Relationship between Emotional Intelligence and Leadership - Literature review Example

Running Header: Leadership Behaviour Name: Institution: Date of Submission: Relationship between Emotional Intelligence and Leadership 1.0 Introduction Ramesh (2010, p. 2 & 3), starts with identifying the importance of soft skills in an individual and its relation to career success. The question that lingers on his mind is that why do some employees or managers be successful yet they have limited education. He draws an observation that emotions and emotional intelligence are important and affects how we interact and perceive things at work place. Those who have higher emotional intelligence which translates to effective social skills are more prosperous and effective. He defines soft skills as “those skills over and above the technical knowledge and expertise in the chosen field, required for an individual to relate to and survive and succeed in his or her environment”. He observes that soft skills are built on attitude, manifested through communication and polished through etiquette. People forms the valuable stock for accompany success. Thus a manager has to possess interpersonal skills that will help in leading people. These skills include motivation, leadership and communication (Papulova & Mokros, 2007, p. 4). Emotional intelligence is a critical component of social skills that allows a manager to navigate their world. The essence of this argument is that organisations are composed of human beings. The same belief is echoed by numerous literatures that postulate that leadership is about creating vision and sense of possibility for employees through approaches like motivation and reward management. Leadership deals with the future, ideas, people and personalities (Gillard, 2009, p.726). Managers and employees now acknowledge the importance of soft skills such as communication, conflict management, leadership, perception and persuasion as integral part for success (Gillard, 2009, p.725). The ultimate goal of this paper is outline if there is relationship between emotional intelligence and transformational leadership or if this belief is contrary as postulated earlier. 2.0 Concepts on Leadership Behaviour and Emotional Intelligence Leadership is wide and a topic of contention. It can be seen as a soft skill or people skill that is derived from interpersonal skills and cognitive power (Papulova & Mokros, 2007, p. 4). There are numerous theories developed to try and explore the concept of leadership in an organization. While there is formal educational training, those who make it are the one who are able to inspire and motivate her/his team. Motivation leads to higher synergy and thus successful results. The above aspirations can be achieved by having multi pronged approach like visionary and motivational leadership and recruitment of managers with not only technical skills but also soft skills/peoples skills/interpersonal skills/ emotional intelligence who can understand formal and informal relations between people (Armstrong, 2001, p.7). The essence of all this is to ensure team work, motivated workforce and thus, enhanced productivity (Armstrong, 200, p.13). As a manager, one is required to posses’ different skills that contribute towards higher performance and success of an organisation. These skills include sourcing and provision of information, knowing group needs and characteristics, planning, evaluation, controlling the group, sharing leadership, analysing & understanding group resources and representing the group among others (White Stag Leadership Development, 2012). As an example, the subsequent paragraph will use controlling the group through team work and communication management as a critical skill required of a manager. 2.1 Skills Required of a Manager 2.1.1 Controlling the Group and Communication Management There is no important integral part of any organization more that the human resource. A united front of work force is one sure way to success while a disjointed one is a step towards failure. A manager should be able to inspire team spirit into the organization by instilling ethics, discipline, time management, consultation and motivation. This calls for team building (Schiffman, 2004, p.17). The next important skill is communication management. Communication management, which includes internally, for instance between different departments of the company and externally such as customer and suppliers, is an essential for all types of organisation (Kotler et al., 2006, p.78). 2.2 Styles and Attributes The styles and attributes of a leader differ from one to another. This is tied to power that a leader wields in the organisation. A leader can be said to be autocratic/ dictator, participative/ democratic or delegative/ free reign (U.S Army Handbook, 1973). The optimal in all the above is a leader who is able to combine all of the above styles in different scenarios. There are those who are transformational in nature, visionary and motivational in nature among others. An example of leadership is motivational leadership. Most employees occasionally complain on issues that affect their work and welfare. They would raise issues about low pay, job insecurity, poor work schedules and harassment among others. For example, as a democratic manager, one can allow involvement of workers in planning of business work programs, adequate supervision, and creation of flexible work schedules and assurance of their security on the job. (Kakabadse et al., 2004, p.72). A work place is like a small community with its own dynamic and one is able to analyse and speak to the emotions of others is likely to win them and have them do what he or she wants. This equally boils to leadership. The role of emotional intelligence in the styles of leadership would to inform the manager what to apply at a given condition and what is to be avoided. This is based on the fact that emotional intelligence allows one to read moods, emotions, empathize, create rapport and show seriousness among others. Moreover Emotional Intelligence can empower one to be in a position of paying attention to employee’s social, physiological, esteem, psychological and self –actualization needs through a collaborative effort. This is critical because a satisfied employee is likely to give maximum effort as opposed to those who are disgruntled and disfranchised. 3.0 Concept of Transactional and Transformational Leadership 3.1 Transformational Leadership The significance of leadership in influencing employees and managers so that their synergies can be galvanised towards a common goal has been proven to be critical process. Frankel (2008, p.24) stresses the need for managers to embrace characteristics of an effective leader. The essence is to create an aura of possibilities among employees. When managers and employers give employees that opportunity to innovate and engage in their profession the best way they can by looking at the value one brings in rather than the experience employees are likely to have that synergy and team work (Cummings, 2010, p.363). The point to be abstracted from this argument is that leaders do not create change, but they rely on the employees to change the culture through day to day behaviours by creating that enabling environment for employees. 3.2 Transactional Leadership The concept of transactional leadership is seen to be based on the traditional roles of a manager of controlling and organising. The tenet of this approach is to appeal to the self interest of those being led. One basis of attaining this kind of leadership is through reward and punishment management. According to Armstrong and Murlis (2007, p. 99) employees ought to be paid according to their skills and contribution to the organization. Various business organizations have realized the importance of having “integrated and enriched value exchange between an employer and its employees” (Alliance for work-life progress, 2006). Reward management is based on motivation theory whereby one feel encouraged when they are rewarded for their achievements. This reward should be fair and consistent. There are numerous theories that have been used to explain concept of internal drive and human action. Theory X and Y theory advances concept that there are two classes of manager. The X managers view employees as skivers and those in need of close supervision, while Y managers who are optimistic view employees as those in need of motivation so as to achieve desired goals (Bernstain, 2011, p.591). 3.3 Consultative Leadership To underscore the important link and dynamics between consultative leadership and change Tichy and Ulrich (2008) offers an insightful discourse on the same. Tichy and Ulrich (2008, p.3) notes that resistance to change can be analysed from three paradigms. The paradigms they talk about are resistance as a result to technical systems like task based habits, fear for change due to unknown future and loss of sunk cost. The second is political system resistance as a result of internal groupings opposed to change, narrow thinking based on the perception that the imminent change is a direct challenge to the past administration & their failures and resource limitation. The last is the cultural system resistance based on the notion that the past is known, mastered and holds security and thus no one would wish to move out of his/her comfort zone thus, inhibiting change process. To overcome challenges inhibiting change, consultative leadership can be applied to bring everyone on board. Consultative leadership comes into place based on the fact that the success of any organisation is tied on how well the management relate with its employee. Employees are the epicentre of idea creation and implementation of strategic management plan of an organisation so as to achieve strategic positioning and market leadership. The essence of leadership is based on participatory approach to formulation of the desired objectives by having attainable, specific and measurable objectives. This would make the employees part and parcel of the procedure. This collaborative approach can only be realized with a properly formulated organization structure that has leadership which motivates, sets out vision and creates the need for its people. Goal-setting theory in the organisation is reliant on how the management treats objective setting process in the organisation (Bacal, 2012, p.8). Setting objectives is a sub step in planning (Koontz and Weihrich, 2008, p.82). This should be done with short and long term focus in mind. 3.4 Motivational Leadership Creating room for employees that one is capable to attain whatever he or she wants is a critical component of a manger. Motivating employees make them work hard towards achieving certain goals. There are numerous theories that have been used to explain the same. Expectancy theory that is based on expected rewards. Concepts that explain how people are motivated to perform when rewarded or not rewards include social learning theory and cognitive learning theory. Cognitive theory underlying assumption is that people interact with their environment based on how they perceive and interpret it. In a precise term, people build an internal (cognitive) map of their external (social) environment, and these perceptions determine their behaviour (Restle et al., 1975). Social learning theory acknowledges the fact that behavioural patterns are acquired by links or contingencies established between the behaviour and its consequences. Further, it acknowledges that, when behaviour is followed by desired results (reward), that behaviour is ‘reinforced’ (made more likely). On the other hand, when behaviour is followed by undesirable or aversive consequences the behaviour is made less likely (Coleman, 1994). Thus in this case if good performance is rewarded then the person is likely to keep it up and if not he is likely to give up or quit. 4.0 Leadership Behaviour in Different Circumstances 4.1 Managing Heterogeneous Team Business entities face diversity in its employee population. It may be due to differences in religion, race, language, gender, ethnicity, disability, sexual orientation among many others. An institution in the quest for a viable labour force may source globally for certain expertise skills and experience. This brings about cultural diversity in an organization. Cultural diversity leads to recruitment of talented labour work force, development of multicultural workers, global market research and assessment, reduced labour turnover, market segment expansion, enhance customer appeal and increase consumer base globally. A culturally diverse work force faces setbacks due to violation of human rights and freedom, economic inflation, nepotism, violence and many more(Kakabadse et al., 2004, p.116). Institutions should promote cultural diversity through the development of cross-cultural sensitivity, language and custom training and creation of worker network groups. Diversity brings about competitiveness advantage in an entity at all levels. Diversity is one of the principal tenets of organisation behaviour and managing people. As a leader, one expected to provide measures that ensure diversity management. This is where emotional intelligence comes in. 4.2 Managing Under Crisis The principal goal of an organisation is to make profit by attracting and retaining customers. This can only be achieved through strategic planning where a company translates its key competencies and resources into competitive advantages (Burrow, 2008, p.34). The framework of achieving all of the above is through decision making process that involves critical thinking. Managers while making decisions are faced with uncertainties as future trends are not clear and can only be anticipated. Anticipation of future allows firm to adapt to change and shape the future as a strategic advantage (Jones and Hill, 2007, p.100). However, at times futuristic decisions made might not provide that needed solutions (Kristandl and Bontis, 2007, p.943). leadership during crisis is best exemplified on how the corporate management or any manager at any level makes decision during this time. Two literatures provide interesting discourse on decision making under crisis. Lipman (2003, p.26) summarises this by saying that “critical/reflective thinking is aware of its own assumptions and implications as well as being conscious of the reason and evidence that supports this or that conclusion”. On the other hand, Oliveira (2007, p.14) postulates that “individuals tend to value alternatives that offer early reassurances, the ability to avoid or delay making difficult trade­offs is greatly sought, and humans often pursue changing one’s mind”. During crisis in organisation, there are competing and hidden interests. This calls for leaders who are able to balance her or his actions in a rational manner through proper decision making process that employs social skills like negation, consultation and authoritative stands. It is in the essence of this breadth that one can apply theories of non consequentialism like Kantian, consequentialism like utilitarian and bounded rationality. However, to achieve factors like social legitimacy, the leader has to employ empathy and social skills to gain wide acceptance and support through lobbying, convincing and integration. 4.3 Managing Different Personalities Groups/ organisations are made of people with different personalities. The success of the organisation will be tied on how the manger is able to manage various personalities in it. Belbin understands group as a body made of people with no significance attached to positions, but roles. This approach can then be used to build behavioural strengths and weaknesses in organisation. The theory proposes nine roles and each role are best tapped through the act of balancing between strength and allowable weaknesses (Belbin, 2011, p. 9). These roles are defined according to one contribution to the team. The nine roles include plant who is creative, resource investigator, coordinator, shaper, monitor evaluator, team worker, implementer, complementer finisher and specialist. Some of these roles were evident during our group work with some being resourceful and theoretical while some being practical. The best way for a leader to manage personalities is to employ concepts of group formation. There are various literatures that points at how small group evolve overtime. Before one talks about team work and success, one of the integral steps is on team development. It is indeed true that teamwork if well managed can lead to unrivalled performance, but this is not an overnight engagement since it involves bringing various people with different traits and backgrounds on board to build a united block (Schermerhorn et al, 2011, p. 156). Team development can best be expressed in the forming, storming, norming, performing and adjourning framework. 4.4 Managing Under Conflict It is important to indulge and look into the expectations of the stakeholders in the business fraternity. The essence of this is that different stakeholders have different expectations which they would want to be achieved. These expectations are like a cross road to corporate management since some are incompatible and if they were to be addressed all, then there has to be a compromised middle ground. There are various theories that can be used to explain human expectations and how they are shaped. These expectations if not met are likely to cause reluctance, withdrawal and even social unrest. In a social grouping where there are different personality traits and expectations, conflicts are likely to emerge. As a leader, one is expected to provide leadership that addresses the expectations of all. For instance to cater for employees, there is need for organisation to adopt industrial relations like pluralism. 5.0 Conclusion The ultimate goal of this paper was to examine if there is relationship between emotional intelligence and leadership. The emerging theme and finding is that the statement is true and can be affirmed by numerous factors. The first realisation was that organisation is composed of people and one to be able to apply the concept of leadership of doing things through people then it is prudent that he be equipped with people’s skills like empathy, social skills and social awareness so that he or she can be able to convince, attract, lobby, influence and direct among others. The role of emotional intelligence is evident in the concepts of leadership like styles and attributes. As shown in the discourse for one to be persuasive he has to posses skills of negotiation and convincing, for one to be autocratic he has to poses shear strength and aura of fear all of these results from EI. The same can be said of transactional and transformational leadership. The basis of all this is to convince and strike the emotional side of an individual by reducing barriers to performance such as attitudes and creating room for possibilities. Apart from the later, the same can be said of managing personalities. For one to appeal to another person with different traits, he or she has to develop skills that enable him or her bind together with other. Thus, the paper found out that there is a significant relationship between leadership and EI. References Alliance for work-life progress 2006. Work and life: what is total rewards? Retrieved on 13th October 2012 from: http://www.awlp.org/awlp/about/html/aboutus-whatis.html. Armstrong, H. and Murlis, M. (2007). Reward management: a handbook of remuneration strategy and practice. London: Kogan Page. Armstrong, M. 2012. Armstrong’s Handbook of Management and Leadership: Developing Effective People Skills for Better Leadership and Management. New Delhi: Kogan Page Limited. Bacal, R. 2012. 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