LEADERSHIP'S ROLE IN MOTIVATING MILLENNIALS : A study of how organizational leaders motivate millennials in the workplace.

LEADERSHIP'S ROLE IN MOTIVATING MILLENNIALS

A study of how organizational leaders motivate millennials in the workplace

HANSSEN, SARAH ROJAS, AYELEN

School of Business, Society & Engineering

Course: Bachelor Thesis in Business Administration Supervisor: Leanne Johnstone

Course code: FOA243 Date: 21st of January 2021

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Abstract

Date: 21st of January 2021

Level: Bachelor Thesis in Business Administration, 15 cr

Institution: School of Business, Society and Engineering, Mälardalen University Authors: Sarah Hanssen and Ayelen Rojas Alvarez

Title: Leadership's role in motivating millennials

Supervisor: Leanne Johnstone

Keywords: Leadership, Motivation, Millennials, Work-environment

Research

question: How can organizational leaders motivate millennials in the workplace?

Purpose: To gain an understanding of how organizational leaders lead and influence to ensure highly motivated millennial employees. Furthermore, the authors want to help close the academic knowledge gap in understanding millennials in the work environment and most importantly organizational leaders' influence on millennials work motivation.

Method: Since the thesis in nature is of a qualitative form, the authors have conducted 4 semi-structured interviews, 1 of which was in person while 3 of the interviews were conducted through digital softwares. All of which were managers from Swedish retail stores. The authors used a thematic analysis to sort and figure out which data was relevant for the thesis which laid the foundation for the discussion and conclusion of the thesis.

Conclusion: The authors of this bachelor thesis have concluded that along with previous studies, organizational leaders focus on extrinsic motivation strategies to motivate employees and do not take into consideration each individual's internal motivation. It was also discovered that organizational leaders focus on fulfilling the lower level and higher level needs of the employees, known as the hygiene factors and motivators. Furthermore, it finds that leaders do not differentiate between younger and older employees in their motivational strategies. Together, these findings mean that perhaps the correct strategies or techniques to motivate particular groups of employees are not being realized in practice by leaders, motivating the need for further studies, especially from the millennials’ perspective.

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Table of Contents

1. Introduction ... 4

1.1 Background ... 4

1.2 Problematization ... 5

1.3 Aim and Purpose ... 6

1.4 Research Question ... 7 1.5 Delimitation ... 7

2. Theoretical Framework ... 9

2.3.1 Millennials in the workplace ... 17

2.4 Summary of the Theoretical Background ... 19

3.Methodology ... 21

3.1 Qualitative research method ... 21

3.1.1 Semi-structured interviews ... 21

3.1.2 Operationalization ... 23

3.2 Purposive sampling method ... 25

3.3 Sources and Data ... 26

3.3.1 Interview participants ... 27

3.4 Thematic Analysis ... 28

3.5 Limitations ... 29

4. Empirical Findings ... 31

4.1 Leadership style and qualities ... 31

4.2 Employees (Millennials) ... 33

4.3 Manager and Employee Relationship ... 34

4.3.1 Work environment ... 35 4.4 Motivation ... 36

5. Discussion ... 39

6. Conclusion ... 44

7. Future Research ... 45

8. Bibliography ... 46

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1. Introduction

The introduction will firstly include an overview of the authors of this thesis research topic with essential background information, secondly, a problem discussion and a purpose & aim section. Lastly, in the introduction section, the authors will present the research question, and the delimitation of the thesis.

1.1 Background

Organizational leaders are preparing for a new generation entering the labor market, resulting in a generational shift within the labor market (Onukwuba, 2020). Generation Y, also called millennials, are gradually entering the workplace and will become the majority of the workforce in the near future (Espinoza et al., 2016).According to Weber (2017), the birth years for millennials is from the year 1980 up to 2000. According to Statista (2020), it is predicted by the end of 2020 that the global workforce will be dominated by both generation Y and generation X. Bejtkovský (2016) defines generation X to be those individuals that are born between the years of 1965 and 1976. The study by Statista states that generation Y and generation X, at the time of writing, compose approximately 35% of today’s workforce individually, thus together being a majority of 70%. However, Generation Y will increase and eventually become a single dominating workforce in the next upcoming years as generation X will retire (Statista, 2020).

Given the changes in the composition of the global workforce, organizational leaders are therefore required to adapt and change their strategies in order to motivate and understand millennials' motivational driving forces in the workplace (Jerome, et al., 2014). On the one hand, Stewart et al. (2017) state that studies have indicated that millennials can be difficult to work with since the characteristics of this generation are distinguished as being ineffective, unwilling to learn, and unmotivated in the workplace. On the other hand, Bennett et al. (2012) imply that the motivational factors of millennials have changed from previous generations. However, Bennet et al. indicate that millennials differ especially when it comes to working ethics. Particularly, Bennet et al. suggest that millennials are known to be a self- fulfilling group, with the need for a purpose in the work environment and to be part of a change. Nevertheless, according to Kornelsen (2019), millennials can be seen as difficult to lead because of their strong independence and capability of managing and controlling their own work. Moreover, millennials make their decisions based on their own preferences and do not

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require much attention and help from leaders. Arguably, an increase in the millennial workforce can cause uncertainty within the market. Therefore, it is vital for leaders to prepare for future obstacles and to increase the effectiveness of millennials (Bennett et al., 2012).

According to Jerome et al. (2014), it is important for organizational leaders to be aware of the different motivational factors of the current generation in the labor market as well as their underlying driving factors. Jerome et al. express the need of knowing what drives employees in order to develop strategies, as well as to improve effectiveness and keep unity among all employees. Common among all generations, is that motivation is one of the driving factors behind the effectiveness of the labor force, yet the motivational factors can differ between generations. Jerome et al. (2014) indicate that millennials are keener to having a clear purpose and determination in their work life in order to feel motivated. Jerome et al. also explained that millennials are a generation heavily influenced by technology which can make millennials more informed on their surroundings and keen to constantly learn new things to develop and receive self-fulfilment in their work. Dadwal (2019) further adds to Jerome that millennials have been brought up in a society where many evolutionary technological discoveries from previous generations have been made. Therefore, Dadwal indicates that millennials have gained a wide insight into technology which has had and still have an impact on millennials' decision making. Jerome et al. (2014) further add that organizational leaders have a responsibility to learn what type of factors can motivate employees of different generations in order to improve efficiency within the organization. This is especially important during generational shifts in the labor market. Simms (2019) further adds to Jerome (2014) that it is important for managers to have knowledge and to be aware of the differences between the generations that are employed by the organizations. Simms states that if organizations take time to understand and know the different driving forces and values of the employees it can help the organization to improve its management strategies.

1.2 Problematization

From the managers perspective, it is important to motivate employees and it can often be seen as a part of the manager's job. This could be seen as vital due to manager’s having the ability to drive employees to meet the organisation's future targets (Khan & Wajidi 2019). According to Holton and Naquin (2001) it is especially important for organizations to keep good employees for as long as possible due to high expenses that come with hiring and training new

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employees to meet criterias. These expenses could be avoided by keeping employees in the long term.

According to Kowske (2010), a limited number of studies have been generated in regards to millennials (see also Onukwuba, 2020) and other generations' different behavior within the work environment. Onukwuba (2020) further adds that studies have shown that millennials are less interested in adapting to organizational routines and unmotivated by guidance from superiors in the working environment. However, an earlier study conducted by Myers and Sadaghiani (2010) goes against Onukwuba´s statement, by stating that millennials are encouraged by and value a close relationship with organizational leaders, as well as expect open communication and guidance from their leaders. Long (2017) stands with Myers and Sadaghiani (2010) by further adding that the millennials' upbringing can influence their behavior in the working environment, especially towards management. Long indicates that this behavior is not due to a lack of interest towards supervisors, but rather the way that millennials have learned to interact with managers. Kriegel (2016) furthers that millennials value guidance and support from their superiors. However, earlier studies conducted by Kornelsen (2019) have shown similar statements to Onukwuba (2020) which goes against the theory of Myers and Sadaghiani (2010); among others (e.g., Long, 2017; Kriegel, 2016).

According to Kornelsen (2019), millennials do not value guidance and extensive communication with their supervisors. Kornelsen further states that millennials are aware of the accessibility of information online and that millennials can find and gather information quite easily. Therefore, millennials do not appreciate managers leading and controlling them. Millennials are in this sense very independent and have a strong belief in their own process and ideas without support from their superiors. Hence, showing that there is a lack of research within the subject of millennials combined with a current debate regarding millennials characteristics and motivational behavior within the working environment. To finally provide an understanding on how leaders should interact and motivate millennials with consideration to the difference in characteristics from previous generations.

1.3 Aim and Purpose

The purpose of the bachelor thesis is to gain an understanding of how organizational leaders work to ensure highly motivated employees, especially in the younger generation (i.e. Generation Y or millennials) that will - in the near future - become the majority of the

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workforce. Hence, the specific business problem that this study addresses is to help close the academic knowledge gap that there is in understanding millennials in the labor market, and especially organizational leaders' influence on millennials' work motivation. Understanding this is also arguably important for organizational managers.

1.4 Research Question

With consideration of the new difficulties concerning the generation shift in the labor market and the different understandings in the existing literature of work motivation of millennials, combined with the knowledge gap concerning millennials in the workforce, the authors of this thesis have developed a research question that attempts to answer:

How can organizational leaders motivate millennials in the workplace?

1.5 Delimitation

Due to the extensive subject area, the authors of this bachelor thesis have decided that the thesis must be delimited to ensure high quality. As the core of this thesis is focusing on how organizational leaders motivate millennials, the thesis will narrow down motivation to a specific type of motivation. When the authors are discussing motivation, this will mainly focus on the motivation-hygiene theory, as it provides an insight on how organizational leaders can motivate their employees. Hence, not including other factors that can influence the motivation of millennials, such as culture in general and gender differences. Although, the authors want to address that there is an awareness of other factors which can impact the motivational behavior of millennials.

The authors also want to address that the study should not be used as a general picture of how leaders motivate millennials in all industries. The industry that the authors have narrowed down the research subject to is the Swedish retail industry. As of writing the thesis the authors only had access to organizational leaders within the Swedish retail industry. The authors are aware of the specific industry and its effect on how leaders motivate their employees. However, the authors of this bachelor thesis are not going to investigate nor receive an in-depth understanding of the retail industry. The authors want to receive an understanding of what type of motivational tools organizational leaders can use to motivate millennials in the workplace. Therefore, the research question of how organizational leaders motivate millennials is more

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important for this thesis than the Swedish retail industry itself. Furthermore, the nature of the study is qualitative as it aims to gain an understanding of how organizational leaders motivate millennials. Therefore, the results of the thesis cannot be seen as general for all industries, nor can it be seen as general for the Swedish retail industry itself as the research has been limited.

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2. Theoretical Framework

To respond to the research question of how organizational leaders can motivate millennials in the workplace. The authors have found vital concepts and a theory to provide an understanding of organizational leadership, motivation and ´millennials´.

2.1 Organizational Leadership

According to Volckmann (2012), the concept of leadership can be hard to define. Antonakis (2016) adds that there is a lack of studies and that the concept of leadership can be seen as diffuse. Furthermore, Akinola and Olusanya (2011) defined leadership as, “[...] getting people to do things they never thought of doing, do not believe are possible or that they do not want to do” (p. 62). Akinola and Olusanya describe that leaders have an ability to affect people and their choices based on the effective communication and convincing skills that the leader possesses, which can result in people committing to completing tasks. Furthermore, Silva (2016) states that leadership can be defined as a procedure where things are constantly progressing. Silva further mentions that leadership is leaders who have an ability to affect and lead people towards similar targets. Leaders have an effect on people which makes people understand the leader and their decisions. According to Portugal and Yukl (1994), organizational leadership researches how the leader can impact the organization's work and achievements, by having an impact on both the personal and organizational level. Bratton (2020) adds that the leader also has the ability to impact relationships within the internal and external environment of the organization. Leaders can influence other individuals on a personal level through the leader's communication skills and personal characteristics, in which the leader uses their communication skills to motivate their employees. Furthermore, Bratton states that leaders' can impact the organizational level by influencing the employees through various changes in work routines and administration in different departments of the organization as well as by promoting or demoting the organizational culture.

According to Kornelsen (2019, p.27) “Leadership is typically influenced by three component factors which are leader, follower, and context”. When these three factors are combined and working together, it can result in more successful leadership.

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The statement by Kornelsen will be further described in the following sections after figure 1.

Figure 1 Leadership as an interconnected process (Bratton, 2020, p.5)

Regarding context, Bratton (2020) states that the context has an impact on followers’ behaviors. Bratton's context consists of factors such as “... -social, technology, economic, political, legal, ecological (STEPLE) - as well as organizational design and strategy considerations inside the organization.” Bratton describes that these external factors have an impact on the organization internally. The context, furthermore, consists of the organization's business plan on how to progress and work as well as the structure and format of the organization. These, at the same time, are factors that can impact and create motivation in the organization which in turn can lead to change within the organization.

Regarding the leadership, a leader that can affect and inspire their employees can impact the overall performance of the organization in a progressive and efficient way (Bratton, 2020). Furthermore, Bratton explains that the leaders’ personality traits, performance, competence and skills affects the leaders’ ability to influence individuals. According to Bratton “Leadership involves both direct and indirect forms of influence” (2020, p.14). The direct type of influence is when the leader can impact employees through team gatherings, in which the leader has direct contact with the employees, for example through work presentations. Indirect leadership, on the other hand, refers to the influence that leaders apply to those individuals with lower

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positions within the organization through codes of conduct with whom they do not have a direct contact with.

Regarding followers, Bratton states that the employees within the workplace are the followers who are affected by the leader's influence. The followers can have different positions within the company, such as low and middle positions. Hollander (1992) adds that followership is important to research when studying leadership. In relation to the role of followers, the individuals’ actions, relationships, and point of view affect the individuals way of influencing others such as working together and achieving goals.

The LMX theory (leadership-member exchange theory) also called vertical dyad linkage theory was created during the 1970s and the theory focused primarily on the different relationships and leadership styles leaders have with employees (Goethals et al., 2004). In the LMX theory, there are two different groups that the employees can be divided into, these are known as the in-group and out-group. (See figure 2)

Figure 2 The leader member-exchange model (Dubrin, 2013, p.291)

In the in-group the leader has a good and favorable relationship with their employees. While the out-group is when the employees and leader relationship is balanced or unsatisfactory and careless. The relationships in the in-group are satisfactory and the relationships in the out-group are less satisfactory. However, the relationship is still different to each employee in the group,

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one relationship with one employee in the in-group can be quite positive, while with another employee in the in-group the relationship can be exceptional(Dubrin, 2013). Therefore, the leader has a different relationship with each employee and can for this reason create a unique relationship with each employee. By doing this, the leader can avoid treating every group of employees exactly the same way. The LMX model can therefore help improve the interaction and relationship between leaders and their employees (Goethals et al., 2004).

When considering leaders, the quality of LMX can be affected by “leader attributes such as emotional intelligence, the personality trait agreeableness, ethical behavior and support for HRM policies” (Bratton, 2020, p.178). Bratton indicates that the leader and follower (employees) relationship can become affected by the leader's personality, such as likeability, knowledge and how leaders make decisions regarding ethics and morals. In contrast, when considering followers, (employees) Bratton (2020) states that the quality of LMX can be affected by the Big Five widely accepted framework for personal attributes. The big five is a model that shows an individual's personality type. The model also divides the personality into different characteristics to give more clarification. The big five contain”[...] five dimensions: extraversion/surgency (assertiveness), agreeableness, conscientiousness, emotional stability, and intellect/openness to experience” (Goethals et al., 2004, p.96). Extraversion/surgency can be explained as a person who is talkative, open and not afraid to speak their mind. Agreeableness can be a person who has it easy to cooperate with other people and reach a common ground. Conscientiousness can be explained as a person who is consistent and straightforward with their meanings. Emotional stability refers to a person who is secure in themselves which makes them more peaceful and collected. Openness to experience refers to a person who is willing to participate and try new things as well as brave and spontaneous (Goethals et al., 2004).

A high-quality LMX indicates a strong relationship between leaders and employees. The employees enjoy working for the organization and are more likely to work more effectively and consistently. A high-quality LMX might also lead to highly motivated employees. Therefore, employees are more likely to work for the organization in the long-run (Goethals et al., 2004). A high-quality LMX can be created when individuals are dependable, brave and very easy to cooperate with combined with not being afraid of making decisions and taking control (Bratton, 2020).

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2.2 Motivation

It was noted during the writing of the thesis, that a confusion appeared concerning motivation and motivators. Therefore, the authors decided to add a clarification of the meanings of the two terms. According to Cambridge University Press (2020a), motivation is through the eyes of the individual and how the individual becomes motivated by themselves. While motivators (motivational factors) are defined by Cambridge University Press (2020b) as other individuals or things that act, which motivate another person.

A strong relationship between the leader and employee can impact the overall performance of the company. Furthermore, leaders' influence over the employees can affect the employees motivation and effectiveness in their job performance. The definition of motivation has been described in numerous forms in academia. Mitchell defines motivation to be “[...] psychological processes that cause the arousal, direction and persistence of behavior” (Mitchell, 1982, p.81). Thus, Mitchell indicates that motivation is an internal psychological process that influences human behavior. Ford further adds to Mitchell´s (1982) definition by stating that motivation is determined by each “[...] individuals personal goals, emotions and personal agency beliefs” (Ford, 1992, p.78). Hence, Ford states that motivation is highly individual and that the motivation for one person might not be the same motivation for another person.

In the early 20th century, the controversial psychiatrist Freud beganhis studies on motivation (Carsrud & Brännback, 2011; Vijver et al., 2002). Freud believes that motivation was set by different internal concepts which influence the individuals’ behavior and mindset. According to Smith, Freud's three concepts which can be found in each individual's personality consists of “id, ego, and superego” (Smith, 1972, p.13). Smith describes the id to be the identity of the person where the motivation partly is built on the unapprehensive decisions humans make automatically. The unapprehensive decisions humans make are in turn limited by the individual's ego. The ego is on the other hand limited by the superego which influences the individual's ethics and morale. Dickerson states that: “The ego is considered the "executive" of the personality because it makes all the important and crucial decisions and is responsible for self-preservation” (2006, p.48). Thus, Dickerson means that the ego is in charge of decisions that have a major impact on a person's life. While the superego mainly influences the identity together with the ego by affecting a person's thoughts on what is perceived as right or wrong.

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Long (2017) states that there is a connection between employee motivation and the effectiveness of the employee, which in turn affects the overall results of the organization. According to Long, organizational leaders have to take into consideration the motivational levels of the employees and work to keep the motivational levels high. The motivational levels need to be high as it can ensure that the organization's operations work as efficiently as possible. Long describes two types of motivational factors, these are the intrinsic and extrinsic motivations. According to Long, intrinsic and extrinsic motivations are the internal and external factors that affect individuals’ motivation. Although, in academia these factors tend to be separated from one another, Sansone and Harackiewicz (2000) suggest that both intrinsic and extrinsic motivation can be influenced by the same variables. Long (2017) states that intrinsic motivation can be considered as the motivation individuals have in which they perform tasks that they are interested in. These tasks can be performed without a need for an external reward as the reward lays in their own interest for the task. However, Law et al. (2017), states that employees' intrinsic motivation can, from the leaders’ point of view, be problematic. Law et al. further describes the issue with highly intrinsic motivated employees to be that “intrinsically motivated employees do not always work to the benefit of their employers […]”. Rather, employees must be motivated to perform in a “[...] coordinated and goal oriented way” (Osterloh & Frey, 2000, as cited in Law et al., 2017, p.1488). Thus, the statement indicates the importance of knowing how organizational leaders should cope with intrinsically motivated employees as these employees may not always work towards similar goals as the organization.

However, Thomas (2002) on the other hand states that employees who are intrinsically motivated are vital for the organization’s overall performance. Thomas indicates that an employee that is more intrinsically motivated, respects the organization and enjoys their work, which can lead to greater individual performance than extrinsically motivated employees. Furthermore, Thomas states that individual internal motivation has a big impact on the employees' performance, whereas the rewards in forms of salaries that employees receive remains to have impact on the employees' effectiveness and willingness to work. Thomas describes that managers must know how to balance the extrinsic and intrinsic motivations of their employees for the best effectiveness and results. The extrinsically motivated employees are, in contrast to the intrinsically motivated employees, not interested in the work itself, but rather on what will be given by performing the task (Wu & Lu, 2013). Wu and Lu further explain that some of the common compensations extrinsically motivated

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employees try to attain are “[...] a prize or a salary increase” (Wu & Lu, 2013, p.156). Hence, extrinsic motivated employees are required to have a form of compensation for their efforts. Without compensation, the work the employees are supposed to do will not be completed. Tampu (2015) states that when it comes to payment and bonuses, it has to be at such a level that the employee feels that the time spent on the work is relatively equal to the amount that is received. Otherwise, the motivation cannot be increased by payment and bonuses.

2.2.1 Motivation-hygiene theory

In the 1960s, Herzberg presented a new theory called motivation-hygiene theory. The motivation-hygiene theory consists of two categories known as the hygiene factors and motivator factors, see figure 3. Watson (2003) describes these categories to fulfill different levels of individual needs, that is higher and lower (basic) level needs. Watson further states that hygiene factors fulfill the basic needs of individuals, while motivators fulfill the higher needs.

Figure 3 (More et al., 2017, p.143)

According to Cote (2019) hygiene factors can affect the employees well-being. Cote states that the hygiene factors can be seen as negative as these factors can be the reason why employees feel displeased with their work-related activities. Cote further describes the hygiene factors to be the internal environment within the organization such as the relationships with other employees and the management. The hygiene factors also include the working protocol, financial security, and terms of employment. Cote describes that the organization needs to develop a well-planned and balanced working environment for employees to reduce the dissatisfaction among the employees. Cote states that the balance and reduced dissatisfaction among employees can be achieved by meeting the basic hygiene needs of employees. This can

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be done by developing fair work protocols and an enjoyable work environment in combination with good communication and guidance from management. The positive hygiene factors that organizational leaders are able to establish within the organization includes areas for relaxation and team building activities. Long (2017) adds that a clear and simple workplace combined with minor contributions such as having fun during working hours can increase the employees’ motivation. Long further states that “[...] positive relationships with other individuals, learning, creating, and being part of a positive movement also motivates employees” (2017, p.25). Thus, Long indicates that organizations with a positive internal atmosphere can contribute to the motivation of the employees and thereby making the employees work more effectively. Moreover, Miner (2007) states that the lack of basic needs (hygiene factors) or the basic needs not being fulfilled, such as a workplace with poor working conditions can lead to increased dissatisfaction in the workplace. However, when basic needs are increased or fulfilled, it cannot lead to increased satisfaction. Cote (2019) argues that it is not possible to make employees more motivated through hygiene factors, due to hygiene factors being the basic needs of an employee, that have to be fulfilled. Shell (2003) further states that when the basic needs are not fulfilled, it will result in employees not being affected at all by the higher level needs (motivators).

The second category mentioned by Cote (2019) is motivators. The motivator factors are according to Cote related to what the employee receives from the organization's management that are not basic needs. Cote states that the employee needs to receive attention from the management for their work, this attention can be in the form of more responsibility within the organization as well as the potential to grow within the organization. Long (2017) adds to Cote’s (2019) description by stating that the motivator factors can affect the employees motivation level in a positive or negative way based on how the management is managing their employees. According to Knight and Westbrook (1999), the employees’ mindset towards work is more likely to be constantly impacted by motivators rather than hygiene factors. For instance, employees who have their basic needs covered (hygiene factors) and feel joy, recognition and a sense of responsibility (motivators) over their work duties will feel satisfied for a longer period of time. On the other hand, an employee that has the basic needs covered and is not satisfied with their work will only receive satisfaction for a short period of time from receiving an increase in hygiene factors.

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According to Cote (2019), there have been criticisms against Herzberg's motivation-hygiene theory. The criticism is raised due to Herzberg's theory having a lack of support and thereby reduced trustworthiness. Ruthankoon and Ogunlana (2003) state that employers who want to improve the effectiveness of their employees by using hygiene factors can backfire. When employees receive increased income or bonuses within the organization, it will only result in enjoyment over a short period of time. When the increased income and bonuses become common, the employees will expect additional benefits for their work. The benefits will eventually become an evil circle for the employer and result in economic issues for the organization.

2.3 Millennials

A definition of generation is needed in order to understand Generation Y. Underwood states that (2007, as cited in Delcampo et al., 2011) “generations are defined as an ‘age cohort’ that shares unique formative years´ experiences, teachings and develop unique core values and attitudes that are different from different generations” (p.5). In addition, Delcampo (2011) states that the characteristics a generation shares, have a permanent impact on the decision making of the same generation. Underwood and Delcampo et al. describe that the different personality traits individuals of each generation endure as well as the different experiences and learnings has an impact on each generation's future behaviors and the choices made. Moreover, what differentiates each generation is that each one has different characteristics, which are determined by birth years and the important events that took place in that period. Millennials were born during the dotcom era, and have lived through various important events that have had a severe impact on people (Okros, 2019). Moreover, millennials value environmentally and ethically prone organizations to work for and their social life outside of work. Millennials are also prone to work towards personal goals and promotion in their work life combined with finding ways to relax, adapt to work situations and changes within the work environment (Festing & Schäfer, 2014).

2.3.1 Millennials in the workplace

The introduction has already touched upon the characteristics of millennials in the workplace. Nevertheless, there are further studies that comment on millennials as a generational ‘cohort’, which will be briefly overviewed here.

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Delcampo et al. (2011) describe millennials as “[...] forward-thinking, positive and achieve what they set their sights on” (p.15). They indicate that millennials are goal-oriented, focused on their future and their achievements. Wiedmer (2015) adds that millennials, apart from multitasking, are very invested in technology and creative thinking. Millennials are additionally keen to learn new approaches and develop new ideas where millennials can find answers and meaningfulness in their work. Furthermore, millennials are very independent when it comes to trying to solve problems by themselves before asking superiors for help. Millennials rely on the knowledge available online when learning and solving issues. Moreover, millennials can be seen as very self-reliant when receiving feedback or guidance from superiors since millennials rather want to follow their own ideas and preferences (Kornelsen, 2019). Altinbasak-Farina and Guleryuz-Turkel (2015) add that millennials are hard workers, open to new opportunities as well as assignments in the workplace. Jerome et al. (2014) describe that millennials have high skills in technology and are very involved in the Internet using online communication channels. Thus, indicating that millennials are more open to communication through various virtual channels at work. Jerome et al. (2014) further add, in contrast to Wiedmer (2015), that millennials prefer a lot of attention from supervisors through appraisal and clear guidelines to be able to work efficiently and effectively. Gursoy et al. (2013) state that millennials need a lot of recognition at their workplace, this can include recognition by receiving bonuses or comments on their hard work from superiors as well as an increased salary. Hence, showing that millennials feel more motivated by rewards in the form of a promotion and better salary as well as tangible rewards such as diplomas (Prawitasari, 2018). Overall, millennials are very focused on their careers, work opportunities and development within their professional advancements.

Furthermore, Kostanek and Khoreva (2018) state that millennials are driven and motivated in their work ethics and do not find it difficult to change job or working environments in order to achieve their goals. Millennials are also very open to finding work where they feel appreciated and where they can visualize potential future advancements within the company long-term. Moreover, millennials want to feel meaningful and appreciated in their workplace as well as work for organizations that are up to date in using technology and are keen to adapt to future technological advancement (Kostanek & Khoreva, 2018; Prawitasari, 2018). Gursoy et al. (2013) state that millennials value their time off work where millennials can spend time on personal interest since personal time is more valuable than working towards a promotion for millennials. A workplace that is enjoyable, and where millennials feel at ease is very important

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for millennials when choosing where to work. Therefore, millennials are very open to changing their career and work with various jobs to find meaning combined with working for their own personal advancement and to seek new job opportunities (Wiedmer et al., 2015). Moreover, millennials find it vital that organizations take into consideration the environment and social issues, regarding ethics and morals. A company that works towards finding solutions and solving environmental and social issues are seen as more appealing for millennials to work for (Formánková et al., 2019).

2.4 Summary of the Theoretical Background

The theoretical background develops different theories regarding leadership, motivation, and millennials. Since the author's purpose is to study how leaders can motivate millennials, figure 4 has been developed by the authors of this thesis as a theoretical framework to connect to the literature applied in this study. It is further explained in the summary below.

Figure 4 (Hanssen and Rojas, 2020)

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Organizational leaders can have strategies which can influence the workforce extrinsic motivation. Bratton (2020) states that leaders can use their abilities to inspire and affect the employees and thereby improve the overall performance of the organization. Long (2017) states that extrinsic and intrinsic motivation are the determining factors behind each individual's level of motivation towards their work. The intrinsic motivation includes the individuals’ preferences and internal drive, while the extrinsic motivation can influence the individuals through external driving forces such as rewards and leaders’ acknowledgement (see also Wu & Lu, 2013). The motivation-hygiene theory factors also have an impact on the employee's motivation. The motivators and hygiene factors affect employees' individual needs on a lower and higher level. Employees' motivation and satisfaction can remain for a longer period of time when the basic needs (hygiene factors) are satisfied combined with the higher level needs (motivators) being fulfilled (Knight & Westbrook, 1999).

Espinoza et al. (2016) further describes a new generation shift in the workforce, leading to a higher percentage of millennials in the workforce. Thus, resulting in a superior number of millennials in the workplace. There are current disagreements within academia on the characteristics of millennials. One side within academia indicates that millennials are difficult to work with and lead due to millennials following an independent path (Kornelsen, 2019). Wiedmer (2015) further adds that millennials rarely seek guidance and support from superior managers as millennials often try to solve issues by themselves. The other side in academia, goes against this by stating that millennials value coaching and mentoring from superior managers to receive a feeling that their work is being noticed and that they are appreciated for their work (Jerome et al., 2014) Thus, showing that there is a connection between leaders and how the leaders influence their workforce. However, there is a conflict in academia on how leaders should motivate and handle millennials when the millennials become a majority within the workforce.

Therefore, taking the arguments above into consideration, figure 4 summarizes the theoretical framework that guides the design of this thesis to offer a better understanding into how leaders motivate millennials in the workplace.

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3.Methodology

The authors have developed this chapter with the research method as a starting point. Secondly, the sample technique is justified. Subsequently, the different data collection methods, as well as the type of data and the participant selection are detailed. To finally provide the method analysis and conclude with an explanation of the limitation of the thesis.

3.1 Qualitative research method

The authors chose a qualitative research method as it seemed to be the most suitable method for the thesis. According to Saunders et al. (2016), a qualitative research method can provide an in-depth and insightful bachelor thesis by researching people's stories and knowledge. People's experiences and information can provide more meaningful and thorough research. Furthermore, people's wisdom and narratives can provide useful information that is needed in order to answer the research question. Thus, showing that a qualitative research method is the most applicable method for this bachelor thesis. A quantitative research method is therefore not useful for this thesis as it is more based on statistics and can therefore not provide a deeper understanding of human behavior. The authors of the bachelor thesis have been aware of the negative traits that come with using a qualitative research method. Bryman and Bell (2013) state that in qualitative research the author has the power to focus and guide their work into a certain direction. Therefore, qualitative research can be seen as less trustworthy, because of the authors ability to change according to their own preconceptions of the research. The authors preferences and thoughts on what the focus of the study should be, and where the patterns lay, affects the overall study. Thus, affecting the study's result by the authors own preferences and perspectives. To avoid this, the authors have cross-checked sources to assure validity. The authors also had a clear structure with guidelines of the criteria that the participants met in order to participate in the interviews. Furthermore, the transcriptions can be provided by contacting the authors of this bachelor thesis, to allow the reader to make their own judgement.

3.1.1 Semi-structured interviews

In qualitative research methods, there are different approaches to use when proceeding with the data gathering. These approaches can be various types of firsthand-information through interviews such as semi-structured interviews, focus groups, other measurements, or

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experiences the author can use to receive a deeper understanding in their research area (Saunders et al., 2016). Bryman and Bell (2013) state that semi-structured interviews are a common qualitative approach for researchers to use. Here, the interviews are planned ahead of time and contain questions that are structured based on the authors chosen categories that are connected to the literature. The interview questions are not narrowly formulated, which gives the participants that are being interviewed the possibility to give more detailed answers, based on their own opinions and preferences. Therefore, the authors have designed open-ended questions for the semi structured-interviews. Hence, giving the interviewer more information and more thorough answers to use in the research. Furthermore, Saunders et al. (2016) state that it is crucial for the interviewer to have follow-up questions that can be used in situations during the interview when the participant(s) have short answers to the questions. Saunders et al. further describe follow-up questions as being useful for the researcher to receive more clarification on what the participants mean with their answers as well as to receive more information.

During the interview, it is possible for the participants to answer the questions by mentioning other topics within the research area as well as other subjects that can also be relevant and useful for the interviewer. Bryman and Bell (2013) state that it can be positive to prepare the participants prior to the interview, as this can result in increased trust between the participant and the interviewer. Saunders et al. (2016) add to Bryman and Bells´ statement by mentioning that the participants who are provided with the interview questions, or information about the interview topic prior to the interview can become more prepared. Hence, giving the interviewer well-thought out answers to the research questions that can provide more quality answers and trustworthiness in the interview. Based on the statements by Bryman and Bell and Saunders, the authors provided the participants with the interview guide prior to the interview to allow the participants to be prepared and increase trust between the participants and the interviewer. Saunders et al. (2016) state that the structuring of interview questions is based on the research topic as well as relevant patterns that can help the author receive further detailed information from the participants. Saunders et al. further add that spending a lot of time structuring the interview and creating a plan can help the interviewer avoid potential issues that can arise during the interview. These issues include the participants' answers which may not fit with the research question. Saunders et al. further add that it is important for the interviewer to avoid affecting the participants' answers. In order to prevent this, the interviewer could have

follow-23

up questions to ask in order to receive clarification. Bryman and Bell (2013) add to this statement by mentioning that it is important for the participants to have the ability to answer the questions in their own way and based on their own perception of the questions, this to ensure increased trustworthiness of the interview.

In this bachelor thesis, all of the interviews conducted were audio-recorded, with the permission of all of the participants, to be able to fully transcribe what each participant answered to the interview questions. The majority of the interviews were conducted in English, however one interview was conducted in Spanish due to one of the authors and the participant being native Spanish speakers. All of the English interviews were first recorded, saved as an audio-recording, and then transcribed in English. The Spanish interview was recorded, saved as an audio-recording, transcribed in Spanish and later translated to English. Microsoft word translation function was used to translate from Spanish to English and lastly interpreted and corrected by the native Spanish speaking author in order to avoid minor mistakes made by the software.

The interview questions were created and formulated based on relevant subjects and problem areas within scientific articles, as these were found useful in writing the interview questions. Thus, to ensure that the interview questions were more suitable to use in the interview. The authors have developed questions based on the different concepts and the theory that have been chosen such as organizational leadership, motivation, and millennials.

3.1.2 Operationalization

In table 1 below, the authors have developed 17 interview questions, where relevant themes to the questions are presented and linked to the literature.

Questions Question themes Link to literature concepts

a) How would you describe the environment of

your workplace? Leadership (see Bratton, 2020) Interconnected process

b) How would you describe your relationship with your colleagues and employees? (Do you have a similar bond with all of them or do you have stronger connections with some of the employees?, if so why do you think that is?)

Leadership

24 c) What would you say are the average age of

your employees within the company? Millennials (see Onukwuba 2020) Workforce of the future d) Do you have team-work activities, work

related or outside of work? (If yes: give examples of these team-work activities)

Motivation (see Long 2017) Hygienic

motivational factors e) What type of leader do you believe you are? Leadership

(see Bratton 2020) Interconnected process f) What would you say are your best qualities

as a leader? Leadership (see Bratton 2020) Leadership traits

g) What type of leadership do your employees respond to best? (do you have any examples?)

Leadership (see Long 2017) Transformational leadership h) Tell us about any routines, policies or

procedures that you have in place for employees to follow?

Leadership (See Long 2017) Work environment

i) How do you build trust/increase trust

between you and your employees? Motivation (See Long 2017) Transformational leadership j) How would you describe the typical

employee within the company? (Do you have any examples?)

Millennials (See Cote 2019) Generation traits

k) What would you say are the best attributes

for an employee to have? Millennials (See Bratton 2020) The framework big five

l) How do you motivate your employees? (If Yes: Do you have any examples?

If No: Are there any particular reasons why you are not motivating your employees?)

Motivation (See Jerome et al.

2014) Intrinsic/ motivation Extrinsic

m) Are there differences in how you motivate your employees of different age groups? (If Yes: What differences? Do you have any examples? If No: Would you say that the different age groups are identical in what motivates them?)

Millennials (See Long 2017) Generational differences

n) Some argue that it is more difficult to motivate younger employees to work, what is your opinion on that?

Millennials (See Onukwuba 2020)

Generational differences o) How would you, as a manager, like to

motivate your employees? (Do you have any examples?)

Motivation (See Long 2017) Intrinsic/ Extrinsic motivation

p) How are employees rewarded for meeting targets? Do you think that the employees work more effectively based on these rewards?)

Motivation (See Long 2017 Intrinsic/ Extrinsic motivation

q) How do employees usually receive feedback on their performance (that include both positive and negative feedback)

Motivation (See Ng et al.,

25 r) Is there any other information you would like to add that you believe can be useful for our paper?

3.2 Purposive sampling method

A purposive sampling technique was chosen by the authors. According to Saunders et al. (2016), a purposive sampling technique is where the researcher has the ability to decide what type of participants are the most suitable for their research. The authors decided that a purposive sampling method would be the most applicable method to use in order to conduct the thesis and receive vital information that can answer the research question. Saunders et al. (2016) state that purposive sampling is not applicable for bigger research with several participants, instead, a more useful sample size would be to only have a few people participating. The researcher can with a sample consisting of a few people focus more vividly on the participants and achieve more profound information. Since the researcher had most influence on the sampling strategy, purposive sampling can be seen as unobjective. Therefore, it is important for the author to be aware of how to choose and what to focus on when collecting participants. Purposive sampling method is a useful method to choose when the researcher wants to have a selective and limited sample to be able to attain more deep-rooted information.

The purposive sampling technique was conducted by first contacting 80 participants through email, in which the authors described vital information regarding the interviews and the research topic to see whether there was an interest or not. Due to a short time frame of three to four weeks to contact potential participants, the authors were only able to contact 80 participants. Nonetheless, the authors of this thesis were only two individuals, therefore the possibility to reach and receive more interviews to conduct has been limited. Out of the 80 people contacted, only four participants agreed to participate in an interview, the rest of the participants who chose not to participate were due to time limitations. The authors searched online for relevant managers in companies within the Swedish retail industry. The Swedish retail industry was chosen due to a presumption by the authors that there are more millennials working within the retail industry than in many other industries. Moreover, the retail industry was chosen due to many millennials working in the retail industry, especially as a part time job for millennial students (Chancer et al., 2019). The authors criteria for conducting the interviews

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were that the managers must work in companies within the Swedish retail industry and that the manager´s employees should consist of millennials.

3.3 Sources and Data

The authors have used both primary and secondary sources in the bachelor thesis. According to Keller (2019), primary sources are first-hand information from individuals who have the experience or qualified knowledge of the specific topic or research area. For instance, the participants in interviews who provide information based on their own experience are seen as first-hand sources. Keller further adds that secondary sources are information created from individuals who do not have first-hand experience on the specific topic, these can include literature and journals. Primary sources are often seen as more trustworthy since the information provided is directly from the source. Primary sources can be seen as more reliable and authentic as the source has relevant knowledge and involvement in the specific area. Primary and secondary sources used together can ensure higher quality, by cross-checking the information from both parts. Moreover, by combining primary and secondary sources the authors can increase reliability and support to the gathered information (Chawla & Sondhi, 2011).

The authors have used articles and books that have been peer-reviewed, to establish further reliability in the thesis. The articles and literature used have been published by independent firms such as Sage and Springer Publishing. The authors choose these publishing firms as they are seen as valid in academia with high-quality content. (Sage Publishing, 2020; Springer Publishing Company, 2020). Thereby, increasing trustworthiness and reliability of the thesis. The secondary sources applied for this research are gathered from individuals with a relevant academic background to ensure higher quality and trustworthy content.

Furthermore, the authors have used secondary sources in the theory section, to receive an understanding of the research topic. For the method section, the authors have used secondary sources to ensure that the research that has been made is supported and in line with how academic research papers should be written. The authors primary data was gathered through semi-structured interviews, which became a base for the findings and discussion section. The section below will further explain where the primary data was collected from.

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The authors are aware that the low number of primary sources can lead to a vague conclusion as there might be a debate on whether the number of interviews are enough to justify the conclusion made by the authors. The authors primary choice to counter this issue was to add secondary data. However, the authors of this thesis were not able to find relevant secondary data that connects the companies policies and strategies towards motivation and hiring new employees. Therefore, the authors of this thesis could only rely on the data provided by the participants. Nonetheless, the authors argue that the combined knowledge and management experience, see table 2, between the participants are enough to justify the conclusion made by the authors.

3.3.1 Interview participants

Participant A is the general manager of company A. The manager has been working for the company for four years, where the participant had a leadership role for one year and has been in the general manager role for three years. Company A is a sub-company to a Swedish retail store with several stores around Sweden.

Participant B has been a store manager for one and a half years in company B. However, Participant B has had previous experience as a substitute store manager, and as a team leader for five to six years. The store manager is in charge of 11 employees. Company B is a Swedish retail store with several stores around Sweden.

Participant C is the store manager of company C and is in charge of three employees. The store manager has been working for the company for 21 years and has been in the manager role for 21 years in company C. Company C is a Norwegian retail store with several stores around Sweden.

Participant D is the CIO of company D and is in charge of 20 employees. The CIO has been working for the company for only one year. However, Participant D has prior to working as a CIO, worked in several management positions for more than a decade. Company D is a Swedish retail store with several stores throughout Sweden.

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The following table shows the Profile of each participant that was interviewed for the research purpose. Table 2 below includes: position, years within the firm, a short background information, and the interview date.

Participant Position working Years as a leader

Participant Background and

experience Interview Date

A General

Manager 4 years Former experience as a leader, 1 year. 3 years in the current position for a small Swedish company.

30/11-20

B Store

Manager 6 in General

1.5 years working as a store manager in the current position for a large Swedish company.

1/12-20

C Store

Manager 21 years 21 years working as a store manager in the current position for a large Norwegian company.

2/12-20

D CIO 10-12

years Former experience in management. 1 year working as the head of IT-operations within a large Swedish company.

7/12-20

3.4 Thematic Analysis

Braun and Clarke (2006, p.6) state that “Thematic analysis is a method for identifying, analyzing, and reporting patterns (themes) within data”. Braun and Clarke mean that thematic analysis is a method that seeks to discover and process different aspects and similarities within certain research categories that can provide useful, relevant, and detailed information. Braun and Clark (2006) mention that the information that has been gathered through thematic analysis can be in-depthly processed. The information gathered is in great detail. However, there are also other discoveries gathered outside of the research area through the thematic analysis method that can bring further important insights to the data. Bryman and Bell (2016) add that many researchers use thematic analysis and that the method differs from other methods. Bryman and Bell mean that thematic analysis method does not have a lot of prior information, as well as clarifications of the method overall in academia. Bryman and Bell further state that there are different meanings to thematic analysis and how researchers should use and interpret the method in practice. Lastly, Bryman and Bell state that thematic analysis can be seen as less useful in business research since there is not a lot of studies about the method. However, Braun

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and Clarke (2006) state that it is easy to understand, adapt, and follow the thematic analysis method. The straightforward guidelines on how to use thematic analysis make the process uncomplicated for the researcher. Braun and Clarke further state that thematic analysis can provide clarity and deeper meaning within the data gathered. The method can also provide information where certain areas within the data contradict each other. Furthermore, the data can have a common ground, in which the researcher can analyze and discover new and useful information. The authors chose thematic analysis as the method is easy to process and perform. The method can also give the authors new perspectives and clarity to the gathered data. Thus, helping the authors receive a less wide or shallow understanding of their research.

Furthermore, the authors have used open-coding in the bachelor thesis. Open-coding refers to interpreting and categorizing the findings collected from the interviews. Open-coding is a tool that can provide the authors with more apparent data and a deeper understanding, which can make the data more simple to organize and interpret (Corbin & Strauss, 2015). The thematic analysis allowed the authors to gather the most relevant information and filter out the unnecessary information from the interviews. The relevant data was then color coded and placed in specific themes which were discovered as a part of the color coding process. The themes were based on similarities that were discovered from the information provided from the semi-structured interviews. The themes discovered were, leadership style and qualities, manager and employee relationship, employees with a focus on millennials, and lastly motivation. The theme manager and employee relationship has been further divided into a subcategory called work environment. These themes subsequently structured the presentation of the findings section in this bachelor thesis.

3.5 Limitations

As of writing this bachelor thesis, the Covid-19 pandemic caused limitations in the society which affected the authors and the thesis process (Folkhälsomyndigheten, 2020). There is a hectic and uncertain period for companies within the retail industry. There are also restrictions and guidelines in Sweden that must be followed, such as social distancing. Hence, limiting the possibility to have face-to-face meetings. The authors conducted three interviews online through various digital softwares, while one interview was conducted in person. The online interviews affected the circumstances such as lack of seeing body language in the meeting and

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face-to-face engagement between the interviewer and the participants. Due to time and access limitations, the authors could not make a generalized paper on how leaders influence millennials in the workforce. The authors could only access 4 participants from the leader perspective of the leader-follower (employee) model, thus only gaining a leader's perspective on how millennials are motivated. The participants included in the bachelor thesis have different backgrounds within the retail stores in Sweden with a spread of fourcompanies. The low number of companies used within the Swedish retail industry for this paper means that the thesis can neither be seen as a representation of the whole Swedish retail industry. Instead, the thesis should be seen as a first attempt to explore the phenomenon of how millennials are becoming motivated within, in this case due to access and time limitation, the Swedish retail industry.

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4. Empirical Findings

In the findings chapter, the authors have provided the reader with the primary data that was gathered through the semi-structured interviews with the participants presented in table 2. These findings have been divided into four themes. The themes that are included in the findings section are leadership style and qualities, employees with a focus on millennials, manager and employee relationship, and lastly motivation. The theme manager and employee relationship contain one subcategory called work environment, to make the information more understandable and in-depth.

4.1 Leadership style and qualities

Within the theme leadership style and qualities, different management strategies will be presented as well as how these strategies and leadership qualities affect the employees. When asked about what type of leader the participants believed they were, Participant A stated that “I’m a feeler, I know, I feel my employees and know how they feel’’. Participant A saw himself as a leader who is open and understanding towards his employees. Participant A followed the statement by stating “My goal is that everybody in the team, they know what the finish line is, what they think the final product is supposed to be.” Participant A described the importance of having end goals and showing the employees what the main or finish goal is. Participant B described his leadership style in a similar manner as Participant A by stating “If they come with a problem to me, I always push that very high up on my agenda, depending on the thing, just to have that trust between colleagues”. Participant B expressed to be a caring leader that values trust between leader and employees. Participant C described using a similar leadership style as Participant A and B by stating that Participant C wanted to make the employees feel good, highlighting the importance of taking care of people in the work circle. Participant D stated “I can grow [train] the employees so that they can feel that they are important in their role” and further explained that it is important for a leader to provide freedom and responsibilities for the employees to assure that they feel needed.

When Participant A was asked to provide an example concerning Participant A’s leadership style, Participant A explained that having a clear guideline on what the goal is and why the work is important to do, can help dismiss uncertainty and create more transparency in the workplace. Participant A added “[…] because, like I’ve been transparent enough so they know

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what to do, if I’m not there”. Hence, Participant A indicated that employees usually respond best to a leader who values transparency and empowers the employees to take initiatives on what the employees believe is right. When asked about good leadership qualities, Participant A stated that employees value leaders that allow the employees to grow by having more responsibility over their work environment. Participant A clarified that he believed a good leader should set a direction and provide guidance to the employees, where everyone works towards the same goal. Participant B stated, in line with Participant A, that a good leader should “[…] lead by example“. Hence, Participant B described the importance of providing clear guidance for the employees to follow. Which naturally would be by the leader to work as the leader wants the employees to work. Participant B along with Participant A agreed that leader characteristics for a good leader should include being open and transparent in the work environment and towards the employees. Meanwhile, Participant C believed a leader should remain friendly in all situations and that showing sympathy towards the employees are one of the more important characteristics a leader can have. Participant C stated when asked about good leadership qualities that leaders should “[…] have the heart, be kind and well to learn things, it’s easier to sell”. Participants A and B agreed with participant C on the importance of ensuring that the employees felt comfortable at work and were able to work with ease as it could increase the work effectiveness. Participant C raised an interesting thought by stating “sometimes the staff has better ideas than me, right?”. Thereby, indicating that Participant C, although promoting the importance of clear guidelines and routines, remains open to thoughts and ideas lifted up by employees. Participant D stated that it is important to allow employees to be their own leader within their role. Thus, empowering the employees with such a freedom that the employees are able to make their own decisions within their own work area.

When Participant B was asked if there was something particularly important with being a leader that needed to be highlighted, Participant B noted that “[…] having a strong and simple core is always good, something you can fall back on. Because there are always different situations with different people, different times”. Thus, Participant B described the importance of having a base in which the leader can land on and to always be aware that there is not always one right leadership style or solution for an issue. Therefore, Participant B meant that leaders have to be good at switching strategies and adapt to changes within the work environment.