Zak Proposal (1)

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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


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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

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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

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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

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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.

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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.

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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.

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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.

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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).

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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 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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Advantages of Aged

Personnel/Worker

Employment

Disadvantages of Aged

Personnel/WorkerEmployment

Managers Attitudes &

Perceptions on older

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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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Evans, I. (1990). The Demographic dip: a golden opportunity for women in labour market.

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Hargreaves, E. (1970). Still young at forty. Work Study and Management Services, Vol. 14

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Henderson, C. (1998). The luckiest old folks in history. The futurist, Vol. 32(4), pp 52-88.

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Hutcheson, G., and Nick Sofroniou. (1999). The Multivariate social Scientist: Introductory

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