(Nowy Sacz School of Business – National-Louis University, 2012) Authayarat, Waratta; Umemuro, Hiroyuki
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.