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Affective Management and its Effects on Management Performance

Author

Listed:
  • Waratta Authayarat

    (Department of Industrial Engineering and Management, Tokyo Institute of Technology)

  • Hiroyuki Umemuro

    (Department of Industrial Engineering and Management, Tokyo Institute of Technology)

Abstract

Affective management is a new concept which suggests that top managers should take stakeholders’ affective experiences into account when making their management decisions. To show that this concept could contribute to the improvement of management performance in organizations, this study investigated the correlations between the affectiveness of top management and management performance indices. Our questionnaire based on the Affective Management Scorecard was employed to assess top managers’ recognition of the importance, as well as the actual practices of affective management. Top managers from 43 Thai organizations participated in the study. A correlation analysis was conducted to observe whether affective management indices would correlate with management performance indices, such as return on equity, return on assets, price to earnings ratio, and price to book value ratio. The findings showed that the results for organizations practicing affective management were positively correlated with their management performance in both profitability and good perceptions by investors.

Suggested Citation

  • Waratta Authayarat & Hiroyuki Umemuro, 2012. "Affective Management and its Effects on Management Performance," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 8(2), pages 5-25.
    • Handle: RePEc:aae:journl:v:8:y:2012:i:2:p:5-25
    DOI: 10.7341/2012821
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    References listed on IDEAS

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