PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA GENERATION Z: CHALLENGES FOR MANAGEMENT AND LEADERSHIP Sergiu BĂLAN a*, Lucia Ovidia VREJA b a b The Bucharest University of Economic Studies, Romania The Bucharest University of Economic Studies, Romania ABSTRACT The paper presents, in a comparative manner, four generations of individuals active on the labour market, focusing on their own subcultures. Briefly exposing the main characteristics of each generation, namely Baby Boomers, Generation X, Generation Y and Generation Z, the paper emphasizes the values and work ethic of the latter. Individuals belonging to the Generation Z manifest a series of unique values and attitudes towards work, which might hinder their integration in the workplace if not correctly known. Their particular work values pose serious challenges to the management and leadership of any organisation, therefore managing the workforce belonging to Generation Z requires a proper understanding of their characteristics, attitude towards work, professional goals and expectations. KEYWORDS: Baby Boomers, Generation X, Generation Z, Leadership, Management, Millennials, Subcultures. 1. INTRODUCTION In common language, the concept of generation is primarily used to define and differentiate various social groups based on their age and to place individuals within a certain socio-historical timeframe, although in social sciences there is a long and solid terminology-related debate and confusion surrounding the term (Pilcher, 1994). Nevertheless, in defining and characterizing generations, age is not the only significant variable, given that a generation, as a social phenomenon, also points out to “certain definite modes of behaviour, feeling and thought” (Mannheim, 1952:291). In other words, social generations are bred and influenced by their specific geography, time and most especially culture, and from this point of view they are rather seen as subcultures. From a sociological point of view, a subculture is a category of individuals who commonly share a distinct type of values, norms, beliefs, attitudes, lifestyles, even language, which differentiate them from the majority of people, without necessarily being in conflict with the dominant culture (Brinkerhoff et al., 2011). In its most extensive meaning, a subculture refers to distinctions between categories of individuals based on a wide variety of characteristics, from ethnicity or race to religion, region of provenance, location, age (Kendall, 2012). Generations, with their specific values, norms, lifestyles, attitudes and, in general, ways of doing things, might be considered subcultures and acting in accordance with the predominant standards and practices, as well as meeting the expectations of the society at large might be quite problematic and a source of considerable pressure for certain generations at a given period of time (Tischler, 2011). Although the phenomenon of generations has constituted an important object of study in social sciences for a long period of time (Mannheim, 1952), at present there is a major interest in * Corresponding author. E-mail address: sergiu.balan@man.ase.ro 879 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA determining the basic differences between current and older generations in terms of their participation to the labour market in particular and their adaptation to the “digital era” realities in general (Twenge, 2014; Twenge, 2017). Based on this interest of various researchers and experts in diverse fields of study, the current paper reviews the relevant literature regarding the classification and characteristics of each generation of the last decades in an attempt to identify the problems posed by Generation Z to management and leadership in organizations. Although theoretical, the paper draws upon a large body of empirical research presented in the literature dealing with the task of managing and leading the generations, especially Generation Z. The retirement of older generations and the entry of the Generation Z into the labour market, together with the technological provocations of the digital era, are serious challenges for the managers and leaders of current-day organizations. 2. DEFINING GENERATIONS As poetically stated by the famous English novelist George Orwell, “every generation imagines itself to be more intelligent than the one that went before it, and wiser than the one that comes after it” (Bloom, 2007:124). Although this is rather an “illusion”, according to the same author, it is nevertheless obvious that there are differences between generations, especially in terms of attitudes towards work, conformity to group norms and obedience to authority. In general, it is agreed that since the second half of the last century until the beginning of the 21 st century four generations have been and are active on the labour market, namely: the “Baby Boomers” (1946-1964), Generation X (1965-1980), Generation Y or the Millennials (1980-1995) and Generation Z (1995-2010), each with its own distinctive culture, attitudes and expectations (Seemiller & Grace, 2016). 2.1 The “Baby Boomer” Generation The Baby Boomers refer to the generation born in the post-war period, between 1946 and 1964. After the difficulties of the war, the period of relative social stability and economic growth, that gave families the perspective of prosperity and the opportunity for affordable material wealth, led to a considerable increase in the birth rate. Baby Boomers, raised by parents who went through a time of extreme tragedy and deprivations, developed a solid work ethic as they grew up with the belief that success and personal achievement required hard work. Success was first of all linked to material wealth, and the ambition to prosper drove them to internalize the general values of the society and act towards achieving them (Seemiller & Grace, 2016). Educated to believe that hard labour, constant effort and even sacrifice are the authentic, moral way to achievement, they came to associate work “with self-worth, contribution and personal fulfilment” (Yang & Guy, 2006) and even to initiate the “workaholic trend” (Glass, 2007) by inventing the 50hour working week. This attitude towards work is even more praiseworthy when taking into consideration that Baby Boomers performed their jobs without benefitting much either from the advancements in information and communication technology at the workplace or from “laboursaving devices” at home (Twenge, 2017). Moreover, they perceived technology as a useful means to increase productivity, and not necessarily as a means to reduce their work effort. Unlike later generations, which came to see technology and various gadgets as labour- or time-saving devices and even as an extension of their minds and bodies, Baby Boomers made use of technological progresses “to do more work, not less” (Espinoza et al., 2010). Although dissatisfied with the political power and the traditional establishment and living under the permanent threat of a nuclear war (Stehlik, 2018), Baby Boomers developed a stable sense of loyalty towards their employers (Karp et al., 2002), and as long as rules were clear, advancement in career was based on merit and individual capabilities and accomplishments were recognized, retaining them in the work place was an easy task for the management of any organization. 880 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA Cooperation and collaboration with their colleagues and working in teams were also fundamental characteristics of Baby Boomers (Zemke et al., 2000), as they were educated, both in school and at home, to believe that the objectives of the organization were also their objectives. The Baby Boomer Generation was raised and worked in a society defined by increased economic affluence and diversified career opportunity, where “values such as professional identity, health and wellness, and material wealth” were the most important ones (Espinoza et al., 2010). Therefore, it is no wonder that their self-identity was first of all related to their work and their professional status, which was the primary source of self-worth and admiration. 2.2 The Generation X Generation X, which got its name based on the international bestseller of Canadian novelist Douglas Coupland, Generation X: Tales for an Accelerated Culture (1991), comprises people born between 1965 and 1980, who grew up during a time in which outstanding machines and technologies, such as personal computers, cable television, video games and the Internet were at their beginning of changing the world. Compared to the generations before them, which were almost entirely technology illiterate, and to the other after them, which are “technoliterate” by definition, Generation X individuals became accustomed to digital gadgets by themselves and “learned computer ‘science’ via trial and error” (Zemke et al., 2000:113), which gave them a strong self-confidence. Also called the “latchkey kids” (Seemiller & Grace, 2016) as they were raised by “absent” parents, especially mothers spending much of their time at work, Generation X individuals developed an extensive and strong sense of independence both from their parents and from authority in general, a characteristic that shaped their integration into the workforce and their relations to leadership and formal hierarchies. Moreover, they were nurtured to be self-centred and if Baby Boomers constituted the generation which invented individualism, Generation X outpaced its predecessor and “perfected the invention” (Twenge, 2014). Generation X was formed in a period of economic, political and social instability, and as a result they internalized social and moral values that were different than those of their parents. While the previous generation saw work as the necessary and single path to self-fulfilment, Generation X individuals were rather focused on finding the right balance between labour and free time (Karp et al., 2002), as they were deeply affected by the absence of their parents, who spent much of their time at work. Therefore, work started to be regarded not as a goal in itself, but only as a means to earn financial resources in order to invest them in other more-fulfilling goals. Among the values that they embraced and cherished the most, one could mention independence, autonomy, mobility, self-focus, individualism. While Baby Boomers lived to work, Generation X worked to live. And this attitude towards work also changed their perception of space and time, especially at work. As a result, they rather prefer to work from home and at unusual time, seeing the traditional workplace and rigid schedule as restraining their freedom and restricting their creativity, work-power and even motivation. In terms of working style, they pretty much prefer management by objective, considering that it does not matter how and where you do your job, as long as it is done on time and properly (Zemke et al., 2000). Highly adaptable, quite familiar with technology and used with difficulties of being unemployed or working part-time due to systemic economic and financial crises, they prefer tasks that are challenging, as the most important incentive to work is not definitely linked to money, but to risk and intellect provocation. Although retaining them in the work place, especially in the case of low paid or dull jobs, might seem harder for the management, several simple things, such as flexible schedule, an informal working setting, and a lower degree of supervision might be the key to motivate them (Zemke et al., 2000). Even though they are not as loyal to their employers as the previous generations used to be (Bova & Kroth, 2001), they are nevertheless craving for “a sense of 881 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA family” that they didn’t find during their childhood and “they’ll look for it on the job if they haven’t found it elsewhere” (Zemke et al., 2000:99). Unlike the Baby Boomers, who were defined by their solid orientation towards work, Generation X individuals lacked a consistent “generational identity of their own” (Seemiller & Grace, 2016), being rather designated by what they were not (Zemke et al., 2000:94) compared to their predecessors. 2.3 The Generation Y or the “Millennials” The Generation Y, or Millennials as they were born while the previous millennium was coming to an end, consists of individuals born between 1980 and 1995. Generation Y is also called “Me Generation” because individuals born in the mentioned period of time were raised by supportive affluent and accomplished Baby Boomers and, to a lower extent, parents belonging to Generation X, and they grew up feeling entitled to receive things easily and perceiving themselves as wellprepared to occupy any place in society. Receiving steady emotional and financial support from their parents even after earning their own money, they are highly self-reliant, “with a can-do attitude” and quite optimistic about their future (Seemiller & Grace, 2016). Unlike previous generation, which started to work and found families early in life, Millennials, supported financially by their parents, extended their education period, diversified their training and got involved in various curricular and extra-curricular activities in order to widen their experience and become more prepared in deciding what to do in life and choosing their career (Elam et al., 2007). Perceived as being exceedingly self-focused and overconfident, their education and personal development increased their expectations regarding the workplace in particular and the society in general. Therefore, Millennials rather “want to be their own bosses and start their own companies” (Twenge, 2017) or, when looking for a job, they expect and even demand their employers to pay big salaries that will allow them to maintain a relatively high standard of living (including here travels, high-tech gadgets, stylish clothes, etc.), and to offer additional benefits such as health insurance, training opportunities, a stimulating workplace, early promotions, a work-life balance (Ng et al., 2010). At the same time, they are less willing than previous generations to work hard or overtime (Twenge, 2017). In the workplace, Millennials are frequently criticized for lacking social skills and high-toned manners, being unable to change their behaviours according to the requirements of the social context they are in (Twenge, 2014). Being raised in a society where individualism is one of the most important values and slogans such as “do whatever you feel you should do” or “do it your style” are frequently heard, they became to think that work discipline, formal requirements of the workplace or non-material incentives are outmoded, unworthy, or unnecessary for performing the job (Sachs, 2018). Unlike their predecessors, who have established clear boundaries between work and leisure, Millennials are characterised by the need to be always connected, including at work, where they seem to manifest an “attention deficit” (Sachs, 2018). They were socialized and developed personally in a technologically hyperactive environment, with a pervasive Internet technology and an emergent social media, therefore high-tech gadgets and various technologies were part of their life and not only instruments for increasing their comfort or helping them do their job more easily. They spent long hours “playing electronic, computer and video games” and, at least late Millennials became “digital natives” and “multitaskers” (Sachs, 2018). On account of having “nearly a lifetime of exposure” to advanced technology (Seemiller & Grace, 2016), they became accustomed to using a wide variety of communication media, such as platforms, text messaging, e-mails, social networking, etc., both at work and outside of the workplace. Technology became “an integral part” of the Generation X members, and using it “has become second nature” to them, being frequently 882 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA unable to understand that working hours should not be used for personal matters (Espinoza et al., 2010). For any manager, Millennials are both an asset, in terms of the easiness with which they handle advanced technology and of their preparedness for overcoming the challenges of the digital era, but also a liability in terms of work ethic, loyalty and commitment, given that they always want “something bigger, better, and right now when it comes to their professional lives” (Seemiller & Grace, 2016). 3. GENERATION Z 3.1 The Sketch-Portrait As David and Jonah Stillman (2017) put it, there are seven key traits that individualize the members of Z Generation as compared to the other generations before them, and consequently determine their value systems and their life and work attitudes. According to their view, the following features of ‘Gen Zers’ can be discerned: 1. They are ‘phigital’. This means that, due to the notable advances in digital technology, they are born in a world where every physical feature (facts, places, persons, actions, processes) already has some sort of a digital counterpart. Consequently, for ‘Gen Zers’, the real, physical world and the digital, virtual one, do always overlap, and somehow the virtual one came to be seen as a natural part or aspect of the real. Being so accustomed with this phenomenon, 91 percent of them declare that the level of technological sophistication of an organization or company would determine their willingness to be o part of it or work there. This is a major challenge for companies, since most of them, being managed by members of older generations, were not so rapid in adapting to the digital revolution, and consequently have difficulties to find their place in the ‘phigital’ environment (Stillman & Stillman, 2017, ch. 1). 2. They are ‘hyper-customizers’. ‘Gen Zers’ are in a high degree concerned with personalization and customization of every aspect of their life, from the most trivial ones, such as clothes or bicycles, to the most important, as job titles or career paths. Their desire to express individuality and specificity created an expectation that society should intimately understand and consequently meet their personalized needs, behaviors and desires. For instance, 56 percent of them would rather compose themselves their own job description, than accept to be given a generic one. This fact will put extensive pressure on companies and organizations, where the traditional way of doing things meant that everyone must be treated more or less in the same way, because equality and fairness, not individuality were believed to be the core values (Stillman & Stillman, 2017, ch. 1). 3. They are more realistic than the other generations. According to Stillman and Stillman (2017), the personal and direct experience of the events in the aftermath of 9/11, with the terrorism threat believed to be a part of everyday life and the economic crisis and recession that followed in the next years, made the members of this generation more pragmatic and realistic in their approach of future planning. Their belief is that if one is to survive the challenges of the future, idealism doesn’t do much help, and being realistic about what life actually means is the best policy available. While millennials are known to be idealistic, this shift of accent towards realism is likely to became a cause of conflict and friction between generations. This has already happened in colleges and universities, and will undoubtedly happen in the workplace. 4. They suffer from a very strong FOMO, or ‘fear of missing out’ anything deemed to be important. This feature has both a good side, insofar as ‘Gen Zers’ will certainly therefore be always on top of all new trends and directions of evolution and ahead of all perceived competition, as well as a bad side, because they will suffer from a quasi-neurotic worry that 883 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA they are not advancing fast enough and in the best possible direction. Because of this omnipresent anguish, 75 percent of them declare that they would choose a workplace where they could have multiple roles instead of only one, so as to minimize chances to miss anything in terms of opportunity. Consequently, companies and organizations will have to face the challenge of workplace redesign and diversification in order to meet this preference (Stillman & Stillman, 2017, ch. 1). 5. They are ‘weconomists’. Being raised in an economic landscape dominated by the idea of sharing and by websites like Uber, Airbnb, RelayRides, Taskrabbits, Getaround, Zaarly, Lending Club, Fon and many others, they understand sharing as the basis of economic action. Consequently, they will put pressure on organizations and companies in order to move the accent from individual values and ways of action, to the collective ones, considered to be more effective and convenient. Since ‘we’ and not ‘I’ is viewed as the center of gravity of economic action, 93 percent of ‘Gen Zers’ declare that a company’s impact on society is decisive for their decision of working there. Consequently, they will demand an openness to dialogue and expect that their employers and managers will become their partners of decision making, and together to find answers to the problems and wrongs they believe to have being found in the functioning of world and society (Stillman & Stillman, 2017, ch. 1). 6. They are ‘DIY’, or the do-it-yourself people. Another important consequence of their familiarity with Digital Ages’ tools and ways of doing things is the fact that they could find on YouTube or other similar channels a tutorial for every imaginable action and activity. Consequently, ‘Gen Zers’ came to believe that they can do themselves just about anything that needs to be done. This belief was also stimulated by their parents, members of Generation X, who highly value independence, and so tried to instill it in their offspring, urging them not to follow traditional paths. Consequently, the do-it-yourself youngsters are extremely independent and 71 percent of them strongly agree with the idea that if you desire something to be done right, the only way is to do it with your own hands, which is more than likely to create frictions with the Millennials, who are more collaborative and opposed to individualism (Stillman & Stillman, 2017, ch. 1). 7. They are extremely driven. According to Stillman and Stillman (2017), the education their parents gave them induced in ‘Gen Zers’ the conviction that world is a tough place, populated by winners and losers, and simple participation is not really a reward, but winning is. Moreover, they saw the economic crisis and the recession that affected the previous generation and are very much aware of the ever increasing and hard to keep up rate of change that affects both society and economy. So, no wonder that they are very determined and strongly driven, up and ready to enter the struggle, and 72 percent of them declared that they are competitive towards people doing the same job. The challenge for companies and organizations will consequently be to manage this competitiveness and adapt the working environment in order to accommodate the driven ‘Gen Zers’ and make them feel as the winning team. 3.2 Generation Z’s Values Since people’s values are the basis of their choices and decisions, both in everyday life and in the workplace, it would be appropriate to take a short look at Generation Z members’ personal and professional values. As executive and scholar Dr. Candace Steele Flippin (2017) has discovered, when asked to rank six value concepts in order of importance from a personal point of view, ‘Gen Zers’ placed happiness in the first place and faith on the last place: “For Gen Z, happiness was the most important to the respondents as a group, followed by relationships with family and friends, health, financial security, career, and faith. Gen Z ranked happiness significantly higher than did the Baby Boomers and Gen X” (Steele Flippin, 2017, Ch. II). On the other hand, if we look at the 884 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA rankings made by the two genders, we find out that there are significant differences. For men, the order was: 1. happiness, 2. relationships, 3. career, 4. health, 5. financial security, and 6. faith, while women manifested some different preferences: 1. relationships, 2. happiness, 3. health, 4. financial security, 5. career, and 6. faith. Consequently, we must notice that the only point of agreement of the two genders concerns the low rank value attributed to faith and also that financial security is not at all one of the main concerns of Generation Z, which Steele Flippin believes it should be seen as no surprise, since they have seen several economic crises and shifts, and consequently have become more attentive to what really matters in life. The preference for happiness above all other values could be a consequence of the fact that the members of this generation are for now very young and so their optimism is still high, and also of their selfconfidence and trust in the accessibility and quality of opportunities for obtaining that happiness, whatever individual form it may take. When Steele Flippin tried to assess the professional values specific for Generation Z (what is more important from professional point of view in the present moment), what she found out was that they ranked the six values in the following order: 1. doing well in current role, 2. making more money, 3. work-life balance, 4. promotion, 5. changing career, and 6. retirement. The fact that earning more money is second only to the desire to perform well in the current position could mean that for the respondents, financial incentives are almost as important as the satisfaction the job offers, while other aspects of work that could also offer satisfaction, such as acquiring new skills or gaining experience, were deemed less important. It is also interesting that, when answers were compared according to gender of the respondents, one could see that the two top values were reversed: men favored financial earnings over the satisfaction of doing well at job, while women preferred the other way around. The other values were ranked in the same order. Apart from these, maintains Steele Flippin, for Generation Z members more important even than financial earnings are the opportunities for professional promotion, which is believed to be the main motivator in the workplace. The low ranking of retirement and lack of concern for the possibility of multiple change of career are attributed also to the fact that respondents are still very young, and only at the beginning of the professional life, so job changes are not frightful, and retirement seems a very far away perspective (Steele Flippin, 2017, Ch. II). Directly connected to personal and professional values is the general view of the life opportunities or the expectations about what life has to offer in the most general terms. When asked to rank their life opportunity expectations, members of Generation Z were found to be more optimistic than those of the other generations, more than 95 percent of them believing that their expectations are achievable. As they ranked them, those were: 1. being able to achieve goals, 2. financial security, 3. ability to pursue education, 4. freedom of speech, 5. building a legacy, and 6. home ownership. When women’s and men’s answers were compared, though, the differences were found to be more significant, with the only exception of the value first ranked, the ability to achieve their goals. As for the all others, the order is not the same, for males chose 2. financial security, 3. freedom of speech, 4. pursuit of education, 5. building a legacy, and 6. home ownership, while females preferred, in order: 2. education, 3. financial security, 4. freedom of speech, 5. home ownership, and 6. building a legacy. 3.3 Management, Leadership and Generation Z As Corey Seemiller and Meghan Grace (2018) put it, since Generation Z is just now entering the work-force, many years would need to pass before we could fully understand their real impact in the workplace, but until then leaders and managers could use what we already know about them: that they are entrepreneurial-minded, loyal, inventive, determined and with a desire to make world a better place. But what are the managers looking for on today’s labor market, and how does Generation Z meet these expectations? 885 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA 1. Complex cognitive reasoning. Since the world we live in is so rapidly changing, employers are looking for people who have the skills to adapt to change, i.e. complex cognitive reasoning, critical thinking and problem-solving abilities. But as ‘Gen Zers’ grew up in a world one-click distance from any needed information, quick answers and instructional video-tutorials, they came to rely on technology and on other people’s knowledge and abilities and consequently became less able to figure it out for themselves. The frequent use of Internet made them able to engage more in surface-learning than in complex problem solving, and if we add to this their maximum of eight-seconds attention span, the conclusion seems to be that they could not be able to meet this requirement (Seemiller & Grace, 2018, ch. 18). 2. Creativity. If we take the widest definition of creativity, it might mean the use of imagination to build what could be from what it already is. Members of Generation Z identify themselves as having high levels of creativity and about 40 percent of them are planning to invent something that could change the world. However, their self-perception might be not so accurate, as their desire to be creative could not have a real basis. In their case, creativity was not educated and stimulated because of the recent elimination from the school and college curricula of subjects linked to creativity, such as arts or philosophy, although both students and teachers believe creativity education is of great importance. So, their desire to be creative could be nothing more than an illusion (Seemiller & Grace, 2018, ch. 18). 3. Emotional intelligence. Since the World Economic Forum added emotional intelligence on the sixth position of their list of essential competencies in the workplace in 2020, it is clear that it will be also of the greatest importance for employers and managers who will hire ‘Gen Zers’. They have already been educated in this respect, being exposed to programs of social an emotional learning in school, and as a result they have high levels of empathy and compassion, and better emotional skill, attitudes and behaviors. However, they are used to communicate mainly through digital technology and in short sequences, and therefore could become to direct and too blunt. Since their attention span is very short, while stress levels are high, they could send their messages before thinking sufficiently about their form and content, and therefore could become rude and demanding. According to Seemiller and Grace (2018), only 42 percent of employers and managers believe their Generation Z new employees do possess the emotional skills required for their position. 4. Social intelligence. As emotional intelligence, the social one is also important in the workplace. The first means mainly self-understanding and self-monitoring of behavior, while the second consists of the ability to understand thoughts and feelings of other people, and consequently to better collaborate with them. It is obvious that employers and managers will rank this skill very high. However, compared to other generations, ‘Gen Zers’ were found lacking high social intelligence abilities, especially because they are accustomed to communicate with friends and other people mainly via digital media, and not face-to-face, and therefore spend less time practicing socializing in-person. Being so caught in socialmedia environment, they tend to lack the abilities of having natural, human, personal relations with others. Since on-line communication does not directly convey emotions, ‘Gen Zers’ tend to have poorer abilities to read and understand emotions expressed by other people, being unable to naturally relate to them and successfully collaborate with teammates at work, and consequently will need to learn on the job the social skills they lack (Seemiller & Grace, 2018, ch. 18). 5. Specific experiences. In addition to the aforementioned skills, employers and managers look to hire people who have specific forms of previous experience, such as voluntary work and other extracurricular activities and also having held leadership positions. Members of Generation Z are very much involved in various students’ organizations, where more than 886 PROCEEDINGS OF THE 12th INTERNATIONAL MANAGEMENT CONFERENCE “Management Perspectives in the Digital Era” November 1st-2nd, 2018, BUCHAREST, ROMANIA 65 percent of them had leadership positions (which does not necessarily means they did developed useful management skills), but on the other hand, less than 42 percent of them have had any form of formal training in management or leadership. However, more than 70 percent of them believe that they do posses leadership and management abilities superior to other people and especially their peers. A clear manifestation of the well-attested ‘DunningKruger Effect’, this highly unrealistic self-evaluation of their real leadership abilities may prevent them to seek and use education and training opportunities in this area, since they believe that they already excel at these abilities. This situation could seriously affect the quality of future leaders and managers of all organizations, when time comes for them to be handed over to the managers recruited from amongst the members of Generation Z (Seemiller & Grace, 2018, ch. 18). 4. CONCLUSIONS Given the above-mentioned circumstances, how should people act in order to improve the situation of both employers and employees, leaders and followers, managers and those managed? According to Candace Steele Flippin (2017), the employees should keep in mind that their managers have a real desire to relate to them and provide them with a better working environment. Consequently, this desire should be welcomed and met by attitudes and actions such as: trying to understand the manager’s plans and priorities and address them; sharing one’s own point o view and vision; being positive, constructive and having a positive mindset, centred on one’s goal, i.e. to perform as expected and be productive; having patience, as this is the key to achieve both long and short term goals; searching both established and alternative ways to pursue a better education; being prepared to work hard in order to achieve the best possible position to fulfil one’s desires and dreams. On the other hand, employees and managers should not forget that ‘Gen Z’ workers’ goals and aspirations are in some measure similar to those envisioned by themselves some time ago. 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