Employee Age, Employee Competence and Employee Performance
BUSI 240-Organizational Behavior 1
Liberty University
2022
Employee Age, Employee Competence and Employee Performance
Studies like Gregory (2015) have established that employee performance and competence are closely
related in terms of individual abilities, experience and motivation. Competencies describe the abilities
needed to perform a task or a role in the work place. They are terms that can be measured. They are a
signal from the organization to individuals of the expected areas and levels of performance (Wooldridge,
2009). Employee competencies can be manifested through their education levels, skill levels, levels of
training experience and talents (Wirtz, 2005). In terms of comparing the competencies between the young
and the old, younger people are preferred by employers for a number of reasons. Young workers have
completed their education more recently,
are more innovative and flexible in their attitudes towards change compared to older workers who prefer
maintaining the status quo (Graham, 1998). On the contrary, Boulander (2007) asserts that employees
gain a wealth of experience and expertise as they advance in age. Hence their performance is relatively
higher than their younger counterparts (Torrington, 2005). Smith (2014), the Vice president of Boarders,
a national book seller says, our over 50 employee’s turnover is ten times less than the under 30.
Susanna (2006) examined conceptions of employees on the meaning of experience in job competence and
development in their work environment. The study aimed to bring out a variety related conception to
experience, workplace learning and competence. Results indicated that employees view experience and
workplace learning as most important to improved productivity. They pointed work experience as their
main source of competence. Competencies define what individuals need to have in order to produce
results desired by their organizations. Organizations evaluate their employee’s behavior to identify their
strengths and weaknesses. Competencies vary based on organizational size and level, management and
organizational strategy (Dessler, 2008).
Knowledge and experience is required in competent work performance. These skills, Knowledge and
experience are determined by factors such as age, length of service, training and educational level
(Walker, 2009). There is need for organizations to enhance competency skills among their employees
through age management practices to cultivate maximum productivity from them (Ananda, 2008).
Competencies are observable behaviors, abilities, knowledge, measurable patterns of skills and other
characteristics to perform work roles or occupational functions successfully. Intellectual assets have been
identified as the main source of success in any organization followed by tangible resources (Bell, 2007).
Performance management of employees involves: Planning of work tasks and setting attainable
expectations, measuring and monitoring work performance, developing the capacity to perform,
recognizing and rewarding good performance and periodically rating performance in a summary (Rhodes,
2014). Proficiency in certain competencies is required in practicing good performance management.
Investigations in developing performance management competencies benefits organizations by enhancing
employee performance. Employee training and development are based on these competencies. (Schular,
2009).
Timming (2014), evaluated the relationship between supervisor perception of managers’ attributes in their
productivity and the type and level of their college degree. Results indicated no tangible relationship
between managers’ college education and the level of their productivity at place of work. Thomas (2007)
analyzed the effects of education level on work performance. Results indicated that education level
positively influenced the core task performance. Creativity and organization citizenship behaviors were
positively related to education level. However, the level of education was related negatively to on-the-job
substance use and absenteeism. Race, job level, gender and job complexity gave significant results.
Kasika (2015) identified and examined the relationship between job performances of employees against
their academic qualifications in order to determine and provide recommendations to the organization
management on whether educational qualifications contribute to improved job performance.
Both quantitative and qualitative data were collected. Descriptive statistics (i.e. frequencies) were used to
determine the influence of educational qualifications on employee performance. The study confirmed that
educational qualifications have a positive significance on job performance. The higher one elevated his
education level, the more he attained knowledge and skills for job performance. Hence peoples’ ability to
comprehend, understand and use advanced technology is determined by his education level. The educated
workers in most cases tend to be more responsive in receiving instructions and performing new tasks and
easily adopting new technology, which enhances their creativity and innovation to improve job
performance.
Rhodes, (2014), conducted a study to determine age-related changes in making organization decisions.
Results indicated mixed opinions. While some skills in decision-making increased with increase in age,
others either improved or remained unchanged. For example, reasoning, problem solving on fluid
cognitive ability, tends to deteriorate with increasing age. Older adult workers perform worse on these
decision-making tasks. However, experience is required for performing some decision-making tasks,
which definitely increases with advancing age. Repeated tasks lead to perfection in his line of tasks.
Hence older adults are expected to perform better than younger workers. Employee age and component
tasks Correlation of adult Decision-Making skills and competence were significantly positive (Bell,
2007). Qualitative changes have been documented in some cognitive abilities during the older adult years,
as in short-term memory, perceptual and motor skills, and employee’s attention capacities (Salthouse and
Maurer, 2000). Other studies hold the view that a number of significant changes related to age, across a
variety of cognitive abilities, are based on social experiences in particular the cognitive abilities such as
recreational or occupational activities (Thomas, 2007).
In this empirical literature the following relationships have been addressed; age and employee
competence, employee competence and employee performance, age and employee performance. The
moderating effect of the variable employee competence on the relationship between employee age and
employee performance has not been addressed. Also the combined effect of employee age, HRM
practices and employee competence on employee performance has not been addressed. This formed a gap
that this study intended to address.
Employee Age, HRM Practices, Employee Competence, and Employee Performance
Adopting a variety of performance enhancing HRM practices has been the aim of the major US
companies to improve their competitiveness in the global market place (US state department of labor,
2012). The management approaches, styles and organization practices, can influence employee
performance. HRM practices such as employee participation and empowerment, compensation benefits
(pay), employee training and development and employee welfare benefits improve employee
performance. A variety of HRM practices enhance employee skills and competence (Ochoti, 2011).
Efforts aim at improving the quality of individual skills, abilities and motivation through training and
apprenticeship (Altimes, 2005). Performance is always multidimensional. Performance requires more
important types of behavior or skill for overall success (Schmdt, 2014).
The effectiveness and productivity of skilled workers will however decline, if they are not well motivated
to perform their jobs. Huselid (2004) posits that the form and structure of an organization’s HRM system
influences employee motivation levels hence their performance. Young employees respond more readily
to training programs and instructions, skills enhancement as they are quick learners and easily adapt to
changes compared to their older counterparts (Graham, 2007). Younger workers also have more chances
of advancing their educational levels and skills training, hence increasing their competencies and
performance.
On the other hand, older employees perform more OCBs and engage in fewer counter productive work
behaviors like milking the clock, stealing from the office and arriving late hence increased performance
and productivity (Wayne, 2009). Older employees also contribute valuable insights through their
additional work experience acquired over the years of service. Progressive human resource practices like
increased employee training, employee participation and empowerment, compensation benefits (pay), and
employee welfare benefits influences positive employee behaviors which increase employee performance
(Wirtz, 2005). Porter and Stere (2006) tested a model that examined the simultaneous relationship among
OCBs, Organization commitment, team based commitment and employee behavior variables. The
assumption of the study is that; the joint effect of employee age, HRM practices and employee
competence is greater than the effect of individual predictor variables on employee performance.
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