Managers should be interested in their employees’ personalities because those personalities influence their behavior in the following ways:

1. Job–person compatibility. Some 62 percent of companies are using personality tests when recruiting and hiring.57 And that’s where the major value in understanding personality differences probably lies. Managers are likely to have higher-performing and more-satisfied employees if consideration is given to matching personalities with jobs.

2. Understanding different approaches to work. By recognizing that people approach problem solving, decision making, and job interactions differently, a manager can better understand why, for instance, an employee is uncomfortable with making quick decisions or why an employee insists on gathering as much information as possible before addressing a problem. For instance, managers can expect that individuals with an external locus of control may be less satisfied with their jobs than those with an internal locus and also that they may be less willing to accept responsibility for their actions.

3. Being a better manager. Being a successful manager and accomplishing goals means working well together with others both inside and outside the organization. In order to work effectively together, you need to understand each other. This understanding comes, at least in part, from an appreciation of personality traits and emotions. Also, one of the skills you have to develop as a manager is learning to fine-tune your emotional reactions according to the situation. In other words, you have to learn to recognize “when you have to smile and when you have to bark.”58