Why Traditional Management Models Are Failing the Next Generation of Workers

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With close to 64 million Generation Z workers in India, what once seemed unprofessional now barely raises an eyebrow, pushing companies to rethink not just engagement strategies, but the very rules of workplace conduct. 

Last month, a UK-based startup, RemoteStar, had an internal video call go viral, generating millions of views and thousands of shares. In the clip, a Gen Z team member joined the call wearing a face mask and a towel on her head. When it was her turn to speak, she calmly provided updates on her task with the “neem face mask” still on.

CEO Naresh Harwani, also present on the call, remained unfazed when he saw her wearing a face pack. Instead, he curiously inquired, “What face pack is that?” The 21-year-old replied that it was neem and joked that he should try it too, then proceeded with her updates. Other team members stifled their laughter as the meeting went on. 

The short video surprised some viewers and amused many, igniting a debate about shifting professional norms and prioritizing results over appearances.

As the reel became popular, people began calling Harwani the “Cool CEO.” He later posted on LinkedIn, “They call me the ‘Cool CEO,’ but here’s what 10 million views actually taught me: The era of ‘Professionalism Theatre’ is dead.” He encouraged leaders to focus on results rather than strict rules.

This viral moment also sparked broader discussions about how to engage teams, especially as Gen Z enters the workforce.

Generation Z Makes Up 25% of India’s Workforce

According to a recent Nasscom blog post, Gen Z now constitutes over a quarter of India’s workforce, totaling nearly 64 million people.

It emphasizes the challenges employees encounter regarding workplace and mental health. The text mentions that Gen Z is more digitally savvy and more aware of mental health than earlier generations. 

Nasscom notes that the declining well-being of Gen Z is not solely a personal matter but also a concern for businesses. The post advises organizations to adapt or risk losing engagement and experiencing reduced performance.

Nasscom’s blog highlights Naukri’s Gen Z Work Code Report 2026, which surveyed 23,000 professionals. The report reveals that Gen Z’s career expectations often conflict with conventional organizational norms. The survey indicates that over half of the generation views career growth as acquiring new skills at work, rather than merely earning promotions or raises. They seek meaningful work and development opportunities, not just a higher job title.

In a Naukri survey, the majority of participants responded negatively when asked if their managers could provide these things.

The survey indicates that most managers in India’s corporate sector are promoted based on their technical skills. However, this does not mean they can recognize when a team member is struggling, initiate a supportive conversation, or notice when someone is burnt out without saying anything.

Professionalism Doesn’t Always Mean Rigid Optics

To understand how workplaces are adapting to a new generation of expectations, MIT SMR India spoke with leaders across industries on what it takes to engage Gen Z today. What emerges is not a single playbook, but a shared recognition that old definitions of professionalism, control, and culture are giving way to something far more fluid, built on trust, autonomy, and a deeper sense of purpose.

“Cool CEO” Harwani believes that engaging with Generation Z requires moving away from the idea that ‘professionalism’ is only about strict appearances. “In a startup environment, balancing professionalism involves prioritizing impact over mere appearance.”

Bhanu Pratap Singh Tanwar, CEO and Co-founder of Interact Group, observes that Gen Z is transforming the concept of professionalism, emphasizing authenticity, flexibility, and purpose alongside performance. He explains, “For Gen Z, inclusion involves trusting them to work in ways that suit them while being accountable for results.”

Vinu Varghese, Senior Director of People & Culture at Bread Financial, shares that granting autonomy early is most effective for Gen Z. “A trust-first approach with Gen Z involves giving autonomy upfront and clearly communicating expectations and boundaries. Unlike previous generations, these associates anticipate trust from the start and see it being built through transparency, flexibility, and genuine two-way communication.” 

“For Gen Z, trust isn’t something you earn later; it’s the foundation for engagement,” he adds.

Ravi Teja Surampudi, a senior manager in business technology at Workday, emphasizes the importance of clear boundaries and autonomy. He says, “My Gen Z team responds well when they understand the ‘why’ behind decisions and are trusted to execute, rather than being micromanaged.”

Shantanu Deshpande, founder of Bombay Shaving Company, supports openness at work. “Letting people be who they are, express themselves limitlessly, and accept that this is the only way the organization can grow together, holds deep value for us.”

Gen Z no longer sees their jobs as just “jobs.” “They do not want to come and just do the same task over and over again,” says Chandni Chopra, VP of People and Culture at TestMu AI. Chopra believes Gen Z is looking for experiences, and that’s what keeps them engaged.

Fostering a Culture Where Gen Z Feel Safe​

Modern business leaders regard delivering results, maintaining company culture, and fostering a more flexible approach to professionalism as the new standards.

Harwani says being relatable helps create a culture where Gen Z feels safe showing their personality while staying focused on their goals, thereby supporting a performance-driven standard.

Tanwar adds that at Interact Group, this change has created a culture where results matter more than strict rules, and individuality is encouraged rather than enforced.

He says, “This shows up in simple, deliberate choices: flexible working hours instead of fixed schedules, open forums where every opinion is heard and valued, and a workplace where ideas are respected no matter your role.”

Chopra adds that instead of spelling out tasks, this generation needs to see a pathway to become strategists, to innovate, and to do things differently. To keep them engaged, “We follow a start-up within a start-up culture, encouraging the team to do everyday tasks innovatively.”

Varghese adds that when associates feel valued and understood—rather than micromanaged—they perform their best. He explains, “We focus on autonomy through a performance strategy that prioritizes outcome-based objectives, moving away from task-by-task oversight. In practice, that means teams align on outcomes, leaders provide the tools and context to succeed, and then trust associates to deliver, creating room for responsible flexibility and a culture of ownership.”

Making Collaborations Less Hierarchical

Encouraging peer-led conversations and informal team interactions helps make collaboration feel more natural and less hierarchical.

“We have set up spaces for teammates to show their personalities, like spending the first 10 minutes of team calls on non-work topics, having separate channels for casual conversations, and doing exercises where they step into leaders’ shoes to see how they would solve a challenge,” Surampudi says. 

Chopra shares her approach to engaging team members in a hybrid setup, keeping everyone aligned with business goals. “We make sure our team feels excited to contribute and take an experimental approach to product development, where we try new things, innovate, and find creative solutions.” ​

Sharing their inclusive strategies, Varghese says, “Our platforms enable all associates to contribute ideas and receive recognition, regardless of their role. Our townhalls connect associates directly with executive leadership for open Q&A and constructive dialogue. We also lean into lighter-touch moments that build community.”

He further adds that their gamified learning tracks transform skill development into an engaging experience, offering on-demand learning, peer recognition, and transparent career progression. Flexibility isn’t a special privilege here; it’s a way of working.

Recalibrating Leadership

Flexibility is crucial for effectively engaging Generation Z and maintaining a high-performance organizational culture.

“If your leadership style is built on a ‘bridge of fear,’ you will never see your team’s full potential,” says Harwani, adding that culture grows naturally when leaders are approachable and adaptable.

Referring to their viral Instagram reel, which was later revealed to be a marketing team prank on the CEO, Harwani said,

“When an executive is confident enough to be the punchline of a prank, it breaks down barriers and fosters real psychological safety that no corporate handbook can replicate.”

However, while companies embrace the “new normal” and casual interactions, Harwani says, “My blunt advice to Gen Z is to remember that flexibility is earned through results.”

Varghese adds that from a team management point of view, “a shared commitment in treating Gen Z not as a demographic to manage, but as co-creators of culture is highly important.”