“The best manager I have ever had”. Many of us have uttered or heard this phrase at some point in our lives. But what does it truly signify? What distinguishes a good manager from a bad one?

You may have come across numerous literary works that emphasize the qualities and traits of effective leaders and managers. However, little attention has been given to the psychology, daily interactions, and decision-making processes that enable managers to bring out the best in their employees.

According to Gallup, hiring a manager is the most critical decision organizations make. Unfortunately, most companies end up hiring the wrong manager.

Bad managers cost companies billions of dollars annually and can even lead to the downfall of a company if there are too many of them. On the other hand, hiring talented managers can propel your company forward and keep it ahead of the competition.

As an entrepreneur or business leader, your success depends largely on your own or your managers' ability to comprehend the psychology of your employees.

In this blog post, we will explore how a basic understanding of human psychology can enhance managers' performance.

How Psychology Enhances Managerial Skills 

Is it necessary to be a psychologist to thrive as a business owner or manager? Why is understanding your employees' personality traits so important?

While it is not mandatory to possess an in-depth knowledge of personality dynamics to be a good business leader, having a basic understanding can significantly facilitate effective management and resolution of interpersonal issues.

When you make an effort to comprehend an employee's internal motivations, it enables you to encourage them to unleash their full potential.

Consider the following example to further illustrate this point:

Suppose you need to provide feedback to one of your employees who prepared a report but missed an important detail. If you possess an understanding of human psychology, you will be mindful of how you deliver the feedback. Employees often perceive feedback as criticism and react accordingly.

Instead of saying, "Hey Becky, you forgot to include last week's numbers in the report; make sure you don't repeat that mistake," you can say, "Hey Becky, you did an excellent job on the report. It would be great if you could include last week's numbers next time."

Your response to a particular situation should be tailored to the individual you are dealing with. For instance, if you have to handle a narcissistic employee, it is crucial to know how to address traits like arrogance and aggression. If firing the narcissist is not an option and they are causing significant problems for the company, your only recourse is to learn how to manage such individuals. For example, you can make them feel special, thereby motivating them to perform at a higher level.

A competent manager is adept at leveraging negative traits and transforming them into assets.

How a Manager can Support Employees 

Managers often encounter situations where an employee makes a significant error or a project doesn't meet expectations. How should managers react in such circumstances? How can they effectively address underperforming team members?

Naturally, frustration and anger arise when employees make mistakes, particularly when it negatively impacts critical projects. Traditionally, the response has been to punish the employee, aiming to prevent future mistakes and send a message to the rest of the team.

However, some managers choose a different approach when dealing with underperforming team members: kindness and compassion. This doesn't imply a lack of concern for project success or outcomes. Instead, it presents an opportunity for coaching without passing judgment.

Kindness is a crucial leadership quality. Research from Harvard Business School reveals that leaders who project warmth are more effective than those who rely on fear as a management approach. Kind managers excel at building trust, which is crucial in leadership.

How to Be a Kind Manager 

Don’t react instantly 

To project warmth and become a likable manager, it's important to avoid immediate reactions. Take a step back, control your emotions, and respond thoughtfully. Practicing meditation can aid in emotional regulation. Additionally, consider your employee's perspective, fostering empathy and compassionate responses. Learning to forgive strengthens relationships and positively impacts well-being.

Consider your employee’s perspective  

Managers who neglect employee psychology often make critical mistakes, such as micromanaging through fear, failing to listen actively, becoming overly familiar, not providing constructive feedback, and withholding shared leadership opportunities.

Learn how to forgive 

Learning how to forgive not only strengthens your relationships with your team but also creates a positive impact on your own well-being. Carrying a grudge, on the other hand, leads to bad health. So, take forgiveness as a tool to lower stress and creates a productive work environment. 

Influencing Employees' Mood as a Manager

The concept is simple: if a manager is happy, it is likely that their team will be happy too. Happy workers undoubtedly produce better results. Conversely, an unhappy and frustrated manager makes it difficult for the team to remain calm and content.

Organizations require both happy managers and employees, which is why they seek specific behaviors and competencies when hiring managers, as these factors contribute to workplace happiness.

Managers can influence their teams' moods by considering various factors such as social activities, sleep patterns, work-life balance, and stressful events that affect emotions. By helping employees regulate and control their emotions, managers can make a positive impact. Simple gestures like a nod, smile, or word of appreciation can significantly influence the team's mood.

Managing Difficult Employees

Your employees are your greatest asset, but managing them can sometimes be challenging, as there may be individuals who exhibit unhealthy behavior. It is important not to allow such behavior to create stressful situations for others.

Here are valuable tips for managing difficult people:

• Listen actively and provide clear feedback.
• Establish specific consequences if behavior does not improve.
• Foster an environment of trust and collaboration, avoiding distrust and backstabbing.
• Maintain accurate perceptions of the situation and avoid self-deception.
• Deliver tough feedback in a reasonable and constructive manner.

Final Thoughts

Positive psychology allows managers and leaders to focus on developing the strengths of their employees rather than fixating on weaknesses. As a manager, it is essential to enhance your understanding of workplace psychology, instilling a growth mindset in your team and driving remarkable results for your organization.

By comprehending the reasons behind people's actions, you can effectively communicate and empathize with them. Prioritize your team's psychological needs, making them feel valued and empowered, while leveraging technology and tools to address other talent management challenges.