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This paper explores the nexus of knowledge management and contemporary leadership theory within the public sector. The postmodern values embraced by the replacement cohorts (Millennials and Generation X) for the retiring Baby Boomers are in direct conflict with traditional leadership theories, thereby reducing the attractiveness of governmental employment. Today, the federal government, as a bureaucracy, is very rigid in its methodology. Yet, the postmodern workforce thrives better in a flexible, fluidic environment. Two leadership styles, bureaucratic and transformational, are evaluated to determine which is preferred in dealing with the public knowledge management system in the 21st century.
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