ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

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The Interplay of Leadership Styles and Millennial Motivation: A

Conceptual Paper

Vishalini Sankaran

, Mohd Fauzi Kamarudin

, Muhammad Ridzuan

1,2,3

Fakulti Pengurusan Teknologi dan Teknousahawanan, Universiti Teknikal Malaysia Melaka

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.92800005

Received: 01 November 2025; Accepted: 07 November 2025; Published: 18 December 2025

ABSTRACT

The contemporary workplace is being transformed by rapid technological advancement and generational shifts,

with Millennials now constituting a dominant segment of the global workforce. As a cohort characterized by

distinct values, motivations, and work preferences, Millennials have redefined expectations for leadership,

engagement, and organizational culture. However, despite extensive research on leadership effectiveness, there

remains limited conceptual understanding of how different leadership styles influence Millennial motivation

within technology-driven and Industry 4.0 workplaces. This conceptual and qualitatively oriented paper explores

the interplay between leadership styles and Millennial motivation, positioning the discussion within the broader

framework of human capital development in modern organizations. Drawing on transformational, transactional,

situational, servant, and democratic leadership theories, and integrating motivational models such as Self-

Determination Theory (SDT) and Herzberg’s Two-Factor Theory, the paper conceptualizes leadership as a

mediating force that connects organizational goals with Millennial motivational drivers. The proposed

conceptual framework illustrates how adaptive, inclusive, and empowering leadership approaches can enhance

intrinsic motivation, engagement, and performance among Millennial employees. From a theoretical standpoint,

this study contributes to leadership and motivation scholarship by synthesizing SDT and Herzberg’s framework

within a generational context and proposing a model for future empirical testing through Constructivist Grounded

Theory. From a practical perspective, the findings offer actionable guidance for organizations and policymakers

to design leadership development strategies that align with Millennial values of autonomy, purpose, and

continuous growth. Overall, the paper underscores the importance of hybrid, human-centered leadership in

fostering sustainable motivation and organizational success in the digital age.

Keywords: Leadership styles; Millennials; Workplace motivation; Human capital; Employee engagement.

INTRODUCTION

Over the past few decades, the global labor force has undergone a fundamental generational transformation with

the rise of Millennials, those born between the early 1980s and the mid-1990s. Representing a substantial

segment of today’s workforce, Millennials have reshaped workplace dynamics and leadership expectations,

compelling organizations to adapt their managerial approaches to align with evolving generational values and

cultural norms (Nyamboga, 2025; Butler et al., 2020). This cohort’s distinctive attitudes toward work have been

shaped by continuous technological exposure, socio-economic transitions, and rapidly shifting cultural

paradigms (Sruk, 2020). Unlike Baby Boomers or Generation X, Millennials tend to prioritize work–life balance,

personal growth, and meaningful professional experiences over material possessions. They also value consistent

feedback, flexibility, and congruence between personal beliefs and organizational missions, which in turn

influence their motivation, engagement, and performance (Calk & Patrick, 2017; Purnomo & Pudjiarti, 2024).

As Millennials continue to dominate the modern workplace, they bring new expectations regarding

organizational culture and leadership practices. Their motivation often stems from a desire for belonging,

challenging work, and self-actualization, though these motivational drivers vary across cultural and

organizational contexts (Calk & Patrick, 2017). Growing up in a highly digitalized environment has made them

technologically adept and adaptable, yet also subject to misconceptions of entitlement and disloyalty. In reality,

such behaviors often reflect their search for purpose, authenticity, and continuous development (Darby &

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

Page 36

www.rsisinternational.org

Morrell, 2019; Huyler et al., 2015). Consequently, organizations face both opportunities and challenges in

designing leadership strategies that resonate with Millennial values—ones that are inclusive, participative, and

growth-oriented.

Problem Statement

Leadership is widely recognized as a decisive determinant of employee satisfaction, motivation, and

organizational success. Classical leadership paradigms such as transformational, transactional, servant,

democratic, and laissez-faire models offer different insights into how leaders influence workplace behavior

(Sharma, 2024; Nababan et al., 2024). However, these styles do not affect all generational cohorts equally.

Evidence suggests that Millennials respond most positively to leaders who act as coaches, mentors, and

facilitators of collaboration, promoting justice, inclusivity, and autonomy (Valenti, 2019; Whitehead, 2021).

Conversely, rigid hierarchical or authoritarian leadership can suppress creativity, reduce engagement, and

contribute to higher turnover, particularly among younger workers seeking purpose and empowerment (Basit et

al., 2018).

Despite a growing body of literature acknowledging the importance of adaptive and empathetic leadership in the

digital and post-pandemic era (Widjaja, 2020; Easton & Steyn, 2022), there remains a significant research gap

concerning how leadership behaviors directly influence Millennial motivation across diverse technological and

organizational contexts. Most prior research has focused on broad generational comparisons or general

leadership effectiveness, leaving limited conceptual understanding of the mechanisms linking leadership styles

to motivational patterns among Millennials in Industry 4.0 workplaces.

To address this gap, the present conceptual paper seeks to examine how distinct leadership styles—namely

transformational, transactional, servant, democratic, and situational—shape the motivational orientations of

Millennials within contemporary organizations. The study aims to integrate insights from leadership and

motivational theories to develop a conceptual framework that explains the mechanisms through which leadership

behaviors influence Millennial motivation and engagement, particularly in technology-driven and Industry 4.0

contexts. By positioning leadership as a mediating force that connects technological advancement with human

capital development, this paper offers both theoretical and practical perspectives on how leaders can effectively

attract, inspire, and retain Millennial talent. Through this synthesis, the study contributes to a deeper

understanding of generational motivation dynamics and provides a foundation for future empirical research

employing Constructivist Grounded Theory to validate and refine the proposed framework.

This article positions leadership as a mediating force connecting technological advancement and human capital

development in the digital age. By synthesizing leadership theories and motivational frameworks such as Self-

Determination Theory (SDT) and Herzberg’s Two-Factor Theory, the study offers a conceptual lens to explain

how leaders can foster sustainable motivation among Millennials. Beyond theoretical contribution, this paper

provides practical implications for managers and policymakers striving to design adaptive, inclusive, and

empowering leadership practices that align with Millennials.

LITERATURE REVIEW

The millennial and Generation Z have also become the prominent generational groups within the working

population worldwide, with new dynamics that redefine worker engagement and organizational culture. Many

have come to call such groups "digital natives" since they have grown up with information and communication

technologies as their surround, and this has taken a tremendous bearing on their behaviors, learning styles, and

expectations (Wandhe, 2024). While Baby Boomers and Generation X were motivated mostly by financial

rewards and other material considerations, the millennial has been less motivated by material success and rather

motivated by experiences that facilitate work-life balance, opportunities for professional growth, and

opportunities for contribution both within organizations and within larger communities (Sruk, 2020; Calk &

Patrick, 2017). Their growing dominance has prompted organizations to redefine the traditional thinking on

human capital development, mostly with motivation and engagement in technology-infused contexts.

Millennial values and preferences also show a strong orientation towards teamwork, creativity, and diversity.

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

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They prefer working within cross-functional and culturally diverse groups as key fields of innovation and self-

growth (Chopra & Bhilare, 2020). Research points out their demand for constant feedback, flexibility in working

environment, and opportunities for open communication of thoughts (Calk & Patrick, 2017; Purnomo &

Pudjiarti, 2024). Besides, millennials long for belongingness, opportunities for hard work, and opportunities for

self-realization, distinguishing them from earlier generations that were devoted to security and vertical upward

mobility (Darby & Morrell, 2019; Huyler et al., 2015). These requirements, if unaddressed, can trigger

disengagement or high turnover, making it essential for practice alignment with generational values.

The millennial worker also has an elevated orientation towards social responsibility and personal development

and raises the bar beyond the office four walls. They look for skill development opportunities, mentoring, and

professional growth and have a preference for non-routine stretch assignments over routine work (Westover,

2024). They also look towards organizations with superior ethical foundations, sustainability, and real world

community involvement, which is indicative of their overall drive for purpose in work (Reavis et al., 2021).

Acknowledgments for inputs, access to subject matter experts, and authentic experiences in learning weigh

highly and constitute significant aspects of millennial motivation and retention (Chopra & Bhilare, 2020). These

generational traits as a whole place a premium on organizations having strategies that leverage millennial digital

fluency as much as facilitate their quest for meaningful, purposeful work within a rapidly changing and

technology-based global economy.

Leadership Styles

Leadership style significantly influences millennial motivation, engagement, and performance. Transformational

leadership with aspects of vision, charisma, individualized consideration, and intellectual stimulation

significantly motivates millennials by matching personal values with organisational goals. By cultivating

innovation, risk, and open communication, transformational leaders fulfill autonomy, development, and

contribution needs of millennials and achievement of higher engagement, job satisfaction, and organisational

commitment (Suryadi et al., 2024; Cahyono, 2024; Antariksa & Budiadi, 2024).

Transactional leadership, however, is dependent on rewards and punishments associated with performance

results, with clear goals and defined procedures that appeal to achievers such as millennials who value

explanation and validation. Though it can spur immediate production, at times this style does not trigger intrinsic

motivation nor long-term motivation as creative stimulation, profession development, and goal orientation

supersede hard and fast extrinsic rewards (Jaqua & Jaqua, 2021; Singh & Kumar, 2023; Dong, 2023). Democratic

(participative) and situational leadership, in turn, value teamwork, group decisions, and adapting, framing

psychological safety and a sense of accountability. These enable millennials to bring forth ideas and be provided

with customized guidance commensurate with talent and environment (Wang et al., 2022; Sharma, 2024; Chen

et al., 2020; Li, 2023; Manyuchi & Sukdeo, 2021; Hakim et al., 2021).

Servant leadership also fits millennial motivation by emphasizing their needs, trust, empathy, and mentoring.

This style appeals to millennials' emphasis on development, ethical actions, and meaningful office relationships,

which strengthen loyalty and commitment to the company (Nauman et al., 2022; Agusta & Azmy, 2023; Meuser

& Smallfield, 2023). Overall, transformational, participative, and servant leadership fit millennial values of

inclusivity, purpose, and development best, and long-term success for transactional leadership is minimal.

Situational leadership offers flexibility for applying with the millennial employees'wide variety of motivational

needs, highlighting the importance of generationally attentive and flexible leadership for current workplaces.

Motivation Theories

Understanding what motivates millenials is critical in fostering their commitment and achieving maximum

organisational performance. Milienials seek a purposeful role, development opportunities both on the personal

and professional side, and a working environment that allows for flexibility, autonomy, and teamwork.

Motivation is the key factor in determining their commitment, productivity, and overall satisfaction at the

organisational level.

Self-Determination Theory (SDT) proposed by Deci and Ryan (2000) focuses on fulfilling autonomy

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

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satisfaction, competence, and relatedness as basic psychological needs underlying motivation (Ryan & Deci,

2020; Luria, 2022). SDT defines intrinsic and extrinsic motivation with respect to interest and intrinsic value and

from self-determination along a continuum from coercion and constraint and up and through autonomy and

volition (Deci & Ryan, 2000). Intrinsic motivation was seen to support well-being, creativity, satisfaction, and

long-term commitment but extrinsic motivation's impact varies with internalization and setting, such as with

cultural and resource conditions (Dombestein et al., 2020; Guo, 2023).

At the workplace, and especially in the millennial segment, SDT offers a perspective for motivation. Millennials

treasure value-based work, freedom in decision-making, opportunities for development, and feedback for the

enhancement of competence and relatedness (Autin et al., 2021). Good leadership can instill this motivation by

incorporating SDT principles within leadership behaviors, for instance, in transformational and participative

leadership that focuses on empowerment, teamwork, appreciation, and specific goal-establishment (Tesmer &

Oxenford, 2021; Forner et al., 2020; Slemp et al., 2021). Incorporation of such principles within organizational

culture isessential for motivating and retaining millennial workers, and especially in sectors that depend on

knowledge and innovation.

Figure 1. Self-Determination Theory (SDT) Framework

Besides that there is Herzberg's Two-Factor Theory that differentiates intrinsic motivators from extrinsic hygiene

factors and speaks of their respective roles in satisfaction and employee motivation (Jaffar et al., 2024; Mitsakis

& Galanakis, 2022). The motivators that embody growth, achievement, recognition, and responsibility boost

satisfaction positively, but hygiene factors that entail salary, policy, supervision, and working conditions refrain

from dissatisfaction but do not necessarily inspire motivation. In millennial workers, hygiene factors remain

relevant, but intrinsic motivators particularly predominate engagement due to this group's demand for

meaningful work, constant feedback, and alignment with personal values (Bhatt et al., 2022; Koncar et al., 2022).

With leadership practice applications, Herzberg's model points out that it is crucial for leaders to strike both

extrinsic and intrinsic factor balances. Excessive focus on transactional or hygiene-based practices can decrease

dissatisfaction but will not inspire sustainably motivated millennial workers. Leadership styles that are

transformational, participative, and charismatic, and that instill intrinsic motivators, will be more effective at

building loyalty, commitment, and job enrichment (Reyaz, 2024; Ser & Webber, 2024). The double-factor

approach offers excellent leadership guidance for preparing workplaces that satisfy both millennial workers'

pragmatic and aspirant needs across industry contexts such as health, retail, and telecom sectors (Jaffar et al.,

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

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2024; Mitsakis & Galanakis, 2022).

Figure 2. Herzberg’s Two-Factor Theory Framework

Analytical Model and Theoretical Linkage

The preceding review highlights that leadership plays a central role in shaping Millennial motivation, particularly

within technology-driven organizational settings. Two dominant motivational theories, Self-Determination

Theory (SDT) and Herzberg’s Two-Factor Theory offer valuable perspectives for understanding how leadership

behaviors fulfill Millennials’ intrinsic and extrinsic needs.

According to SDT (Deci & Ryan, 2000), employees experience sustained motivation when their psychological

needs for autonomy, competence, and relatedness are met. Leadership styles that emphasize empowerment,

collaboration, and recognition such as transformational, democratic, and servant leadership—are thus most

effective in promoting intrinsic motivation and workplace engagement. In parallel, Herzberg’s Two-Factor

Theory (Herzberg, 1959) posits that while hygiene factors (e.g., pay, supervision) prevent dissatisfaction, true

motivation arises from intrinsic motivators such as achievement, growth, and purpose. Transformational and

servant leaders, who cultivate professional development and meaning at work, directly enhance these motivators.

By contrast, transactional leadership, rooted in external rewards and corrective control addresses extrinsic

motivators but may not sustain engagement over time. Situational leadership, which adapts leadership behavior

according to employees’ competence and commitment levels, provides flexibility to accommodate diverse

motivational needs among Millennials.

Based on this synthesis, leadership styles can be conceptualized as antecedents of Millennial motivation,

functioning through both intrinsic and extrinsic pathways as theorized by SDT and Herzberg. These theoretical

linkages are visually represented in Figure 3, which positions Millennial motivation as the dependent construct

influenced by five key leadership styles: transformational, transactional, democratic, servant, and situational

leadership.

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

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Figure 3. Proposed Conceptual Framework of Interplay of the Leadership Styles and Millennial Motivation

Figure 3 framework above posits that effective leadership acts as a mediating bridge between organizational

practices and Millennial motivational outcomes. Leadership is not a static behavior but a dynamic process that

can either enhance or diminish motivation depending on how well it aligns with generational values. In this

model, leadership is positioned as the catalyst for achieving higher engagement, satisfaction, and retention

among Millennials, thus directly influencing organizational performance and sustainability in the context of

Industry 4.0.

METHODOLOGY

This study adopts a qualitative conceptual orientation rooted in the Constructivist Grounded Theory (CGT)

approach as outlined by Charmaz (2021). The purpose at this stage is not to collect empirical data but to build a

conceptual foundation for understanding the interplay between leadership styles and Millennial motivation.

Grounded in the constructivist–interpretivist paradigm, the study assumes that leadership and motivation are

socially constructed phenomena shaped by individual perceptions, organizational context, and generational

identity (Charmaz, 2021).

The conceptual framework presented in this paper was developed through an integrative literature synthesis of

peer-reviewed studies published between 2015 and 2025 on leadership, motivation, and generational behavior.

The framework is aligned with the conceptual development process, where theoretical integration precedes

empirical testing. Key constructs including transformational, transactional, servant, democratic, and situational

leadership were examined in relation to motivational theories such as Self-Determination Theory (SDT) and

Herzberg’s Two-Factor Theory, as highlighted in the proposal’s literature base.

This conceptual synthesis reflects the process of theoretical sensitivity emphasized in CGT (Charmaz, 2021), in

which prior literature serves as a sensitizing framework rather than a fixed hypothesis. Although no primary data

have yet been collected, this model establishes the theoretical scaffolding for future qualitative inquiry. During

the subsequent empirical phase, Constructivist Grounded Theory will guide data collection and analysis through

iterative coding, memo-writing, and theoretical sampling, enabling the emergence of a grounded theory that

explains how leadership styles influence Millennial motivation (Charmaz, 2021).

FINDINGS AND DISCUSSION

The conceptual synthesis of this study suggests that there is no single leadership style that universally engages

and motivates Millennials in organizational settings. Instead, the analysis points toward the effectiveness of a

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

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hybrid and contextually adaptive leadership approach, integrating the strengths of transformational, servant,

democratic, and situational leadership. Each of these styles resonates with the Millennial generation’s

expectations for autonomy, inclusivity, ethical leadership, and purpose-driven work. Conversely, while

transactional leadership provides structure, goal clarity, and reward mechanisms, its limited capacity to stimulate

intrinsic motivation indicates that contemporary organizations must move beyond purely transactional paradigms

(Jaqua & Jaqua, 2021; Singh & Kumar, 2023; Dong, 2023).

The proposed conceptual framework emphasizes that transformational, servant, and democratic leadership styles

are the most effective for fostering long-term engagement, organizational commitment, and innovation among

Millennials. These leadership orientations align with Millennials’ core motivational drivers such as meaningful

work, professional growth, social responsibility, and collaborative environments (Nauman et al., 2022; Agusta

& Azmy, 2023; Meuser & Smallfield, 2023; Wang et al., 2022; Sharma, 2024; Chen et al., 2020). Servant

leadership, in particular, enhances loyalty and ethical consciousness, while democratic leadership cultivates

psychological safety and shared decision-making. Transformational leadership, through its focus on vision,

inspiration, and individualized support, fosters purpose and self-actualization.

The discussion derived from the conceptual model further indicates that adaptive and generationally sensitive

leadership is critical in achieving sustainable employee engagement. Leaders who integrate organizational

objectives with Millennials’ values such as flexibility, creativity, and continuous learning—can cultivate

stronger commitment and performance outcomes (Suryadi et al., 2024; Cahyono, 2024; Antariksa & Budiadi,

2024). The interplay between leadership and Millennial motivation, therefore, represents a dynamic equilibrium

between extrinsic structure and intrinsic purpose.

Ultimately, the findings of this conceptual analysis reinforce the need for organizational transformation toward

inclusive, people-centric leadership cultures. By embedding hybrid leadership practices within organizational

strategy, managers can maximize the potential of Millennial employees, resulting in higher productivity,

innovation, and sustainable growth. This theoretical outcome provides a foundation for future empirical research,

which can employ Constructivist Grounded Theory (CGT) to validate and refine the relationships proposed in

this conceptual model.

CONCLUSION

In conclusion, this conceptual paper underscores the pivotal role of leadership in shaping Millennial motivation,

engagement, and performance within modern organizations. The synthesis of literature and theories suggests

that there is no single leadership style that can comprehensively address the diverse expectations and

motivational drivers of Millennials. Instead, the study advocates for a hybrid and adaptive leadership approach

that integrates the strengths of transformational, servant, democratic, and situational leadership. Such a

combination provides the flexibility and inclusivity required to foster intrinsic motivation, long-term

engagement, and organizational commitment among Millennial employees. While transactional leadership

remains valuable for providing structure, goal clarity, and performance-based rewards, its limitations in

sustaining intrinsic motivation highlight the need for more facilitative and people-centered leadership

orientations.

The conceptual framework proposed in this study positions leadership as the critical linkage between

organizational objectives and Millennial motivational factors. By embedding flexibility, empathy, and

empowerment within leadership practice, organizations can cultivate working environments that nurture

creativity, ethical conduct, continuous learning, and a sense of purpose. Leadership styles that emphasize

coaching, collaboration, and individualized support resonate strongly with Millennials’ pursuit of meaningful

work, professional development, and social responsibility. Consequently, the ability of leaders to integrate

organizational goals with Millennial values such as autonomy, inclusivity, and purpose-driven work will

determine the sustainability of engagement and performance in technology-driven workplaces.

From a theoretical perspective, this paper contributes to the growing body of leadership and motivation

scholarship by integrating Self-Determination Theory (SDT) and Herzberg’s Two-Factor Theory within a

generational context. The model serves as a conceptual foundation for future empirical research, particularly

ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)

ISSN: 2454-6186 | DOI: 10.47772/IJRISS

Special Issue | Volume IX Issue XXVIII November 2025

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through Constructivist Grounded Theory (CGT), which can validate and refine the proposed relationships

between leadership styles and Millennial motivation. From a practical standpoint, organizations and

policymakers are encouraged to adopt flexible and inclusive leadership development programs that emphasize

empathy, participation, and empowerment. Aligning organizational strategies with Millennial values, balancing

extrinsic and intrinsic motivators, and fostering a culture of open communication and feedback will further

enhance commitment and innovation. Ultimately, embracing a hybrid and adaptive leadership approach enables

organizations to unlock the full potential of their Millennial workforce, driving innovation, productivity, and

sustainable growth in an increasingly complex and digital global environment.

ACKNOWLEDGEMENT

The author would like to express sincere appreciation to Universiti Teknikal Malaysia Melaka (UTeM) and the

Faculty of Technology Management and Technopreneurship (FPTT) for their continuous support and

encouragement throughout the development of this paper. The author also extends gratitude to the conference

organizers, reviewers, and publisher for their constructive feedback and contributions toward improving the

quality of this work. Special thanks are conveyed to the corresponding author for their commitment and

dedication to the completion of this research.

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