Ageism is a difficult problem in the modern work environment of America. Experience is highly valued in the work place, but other qualities such as instinct and emotional intelligence haven't been given as much as they are due in deciding who should lead. There needs to be more communication among the generations.
I do not believe the lack of a generation gap between managers and their employees makes for a bad work environment. Given that people are staying in the workforce longer I honestly do not think this is a common occurrence, but its not indicative of a problem, if it is the case.
No, I do not think that the lack of a generation gap between managers and their employees makes for a bad work environment, because they know how to work respectfully with each other. If anything, the manager is more likely to be approachable, sympathetic, and understanding. It can make for a more positive dynamic.
In modern day society, the generation gap that previously existed between managers and their employees has vanished, leaving corporate culture in a much better state. Managers now are at the same technological level as their employees as they are both in the same generation. Previously, managers were older and were sometimes not as knowledgeable on new technology and ideas that had been introduced to younger employees. With managers and employees in the same generation, they can openly share thoughts and ideas on the same level.