MANAGEMENT OF GENERATIONAL CONFLICT AS A MECHANISM FOR REGULATING ECONOMIC PROCESSES IN ORGANIZATIONS

Abstract

The article examines the management of intergenerational conflicts as a key mechanism for regulating economic processes within organizations in the context of a multigenerational workforce. Modern workplaces increasingly comprise representatives of Baby Boomers (1946–1964), Generation X (1965–1980), Millennials (1981–1996), and Generation Z (1997–2012), each characterized by distinct values, communication styles, work ethics, technology adoption rates, and career expectations. These differences frequently generate conflicts that manifest in miscommunication, reduced collaboration, increased stress, burnout, duplicated efforts, and resistance to change — particularly in technology integration and AI adoption. Recent empirical studies highlight the substantial economic impact of such conflicts. A 2026 research report by Clari and Salesloft estimates that generational tension costs U.S. employers approximately $56 billion annually in lost productivity, equivalent to an average of 5.3 hours per employee per week in revenue-generating roles. This figure arises from disputes over communication norms, work expectations, and tool utilization, leading to missed revenue opportunities, accelerated employee turnover, and hindered innovation. The paper analyzes the dual nature of intergenerational conflicts: destructive (affective, emotion-driven) versus constructive (cognitive, idea-generating). Drawing on contemporary literature, including Wang (2025) on shared leadership moderating diversity effects, Jenei (2025) on organizational resilience, and sector-specific cases, it proposes an integrative regulatory framework. Key strategies include: implementing shared leadership models to distribute roles across generations; conducting intergenerational training and reverse mentoring programs; developing inclusive HR policies with flexible schedules and 360-degree feedback; leveraging AI tools for early conflict detection; and fostering an emotional management approach in family firms during technological transitions. Effective conflict management transforms generational diversity from a source of friction into a driver of creativity, adaptability, and economic resilience. By reducing turnover costs (often 20–30% of annual salary per employee), enhancing motivation, and optimizing human resources, organizations achieve greater productivity and sustainable growth. The article concludes that proactive, systemic interventions in intergenerational dynamics are essential for economic regulation at the micro level and recommends further empirical research tailored to specific industries and economic contexts.