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THE THIRD ERA OF
MANAGEMENT
PHASES OF MANAGEMENT
3
1
EXECUTION
2
EXPERTISE
3
EMPATHY
PHASE
EXECUTION
“Mass production, and managerial solutions such as
specialization of labor, standardized processes, quality
control, workflow planning, and rudimentary accounting.”
1
TOP DOWN DECISION MAKING
Employees were not involved at all in decision making
process, this was all about maximizing productivity.
PHASE 1
EXPERTISE
PHASE 2
EXPERTISE
This is all about refining what we’ve learned, creating
automated processes. Different theories of management 

were being explored.
PHASE 2
EXPERTISE
Many companies are still in this era.
PHASE 2
EXPERTISE
The problem with this era is that it completely forgot
about the people, too much focus on automating/
improving processes.
PHASE 2
Where we’re going now…
PHASE 3
PHASE 3
EMPATHY
All about
Empathy is without a doubt, the single most
important skill to develop (leader or not).
EMPATHY
SYMPATHY
VS
EMPATHY
When you understand and feel another’s feelings 

for yourself, you have empathy.
When you sympathize with someone, you have
compassion for that person, but you don’t necessarily
feel her feelings.
SYMPATHY
GET THE GUIDE
BECOME A 

GREAT LEADER
Learn how you can become a
leader for the third era of
management
EMOTIONAL INTELLIGENCE (EI)
Refers to the collection of abilities
used to identify, understand,
control and assess the emotions
of the self and others.
EQ is starting to become more important than IQ.
While IQ is important, once you’re on the job, most
people around you have a (relatively) similar IQ. 

EQ is where you can make the difference.
Psychologist Cary Cherniss published a paper called
“The Business Case for Emotional Intelligence”
At L’Oreal, sales agents that had high emotional
intelligence outsold salespeople that didn’t. 

They sold $91,370 more than other salespeople did.
They also had 63% less turnover during the first year
than those selected in the typical way.
Psychologist Daniel Kahneman found that people
would rather do business with a person they like and
trust rather than someone they don’t, even if that
person is offering a better product at a lower price.
A study conducted by the Center for Creative
Leadership found that empathy is positively related to
job performance. The study found that managers who
show more empathy toward employees are viewed as
better performers.
Traditionally, employees were
treated solely with results in
mind, leaders didn’t really care
about their personal lives, and
they really kept work and
personal relationships separate.
Now, that isn’t so true anymore.
Good leaders understand that now it
takes a certain level of connection,
and a certain level of interest in
helping employees grow as people.
More and more, employees
personal lives are spilling over
into their professional lives, and
they are starting to blend more
than ever.
People are realizing that the
only way to be successful
with your company is to
have engaged employees.
Employee engagement and having happy,
productive employees really comes down to
treating people with respect.
WHERE DID
EMPLOYEE ENGAGEMENT
COME FROM?
A paper published by the Institute of Employment
Studies (IES) in 1990 “From People to Profits, the HR
link to the service-profit chain”.
The connection between employee engagement 

and profits was made.
A Jackson Organization study shows that
companies that effectively appreciate employee
value enjoy a return on equity & assets more
than triple that experienced by firms that don’t.
Fortune’s “100 Best Companies to Work For” stock
prices rose an average of 14% per year from
1998-2005, compared to 6% for the market overall.
GET THE GUIDE
GIVE BETTER

FEEDBACK
Download the complete guide to
giving better employee feedback.
EMPLOYERS
FINALLY
WOKE UP!
MONEY TALKS
in lost productivity per year
$450-550 BILLION
WASTED
PEOPLE ARE
UNHAPPY
OVERWORKED
UNDERAPPRECIATED
HOW DO YOU
MEASURE ENGAGEMENT?
SURVEYS!
Companies were doing surveys, but weren’t
doing anything with results or were doing
them once a year.
WAY TOO LONG
Once a year is
of a timeline between surveys to make 

significant change.
Plus the attitudes were different, leaders
weren’t leading properly.
COMPANIES CARED
MORE ABOUT
NUMBERS
THAN PEOPLE
They were likely measuring the wrong things, 

or not doing anything to significantly improve
employee happiness.
WHAT DO YOU MEASURE?1
HOW OFTEN SHOULD YOU
MEASURE IT?
2
2 IMPORTANT QUESTIONS TO ANSWER
Our research (along with Deloitte, Gallup and
other research firms) found that there are 

10 key drivers of employee engagement.
PersonalGrowth
Ambassadorship
Feedback
Recognition
Relationshipwith
Colleagues
Relationshipwith
Managers
Satisfaction
Happiness
Wellness
Company

knowledge
10 Key Metrics of Employee Engagement
WEEKLY.
How Often Do We Measure it?
We found that was the best balance between 

real-time data collection and not disturbing 

the employees.
DO THIS NOW TO
1. BONUS: Learn how to Become a Great Leader
(download free guide here)
2. BONUS: Learn how to Give Better Feedback
(download free guide here)
BE A BETTER LEADER
3. Read more about Employee Engagement on the
Officevibe Blog!
Curious about the first step to take to be a better leader?

Try Officevibe now and start inspiring your employees!
Visit officevibe.com
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The Third Era of Management