.
 Emerging knowledge transfer methods such as reverse
mentoring provide opportunities for behavior change in
both the source and receiver.
Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1).
29
Knowledge Transfer
 Focus on the receiver, not just the source.
Younger employees should be involved in
deciding how they want to receive knowledge.
30
Recommendations to Gen X
and Baby Boomers
 Start listening and stop assuming
 Be present on college and high school campuses.
Don’t wait until millennials show up for an
interview
 Start viewing millennials as strategic business
investments
 Scrap ―do as I say, not as I do‖
 Learn to tap into millennials potential
Hain, R. (2013, July 30)
31
Recommendations to
Millennials
 Having perspective is important
 Be patient
 Look at relationships and communication
differently
 Convey respect while pursuing your goals
 Pursue mentors and advocates
Hain, R. (2013, July 30)
32
References
 2014 AWWA State of the WATER INDUSTRY Report. (2014, January 1). . Retrieved May 11, 2014,
from
http://www.awwa.org/portals/0/files/resources/water%20utility%20management/sotwi/awwasot
wireport2014.pdf
 Bernstein, L., Alexander, D., & Alexander, B. (2008). GENERATIONS: HARNESSING THE
POTENTIAL OF THE MULTIGENERATIONAL WORKFORCE. The Catalyst, 37(3), 17-22. Retrieved
from http://search.proquest.com/docview/221737387?accountid=458
 Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008,
July 1). Retrieved May 10, 2014, from http://www.conferenceboard.ca/e-
library/abstract.aspx?did=2663
 Bruffy, P., & Juliano, J. (2007). Addressing the aging utility workforce challenge. Power
Engineering, 111(6), 144. Retrieved from
http://search.proquest.com/docview/221058588?accountid=458
 Combating the utility workforce perfect storm. (2008, Jun 27). PR Newswire Retrieved from
http://search.proquest.com/docview/453353123?accountid=458
 Hain, R. (2013, July 30). Bridging the Generation Gap in the Workplace. The Huffington Post.
Retrieved May 11, 2014, from http://www.huffingtonpost.com//randy-hain/bridging-the-
generation-g_b_3677405.html?&session-id=99e65938abba1e839674fddde0a151f5
 Kogan, M. (2001). Talking about four generations. Retrieved October 28, 2013 from
http://www.govexec.com/voices/marcela-kogan/3075/
33

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Managing Generational Differences in a Utility's Workforce

  • 1. Managing Generational Differences in a Utility's Workforce Presentation at NYSAWWA Water Event and Expo 2014 May15, 2014 at the Rochester Riverside Convention Center, Rochester, NY 1 1
  • 2. Presenters Frank Fletcher, Ed.D./MBA  1235 Alexander Road, Crittenden, KY 41030  (859) 903-9800 – iiiorg@twc.com Roy W. Mundy II, P.E.  Eastern US Region Sales Engineer Marketing and Specifications Department  McWane DI Pipe Group  (859) 361-8585  roy.mundy@mcwane.com McWane Ductile 2
  • 3. Bond . . . James Bond 3
  • 5. AWWA 2014 State of the Water Industry Report  “Overall, how prepared do you think the water sector is to address issues related to talent attraction and retention in the next five years?”  Only 1 per-cent indicated that the water industry was fully prepared to address issues related to talent attraction and retention in the next five years  15 percent thought the industry not at all prepared  35 percent thought it was only slightly prepared. 2014 AWWA State of the WATER INDUSTRY Report 5
  • 6. AWWA 2014 State of the Water Industry Report  “Overall, how prepared do you think the water sector is to cope with any expected retirements in the next five years?”  Only 1 percent of 2014 SOTWI respon-dents indicated that the water industry was fully prepared to cope with any expected retirements in the next five years while  12 percent thought the industry not at all prepared and  30 per-cent thought it was only slightly prepared. (AWWA, 2014) 2014 AWWA State of the WATER INDUSTRY Report 6
  • 7. Possible financial impact on Operations  Operational costs directly affect the bottom line through a wide variety of forces, including:  Lost revenue due to extended outages  Penalties from regulatory agencies, higher maintenance costs; and  Increased frequencies of forced outages and accidents caused by human error as highly experienced operators retire (since human error rates would be expected to significantly decrease with experience). Bruffy & Juliano (2007) 7
  • 8. Possible financial impact on Productivity  Productivity costs are being incurred over a wide variety of areas, including:  Increases in the duration of planned outages as new hires gradually build the expertise and efficiency that the current workforce has; and  Work time lost in recovery from injuries is expected to be much greater for older workers. Bruffy & Juliano (2007) 8
  • 9. Possible financial impact on  Lost or delayed opportunities to take costs out of the business are the opportunity costs of the aging workforce, including:  Executing performance programs that end up costing more than budgeted and which extend planned ROI time frames  Internal resources may be limited and act to prevent the performance program from ever beginning. Bruffy & Juliano (2007) 9
  • 10. Today’s Take-aways  What generations are and how they evolve  Causes of today’s generation gap  Management strategies for multi-generational workplace:  Motivation  Technology  Knowledge Management 10
  • 11. Generations Ketter & Taylor (2009) Life Cycle Effect: The biological impact of aging and the changing roles that people play as they grow older Cohort Effect: Unique historical circumstances that impact cohort as adolescence and young adulthood that imprint itself, producing differences that persist even as the cohort ages. Period Effect: The major events that are likely to have a simultaneous impact all age groups, but have the greatest impact among the young because values and habits are less fixed than those of other age groups.
  • 12. The Generation Gap ―The term Generation Gap was used mostly to describe conflicts between parents and children. Today, the ―Gap‖ has more of a presence in the workplace, where employees from different generations are finding it difficult to work side by side because their experiences, goals and expectations are different‖. Kogan, M. (2001)
  • 13. Four distinct generations Silent Generation (1928 – 1945) Baby Boomers (1946 – 1964) Generation X (1965 – 1980) Millennials (After 1981)
  • 14. Have conducted Five Surveys Spring 2009: 15 companies in Central KY – 1,000 mix audience Spring 2011: 100 Graduate and undergraduate students at Midway College Fall 2012: 200 Utility Company in Central, KY Fall 2013: 50 Surgery Nurses in Lexington, KY Winter 2013: 800 Restaurant workers in KY, TN & GA
  • 15. Key Findings Consistent pattern of generational differences in relations in the workplace However, there is also overlap between the generations in terms of support for basic issues like job security, career advancement, and a secure retirement
  • 16. Baby Boomers Traits  More work focused then family focused  Loyal to the current organization & important that organization is loyal to them  Like to communicate in person  Company funded retirement is important  Comprehensive health insurance is important  Key: Hard work and are team players
  • 17. Gen X Traits  Enjoy attending company events  Competition among co-workers is a strong motivator  Prefer group projects to individual projects  Believe teams are more effective that individuals  Having a strong voice in decision-making  Key: Life balance and respect for individuality
  • 18. Millenials Traits  Close supervision improve my performance  Job security is my top priority  Special recognition is a strong motivator  Teams are more effective then individual efforts  Tangible awards (trophies, plaques, and parking spaces) strong motivators  Key: Making a difference in the world and respecting diversity
  • 19. Significant Impacts on the Workplace Work-style Recognition and Reward Authority / Leadership Work / Family Communication Loyalty Technology 19
  • 20. Focus on Three Areas in a Multigenerational Workplace Motivation Technology Knowledge Management 20
  • 21. Motivation BABY BOOMERS GENERATION X GENERATION Y WORK ETHIC & VALUES  Workaholics  Working efficiently  Crusading causes  Personal fulfillment  Desire for quality  Questioning Authority  Eliminate the task  Self-reliance  Want structure and direction  Skeptical  Asking what is next  Multitasking  Tenacity  Entrepreneurial  Tolerant  Goal oriented LEADERSHIP STYLE  Consensual  Collegial  Believe everyone is the same  Challenging others  Asking why  Will be better determined as this generation gets older INTERACTIVE STYLE  Team player  Loves to have meetings  Entrepreneurial  Participative 21
  • 22. Motivation BABY BOOMERS GENERATION X GENERATION Y WORK AND FAMILY LIFE  No balance  Work to live  Balance  Balance FEEDBACK AND REWARDS  Don’t appreciate feedback  Money  Title recognition  “Sorry to interrupt, but how am I doing?”  Believes freedom is the best reward  “Whenever I want it, at the push of a button.”  Meaning work MESSAGES THAT MOTIVATE  “You are valued.”  “You are needed.”  “Do it your way.”  “Forget the rules.”  “You will work with other bright, creative people.” 22
  • 23. Technology 23  Pew Research notes that today’s young are history’s first generation of digital natives.  The online world isn’t something they’ve had to adapt to — it’s all they’ve ever known, and it’s their indispensable platform for social interactions and information acquisition.  Take advantage of your millennial employee’s computer, cell phone, and electronic literacy
  • 24. Technology  So how can businesses take advantage of the tech-skills that younger workers bring?  One effective strategy is reciprocal mentoring. Reciprocal mentoring takes that concept a step further by creating a two- way conversation.  As the mentor teaches the newcomer valuable business information, the young person can help their older colleague master the techniques of new technology, including how to avoid the embarrassing ―newbie‖ mistakes that inhibit a lot of inexperienced users from participating in online activities. 24
  • 25. Knowledge Transfer  Personal dynamics and communication between source and receiver can make or break the transfer of knowledge, especially between generations.  Identify where it is most vulnerable  Evaluate current processes and practices for transferring critical knowledge to determine how its culture, systems, and processes enable knowledge loss Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1). 25
  • 26. Knowledge is a Strategic Business Issue  Define losing knowledge as a strategic business issue, and articulate changing workforce threats to the management team—don’t assume they get it  Northeast Utilities developed a five-year corporate development program and funding plan. One of its components is the business case for retaining critical knowledge: to ensure that operational performance does not suffer as a result of known workforce transitions. Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1). 26
  • 27. Knowledge Transfer Process Steps Step 1: Identify and evaluate the knowledge. Step 2: Validate and document the knowledge. Step 3: Publish and share the knowledge. Step 4: Transfer and apply the knowledge. Step 5: Learn and capture the knowledge. 27
  • 28. Channels for Knowledge Transfer  Telling: meetings, teleconferences, mentoring  Showing: on-the-job training, mentoring  Background Prep: reports, guides, manuals  Decision-Making: persuasive documents, evidence (documents, statistics, cores, lab results, cuttings, gas analysis, etc.)  Sharing: e-mail, list-serves & feeds, texting  Training: workshops, classes, webinars, presentations Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1). 28
  • 29. Essentials for Knowledge Transfer  Create awareness in older employees of the benefits they stand to gain, such as recognition.  Build the human element into the process. After all, you can’t force people with knowledge to share it, and you certainly can’t force people who need someone else’s knowledge to use it.  Reciprocity and recognition are the foundation for changing the way we transfer knowledge.  Emerging knowledge transfer methods such as reverse mentoring provide opportunities for behavior change in both the source and receiver. Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1). 29
  • 30. Knowledge Transfer  Focus on the receiver, not just the source. Younger employees should be involved in deciding how they want to receive knowledge. 30
  • 31. Recommendations to Gen X and Baby Boomers  Start listening and stop assuming  Be present on college and high school campuses. Don’t wait until millennials show up for an interview  Start viewing millennials as strategic business investments  Scrap ―do as I say, not as I do‖  Learn to tap into millennials potential Hain, R. (2013, July 30) 31
  • 32. Recommendations to Millennials  Having perspective is important  Be patient  Look at relationships and communication differently  Convey respect while pursuing your goals  Pursue mentors and advocates Hain, R. (2013, July 30) 32
  • 33. References  2014 AWWA State of the WATER INDUSTRY Report. (2014, January 1). . Retrieved May 11, 2014, from http://www.awwa.org/portals/0/files/resources/water%20utility%20management/sotwi/awwasot wireport2014.pdf  Bernstein, L., Alexander, D., & Alexander, B. (2008). GENERATIONS: HARNESSING THE POTENTIAL OF THE MULTIGENERATIONAL WORKFORCE. The Catalyst, 37(3), 17-22. Retrieved from http://search.proquest.com/docview/221737387?accountid=458  Bridging the Gaps: How to Transfer Knowledge in Today's Multigenerational Workplace. (2008, July 1). Retrieved May 10, 2014, from http://www.conferenceboard.ca/e- library/abstract.aspx?did=2663  Bruffy, P., & Juliano, J. (2007). Addressing the aging utility workforce challenge. Power Engineering, 111(6), 144. Retrieved from http://search.proquest.com/docview/221058588?accountid=458  Combating the utility workforce perfect storm. (2008, Jun 27). PR Newswire Retrieved from http://search.proquest.com/docview/453353123?accountid=458  Hain, R. (2013, July 30). Bridging the Generation Gap in the Workplace. The Huffington Post. Retrieved May 11, 2014, from http://www.huffingtonpost.com//randy-hain/bridging-the- generation-g_b_3677405.html?&session-id=99e65938abba1e839674fddde0a151f5  Kogan, M. (2001). Talking about four generations. Retrieved October 28, 2013 from http://www.govexec.com/voices/marcela-kogan/3075/ 33

Editor's Notes

  1. Bond, James Bond – when you think about the James Bond movies what actor do you think of?
  2. Who you think of may reflect your generation . . . Generational issues impact yourworkplace and are leading to misunderstandings and strife. Thisnegatively impacts employee interaction and productivity. Consequently, the entire organization suffers, as valuable time, energy, and emotions are wasted dealing with crises rather than managing the business of doing business. Differing work and life expectations can create tensions. While some disapprove of those who end their workday promptly at 5:00 p.m., those departing conversely resent the glares they receive as they walk out the door, thinking that those who stay late should get a life. Furthermore, both of these groups spend their days growing weary of those who are distracted from work finding care for their parents and fielding calls from their teenage children and plastic surgeons while on the clock
  3. As the past two slides have shown, the Water Industry is not really prepared for the dramatic workforce shifts that are emerging including an aging workforce with a large number of employees who are eligible to retire, representing a significant amount of institutional knowledge that could be lost and today’s new multi-generational workplace environment. Generational differences are real. The ideals, values, traits, goals, and characteristics held by generations are increasingly different from one another. While representative of a newer trend, these differences are substantial and play a significant role in how members of each group relate to one another. A few specific differences between generations include communication styles and expectations, work styles, attitudes about work and life, comfort with technology, views regarding loyalty and authority, and acceptance of change
  4. Understanding generational theory and how it plays out in the workplace is key to understanding worker behavior; especially because individuals’ best relate to society through their generation.Scott Keeter and Paul Taylor (2009) explain that generational differences can be the product of three different but overlapping processes of the life cycle, cohort, and period effects
  5. Since motivation is an inner force that drives individuals to accomplish goals, there is no one-size-fits all approach when motivating a workforce. Regardless of an employee’s age, managers need to be flexible. A successful multigenerational workplace respects diversity and engages each employee allowing for individual differences in motivations, working styles, communication patterns, and technological preferences to work together towards the same objectives. Managers need to understand not only where their reports are coming from, they have to also understand their own generational framework. This slide and the next summarizes various generational values and motivations in typical work situations