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When your Boss is not in a good mood don't try to be over smart, be with yourself interact with him very professionally and carefully.
Speak to him and check if can be any help to de-stress him/her so that problem is solved. If not able to help solve the problem motivate him/her to tackle it so that mood changes and he/she is positive to face it and deal with it.
Try to avoid him/her when in that state. If you have to try to use communications methods other than face to face. If you have to do it, start with what you know might decrease the level of nervousness and go for it.
Try to find out why is he nervous? anything to do with your performance, the organisation etc...
tap in to that and work your way around the issue.
The employee should stop the nervous boss early.If the employee does not do so, the situation develops and up to a direct insults and personal insults, then the boss will consider himself a master and his staff are slaves.Employee not to do so during the bos nervous, in order not to worse the situation and increasingly complex, as they prefer to make the discussion at a later date after the boss become calm.
never never say to him: you are wrong, say it indirect .......and practice to be active listener with him,
To deal with nervous boss, first must to noticed that what's the reason of nervousness and second d'nt spoil his/her trust. If you doing works in proper time as a manager or employee the boss will happy and react with joyful manner. And in this way the nervousess problems will solved.
Nervousness is because of project completion.....By giving the better output...he can come out of that....its one way of making BOSS out of pressure....
Nerveous boss can do anything. Just let him come to his senses ;)
I noticed in most of the cases, nervousness comes from pressure. Soothing and offering to help is the best thing to calm the boss down.
but keep in mind not to ask for a raise .