I think that people in leadership positions are more effective if they convince themselves that they are required to make eye contact with those nearby and give a friendly greeting as they walk along. At the most, it conveys a certain confidence and also plants the positive seeds of a caring environment. At the least, it prevents self-conscious people from a misplaced perception of anger or dislike. "Why didn't he acknowledge me? What does he think of me? Is he mad at me? What did I do wrong?"
How many times has a supervisor, lost in his own thoughts, failed to acknowledge a subordinate who walked right past? It's amazing what turmoil can be created so accidentally. Supervisors are entrusted with keys to a piece of the organization. Any good driver knows to avoid spacing out while in motion!
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