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 [email protected] 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 Volume XVI, Issue VII, JULY/2020 Page No:100 Wutan Huatan Jisuan Jishu ISSN:1001-1749 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