Is it possible to provide a more humanized approach in banking today? The role of compassionate leadership
DOI:
https://doi.org/10.51302/rtss.2025.22197Keywords:
middle management, banking sector, vulnerable customer, compassionate leadership, people management, wellbeing at workplace, human resources management practicesAbstract
This study delves into a relevant topic: compassionate leadership, a concept gaining momentum in the field of personnel management. Although much progress has been made in understanding its origins and effects, there is still exploration needed on how compassion affects leaders' behavior when they face extreme pressures. To shed light on this aspect, we examine the reality of three cases, three banks operating under different logics (commercial banks, saving banks and credit cooperatives). We focus on bank branch managers, as middle managers, and observe how they deal with the paradoxical phenomenon of integrating their human nature with the simultaneous need to achieve aggressive goals. The results from interviews (N=11) with branch managers, employees, and customers suggest that the logic of savings banks and credit cooperatives, along with specific human elements, is associated with a healthier environment for developing compassionate behaviors compared to commercial banks. We find coherence in linking the institutional message of focusing on personalized customer treatment and the compassionate actions of middle management towards customers and subordinates. This study proposes both theoretical and practical suggestions at the personnel management level to humanize the darker side of banking for both employees and customers. The study findings are original as they provide additional evidence of the link between business logics and compassionate leadership of middle managers and their impact on employees and customers.
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