Management by Emotion (MBE)

By Sussan, Aysar Philip | Competition Forum, July 1, 2006 | Go to article overview

Management by Emotion (MBE)


Sussan, Aysar Philip, Competition Forum


EXECUTIVE SUMMARY

Leadership is a multi-billion dollar global industry. Therefore, the world's leading companies that compete in today's global economy need to have effective leaders to develop a vision and innovative decisions. Effective leadership is not about making speeches or being liked, it is about confidence and how to remain calm during tough situations as well as how to mange by emotion while caring for others by being an active listener.

Most employees who engage in emotion management as part of their daily job are playing a unique role in shaping behavior. Management by Emotion is a concept drawn from two basic variables, love and fear. We label the first one as positive and the second one as negative, and we accept the happy one and reject the other. This paper will attempt to provide managers with an introduction to a unique leadership style that will enhance their current skills and make them more effective leaders.

Keywords: Management by Emotion, Leadership Vision, Empowerment, Ethics, Customer Base, and Strategic Planning.

INTRODUCTION

Technological breakthroughs have catapulted markets into the "just in time" world of doing business. Shop keepers managing their family owned boutique of wares have largely vanished from the economic landscape, and have been replaced by large conglomerates such as Wal-Mart, Microsoft and other industry giants. The corporate culture of America today is shifting toward a system of profits, goals and mission statements largely designed to reward a few rather than the shareholder base as a whole. Business decisions are made to satisfy self-interest. Ethics are sacrificed and decisions to promote and place managers are made for reasons other than qualification or performance. This brings us to the question of why are we losing our ethics in corporate America? Has today's corporate culture and political climate forced management to make a choice between conducting business in an ethical manner or profit (Messick, Baserman & Stewart, 2006).

The single biggest concern for CEOs globally today is to retain their existing customer base. Executives must first ask this fundamental question: Why do businesses lose customers in the first place? The Gallup Organization conducted research to answer this question, interviewed millions of customers over the past years. The findings have been fascinating. Customers may switch to another company because it relates to the traditional "Four Ps" of marketing - a better product, á lower price, an attractive promotion, or a convenient location (placement). But there is another missing "P" that is increasingly important. This "P" stands for People. Every day, a company's people - its employees - either attract or drive away customers. We are competing in an emotion driven economy (Gopal, 2004).

Managers may hold positive or negative emotions that also have an impact on the way they perform. On the positive side, we can point to the sense of ambition, commitment, belonging, empathy, and ownership that managers can practice among followers. On the negative side, we can identify emotions such as resentment, fear, or even panic or despair, all of which can be practiced by managers. The key question is: Can these emotions be managed? We may say yes, they can. But if we look at the literature we can find the following management styles:

* Management by Coaching and Development

* Management by Competitive Edge

* Management by Consensus

* Management by Decision Models

* Management by Exception

* Management by Information Systems

* Management by Interaction

* Management by Matrices

* Management by Mission

* Management by Objectives

* Management by Organizational Development

* Management by Performance

* Management by Styles

* Management by Walking Around

* Management by Work Simplification

Each of these approaches to management and decision making vary significantly, due to their broad concepts of management behavior. …

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