Wutan Huatan Jisuan Jishu ISSN:1001-1749
Role of Emotional Intelligence and Learned Optimism on Leadership Effectiveness: A Review of Literature
Swati John, Dr. Rakshita Puranik
Assistant Professor, Amity Global Business School Pune, India
Associate Professor, Indore Institute of Management and Research Indore, India
Abstract
Based on the researches it is inevitable that leadership is most valuable for all type of organizations because it may help organizations to succeed or it may also bring problems and difficult situations in the organization. The most important is the different styles of leadership used in an organization and their fitness with the organization culture. Either a leader should implement the style fitting to the culture or a leader should change the culture of the organization. If we look at different sectors currently, there is a need of effective leadership in all organizations. The concern is which aspect of leadership ensures effectiveness of the organization. There is plethora of research which emphasize upon different aspects which leads to leadership effectiveness. The results of the study provide the conclusion that capability of managing emotion is one of the important traits one can have related to progress and enhancement. It shows that greater impact of emotional stability has on impact in every aspect and it results in building strong relationship and faith with the people in society, work and personal relationships. The study reveals that optimistic aspect helps in producing specific outcome of project and engagement among team members. Further innovation is highly connected with optimism. Therefore learning optimism will help the leaders. This paper is focused on combined role of emotional intelligence and learned optimism on leadership effectiveness. With the help of literature this study tries to seek the role emotional intelligence and learned optimism have on leadership effectiveness.
Keywords: Leadership Effectiveness, Emotional Intelligence and Learned Optimism.
1. Introduction
The concept of leadership has been contributing something new and unique in its area which makes this concept to be studied continuously with new aspects of it. The way environment and organizations are changing, the challenges of leadership have also changed and new perspectives have taken place in industry related to leadership concept. This study is focused on understanding the influence through emotional-intelligence, learned optimism and self efficacy on leadership effectiveness in today‟s time. Leadership is the most important aspect for the success of any organization. It includes identifying the goals of the organization and directing the subordinates with effective communication towards the goals of the organization. It is a continuous process of encouragement towards the subordinate which help organizations to achieve great success. Leadership demands the emphasis on strategic aspect and implementing certain behavioral methods which bring commitment from the employees towards the task and organization. The essential for leadership effectiveness is intricate and its outcome depends on the type of leadership, task, and level of authority with leader and capabilities of employees. Leadership requires multiple skills to bring success to the organisation, it is a time taking process of identifying, influencing and implementing action to reduce desired outcomes.
Any sorts of corporation do consider two major issues the accomplishment or malfunction of corporation. First the routine and repetitive actions in the organization and second the external environment changes, balancing between these two is always a challenge for an organization and due to which strategic leadership comes into picture. Effective leadership needs to ensure balance between new things which can impact the organization and internal allocation and utilization of resources (March 1990). Continuously the organization is required to perform, though changes are there which influences the decision making and overall working of the organization. The organization cannot afford to move out from the market and here comes the question of survival of an organization. It is the role
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of effective leadership to make certain the survival and continuous growth of the organization with all odds. Variety of models of leadership were been allied with routine procedure and external environment sustainability. Research indicates the connection of transactional and transformational leadership (Bass, 1990) with routine & old management principles and practices- which includes action related to communication effectiveness, control and supervision, compensation rewards and others; whereas transformational leadership is connected with turning the vision of the organization into reality. Transformational leader is responsible to generate the intrinsic motivation in employee to accept the changes and willing perform on variety of challenges faced by the organization. This is done to achieve the long term goals of the organization and simultaneously balancing the external pushes towards the organization (Burns, 1978).
The outcomes of any type of business are majorly dependent on and impacted by the values of the top-management. The employees groups and department perform well when they receive the supportive environment and system. The organizations perform effectively where people have mutual understand and have comfortable atmosphere where they can discuss the concerns with colleagues and leaders. It has been observed that the size of the team also impacts the propensity of people to develop mutual understanding. Generally team-size which has more than twenty members‟ encounters more conflicts, but this issue can be managed efficiently if effective leadership is applied. There are many aspects that impact the overall performance of the groups and to generate cooperative synergy among the members in the team. This includes the leadership pattern of the organization, the way a leader behaves with his followers, the manner in which performance is planned and various practices used to make a difference to the people of the organization. Research suggests that the leaders who are dominant and misuse their authority are generally not able to develop synergy among the group members and due to which the performance reduces. The leaders who are dominant in nature convey this to their subordinates that the ideas and suggestions of employees do not play any value in achieving the goals of the organization. The subordinates under a more powerful leader generally lack openness to express their ideas and suggestions. The leadership which is able to see the big picture for the organisation that is the leader who is capable to see the vision of the organisation generally leads to achieving better results for the organisation. With the clarity of vision the challenges, the desired elements and orientation for future becomes clearer. Which certain degree of clarity it becomes easier to understand future challenges and take corrective actions to provide better satisfaction to the customers. The importance of clarity of vision has been emphasized in various researches because it helps in better clarity and appropriate decisions and actions for the organisation. (Jing & Avery, 2008) depict in their research that there is no direct connection between the performance of the organisation by the style of leadership organisation has, instead more interesting is to understand the relationship between leadership and performance and that is why in which manner leadership affects the performance is the area yet to be explored.
Cavallo and Brienza (2011) try to identify the effectiveness of leadership which can help in improving the moderate performance of the organisation to enhance the level and degree of their performance, from moderate to high. The research emphasizes the emotional capability of an individual leader to create the difference in the mind of employees for the successful outcomes. Hooijberg and Denison (2002) found that various types of competencies and traits of a leader are strongly associated with the effectiveness of leadership. Emotional quotient and elements related to its evaluation are strongly associated with the effectiveness of leadership and the leaders who develop a high degree of emotional intelligence and shows better results towards the organisation. Bonder (2010) the leader of the organisation influence the overall subordinate in different ways which includes leader's capability to determine the process of the task which is most effective and understandable by the subordinate and have an optimistic perspective on his own decision and further to provide support to the employees to perform better. It is extremely important that the confidence level of subordinate is higher to perform any task. The role of emotional stability and its impact on leadership outcome is also studied. It has been interpreted that intelligence quotient does not change after attaining certain age by an individual which is not the case with emotional quotient and an individual can throughout his life and hands the degree of his emotional quotient. Therefore the impact of emotional perspective on people around us impacts their response and behaviour towards us. Thus it is suggested that leader should enhance the level of emotional intelligence for effectiveness. Sharma and Sharma (2010) explain the importance of building culture by a leader in an organisation and the impact of culture on the performance of the employees. It has been studied that it depends on the leader how he develops the culture of the organisation and if a leader is able to build the culture which can develop trust support and autonomy to the individual then it helps in enhancing the performance of the organisation. Therefore the development of culture with the organisation plays a very crucial role in leadership effectiveness. The culture of the organisation is also dependent on emotional stability and optimistic
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behaviour true leader. These elements of a leader are seen by the employees in daily operations and create a positive impression in the mind of employees.
Therefore the background of the study suggests that leadership has immensely evolved and has impacted organisation on a continuous basis. With the change of competition and pattern of doing business, there are tremendous changes that have been seen in the leadership pattern accepted by the organisation. From trait to behavior to situational perspective of leadership there are tremendous styles which have emerged related to leadership for the effectiveness of organisation. The recent study emphasizes the psychological perspective and its influence on the development of leadership for the service sector organisation. The current study emphasize on the same aspect of leadership.
2. Objective of study
To understand the role of emotional intelligence and learned optimism on leadership effectiveness.
3. Literature Review
3.1 Leadership Effectiveness and Emotional Intelligence
In the current competitive, organisations are continuously facing changes and countering vivid challenges. Certain changes have brought the attention of research in the field of principles of leadership and involvement of emotional- stability with leadership. In this context, emotional intelligence is significant to produce effective outcomes through leadership. The skill to comprehend and construe correctly the emotions of self so as of others, assists in developing effectiveness, particularly in the leadership. A leader who is high in emotional intelligence has the ability to understand individual and emotions of other and such leader can guide self behaviour which is in the betterment of all the people of organisations (Salovey & Mayer, 1994). Goleman (1998) explain emotional stability as the capability with a person who can analyse his own and others' feelings and motivate himself for managing the emotions within him for effective relationship with people in the organisation. He has explained in his book how management of emotions by a leader impacts the actions and behaviour of leader. He explains the efficiency and effectiveness of a leader who is high in emotional intelligence and emphasizes that emotional quotient is more significant than IQ in a leader. Schutte et al. (2001), has put an effort to understand the possibility of link for the variables that is relationship among people and EI. In this research shows that higher percentage of EI individual has better sensitivity towards the feelings of others and they consider the element of such feelings to respond to their behaviour. Having positive relationships with the people around is very crucial foreign individuals positive thought process, such elements results in higher degree of emotional consideration between people, especially in marital relationships. This study shows that people with increased level of emotion stability with their partner results in positive relationship among them.
Lam and Kirby (2002), the study investigated that impact and involvement of general and feeling related perspective or impact of both on the task performed by the particular person. This study indicates that there is a high degree of relationship which is observed between task performance and emotional intelligence. Employees with greater degree of emotional parameter generally able to interpret the task from different perspectives and aspects which help them perform the task more effectively. Judge et al., 2002, witnessed in their research that transformational leadership is one of the styles which has got acceptance of different category of organisation to provide consistent positive results. It shows that a transformational leader is one who displays his behaviour which creates his charisma so strong that people are motivated and considered his advice for any concerns and issues. Research shows that emotional intelligence of leader impacts the follower‟s performance and behaviour. When a leader is high in emotional intelligence, he could manage multiple emotions of multiple people under him and which creates immense positive impact on subordinates and they consider it as belongingness which helps in getting effective performance, Megerian and Sosik, (1996). Culp et al. (2005) it has been observed that senior‟s approach has an impact on the efficiency in behavioral outcome produced by the subordinates. There is continuous impact of superior in the manner the subordinate will respond. It has been observed in any type of organisation the subordinate behaviour is direct reflected by superiors‟ way of handling them. Therefore when it is seen that the outcomes of
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subordinate are not favorable then it is a hint to bring change in the pattern of leadership of enterprise. One can understand when there is a need for change and improvement in leadership looking to the outcomes through subordinates. Rode et al. (2007), analyse the effect of emotional quotient (EQ) on results given by an individual employee. The study suggests that there is a high impact of EQ on the increment level of results produced by the employees. But alone presence of greater EQ is not sufficient; individual must feel the importance of utilizing the skills related to EQ to impact the performance. Thus the study suggests that the relation and impact of EQ on the organisation is not direct in reality. Other research has also found that transformation leader could influence their subordinates emotionally, which helps in communicating and accepting the vision by the subordinates and they feel motivated to perform towards the vision, Polychroniou (2009). Plethora of research has been done in relation connecting leadership, emotional-intelligence and their combined upshot on performance of the organisation and subgroups of the organisation.
Crowne (2009), it has been observed that social skills, emotional skills and better understanding and implementation of culture in an organisation is a highly effective element present with any superior of the organisation. This study shows that a leader which possesses all these elements can produce better outcomes in the organisation. The research try to develop a framework which can include elements related to culture of the organisation. Culture is the element which is strongly affected by the feelings and emotions of people in it and pattern of socialization among individuals is another important factor which impacts the culture of the organisation. The study represents the framework where cultural aspect, social interaction aspect and feelings of people play the imperative role to impact the results produced by the organisation. The study also highlights that any superior which is considered as a person who understand and consider the feelings of their subordinates is generally preferred by the subordinates and such leader has high agreeableness among his subordinates. These strong elements bring strength to the culture of the organisation which impacts the higher degree of satisfaction and desired performance. Khosravi et al. (2011), attempted to establish connect among the allocation authority by manager and the range of emotional quotient applied by the leader. The work relation between these two aspects and outcomes affected through it. The superior in the organisation is responsible to identify the capability and potential of the subordinate and allocate the responsibility to the subordinate. The fruitful results can be established if the superior is able to recognise true potentials of the subordinate and accordingly delegate the work to them. Leader with higher percentage of emotional quotient, best in identifying and allocating the responsibility of subordinates- such superior has the ability to gauge the skills of his employees and distribute the responsibility at best to his followers. It is the responsibility of the head to accredit the responsibility on the basis of evaluation done by him about his lower staff. Post this he must provide continuous guidance to such subordinate for the effective coordination to the employees.
The approach of senior management is impacted by the culture of the nation that organisation is from which country. A leader with elevated emotional-intelligence could understand the aspects of culture and so as its impact on the people of the organisation. Such category of leaders possesses degree of stability of feelings. Therefore it could be understood that emotional strengthen the leadership and results true leader. Bass (2002), Emotional intelligence components are essential to impact people of organization to achieve the organisational goals. Ealias & George (2012) found momentous liaison among job satisfaction and emotional balance. He associates satisfaction of employees with better level of emotional balance. As described in definition emotional intelligence includes people who try to understand the emotion and manage them well in social atmosphere, this aspect is extremely important in retail sector. Also found that controlling emotions is very important for an individual especially in work atmosphere and certain aspect is very much required in retail organisations. Panda (2013), Studied the emotional intelligence in IT sector that maximum percentage of employees have 50% and above degree of emotional intelligence. Such people are aware of their own requirements and desires and with effective communication they empathize and motivate people in the work environment. The similar type of atmosphere is equally applicable in retail sector for smooth implementation of actions and plans.
Hay Group (2000) found in the research that emotional intelligence and performance and productivity of insurance organisation are highly correlated. Community with superior proportion of emotional control accounts for more- than a hundred percent profit and it helps the sustainability of Insurance sector organisation more than 80 percent. Ugoani (2014) describe that People with high emotional intelligence possess higher level of trustworthiness leadership self respect and discipline. He stated that emotional perspective is unswervingly associated to productivity and profitability of banks. Also found that lower degree of emotional intelligence results in failure of productivity of workers. Chowdhury (2017) shows link between emotional-intelligence and ethical conduct towards customers of the organisation. It is generally been observed that consumer has a tendency of buying the product
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when they feel that moral principles are considered by the organisation. For example, when they feel that whatever has been claimed by the company they meet those requirements and the treatment given to all customers is similar. The findings suggest that if the expression of thought matches the belief system of the customer then they tend to believe positively about the company's product. Zhou and Bojica (2017), indicate that the evaluation of business person about his success is dependent on the intensity of emotional-intelligence that person has. The study also indicates that the feedback from external people also impacts the evaluation about the success factor of the business owners. The study shows the outcome that business owners which has moderate or high level of emotional- intelligence has the possibility of evaluating the success in a more positive way. Also the factors where feedback through routine processes received by the business owner from employees, through positive results for customers will enhance the positive evaluation level with the business owner.
3.2 Leadership Effectiveness and Learned Optimism
The tendency of emotional intelligence in leaders is one of the aspects which help the performance of leadership to grow and brings success to the organisation. Investigation has established that emotional control can be enhanced if the leader is optimistic in thought process. To understand with empathy is not an easy task to be performed by anyone, but a leader who can see the positive aspects in situation can be more result oriented for organisation. Research has also proved that emotional intelligence is found in greater degree with the leader with positive approach. Studies have also found that a leader with a positive approach can manage any sort of uncertainty and challenges. Leaders with a high degree of optimism produce better results when organisation is facing a crisis situation or uncertainty. Therefore for leadership effectiveness- emotional intelligence and optimistic variables are very crucial as per current business scenario for success.
Exemplary leaders have capability to create the willingness among the employees and enhance their level of performance beyond possibility. They are capable to create optimistic and will full thought process in the mind of followers which bring the convincing aspect of performing a challenging task and confidence of completing it successful. They are able to move the thought process of employees in a way which employees feel that they will be capable to tackle that challenge successfully. There are many more reasons which show that optimism is important for leader for example for creativity and innovation. In today's time every organisation wants to be creative and innovative and to bring such element in the culture of organisations the leader must provide the confidence to the individual that with the cooperation and support of organisations and leaders they can achieve the desired goals. Further any such leaders who perceive that implementation of creative and innovative processes will not be possible are a threat to the organisation. Without such progressive mindset organisation cannot grow and leaders of organisation must possess trait.
Equally it is important for a leader that when they've wants to bring innovative systems in the organisation they should be open to accept new ideas, opportunities but not only the complexity, which can willingly take the risk and encourage its employees to take such risk. In other words, a leader must have a sense of risk, as no business can survive without risk. Every e aspect of business involves certain level of risk and a leader who could see opportunities in rest and provide support to implement action and get successful results in uncertain situations. There are certain individuals who have innate quality of being optimistic, but it is the responsibility of the organisation to measure the risk taking ability of leaders so that they do not get stressed when encountered with risk, instead they should be optimistic enough to see the positive aspects of the scenario and take right decision. Therefore it is important to develop optimistic thought process in the leaders if they do not possess such quality. There is an example of various researchers and scientists who are continuously working on a specific experiment for years and they are still optimistic to continue their research until they get the desired results of the same. Leibniz, The inventor of Calculus is famous for the aspect of optimism. He was considered and individuals who is highly optimistic and believe that the life which we are living is perfect. Optimism is closely connected with emotional competency that forces an individual from within to deal with conflicts and challenges.
Many psychological researchers have found that being optimistic is possible for maximum individual is an impossible thought, whereas optimism has been proven to be one of the tools towards company to create competitive advantage within an individual for professional career. If we take example of leadership it is considered to be one imperative dimension for the victory of the organisation. Plethora of research has proven the magnitude of leadership towards the growth and stability of business, but very few studies highlight the value of optimism in current scenario.
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Schulman (1999) describe how to enhance the productivity of sales employee optimism can be involved in their thought process so that the employee rather than getting de-motivated from negative outcomes they concentrate on efforts which they can make to give the desired results. If an employee can understand that a specific level of work expectation and pressure will bound to be there wherever they perform, instead of getting de-motivated a leader can guide them to think upon the processes and methods which can be applicable to understand how effectively for differently the same task can be performed to bring effectiveness in it. Srivastava et al. (2006) define how important optimism is in the success of a relationship. When people are into conflicting status they tend to think negatively about the other individual which is a general tendency of a human mind, butter percent optimistic thought process behind the reason of contradiction or conflict can help in individual to understand why they are in conflict state and can understand others perspective. Search thought process is only possible through an optimistic approach to the relationship.
Seligman (2002) explains mental and demographic ways to be adopted by an individual towards optimism. After performing action individual have certain thought process which keeps on going in their mind and they try to see through interpretations whether it was right or wrong. the individual has a tendency to give an explanation thought which is derived by strong enough values of an individual, when the automatic thought comes people tend to repent about their action for example if an individual has screamed on someone in front of others and think later on you should not have behaved in that manner. The next aspect of this process is your thoughts are trying to justify your actions and therefore the mind gives reasons behind the behaviour of self. The individual become used to certain logics and gradually come up with more convincing and new explanation. This is how an individual is training his mind to deflect from negative thoughts.
Greenberg and Arakawa (2006) the study based on informational technology organisations where leaders optimistic aspect was try to be connected with the specific outcome of project and engagement among team members. With the application of correlation analysis relationship between the variables has been established and it was found that optimism is highly correlated with project outcomes and high amount of engagement with employees. Wang and Thompson (2006) describe the importance of how a superior person of the organisation should achieve the positive results of the organisation and maintain that type of outcomes for longer duration of time. Generally it has been observed that research topics about what factors of leadership bring positive results but many researches do not focus on what aspects should not be done by a leader to avoid negative outcomes. Therefore excessive level of positivity is also not in favour of the organisation, leaders need to be equally critical in evaluating the information before taking any decision.
Gallo (2012), talks about the relationship between optimism and effectiveness through leader. Author suggests that there are multiple reasons which are beneficial for the organisation through optimistic leader for any category of organisation. With an optimistic leader a business starts two face dynamics of market which is difficult for pessimistic leader. Optimistic leader have a mindset which leads them to success because they are not careful when faced by uncertainty and problems. He also suggests that Optimistic leader encourage people for communication and bringing the openness in the culture of the organisation. Openness in the culture of organisation helps in discussing the problems and concerns with the mind set to resolve it. This is one of the progressive approaches which ensure less conflict atmosphere in the organization. Kirwan et al. (2014) this study has tried to understand whether it is possible to enhance the learning of an individual by guiding self or it is all about the innate personality trait which is possessed by an individual. The study has used correlation and multiple regression tools to analyse the data of more than 2000 students to study the connection and impact between personality of an individual and ability to guide self to learn. Study shows the result that there is a strong correlation between assisting self to learn and characteristics of personality of a person. Smith. E. B (2014) has interpreted the impact of positive perspective on transformational style of leadership. It has been observed that positive cognitive process is highly related with this style of leadership. To increase the value and performance in the organisation optimistic aspect with a transformational leader is very helpful for development of culture which can establish the pillar of optimism in the workforce.
DeRosa (2018) propose that optimistic leaders are open to innovation, they could understand the futuristic big picture of the organisation and has the capability to inspire the employees of the organisation to manage the obstacles which they may face while implementing such innovative actions. It has been mentioned by Intel co- founder Robert Noyce that optimism extremely important for innovation. Industries like aviation and Hospitality it is expected from employees and they are being trained for hi and customer service and ultimate level of customer
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satisfaction, search satisfaction can be experienced because of workforce of the organisation who is responsible to provide these services and better experiences to the customer. Question arise in the mind how one can be optimistic every time, it has been stated by Chery McDonald that feeling of joy helps and individuals to be connected with other people and nature. It has believe that the leader with optimistic and joyful approach showcase the attitude which is preferred by people around them. While searching the leader of the organisation must use the assessment tools which can assess the trait like optimism and empathy of that person. Certain individual will ensure good culture inside the organisation which will be the best fit for the growth of organisation.
Therefore it is important that an effective leader is optimistic in approach and decision making. A leader with optimistic loom provide positivity in thoughts to others and brings the comfort in the environment which passes to others and such elements spreads in the environment of organization. Before initiating any task or activity people feel confident to face challenges and obstacles if any related to it. This establishes the learning environment in the organization and helps the organization effectiveness to cultivate. Effective leader by efforts of learned optimism can establish effective workforce for the growth of organization.
4. Findings and Conclusion
The study emphasizes the connection amongst the emotional intelligence and learned optimism with leadership effectiveness. Both emotional intelligence and learned optimism are impacting the effectiveness of leadership. Thus both the aspects are essential in leader in today‟s time. There are many leadership styles and patterns which have been tested and seen in the literature review which supports the aspect of having a greater degree of emotional awareness and sensitivity will help a leader to be effective with his subordinates. A leader with emotional stability is capable to develop emotional response in their subordinates and can establish commitment towards the goals of the organisation. A leader is more supportive, concern and provides personal attention to the requirements and concerns of his subordinates. These aspects are strong required in a leader in today's time because follower expects a leader to behave in such manner, a leader who is more considerate and caring about their subordinates. To be considerate and impactful a leader need to understand emotional perspective of people so that he can respond considering and addressing those emotions, which can further make a leader charismatic towards subordinates so that the followers will listen to him and provide outcome as desired.
Further it is found that effective leader enhances the optimism in people and the culture of the organisation. Learned optimism is connected to the happiness of people in the organisation. When people will be happy and joyful they will produce better results than the one who are pessimistic in their approach. Optimistic people generally feel the emotions of pride, responsibility and satisfaction. Certain individuals have a higher degree of motivation to reach towards objectives and success. The optimistic leaders are more genuine and effective in reality. Leader with a high degree of optimism have the quality to take effective decisions and has bi capability those decisions still they are achieved irrespective of contingency. On the other side the negativity is related with poor performance and poor memory.
Recently there are studies to emphasize on the concept of psychological capital which is becoming the major focus of research studied in the area of leadership. The study shows that psychological capital is important in leaders in current scenario. The psychological capital includes aspects like optimism, efficacy, hope and resilience. Psychological capital is basically about what an individual is currently and what they can become positively through various types of improvement in them, which further emphasizes that how an individual can develop them as a person and generate financial outcomes. This study reveals that higher degree of psychological capital and answers the risk taking capability of leader being realistic and what's the time and they will be capable to decide appropriate the sentence with calculated risk. They have the understanding that they are the change agent and are capable to visualise their association with the vision of the organisation. Such type of leaders put efforts to improve their skills continuously and does not get into problems in a negative manner but tries to come up with take me to tackle the problems in an effective manner. Optimistic leaders emphasize on the development of their subordinates, they feel positive about the growth of their subordinates instead of being insecure with them. These leaders are capable to understand the skills of their followers and accordingly delegate the task to them. They have complete trust in their followers to give the desired results.
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