Management Attitudes and Perceptions of Older Aged Employee in the Corporate Sectors in Libya

Chapter One: INTRODUCTION 1.1 Introduction: The social nature of labor is reflected in patterns of job allocation. Whatever the measure, some groups consistently suffer greater labor market disadvantage disadvantage that correlates with ascribed (age, gender) rather than achieved (education, skill) characteristics. Recruitment processes in particular operate at the intersection between the socially constructed and often stereotypical preferences of employers, and the social networks that bring potential employees to their attention. In this context, and contrary to the expectations of human capital theory, recruitment processes may select candidates with the best social fit to an existing workplace rather than candidates with the greatest skills or experience. As a result, stereotypical expectations of the capacities of certain groups of workers such as older workers may have undue influence over the likelihood that people without jobs will succeed in finding new employment through recruitment interviews. More generally, if the allocation of jobs is ordered primarily by institutional characteristics rather than the qualities of the people that hold particular roles, and if these characteristics are controlled by employers through the hours, conditions and remuneration

they offer to potential employees, and then labor market interventions will need to target employers recruitment practices.

1.2 Background of the problem: Ageism, discrimination on the basis of chronological age, is a deep-seated phenomenon in Libyan culture and, specifically, in the Libyan workplace (Peterson, 2000; Warr, 1994). In the past, age has been simultaneously a positive and a negative attribute of an individual. In positive terms, gaining adulthood was the key to adult rates of pay which were clearly distinguished from those of apprentices and other young persons. Long-service, sometimes within an occupation but more often within an organization, brought certain advantages for workers (Lyon et al., 1993). Seniority was a workplace concept almost totally devoid of negative connotations. Indeed, it was really the key to being taken seriously within an organization. However, ageing has always been tainted with ambivalence and there is little evidence that there has ever been a golden age for older employees in terms of anything other than crude supply and demand in the labor market. Even then it is possible to overstate the attraction of older employees. In the 1950s and 1960s when considerable labor demand existed in the Libya, only some of that demand was to be satisfied by older employees deferring their retirement. An increased supply of married women workers and mass immigration were much more significant in their labor market effects. Studies of that era (Magd, 2003) point to a degree of selectivity in the movement of older employees from one task to another and in the offer of work beyond the retirement age. Indeed, even where the extended employment of older people was considered, this was easier on the internal labor

market than it was externally. In the former, at least strengths were known; in the latter, potential weaknesses would be assumed real. Individuals will differ, but there seems little doubt that as a group man begin to show their age by the mid-fifties. An employer will probably be quite happy to continue to employ a man of this age whose abilities he knows. But once that man is out of work, potential new employers will look askance at him, fearful of what his sickness record may be, and what effort can be expected of him. Where he has a choice, the employer will nearly always take the younger man (Wedderburn, 1965). However, it is true to say of the 1950s and 1960s in the Libya that there were few pressures on healthy older workers to leave the workplace before their attainment of the retirement age. The expectation was that, other than for reasons of bad health, employees would work to these ages. Furthermore, when older people do become unemployed, they tend to stay in that state for longer than their younger counterparts. Of all registered unemployed males aged 50-64 in Libya in 1993, 23.1% had been unemployed for more than three years. For registered unemployed women aged 50-59, the equivalent figure was 16.1% but again this far exceeded the proportions of other age groups unemployed for so long (Torrington & Hall, 1995). A series of economic difficulties, redefined trading relationships and

technological/organizational changes since the late 1970s, has profoundly changed the circumstances of late working life. Now it is exceptional to work to the point of one's eligibility for the state retirement pension. Any shortfall is typically financed by provisions

within company early retirement schemes and private pension plans, or by unemployment and other State welfare benefits. In the wake of these labor market changes, to be an older employee is to be inherently vulnerable. From having a degree of status ambiguity, advancing age now is almost universally a source of labor market stigma. This is particularly pertinent for job applicants on the external labor market but applies widely to internal decisions about redundancy, redeployment, training and retraining. 1.3 Problem Statement of the Research: In 1971 there were about 900,000 live births in the Libya; by 1977 it was reduced to 700,000 and since then it has failed to reach 800,000 per year. Even the workforce is still growing, but the extra numbers are identified as being in the middle age and older age groups rather than the young age group (Torrington & Hall, 1995). As a strategic response to labor shortages in the government sectors especially in the hospitality industry, some organizations are taking a fresh look at the potential of older workers. However, age bias and stereotypes regarding age could undermine and prove detrimental to these industry efforts. Williams (1993) revealed older workers are being subjected to less favorable treatment based on the grounds of their age. Due to shortage of human resources older aged employees still employed by the government as well as private organizations. Meanwhile, dissatisfaction or negative comments are always being heard about the older aged employee. However, some organization are strictly concerned for not to hire older aged employees in their organization as they always feel resistance with the negative perception about old aged workers. Although the older employee are experienced

but the managers and co-workers sometimes expresses their dissatisfaction towards them. In general, older employees are loyal, trustworthy and helpful but still there is of complex arises between younger and older employees. It is, therefore, the purpose of this research paper to explore the potential of employing older workers in private corporate sectors in Libya. In particular, this study seeks to examine corporate sector managers attitudes and perceptions towards older workers.

1.4 Research Objectives: Basically, this research attempts to find out management attitudes and perception of older workers. It is, therefore, the objectives of this study to explore the potential of employing older employees in Libyan corporate sector. What the top management of Libyan

corporate sectors perceived about retaining or recruiting older aged employees and how they treat and appraise their overall performance and also what are the present conditions of the older aged employment is the objective of this study. 1.5 Research Questions: In the early stage of this research development, there are several questions that need to be discovered. This paper is being mainly projected to discover: 1. To find out the advantages of older employees perceived by managers in corporate sector in Libya. 2. To discover the disadvantages of older employees perceived by managers in corporate sector in Libya. 3. To determine expected future hiring of older employees.

1.6

Significance of the study:

The importance of this study could be articulated in the following context, especially for employers and researchers. This research can help managers in such a way that it can raise awareness as to the kind of attitudes they have toward older workers, and help them reflect whether such attitudes and perceptions are favorable towards facilitating older workers potential employment in the organization.

The findings of this study give insights to researchers about the management attitudes and perception among older workers in Libya. The findings are helpful for researchers to study why age stereotyping still continues to exist, if any. In this way, it could provide some insight to better understand the phenomenon of age stereotyping or ageism in the organizational setting.

More importantly, the results of the study will benefit the researchers by providing them more perspectives and ideas regarding the nature of the variables focused in this study. It is also hoped that the findings would build theories based on the research outcome and generate new framework and hypotheses on management attitude and perception of older employees. 1.7 Definition of Key Terms:

Apart from the research methods terminology in this study basically social and human resources management related jargons are widely used. For better understanding for the readers and scholars here some key terms has been very briefly defined.

Human Resources Management Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Ageism Ageism can be defined as "any attitude, action, or institutional structure which subordinates a person or group because of age or any assignment of roles in society purely on the basis of age" (Traxler, 1980). As an "ism", ageism reflects a prejudice in society against older adults. Manager A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this is their first step into a management career. He is vital part of the organizations top management. Managers may direct workers directly or they may direct several supervisors who direct the workers. The manager must be familiar with the work of all the groups he/she supervises, but does not need to be the best in any or all of the areas. Recruitment/Hiring: Recruitment refers to the process of sourcing, screening, and selecting people for a job or vacancy within an organization. Though individuals can undertake individual components of the recruitment process, mid- and large-size organizations generally retain professional recruiters.

1.8

Organization of the Report:

This research project consists of five chapters. Chapter 1 outlines the introduction of the study, background of this study, the problem under investigation, the purpose and significance of study, the scope, and the research objectives. Chapter 2 reviews the literature, outlining the meaning of the management attitudes and perception, and describing the importance of management attitudes and perception of older employees. Chapter 3 presents the methodology which explains the variables and measurement, sample, research instrument used, scale of measurement, data collection method, and statistical testing and analysis. The results of the study are discussed in Chapter 4. The final chapter, chapter 5, presents the discussion of the results. It also highlights the implications of the results, limitations of the study and recommendations for future research.

CHAPTER Two: LITERATURE REVIEW

2.1

Review of Related Literature:

The number of young people entering the labor force is falling because of the increasing participating full-time education (Evans, 1990; Williams & Fry, 1994). This review will present us the advantages and disadvantages of employing older people, aged 45 to 59 groups or above, in the labor market with their job attitude and performance. To make a clear sense about this over view, this overview will be divided into several sections which will illustrate the management attitudes and perception of older employees besides discrimination and personnel management overview.

Here we will find some study data about the thoughts of older employer to the older worker. In the middle of nineteenth century and afterwards, there is a big labor demand of older people in some places. This chapter will also include the effects in labor market for increasing supply of married women worker besides mass immigration. Going through this passage, we will find that most of the employers like older people in their organization because of their work experience, public contact area and management thinking although they have less scores on resistance to change than young workers.

These negative attitudes are especially found in hospitality area. But the most positive observation to the employee for the old worker is that they have low absenteeism, low turnover, low illness and accident rate with job satisfaction (Peterson, 2000; Warr, 1994).

Older workers have a great influence in the work industry and hiring older worker will be a great inspiration for the older worker to increase their performance in relevant area.

The number of young people entering the labor force is falling because of the increasing participating full-time education (Evans, 1990; Williams & Fry, 1994). Regarding the ageing or graying of the labor force, with the 45 to 59 age group expanding by 15 per cent, between 2005-2010 the labor force will have a much higher proportion of over-50s (Bolch, 200; Peterson, 2000; Henderson, 1998; Landry, 1999; Warr, 1994; Cuming, 1993; Lucas and Jeffries, 1991). The population in Libya is ageing; it is estimated that by the year 2020, 40% of the total population will be aged 50 and over, compared with the 31% of the total population in 1971 who were aged 50 and over (Tillsley, 1995).

In order to enhance clarity, this chapter is divided into several sections, which are, the explanation of management attitudes and perception of older employees, theory related to older workers, organizational changes and age discrimination; and the personnel management view and innovative practices in recruitment and retention of older workers.

Management attitudes and perception of older employees The population is growing older and expanding at a rapid pace, and this is because of the improved eating habits, exercise programmes, and medical care, which created older people with mental and physical health levels that far exceed those of their predecessors (Bolch, 2000; Weckerle & Shultz, 1999; Thackray, 1994). A large number of this group

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prefers to continue working past the retirement age (Bolch, 2000; Lyon & Pollard, 1997; Flynn, 1995; Landry, 1999; Leonard, 1999).

However, during the time of low unemployment where organizations encounter a scarcity of qualified job applicants, they may find it difficult to acquire the personnel that they seek, especially if the skills required are in high demand. A solution to this problem is in the direction of employing older people. In the past, managers have not hired older people, at least not to any substantial degree. In fact, it is a common belief that, when management reduces the size of the workforce to become more competitive, older workers are often targeted for layoff or firing (Pave, 1991; Ho et al., 2000). This is because employers believed that work performance declines as age increases. As Mark (1956) and Giniger et al. (1983) have suggested, age was one of the most important barriers to the employment of older workers, and was one of the reasons for failing to hire older workers most frequently cited in studies of employers' attitudes towards older workers.

Older workers may not be employed because of the beliefs that they are not as capable as their younger counterparts (Peterson, 2000). Worsley (1996) concluded that employers believe that older workers are harder to train, too old to train, unlikely to stay a long period in the organization to justify the investment in them and they command higher pay packages.

Research evidence suggested that employers have concerns over the employment of older workers because where they cost more, suffer frequent and more severe illness, cannot

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learn new skills, and are less productive (Kaeter, 1995). Other employers perceived older workers as not being physically or mentally capable of fulfilling their responsibilities (Barber, 1998; Patrickson & Hartmann, 1995).

On the other hand, there is evidence that illustrates that older workers can be very productive members of the workforce (Shen & Kleiner, 2001; Bolch, 2000; McEvoy & Blahna, 2001). Hellerstein et al. (1999) found that workers above the age of 55 received higher earnings than younger workers but this larger level of earnings was more than counterbalanced by larger productivity. Forte and Hansvick (1999) surveyed 398 employers on their perception of employees of different ages, on 12 attributes. The study revealed that older workers received more favorable ratings overall. Busko and Raynor (1999) further suggested that older workers received high scores in tasks related to cognition, while Schooler et al. (1999) indicated that involvement in substantially complex work improves intellectual functioning more among older than among younger workers.

The attitude towards the employment of older people in the government sector (the focus of this study) was not clear until the study carried out by Meyer and Meyer (1988). On the basis of 185 returned questionnaires, the researchers found that hoteliers' attitudes towards the employment of older people were still consistent with those stated over 30 years before by Mark (1956). The study suggested that only 3.1% of the hotels investigated had ever used persons aged 65 or above in hotel jobs and none of the respondents was willing to assign work to older workers in public contact areas, as they were believed to affect the hotels image.

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Qu and Cheng (1996), and Rhodes (1983) agreed that job performance and the age of older workers were negatively related, while Rhodes observed that low absenteeism, low turnover, low illness and accidents rate, and high job satisfaction were positive values of older workers in employment. Older workers have considerable potential as productive hospitality employees.

Many organizations have realized the value that older workers bring to their organizations and have begun aggressively recruiting them. For example, McDonald's, Kentucky Fried Chicken, and Pizza Hut, referred to in DeMicco and Reid (1988), and McNaught and Barth (1992), were some of the organizations which successfully employed older workers. It appears that there are evidence and perceptions on the part of managers both for and against the hiring of older workers.

Theories Related with Older Workers In recent years the traditional notions of employment have increasingly come to be challenged. Organizational delayering, downsizing and re-engineering have served to bring into question the relevance of the received assumptions of hierarchical careers and instead offered the idea of flexibility both within and between different jobs. The nature and pace of these processes of organizational and job change might have a number of particular implications for older workers.

Human capital theory

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Here, age discrimination in recruitment, training and redundancy is explained in terms of real or perceived marginal productivity differences between groups. Older workers may be held to possess a lower stock of human capital which also depreciates at a faster rate and which has less time remaining for realization (Cohn, 1980).

While useful, much of the literature is, however, complex and esoteric, and there has been very little specification or testing at the level of the firm (Strober, 1991). What may be observed from any review of the age and employment theoretical literature is a call for more research into the nature and effects of organizational change for older workers, particularly at the level of the organization. Much of the research focus tends, however, to be solely directed at the negative implications for older workers in terms of a reinforcement of age-discriminatory practices.

Organizational change and age discrimination The results of the Institute of Management (IM) survey (Magd, 2003) indicate how far the recent processes of organizational restructuring, particularly in terms of the levels and mechanisms introduced to manage employment reduction, might have had an impact on the existing and anticipated employment of older workers.

According to Magd (2003), in his study, two-thirds of organizations represented within the sample have, according to respondents, made efforts to reduce the size of the workforce within the previous five years. The figures are highest for the public sector and the publicly quoted private sector (PLC) employers. Within the private sector, workforce reduction

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initiatives may have been more likely in the industrial rather than service sectors (76% and 48%). A large majority (87%) of the organizations which have pursued downsizing initiatives have implemented programmes which have had a disproportionate effect on older employees.

Smaller employers may also be better able to reach and accommodate older workers through a greater flexibility and informality in recruitment and selection methods and in the individual negotiation of the terms of employment. There is also evidence that older workers may be perceived as a potential substitute for younger labor, particularly as many managers (48 per cent) believe the availability of suitable older workers to be increasing (Hesham Magd, 2003).

The personnel management view The Institute of Personnel Management in Scotland (Magd, 2003) survey is more particularly representative of the larger public and private employers than the Institute of Management (IM) sample. It therefore enables us to approach those at the sharp end of human resourceing in these types of organizations to identify what processes may be involved in determining expected levels of older worker recruitment. The results of the regression model, for example, suggest that the perceived availability of older people and expected change in overall employment levels emerge as the most significant independent predictors of likely older worker recruitment. This might indicate that perceptions of available labor supply together with anticipated labor demand jointly determine expectations of potential older worker recruitment.

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2.2

Research Frame Work: Independent Variables Advantages of Aged Personnel/Worker Employment Managers Attitudes & Perceptions on older employee Disadvantages of Aged Personnel/Worker Employment Dependent Variables

2.3

Definition of Variable:

In this study the two main independence variables are interestingly opposite to each other. The independent variables are advantage and disadvantages of recruiting, retaining and working with the older aged employee within an organization. In the dependent variable the study will come with the variable that reflects the management perception and attitudes of the older aged employee.

2.4

Hypothesis:

Hypothesis 1 There is a positive relation between advantages of older worker employment and manager perceptions of older worker employment. Hypothesis 2 There is a negative relation between disadvantage of older worker employment and manager perceptions of older worker employment.

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Hypothesis 3 There is a positive influence in the relationship between advantages of older worker employment and manager perceptions of older worker employment.

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CHAPTER Three: RESEARCH DESIGN AND METHODOLOGY

3.1

Introduction:

This chapter provides a detailed discussion on the research methodology including research setting, research design, population and sample, data collection, instrument and data analysis.

3.2

Research Design:

This descriptive study was undertaken in order to ascertain and describe the management attitude and perception among government managers in Libya. According to Cavana, Delahaye, and Sekaran (2005), a descriptive study is undertaken in order to ascertain and describe the characteristics of the variables of interest in a situation. The goal of a descriptive study is to offer a profile or to describe relevant aspects of the phenomenon of interest to the researcher from individual, organizational, industry-oriented or other perspectives.

In this study the research tools were designed in such a way that the manager those working in Libya can raise awareness as to the kind of attitudes they have toward older workers, and help them reflect whether such attitudes and perceptions are favorable towards facilitating older workers potential employment in the organization and also the management attitudes and perception among older workers in Libya. Describing & providing some insight to better understand the phenomenon of age stereotyping or ageism in the organizational setting in Libya was also a core component of this study.

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3.3

Measurement:

Population According to Nation (1997), a population consists of all relevant cases in a particular study. A population is any group of individuals who have one or more characteristics in common that are of interest to the researcher (Best & Kahn, 2003). The population may be all the individuals of a particular type or a more limited part of that group. In this study the population consisted of managers in the Libyan corporate sector which will be around 100 in number.

Research Sampling According to Nation (1997), the problem of dealing with large information pools is handled through sampling. Sampling refers to a procedure in which a researcher selects a subset of a larger number of observations. According to Best and Kahn (2003), there is no fixed number or percentage of subjects that determines the size of an adequate sample. It may depend on the nature of the population of interest or the data to be gathered and analyzed. According to Sevilla, Ochave, Punsalan, Regala, and Uriarte (1992, as cited in Fazli 2003), 30% of population is acceptable sampling frame for a descriptive study. In this study as mentioned already random sampling will be use as both the genders were cover when distributing the questionnaires. The questionnaires were will be distributed to employees randomly.

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Data Collection Procedures In this study, questionnaires will use as the primary data collection method. Explanations were given to the managers on how to complete the questionnaire. The questionnaires were distributed to managers and the assistant managers randomly.

Data Analysis Technique Because this study was descriptive in nature, descriptive statistics such as frequencies and percentages was used to measure the percentage of returned questionnaire and also be used to describe the respondents profile such as their gender, age, educational background, their academic qualifications, and job title. These analyses were also used to describe the managers perception about the advantages and disadvantages of hiring older employee in their organization.

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REFERENCES

Authority, H. E. (1994). Investing in older people at work: London: Health Education Authority. Bird, C. (1986). Thirty years later: Attitudes towards the employment of older workers. Journal of Applied Psychology, Vol. 71. Bolch, M. (2000). The changing face of the workforce. Training, December, pp. 73-80. CAADE. (1994). Age discrimination in employment: The case for legislation, campaign against age discrimination in employment. Altrincham, Publication. Clark, F. L. G. (1963). Workers nearing retirement: Studies Based on Interviews with Older Workers in the Industrial Town of Slough. London: Nuffield Foundation. Cohen, J., and Patricia Cohen. (1983). Applied Multiple Regression/Correlation Analysis for the Behavioral Science (2nd Ed.). Hillsdale, New Jersey: Lawrence Erlbaum Assoc. Davids, M. (1988). Labour Shortage. Public Relation Journal, Vol.44.. Dawson, M. (1991). Age Discrimination in Employment, Local Government Management Board. Bitteswell: Eurosearch. Employment, D. o. (1994). Getting On: The Benefits of an Older Workforce, Department of Employment. London. Evans, I. (1990). The Demographic dip: a golden opportunity for women in labour market. National Westminster Bank Quarterly Review, February, pp. 48-69.

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Hargreaves, E. (1970). Still young at forty. Work Study and Management Services, Vol. 14 (5), pp. 394-397. Henderson, C. (1998). The luckiest old folks in history. The futurist, Vol. 32(4), pp 52-88. Heron, A. a. C., S. (1961). Ageing and the Semi-Skilled: A Survey of Manufacturing Industry on Merseyside, Medical Research Council Memorandum No. 40. London: HMSO. Hesham, M. (2003). Management attitudes and perception of the older employees in hospitality management. International Journal of contemporary Hospitality Management, Vol 15/7 (2003), pp. 393-401. Hutcheson, G., and Nick Sofroniou. (1999). The Multivariate social Scientist: Introductory statistic using generalized linier modes. Thousand Oaks, CA: Sage Publications. IPM. (1991). Age and Employment: An IPM Statement, Institute of Personnel Management. London. IPM. (1993). Age and Employment: Pol icies, Attitudes and Practice, Institute of Personnel Management. London.

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