Digital Leadership - Leadership competencies required in times of a multigenerational workforce in the digital age
- Some of the major challenges which leaders are facing nowadays are an increasing degree of digitalization as well as managing workforce diversity. Recently, a new type of leadership, digital leadership, has emerged but a uniform definition and the specific competencies required have not yet been established. Hence, the main purpose of this thesis was to identify the competencies and leadership styles that are expected from leaders in times of a multigenerational workforce in the digital age. Moreover, the thesis analyzed the perceived impact of digitalization and the importance of digital leadership competencies for subordinates. In particular, the existence of generational differences with regards to leadership and digitalization were examined. Prior studies have explored the topic of digital leadership from a corporate perspective by focusing on insights from higher level managers and executives. However, this thesis took a new approach by using a quantitative survey among members of the general workforce ranging from Baby Boomers to Generation Z. The results showed that transformational leadership is the most suitable leadership style in times of digital transformation and multiple generations in the workforce. Leaders who support personal development, possess strong communication and networking skills, and accept mistakes are the most valued today. Regarding digital competencies, leaders are expected to show openness towards new trends, effectively use digital tools, and implement the company's digitalization strategy. Although the study provided evidence for a few generational differences with regards to leadership and digitalization, the effect sizes were rather small. In addition, the study has shown that independent of age all members of the workforce acknowledge the impact of digitalization on private and professional life and therefore desire a leader with strong digital leadership competencies. The thesis contributes to the growing body of literature on digital leadership and allows managers to better understand the diverse needs and expectations of a multigenerational workforce. In addition, the findings can also serve as a basis for leadership development programs and recruitment processes.