Embracing paradox: middle managers’ compassion and the vulnerable customer

Abstract

Purpose: This study explores the phenomenon of compassionate leadership, a promising concept in management literature. Despite significant contributions towards the understanding of its antecedents and consequences, the specific role of compassion concerning the leader behavior under extreme pressure remains unexplored.

Design/methodology/approach: Drawing empirically on the case of three banks under three different logics, the authors trace how heads of banking branches, namely, middle managers, deal with the paradoxical phenomenon of integrating their human nature with the coetaneous need to achieve aggressive objectives. The authors analyzed interviews using the interpretive research method (Hatch and Yanow, 2003).

Findings: The authors identified that the logic of savings banks and credit cooperatives, together with specific human elements, created a healthier environment to develop compassionate behaviors compared to commercial banks. The authors found coherence when linking the institutional message of putting the spotlight on a personalized treatment of customers, and the middle manager compassionate actions towards customers and subordinates.

Research limitations/implications: Suggestions for future theorizing and research are advanced, along with constructive practical implications to rehumanize the dark side of banking for both employees and customers.

Originality/value: The findings provided in this paper are original because they provide further evidence of linking business logics with compassionate leadership of middle managers and its impact on employees and customers.