Table of Contents

1.0 Introduction. 3

1.1 Problem Statement 5

1.2 Research Questions. 6

2.0 Literature Review.. 8

2.1 Leadership. 8

2.1.1 Autocratic Leadership. 10

2.1.2 Democratic leadership. 11

2.1.3 Transformational leadership. 12

2.2 Understanding Generation Z and their Characteristics. 13

2.2.1 Generation Z and their attitude towards workplace. 13

2.2.2 Generation Z and their perception of a leader 14

2.2.3 Generation Z and their motivating factors. 14

2.3 Hypothesis. 15

References. 19

1.0 Introduction

Generation Z, also known as the digital natives, is the cohort of people born between 1995 and 2010 who are now entering the workforce and bringing their unique characteristics, values, and expectations to the workplace (Evans, 2023). As the most diverse, educated, and technologically savvy generation, Gen Z has different needs and preferences than previous generations, especially regarding their motivation and engagement at work (Nikolic, 2022). Therefore, managers and leaders must understand how to manage and motivate this emerging group of professionals, who will soon make up most of the global workforce, in the best way possible.

The unique traits of Generation Z call for a tailored and sophisticated leadership strategy within the professional environment (Gabriel et al., 2022). Among various leadership styles, democratic and transformational leadership appear remarkably congruent with Gen Z’s aspirations and workplace expectations (Bako, 2016). Democratic leadership, emphasizing participation and collaboration, resonates with Gen Z’s preference for inclusivity and belonging (Gabriel et al., 2022). By involving Gen Z employees in decision-making processes, democratic leaders can harness their digital savviness and creative thinking, fostering a culture of innovation and shared ownership. However, the potential for slow decision-making processes could challenge the pace of action desired in dynamic market conditions.

Conversely, transformational leadership, distinguished by its emphasis on rallying employees around a common goal and motivating them (Gabriela & Buchko, 2021), aligns closely with Generation Z’s preference for work that is both impactful and conducive to their personal growth. Transformational leaders can captivate Gen Z workers by aligning organizational objectives with social impact and sustainability, fulfilling their need for purpose-driven employment (Zehetner et al., 2022). Furthermore, transformational leadership is well-suited to meet Gen Z’s desire for ongoing growth and regular feedback, as it fosters a culture that values contributions and individual advancement (Zehetner et al., 2022). Although this approach to leadership requires solid emotional intelligence and proficient communication skills (Gabriel et al., 2022), its ability to motivate and captivate makes it an influential strategy for energizing a workforce dominated by Gen Z, guaranteeing they are in harmony with its goals and principles (Zehetner et al., 2022).

For contemporary companies eager to tap into the potential of this tech-savvy, value-oriented generation, it is crucial to explore how various leadership approaches influence Gen Z’s engagement (Lee et al., 2021). Gen Z will benefit from both versatile and insightful leadership, given the mix of their attributes, among them the need for meaningful work that favors society, an aspiration for independence, a touch of creativity, and the hope for quick and thoughtful feedback (Gabriela & Buchko, 2021). The impact of leadership styles on Gen Z employees is not only a topic of academic interest but also a key component of effective workforce management (Gabriela & Buchko, 2021).

Managers can tailor their strategies by understanding what drives Gen Z to create a more supportive work atmosphere where these young employees feel valued, comprehended, and inspired (Ljungquist & Lund, 2023). As a result, they become more motivated and committed to the company’s objectives, which raises performance and fosters creativity (Gabriela & Buchko, 2021). The study of leadership’s impact on Gen Z’s motivation is crucial because of its sizeable workforce and ability to influence future business cultures and market trends (Ljungquist & Lund, 2023). It provides a road map for creating leadership tactics that align with the expectations and values of Generation Z, giving businesses a competitive advantage in luring and keeping the brightest minds in the industry.

This literature review explores the impact of different manager leadership styles on Gen Z employee motivation by examining the characteristics, needs, and preferences of Gen Z and the advantages and disadvantages of three distinct leadership styles: autocratic, democratic, and transformational (Evans, 2023). The review will argue that transformational leadership is the most suitable and effective leadership style for motivating Gen Z employees, as it aligns with their values, goals, and expectations and fosters a positive and supportive relationship between the leader and the follower.

1.1 Problem Statement

Here is the problem at hand: How do various managerial leadership styles, including transformational, autocratic, and democratic leadership, affect the motivation and satisfaction of Generation Z employees within the workplace, considering their unique preferences for flexibility, autonomy, creativity, feedback, social impact, and personal growth? Motivation is a critical factor influencing employees’ performance, satisfaction, and well-being in any organization. However, motivation varies significantly across employee generations, with each group’s unique experiences, traits, and values shaping their specific motivational needs and preferences. According to Bako (2016), Generation Z, the newest and youngest generation of employees, has distinct and diverse motivational needs and preferences that differ from those of previous generations, such as Millennials, Generation X, and Baby Boomers (Zehetner et al., 2020). Gen Z is motivated by flexibility, autonomy, creativity, feedback, recognition, social impact, and personal growth, and they expect their managers and leaders to provide them with these factors in their work environment (Ljungquist & Lund, 2023).

Nevertheless, only some managers or leaders recognize or cater to Gen Z employees’ motivational requirements and preferences, potentially adopting leadership approaches that do not align with or effectively engage this particular employee demographic (Bako, 2016). This may result in lower motivation, performance, satisfaction, and retention levels among Gen Z employees and negatively affect organizational outcomes and competitiveness (Ljungquist & Lund, 2023). Therefore, it is essential to understand the motivational needs and preferences of Gen Z employees and how different manager leadership styles may influence their motivation, performance, and satisfaction to develop and implement the most suitable and effective leadership strategies for this generation of employees (Ljungquist & Lund, 2023).

1.2 Research Questions

1. How do different manager leadership styles affect Gen Z employees’ motivation, performance, and satisfaction?

Different manager leadership styles can significantly impact the motivation, performance, and satisfaction of Gen Z employees, the newest generation entering the workforce. According to Nikolic (2022), Gen Z employees are diverse, multicultural, technologically savvy, innovative, and entrepreneurial, but also impatient, demanding, and individualistic. Therefore, they may prefer different leadership styles depending on their needs, preferences, and expectations. One possible leadership style that could suit Gen Z employees is democratic leadership, which involves power-sharing, participation, and flexibility (Evans, 2023). Democratic leaders encourage Gen Z employees to express their opinions, contribute to decision-making, and collaborate with others (Nikolic, 2022). This could increase their sense of belonging, autonomy, and creativity, as well as their commitment and satisfaction with their work and organization.

Another leadership style that could suit Gen Z employees is transformational leadership, which involves change, innovation, and inspiration (Evans, 2023). Transformational leaders motivate Gen Z employees to pursue a shared vision, challenge themselves, and learn new skills (Nikolic, 2022). This could increase their enthusiasm, confidence, and performance, as well as their loyalty and trust in their leader and organization. However, not all leadership styles may be effective for Gen Z employees. For example, autocratic leadership, which involves individual control, authority, and rules, may not be suitable for Gen Z employees. According to Evans (2023), authoritarian leaders tend to exclude Gen Z employees from essential activities, ignore their input, and impose strict regulations. This could decrease their motivation, productivity, well-being, and respect for and compliance with their leader and organization.

1. What are the characteristics, advantages, and disadvantages of autocratic, democratic, and transformational leadership styles, and how do they align with the needs and preferences of Gen Z employees?

Managerial leadership styles can significantly impact the motivation, performance, and satisfaction of Gen Z employees, the newest generation entering the workforce. Gen Z employees are characterized by being technologically savvy, diverse, individualistic, pragmatic, and demanding (Bencsik et al., 2016). They seek comfort, flexibility, creativity, and recognition in their work environment and value communication, collaboration, and feedback from their managers (Desai & Lele, 2017). The autocratic leadership style is based on individual control, authority, and decision-making without considering employee input or participation (House, 1996). This style may not suit Gen Z employees, who may feel frustrated, disrespected, and unmotivated by the lack of autonomy, involvement, and empowerment (De Cremer, 2007).

Democratic leadership is based on power sharing, team orientation, and collective decision-making with equal employee input and consideration (Sergioranni, 2003). This style appeals to Gen Z employees, who feel valued, respected, and satisfied by the opportunity to contribute, express, and learn from their managers and peers (Naile & Selesho, 2014). Transformational leadership style is based on change and innovation orientation, inspirational behavior, and idealized influence with high levels of enthusiasm and commitment (Bass & Avolio, 1994). 2. This style may inspire Gen Z employees, who may feel optimistic, passionate, and motivated by their managers’ vision, creativity, and mentorship (Eagley et al., 2003). Therefore, different manager leadership styles can affect Gen Z employees’ motivation, performance, and satisfaction in different ways, depending on how well they align with their characteristics, needs, and preferences.

2.0 Literature Review

2.1 Leadership

Leadership is pivotal in determining organizational success, shaping performance, and cultivating a positive culture. It transcends mere management of tasks; it involves inspiring individuals or teams toward achieving collective objectives, fostering teamwork, and elevating employee motivation (Ahsan, 2023). Many theories explaining the fundamentals of good leadership have been developed over the years through academic study; each theory provides a different perspective on leadership that can be used to understand and improve it. One of the first frameworks, the trait theory, according to Gentsoudi (2022), contends that certain intrinsic qualities, such as charm, intelligence, and confidence, point to the possibility of becoming a leader. This viewpoint supports the notion of the “born leader,” asserting that these innate characteristics inevitably make people more likely to assume leadership positions (Gentsoudi, 2022). Critics find fault with this theory for its deterministic nature (Gentsoudi, 2022) and its lack of mention of contextual factors that may affect the success of leadership, despite its role in highlighting the common traits among leaders.

Consequently, behavioral theories focus on leaders’ actions in their current role, emphasizing overt behaviors rather than inherent traits (Alvesson & Einola, 2019). Contingency theories that emerged further developed our comprehension of leadership and positioning from a universalistic standpoint (Gentsoudi, 2022). As per the theory, good leadership depends on various situational factors, such as the nature of the task, the organizational environment, and the features of the team members (Dickson, 2023). For example, the Path-Goal Theory suggests that adaptability and awareness of the situation are essential to effective leadership (Dickson, 2023) by encouraging leaders to change their style according to the team and context needs. Lastly, relational approaches like transformational leadership and servant leadership highlight the significance of the leader-follower relationship (Ansong et al., 2023). These approaches advocate for leadership that transcends transactional exchanges, aiming instead to inspire and empower followers. Transformational leaders motivate by aligning team goals with a higher vision, while servant leaders prioritize the growth and well-being of their team members, embodying a selfless approach to leadership.

2.1.1 Autocratic Leadership

Autocratic leadership focuses heavily on the leader’s power and authority, adopting a dictatorial approach. According to Rivers (2019), leaders in this style wield their power from a strong position within the organization, taking sole responsibility for decision-making. They demand strict adherence to rules from their subordinates, expecting respect and compliance without seeking their input or opinions on business matters (Rivers, 2019). Such leaders are often seen as self-centered, overly confident in their decisions and methods, and primarily focused on tasks and achievements. This exclusion of employees from significant organizational choices can lead to feeling undervalued and unfairly treated.

Consequently, this can harm the organization’s psychological safety and increase the risk of role conflict or employee overload. Additionally, autocratic leaders’ reluctance or perceived lack of need for dialogue can lead to poor communication with team members (Sinkkonen, 2021), as their primary concern lies in enhancing organizational efficiency and boosting employee productivity. This focus is frequently cited as a cause of increased stress and pressure among employees in the workplace. Conversely, autocratic leadership offers followers clear direction and structure regarding their roles and tasks, bolstering their confidence in their responsibilities (Sinkkonen, 2021). This style establishes a definitive hierarchy within an organization, leading to a sense of consistency and stability that fulfills the human desire for predictability (Rivers, 2019). Setting explicit expectations for roles, tasks, and behavior emphasizes discipline and control. Autocratic leaders are also adept at defining and maintaining clear organizational boundaries (Sinkkonen, 2021), effectively preventing confusion around role duplication, and ensuring a thorough understanding of administrative rules and compliance with policies. This approach ensures that everyone knows precisely what is expected of them, contributing to a more organized and efficient working environment.

2.1.2 Democratic leadership

Democratic leaders possess superior interpersonal skills and cultivate equitable relationships with their followers, ensuring each member feels valued and integral to the team (Woods, 2021). They favor a decentralized and participatory approach, actively involving their followers in organizational activities, meetings, and discussions. Known for their open-mindedness, these leaders are keen to listen to their employees’ perspectives (Woods, 2021), valuing diverse opinions as a catalyst for organizational growth. Their emphasis on effective communication extends to a willingness to embrace constructive criticism and feedback from their team. According to Prabowo & Syafari (2022), this inclusive and communicative approach makes employees feel like a crucial part of the team, ensuring their voices are heard in the decision-making process. Democratic leadership fosters a sense of empowerment among employees, enhancing their satisfaction with their roles and positions (Prabowo & Syafari, 2022). This, in turn, boosts organizational morale, creating a positive and engaging work environment where every member feels motivated and acknowledged.

The democratic leadership style proves most effective (Woods, 2021) when the workforce comprises highly skilled and experienced employees who naturally lean towards teamwork and value collaboration. This approach necessitates a significant level of trust to integrate employee feedback into decision-making and organizational activities (Prabowo & Syafari, 2022). However, this method can be more time-intensive compared to other leadership styles, as discussions may extend for longer periods and occasionally yield no substantial outcomes. Furthermore, such an environment under democratic leadership demands employees willing to participate and actively demonstrate a solid commitment to the organization (Prabowo & Syafari, 2022). These employees may often be required to prioritize the organization’s needs over their personal preferences to secure the best possible results, embodying a collective rather than individual mindset.

2.1.3 Transformational leadership

Transformational leaders stand out due to their distinctive and forward-looking vision (Ogolla, 2020), ability to inspire, and commitment to driving significant innovation and change with the help of their engaged followers. This leadership style hinges on a leader’s capability to profoundly influence followers, connect emotionally and intrinsically, and stimulate their intellectual curiosity (Ogolla, 2020). They motivate their team by crafting and communicating a compelling future vision, making followers more passionate and optimistic about their contributions (Abbas et al., 2024). By leading by example, valuing diverse viewpoints, and consistently supporting and mentoring their team, transformational leaders foster an environment where followers are encouraged to align with the overarching vision (Abbas et al., 2024). Such leaders are known for their optimism and enthusiasm in pursuing and accomplishing organizational objectives, effectively energizing and guiding their teams toward success.

Transformational leaders are known for cultivating solid and supportive relationships with their followers (Phornlaphatrachakorn, 2019) and enhancing the organizational climate by focusing on mentorship to address weaknesses, thereby boosting employee morale and self-confidence. They prioritize the group’s goals over individual interests, fostering a sense of value and respect among team members as they work towards shared objectives (Phornlaphatrachakorn, 2019).  However, some critics argue that transformational leadership can veer into manipulation, exploiting emotional appeals, and sometimes sidelining ethical considerations. This critique points to a potential dark side, where a lack of moral integrity and the dismissal of dissenting views can lead to a form of leadership that, in its extreme, resembles a dictatorship that marginalizes and suppresses the minority (Phornlaphatrachakorn, 2019). This negative feature is frequently associated with the narcissistic characteristics of the leader, such as their excessive self-assurance and propensity to seek praise, which they use to win the allegiance and devotion of their followers.

2.2 Understanding Generation Z and Their Characteristics

Frequently hailed as the most tech-savvy and internet-dependent generation, generation Z possesses unique traits that differentiate them from earlier generations (Gaidhani et al., 2019). They are naturally digital natives, having grown up in a time of exponential technological innovation and having assiduously incorporated technology into every aspect of their lives from an early age. Their constant connection has cultivated an unmatched adeptness at multitasking and navigating the digital realm, earning them the moniker ‘Children of the Internet.’ Their direct and informal communication style reflects their preference for efficiency and clarity. Their open-mindedness and capacity to adapt to rapidly changing surroundings set them apart as a generation capable of central creativity and impact, even though they may lack patience and dedication (Schroth, 2019). This is provided they make effective use of their unique abilities and views.

2.2.1 Generation Z and their attitude towards the workplace

Generation Z’s approach to the workplace is deeply influenced by the digital age, prioritizing flexibility, independence, and a blend of personal and professional life (Barhate & Dirani, 2022). Accustomed to constant connectivity, they expect workplaces to integrate technology seamlessly, allowing for remote work and a balance that previous generations might not have envisioned (Leslie et al., 2021). Their work ethic is characterized by a desire for privacy, autonomy, and a transparent work environment where their contributions are acknowledged regardless of age or position. This generation seeks recognition and opportunities to prove their worth, viewing diverse tasks as a platform for demonstrating their eagerness and capability. According to Barhate & Dirani (2022), generation Z values entrepreneurship and is motivated by self-actualization more than financial reward, craving job roles that offer mentoring, learning opportunities, and a chance to express creativity. They prefer working in environments that foster a friendly and flexible corporate climate (Leslie et al., 2021). Although they may lack some interpersonal skills due to reduced face-to-face communication, they thrive in settings encouraging social interaction, autonomy, and stress management.

2.2.2 Generation Z and their perception of a leader

Generation Z’s perception of leadership diverges significantly from traditional views, emphasizing the need for leaders who are not only managers but also inspiring, future-oriented, and integrity-filled figures (Gabrielova & Buchko, 2021). They perceive management as a mechanical process, preferring leaders who value honesty, foresight, skillfulness, and self-discipline over mere inspiration and imagination. This generation seeks leaders who take their contributions seriously, regardless of their youth or experience level, and foster a workplace environment conducive to constructive ideas and individual input (Chillakuri, 2020). They expect constant, constructive feedback, mirroring the instant-reaction dynamics of social media they are accustomed to. Moreover, Generation Z desires emotionally intelligent leaders who communicate effectively (Gabrielova & Buchko, 2021) and promote a positive, inclusive culture. Additionally, they place a high priority on social responsibility and sustainability (Chillakuri, 2020).

2.2.3 Generation Z and their motivating factors

Generation Z seeks employment that honors their desires for independence, personal space, and a balanced lifestyle between work and personal time. They are drawn to roles that align with their passions and offer chances for professional growth and personal fulfillment, as Kirchmayer and Fratričová (2020) noted. Unlike previous generations, who might have been motivated primarily by salary and tangible rewards, Generation Z is inspired by intrinsic factors such as pursuing self-fulfillment and a passion for innovation and recognizing their successes (Mahmoud et al., 2021). This generation views change as an opportunity for advancement and excels in evolving environments. The financial challenges faced by Generation Z have cultivated a desire for job stability and economic security despite their natural inclination towards cautious entrepreneurship (Mahmoud et al., 2021). The source of their motivation is derived from a mixture of several factors, including getting credit for their work, a desire to make a meaningful difference, and an intelligent look for long-term security. This reveals an advanced view of what success means for them, as it combines their personal achievements with a more pragmatic regard for the security and safety of their private and work lives.

2.3 Hypothesis

H1: Generation Z Employees Are More Motivated by Opportunities For Work-life Balance, Personal Growth, and Self-development Than by Traditional Factors Like Salary and Status.

Generation Z’s approach to the workplace is deeply influenced by the digital age, prioritizing flexibility, independence, and a blend of personal and professional life (Barhate & Dirani, 2022). Accustomed to constant connectivity, they expect workplaces to integrate technology seamlessly, allowing for remote work and a balance that previous generations might not have envisioned (Leslie et al., 2021). Their work ethic is characterized by a desire for privacy, autonomy, and a transparent work environment where their contributions are acknowledged regardless of age or position. This generation seeks recognition and opportunities to prove their worth, viewing diverse tasks as a platform for demonstrating their eagerness and capability. According to Barhate & Dirani (2022), generation Z values entrepreneurship and is motivated by self-actualization more than financial reward, craving job roles that offer mentoring, learning opportunities, and a chance to express creativity. They prefer working in environments that foster a friendly and flexible corporate climate 

H2: The comparative efficacy of transformational leadership in positively impacting generation Z employee motivation surpasses that of democratic leadership.

Firstly, Generation Z prioritizes a work environment that values purpose, personal growth, and individual recognition (Gabrielova & Buchko, 2021; Kirchmayer & Fratričová, 2020). Transformational leadership excels in nurturing these aspects by fostering a shared vision, providing customized mentorship, and empowering employees to contribute meaningfully (Ogolla, 2020). Democratic leadership, while encouraging participation, might not fully satisfy this desire for individual attention and a purpose-driven approach.

Secondly, Generation Z is intrinsically motivated by factors like self-actualization and making a difference, rather than traditional extrinsic rewards like high salaries (Mahmoud et al., 2021). Transformational leadership directly addresses these intrinsic drivers by fostering a stimulating environment where employees feel passionate about their work and contribute to a larger vision (Abbas et al., 2024). Democratic leadership, while promoting collaboration, might not fully tap into this intrinsic desire for meaningful contribution and personal growth.

Thirdly, Generation Z’s tech-savviness and preference for constant feedback align well with the communication style often employed by transformational leaders (Gabrielova & Buchko, 2021). Transformational leaders often utilize technology for feedback and engagement, catering to Generation Z’s need for immediacy and personalized communication (Schroth, 2019). Democratic leadership, while encouraging open communication, might not readily leverage technology to cater to this digital generation’s preferences.

H3: Democratic Leadership Is Positively Correlated with Generation Z Employee Motivation

Democratic leadership is assumed to enhance Generation Z employee engagement as it emphasizes diversity and enables them to have a say in decision-making (Nikolic, 2022). This leadership approach aligns with Gen Z’s expectations regarding possibilities for participation in organizational decision-making, a collaborative work culture, and respect for their ideas (Nikolic, 2022). Because democratic leadership satisfies their demand for voice and autonomy, it is likely to improve their motivation, work satisfaction, and engagement.

H4: Transformational Leadership Is Positively Correlated with Generation Z Employee Motivation

Ramli et al. (2020) state that transformational leadership is expected to impact Generation Z employees’ motivation positively. With the importance of personalized attention, intellectual challenge, and motivational power, this leadership style goes well with Gen Z’s appreciation of creativity, mentorship, and self-improvement (Borden, 2019). Transformational leadership enables Gen Z employees by establishing a culture that stresses creativity, assists in personal growth, and sets a captivating direction (Ramli et al., 2020).

H5: Autocratic Leadership is Negatively Correlated with Generation Z Employee Motivation

According to Barry (2020), autocratic leadership’s linear decision-making feature is anticipated to affect Generation Z employees’ motivation negatively. Autocratic leadership could cause disengagement among Gen Z workers, who prefer independence, participation, and a team-oriented work environment (Barry, 2020). Such a management style clashes with the Generation Z aspiration of openness and teamwork in the workplace (Barry, 2020), resulting in lower employee participation and satisfaction levels.

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