Leadership Strategies to Improve Business Performance

Introduction

In understanding how to use leadership strategies to improve business performance, this literature review focuses on the concept of emotional intelligence (EI) and uses the theories of Goleman and Salovey and Mayer to frame the review. These theories explain how EI can be thought of as essential to leadership and as a skill comprised of particular abilities. From that standpoint, the review covers how EI can be used to improve business performance, how directive and supportive leadership contribute to leadership development, leadership strategies and styles, talent acquisition, transformational and inspirational leadership in relation to EI, and strategies to improve leadership from a business perspective.

Theoretical Framework

Golemans EI Theory

Golemans (2021) theory of EI is that it is the ability to identify, evaluate and control not only ones own emotions but also those of others or even of whole groups. In his approach, EI and social intelligence are inextricably linked: one cannot be properly utilized without the other. Moreover, EI is the essential element of leadership in Golemans theoretical model: it obliges one to use critical thinking when it comes to how emotion governs ones own actions and the actions of others; and it requires one to monitor constantly this governance so as to be able to guide effectively ones thinking and ones actions (Shaffer, 2020). Critical thinking is needed so that the leader can parse out the relevant emotions and signals and determine which are most meaningful and why. This in turn enables the leader to make decisions and take action based on the emotional cues that he has identified and interpreted. From this point, the leader then must use this information to shape how he thinks and acts so as to facilitate the achievement of the goals that he has set for himself and the group. Golemans theory of EI is helpful for showing why EI must be applied. Salovey and Mayers EI theory is helpful for showing what it means to have EI.

Salovey and Mayers EI Theory

In the theory of EI put forward by Salovey and Mayer, in order for one to possess EI he must have four distinct abilities: the ability to perceive, understand and iterate the emotions one feels and the emotions others feel; the ability to use emotions so as to assist in ones thinking; the ability to understand emotions, the language of emotions, and the signals of emotions; and the ability to manage emotions so as to accomplish ones goals (Ugoani, 2020). This theoretical model explains that EI is a set of abilities that produce in total the concept known as EI in the individual. This set of abilities begins with perception, empathy and communication: without these three elements, the leader is unable to discern emotion, cannot understand or identify with it, and is at a loss when it comes to explaining it. Thus, perception, empathy and communication are the bedrock qualities for one with or aiming to have EI.

Using emotions to facilitate ones thinking is also part of the necessary set of abilities: it refers to how one can support cognitive processes with feelings that help to drive them. It is an especially important aspect of motivation and self-actualization (Gopinath, 2020). Understanding emotions, emotional language and signals is also part of that skill set and it is required in order for one to be able to take the next steps of managing emotions. If one does not understand how emotions are cues, one will not be able to guide others or even oneself on the path of positive thinking based on the feelings and signs that one or others are displaying.

Approaching Performance with an EI Framework

The EI framework applied, using the theories of Goleman and Salovey and Mayer, allows one to see what EI is and how it is applied: it is the process of identifying, assessing and controlling emotions so as to prevent negative feelings from undermining progress and so as to promote positive feelings and support to enhance performance. To apply this concept, one must have a skill set that is rooted in perception, understanding and communication. To apply EI in a workplace setting, a leader has to be empathetic and engaged. He also has to be able to monitor, interpret and manage his own feelings as well as the feelings of his workers.

EI in Relation to Improving Business Performance

EI is essential in improving business performance because as Goleman (2021) notes it is the essence of leadership, and leadership is what drives performance. However, in the Indian study conducted by Varshney and Varshney (2020) it was shown that EI plays an important role in enhancing the task performance, adaptive performance, and contextual performance of a small businesss workforce. However, it was also found that workers should have a degree of agility so that they can respond with flexibility and dexterity to any situations that might arise that call for an alteration in responsiveness. In a country like India, this information can be helpful, but India is also a nation with its own unique characteristics and...

For researchers examining EIs relation to improving business performance in India, the study may be helpful, but cultural differences make it less relevant in a nation like the US or even a nation like China. Cultural differences have to be considered in this case to show that the findings may not pertain to all environments.

Emotional exhaustion can be related to performance, as shown in the study by Park and Kim (2021), who look at the toll of using emotions in the workplace as part of ones job in the hotel industry in Asia. Because the hotel industry is similar internationally, the study has more applicability than that by Varshney and Varshney (2020). Park and Kim (2021) conducted a survey of employeesfrom a dozen five-star hotels in Seoul and concluded that emotions have to be maintained and rejuvenated or else they will become exhausted, which in turn impacts an employees level of job satisfaction and performance. EI can therefore be used by leaders to identify emotional exhaustion and take action to replenish the emotional well-being of workers so as to maintain business performance.

Leadership Development: Directive Leadership and Supportive Leadership

Leadership development can take two distinct and opposite forms: directive or supportive leadership. Directive leadership focuses on giving orders and telling others what to do. It is explicit and direct and the leader assumes all the decision-making; most often it is associated with authoritative leadership. Supportive leadership is the opposite: instead of ordering others, the leader listens to others, and encourages them to take the steps that they think will be right. It is more focused on empowering others and is often associated with servant leadership.

Gocen and Sen (2021) validated the identifiable characteristics of supportive leadership of servant leaders using a multinational sample of teachers. They concluded that in the business world as well as in any other sector, supportive leadership can be associated with key behaviors, perceptions and attitudes demonstrated by the leader towards followers. The significance of this study is that it demonstrates on important aspect of leadership development that is often lacking in leadership studiesthat is, how to identify the key attributes that a leader should possess and apply in order to foster leadership skills in others. Indeed, this approach is what is missing in the study by Varshney and Varshney (2020). While directive leadership may seem like an obvious choice for some leaders who are unaware of any other possible approach to leadership, the study by Gocen and Sen (2021) is helpful in showing that supportive leadership is not only a possible approach but also one that is well-understood because the attributes needed for its implementation have been observed and documented. Supportive leadership can thus be used as part of an effective leadership strategy to cultivate other leaders who will facilitate and enhance business performance.

Leadership Strategies

Leadership strategies that help to enhance business performance have been identified as being associated with those same attributes observed in supportive leadership: speaking from the heart, listening, empathetic communication and interaction, empowering others, personal authenticity, and clarity of communication and purpose. As Tirmizi and Tirmizi (2020) show, the qualities of servant leadership are universal and can be found across cultures, which supports the generalizeability of the findings of the study by Park and Kim (2021) as well as Gocen and Sen (2021). The key point in this body of literature is that supportive leadership plays an instrumental role in the fostering of effective leadership strategies that can be used to enhance business performance.

Leadership strategies should thus be formulated with the attributes of supportive leadership in mind, according to this same research (Tirmizi & Tirmizi, 2020; Gocen & Sen, 2021). With the right leadership attributes, a strategy of empowerment and self-actualization can be engenderedone that is rooted in the development of intrinsic motivation. Self-motivated workers, supported by leaders, can become the most effective and efficient workers, and can support the performance of the business through their industrious and committed application of their own talents and skills to the daily operations. Strategy is thus implicitly linked to leadership style.

Leadership Style

There are many leadership stylestransactional, democratic, transformational, servant, authoritative, and so on. Each has its own strengths and weaknesses with respect to different contexts. When coaching a leadership style, it is important to ask what the goals and…