June 19, 2025

Mood Management

by Our content team
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Everyone knows that the way their boss behaves affects the way they do their job. Whether irritable or unpredictable, upbeat or encouraging, the range of moods to which leaders expose their followers is generally viewed as having the potential to encourage or inhibit performance. And research published in the Harvard Business Review demonstrates that this generally accepted truth has empirical support too. [1] A two-year study suggests that a leader’s mood can actually impact directly on organizational performance; to the extent that a company’s success may actually depend upon its leader having the right kind of moods.

Research on Mood Management

The notion that a leader’s mood affects their staff and, consequently, their organization’s performance, is not new. The Harvard research is in fact the latest in a number of studies establishing a causal link between a leader’s mood and follower performance. For example, Alice Isen of Cornell University established that a positive working atmosphere contributes to enhanced mental efficiency, higher information intake and comprehension, and more flexible thinking. [2]

The Impact of a Leader's Mood

Leaders’ moods are important because of their prominent position within the company. The effect is most apparent in open-plan offices shared by the leader; but the bad mood can also spread throughout the company by first infecting those with whom the leader deals directly, and then moving downwards as the various subordinates interact.

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