Organisations and Leadership of the Future 2: ‘Human Dynamics’

In our previous article on ‘The Organisation and Leadership of the Future’, we discussed the larger system we are part of and the direction in which this system is evolving, with a view to better anticipating the future; and whilst doing so, we drew on K-Waves, a theory first proposed by the Russian scientist and economist Kondratieff and subsequently developed through the contributions of various scholars. In this article, however, we shall endeavour to understand ‘Human Dynamics’ – another key parameter that will influence the future and, consequently, transform our understanding of organisations and leadership – whilst bearing in mind that there is, in a sense, a chicken-and-egg relationship between human dynamics and system dynamics. 

The American psychologist Dr Jean Twenge states: ‘People resemble the era in which they live more than they resemble their fathers.’ Significant national and international events experienced by individuals during their youth lead to the formation of a shared consciousness and perception. This shared consciousness and perception can shape future behaviour, attitudes, tendencies and preferences. Consequently, each new generation possesses distinct characteristics, such as its values, perceptions, attitudes and behaviours, as well as different perspectives and its own strengths and weaknesses. Whilst the spirit of each era generally fosters the emergence of people sharing certain common traits, these traits may manifest in varying degrees within each individual. An important underlying reason for this is that, whilst external factors affect individuals to varying degrees in different contexts, what is even more significant is that the emotions, thoughts and behaviours each individual develops in response to the events they experience differ due to the uniqueness of each person. Mevlana’s statement, “I learnt to think. Then I learnt to think within frameworks. Then I learnt that healthy thinking means thinking by breaking down those frameworks,” This statement offers an important insight into the need to approach topics by placing them within the frameworks of terminology and methodology in order to analyse them, but also highlights that, in order to think clearly, we must free our thinking from these frameworks after carefully analysing the issues. By drawing on key insights from generational theory to profile the future of the business world, we can aim to achieve a synthesis by setting aside all these reductionist approaches and their associated patterns when it comes to healthy thinking.

In short, if we look at the generations still active in the workforce, although their proportions are very low, we first see the ‘Baby Boomers’ generation. Named after the approximately one billion babies born between 1940 and 1960 following the Second World War, the most distinctive characteristics of this generation are that they are content and emotional, possess a strong sense of loyalty, respect for authority, a willingness to use technology when necessary, and a strong attachment to their traditions and culture.

Members of Generation X prioritise individualism, are sensitive to social issues, are combative, think globally, are dedicated to their work whilst taking care to maintain a work-life balance, and display a tolerant and security-oriented approach towards different lifestyles and cultural diversity. For the Baby Boom generation, the philosophy of ‘living to work’ has evolved into the Generation X philosophy of ‘working to live’.

Generation Y takes its name from the letter ‘Y’ in the English word ‘WHY’. Whilst seeking the answer to the question ‘Why?’, they are reluctant to undertake tasks in the workplace whose purpose they do not understand. They are more tech-savvy than Generation X. Two-thirds of this generation’s members were introduced to computers before the age of five. They are the first generation to have grown up with smartphones, laptops and social media. They rely more heavily on technology when communicating. Some organisations have even had to write ‘walk to talk’ on their walls to encourage face-to-face communication in the workplace. Digital technology has a decisive influence on this generation’s characteristics, values and expectations.

Among the most important characteristics of Generation Y are that they are individualistic, value their freedom and are entrepreneurial. Whilst they are clear-headed about what they do not want, they struggle to decide what they do want. They are a generation that does not enjoy work as much as previous generations and believes they have to work simply to make a living. They are individuals who live for the present and do not make long-term plans. Another characteristic of this generation—which is not particularly fond of rules or authority, consumes more rapidly and behaves in a dissatisfied manner—is their high self-confidence. However, this does not always mean that their self-reliance is equally high. They greatly enjoy being the centre of attention. Their goals are ambitious.

Today, Generation Y is seen as the generation that numerically dominates the business world. The generations expected to dominate the workplace in the near future are Generation Y and Generation Z, whilst Generation Alpha is seen as the dominant force in the distant future. 

The most significant factor distinguishing Generation Z from other generations is that they were born and raised with digital technology. Generation Z are the children of Generations X and Y; they place greater value on their parents’ views than other generations do, and are inclined to take their parents’ opinions seriously and listen to them. Alongside Generation Y, they are the most active social media users worldwide.

They cannot imagine life without the internet. They use smart devices with a high level of proficiency. Using smart devices, they can listen to music, write blogs, check their emails, browse social media networks whilst messaging, and watch films, all at the same time. Generation Z is capable of working in both the real and virtual worlds. They can move swiftly and seamlessly between these two worlds. They can easily access any data they require and share it. In their professional lives, they are drawn to roles that are far removed from routine, with a high degree of creativity and a strong focus on technological and digital content. They are inclined to prefer not working for companies where they do not want to work, where they cannot establish a meaningful connection, where they are not paid a salary commensurate with the time they invest – their most valuable resource – or where there are no opportunities for self-development and fulfilment.

They possess a high capacity for accessing information. They do not merely consume information; they also possess the ability to produce and control it. They are the generation with the highest level of hand-eye-ear coordination and motor skills amongst all generations. Despite their high hand-eye-ear coordination, their attention spans are considerably shorter when compared to other generations. 

Compared to previous generations, their attachment to an ideology, national values, tradition, religions and even their own distinct identities is low; however, they embrace multi-identity to a greater extent than previous generations. In digital environments, they may prefer to exist under identities that even their close relatives would not recognise, distinct from their real-life identities. On the other hand, their low attachment to identity and the elements that constitute it supports them in forming a higher-order identity, enabling them to see themselves as ‘global citizens’ and ‘part of the universe’. Similarly, whilst they feel less attachment to the organisations they belong to than the previous generation, they may prefer to be part of structures that support their personal development, offer a sense of purpose and enable them to fulfil their potential. The environmental awareness and approaches to sustainability for both people and the environment brought about by the 6th Wave, along with the blurring and transcending of boundaries between individual and social well-being, will increase Generation Z’s expectations of organisations in terms of social well-being. Whilst the Baby Boomers’ question was ‘What can I contribute to the organisation?’, and for Generation X it became ‘What can I contribute to the organisation to set myself apart from others?’, and for Generation Y it shifted to ‘What can the organisation offer me?’, this question has evolved into “What can my organisation contribute to the environment and humanity?” for Generation Z.

Whilst Generation Z’s expectations of organisations are pushing them to become more ‘social enterprises’, their expectations of leadership are also set to transform today’s understanding of leadership. With this generation, leadership will become an approach expected more from managers within organisations than from religious figures or politicians.  It is thought that they will want to see a ‘facilitator’ rather than a manager, to be able to communicate in a sincere and straightforward manner—as in every area of life—and to have servant leaders who guide them through a coaching style in their pursuit of self-realisation and finding their purpose in life. It is anticipated that reverse mentoring initiatives within organisations will increase further with this generation.

Turning to the Alpha generation, the latest generation, and considering the technological developments of their era alongside their characteristic traits, it is clear that, as of 2021, the education system must undergo a fundamental transformation to enable Alphas—who are all currently students and have not yet entered the workforce—to adapt to their era. Researchers believe that, due to the characteristics of the Alpha generation, traditional teaching methods lack the capacity to meet the intellectual, social and emotional needs of this new group of students. In particular, it is thought that teachers lacking technological knowledge will face serious challenges with the Alpha generation. 

Members of the Alpha generation have, from the earliest years of their lives, become fully integrated with technology—which is an integral part of their daily lives—and the digital world, which influences their lifestyles and behaviour. The Alpha Generation possesses characteristic traits such as an entrepreneurial spirit, creativity, dynamism, a disregard for rules, a dislike of authority, a strong attachment to independence and a dependence on technology. It is thought that members of this generation will largely opt for technology-related professions, exhibit leadership-oriented behaviour, and – as they do not enjoy face-to-face communication – will meet all their personal and professional needs through the digital world. New professions such as YouTubers, bloggers and influencers have already become quite popular amongst the Alpha generation. Indeed, some members of this generation are generating a substantial income through these platforms. 

In the future, the issue of authority may come to the fore, given that the Alpha generation dislikes rules and authority. How members of this generation will behave when communicating with their managers within hierarchically structured organisational environments is a key issue. For this reason, organisational leaders need to focus on their management styles, having developed the necessary competencies—particularly in ‘leading and coaching’—during the period of managing Generation Z, and having internalised a servant leadership approach to the point where it has become part of the organisational culture. 

With the ‘servant leadership’ approach expected of Generation Z managers, in the 6th wave’s effects will be more pronounced in the Alpha generation; in a future where matter is highly manipulable by humans and post-human examples are gradually transitioning from laboratory-scale to observable instances in daily life, spiritual (inner) needs are set to increase, the relationship with the material world will be liberated from the context of need, and leaders who are more meaning-oriented, more inclusive, unifying and more spiritual will emerge, taking on the task of ‘producing leaders for the world’—a responsibility previously shouldered by the preceding generation and by companies. 

Pınar Ersoy Özdoğru