Emotional Intelligence Leadership Strategies for 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

Goleman's (2021) theory of EI holds that it is the ability to identify, evaluate, and control not only one's 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 Goleman's theoretical model—it obliges one to use critical thinking when it comes to how emotion governs one's own actions and the actions of others, and it requires one to monitor this governance constantly so as to guide one's thinking and actions effectively (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 have been identified and interpreted. From this point, the leader must use this information to shape how he thinks and acts so as to facilitate the achievement of the goals set for himself and the group. Goleman's theory of EI is helpful for showing why EI must be applied. Salovey and Mayer's EI theory is helpful for showing what it means to have EI.

In the theory of EI put forward by Salovey and Mayer, possessing EI requires four distinct abilities: the ability to perceive, understand, and articulate the emotions one feels and the emotions others feel; the ability to use emotions to assist in one's 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 one's goals (Ugoani, 2020). This theoretical model explains that EI is a set of abilities that together produce 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 foundational qualities for one who possesses or aspires to develop EI.

Using emotions to facilitate one's 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 emotional signals is likewise part of that skill set, and it is required in order to take the next step of managing emotions. If one does not understand how emotions function as cues, one will not be able to guide others—or even oneself—along a path of positive thinking based on the feelings and signals being displayed.

The EI framework, as defined through 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 to promote positive feelings and support that enhance performance. To apply this concept, one must possess a skill set rooted in perception, understanding, and communication. To apply EI in a workplace setting, a leader must be empathetic and engaged. He must also be able to monitor, interpret, and manage his own feelings as well as those 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. In an 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 business's workforce. However, it was also found that workers should have a degree of agility so that they can respond with flexibility and dexterity to situations 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 culture, which suggests that the study may not have a high degree of generalizability. For researchers examining EI's relation to improving business performance in India, the study may be valuable, but cultural differences make it less relevant in nations like the US or China. Cultural differences must therefore be considered when evaluating the extent to which findings pertain to all environments.

Emotional exhaustion can also be related to performance, as shown in the study by Park and Kim (2021), who examined the toll of using emotions in the workplace as part of one's job in the hotel industry in Asia. Because the hotel industry operates similarly across international contexts, the study has broader applicability than that by Varshney and Varshney (2020). Park and Kim (2021) conducted a survey of employees from a dozen five-star hotels in Seoul and concluded that emotions must be maintained and rejuvenated, or else they will become exhausted—which in turn impacts an employee's 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, thereby sustaining business performance.

Conclusion

Leadership aimed at improving business performance must necessarily be rooted in the theory of EI, which Goleman and Salovey and Mayer help to explain through their respective theoretical approaches. EI is essential to leadership as leadership is essential to business performance. EI is what brings followers to support the leader, and it contributes to their willingness to buy into the leader's vision or the company's vision. Without EI, there is no foundation for strong relationships, because the leader does not demonstrate availability to or understanding of the needs of workers. The literature consistently supports the value of EI in leadership; the most relevant studies show that the attributes of EI are associated with supportive leadership, which is universally recognized as favorable across cultures. This is important for understanding the relevance of EI within the field of leadership and for designing strategies that place human understanding at the center of organizational performance.

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