Emotional Intelligence and Leadership
By Limor Regular, 2024

Why is Emotional Intelligence Important for Leadership?

 

The pandemic disrupted normal business operations, affecting revenue and increasing the risk of bankruptcy for many organizations (Wu et al., 2021). Wu et al. (2021) defined crises as “events that are perceived by leaders and organizational stakeholders as unexpected, highly salient, and potentially disruptive” (p. 2). Beyond financial challenges, crises have profound emotional impacts on leaders, employees, and other stakeholders within an organization (Wu et al., 2021). Research has shown that organizational change triggers various emotions, including hope, grief, uncertainty, fear, anger, and stress (Smollan & Parry, 2011). Therefore, it is crucial for leaders to effectively navigate and manage the negative emotions of employees and themselves during times of crisis (Wu et al., 2021).

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Daniel Goleman (2004) established the importance of EI in business leadership and organizational performance, proposing a model that incorporates abilities and personality competencies. He first introduced the term EI to a broad audience of readers in his 1995 book, Emotional Intelligence. He later applied the concept to business with a 1998 Harvard Business Review article entitled “What Makes a Leader,” which became one of the most-read articles on EI in the magazine’s history (Goleman, 2004). Goleman argued that "truly effective leaders are distinguished by high EI and that emotional intelligence is the sine qua non of leadership. Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won’t make a great leader" (p. 3). Goleman further explained that emotional competencies are learned capabilities based on a person’s EI and lead to exceptional work performance (Fernández-Berrocal & Extremera, 2006).

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Goleman’s 1998 article identified five essential elements of EI that allow individuals to recognize, connect with, and learn from their own and other people’s mental states(Goleman, 2004). Later, these dimensions were narrowed down to four clusters of competencies: (a) the self-awareness cluster, which includes emotional self-awareness, accurate self-assessment, and self-confidence; (b) the social awareness cluster, which includes empathy, service orientation, and organizational awareness; (c) the self-management cluster, which includes self-control, conscientiousness, adaptability, achievement orientation, and initiative; and (d) the relationship management cluster, which includes leadership, communication, influence, change catalyzation, conflict management, development of bonds, teamwork and collaboration, and the development of others (Boyatzis et al., 2000).

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In 2007, Goleman and Boyatzis introduced the Emotional and Social Competence Inventory (ESCI), a comprehensive 360-degree evaluation instrument (Boyatzis et al., 2000). The ESCI tool focuses on emotional competencies, elements theoretically capable of further development in individuals to augment their professional effectiveness (O’Connor et al., 2019). Boyatzis and Goleman’s framework incorporates an array of emotional competencies within each EI construct (O’Connor et al., 2019). These competencies are perceived not as inherent talents but as acquired skills necessitating ongoing cultivation to attain exceptional performance (O’Connor et al., 2019): “The ESCI measures the demonstration of individuals’ behaviors through their perceptions and those of their raters, making it distinct from measures of EI that assess ability, self-assessments of ability, or personality preferences” (Korn Ferry, 2017, p. 1). The model is particularly adept at forecasting workplace success (O’Connor et al., 2019).

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Daniel Goleman's model of EI provides a comprehensive framework that highlights the key components of EI and its profound implications for leadership and organizational performance. The framework emphasizes the fact that EI is a learned capability that can be developed to identify and foster leadership competencies. This means that with the right training and coaching, individuals can improve their emotional intelligence and become more effective leaders, ultimately leading to improved organizational performance and success.

 

The Importance of Emotional Intelligence in Leadership

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EI has been identified as a key determinant of effective leadership (Boyatzis et al., 2000). The literature suggests that leaders’ EI is essential for employee processes and job-related outcomes. According to Bradberry and Greaves (2009), leaders with higher EI exhibited greater job performance, leadership skills, and ability to manage stress. This suggests that leaders with high EI are more capable of managing their emotions, leading to more effective decision-making and problem-solving (Bradberry & Greaves, 2009). Furthermore, leaders with high EI are likelier to foster positive relationships within their teams as they are adept at understanding and managing the emotions of their team members, leading to increased teamwork and collaboration (Cherniss, 2001). Leaders with high EI are also more adept at conflict resolution, an ability that is essential for maintaining a positive work environment (Cherniss, 2001).

 

Furthermore, George (2000) highlighted the role of EI in facilitating transformational leadership, a leadership style characterized by the ability to inspire and motivate followers to exceed their self-interest for the organization’s good. In addition, Wong and Law (2002) found that leaders’ EI positively correlated with job satisfaction, job performance, organizational commitment, and employee turnover.

Leadership in crisis demands high EI skills, which involve recognizing, understanding, and managing one’s own emotions and those of others (George, 2000). Leaders must understand and manage their feelings effectively during a crisis to think clearly and make sound decisions (George, 2000). They also need to be aware of the emotions of their team members and stakeholders and respond appropriately (George, 2000). In addition, individuals often experience fear, stress, and anxiety in times of crisis (Goleman, 1998). Leaders with high EI are more empathetic and better able to provide the support their team members need (Goleman, 1998). They can understand and relate to what others are going through, ultimately fostering a supportive and understanding work environment (Goleman, 1998).

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Effective communication is also crucial in times of crisis (Cherniss, 2001). Leaders with high EI can communicate calmly and effectively, ensuring that everyone understands the situation and what is required (Cherniss, 2001). They are also more likely to be good listeners, which is a vital skill when understanding team members’ concerns and questions (Cherniss, 2001). Moreover, leaders’ EI capabilities help them navigate situations where they face difficult decisions, uncertainty, and change (Aslam et al., 2018; McKenzie, 2010; Smollan & Parry, 2011). EI is effective in helping leaders regulate their emotions to help them focus and successfully manage crises (Wu et al., 2021). Many successful leadership skills related to emotional competencies can benefit leaders during difficult times, such as complex problem-solving, dealing with pressure, self-awareness, emotional control, effective communication, social interactions, and critical thinking (Goleman, 1998; Mayer et al., 2004; Smollan & Parry, 2011).

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Aligned with these findings on the relationship between leaders’ EI and organizational change, studies examining the COVID-19 pandemic have indicated that EI competencies were crucial to leaders successfully navigating the crisis (Alonazi, 2020; Baba, 2020; Bavel et al., 2020; Chambers, 2022). The pandemic significantly impacted people’s physical and mental health, financial stability, and overall well-being; leaders’ ability to provide social and emotional support, demonstrate greater empathy and understanding, and acknowledge people’s difficulties was essential to navigating the crisis (Bavel et al., 2020). Such leaders also demonstrated a better understanding of the needs of their employees, which was essential for maintaining morale and productivity during the pandemic (Bavel et al., 2020). Moreover, crises often require changes to standard routines and procedures. Leaders with high EI are more adaptable and accept and manage changes more effectively, so they can help their teams do the same (Druskat & Wolff, 2001). In this way, they foster team resilience during crises and inspire and motivate their team members, helping them see past the crisis and focus on the future (Tugade & Fredrickson, 2004).

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Finally, research has shown that employees’ perceptions of the EI levels expressed by their managers help them cope with change more effectively (Ferres & Connell, 2004; Smollan & Parry, 2011). Smollan and Parry’s (2011) study demonstrated the significant role that leaders’ EI, as perceived by their followers, plays in shaping their employees’ response to change. Their study shows that employees’ perceptions of the emotional responsiveness of their managers helped them cope with change, especially when their struggles were acknowledged and supported (Smollan & Parry, 2011). In contrast, when leaders could not control expressing negative emotions, employees perceived them as having low EI (Smollan & Parry, 2011). Another important finding from this study was that the integrity and authenticity with which leaders handle emotions are significant. When followers believe a leader is faking sympathy, possible outcomes include cynicism, resentment, alienation, and dissatisfaction (Smollan & Parry, 2011).

 

Summary

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In today's ever-changing world, leaders must possess emotional intelligence (EI) to navigate challenging times. Effective training in EI can help leaders manage their emotions and develop a deep understanding of their team members' feelings, which is crucial during times of crisis or change. Proficiency in EI enables leaders to maintain clarity of thought, make sound decisions, and communicate effectively, ensuring that everyone is on the same page and working towards the same goals. By developing these essential skills, leaders can foster a culture of resilience, positivity, and productivity, leading to better outcomes for all involved.

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Moreover, EI in leaders fosters a supportive work environment as they demonstrate empathy and provide the emotional support their team members need. This understanding and responsive approach can increase team morale and productivity, particularly during times of change. Leaders with high EI also excel in conflict resolution and are more likely to inspire and motivate their teams, helping them to remain resilient and focused on future objectives.

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Finally, by training leaders in EI, organizations can enhance their ability to navigate crises successfully, maintain positive relationships, and lead organizational changes effectively. The competencies associated with EI are not innate talents but learned abilities that can be cultivated through training, leading to exceptional workplace performance and a robust organizational culture resilient to unexpected challenges.

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References

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Alonazi, W. B. (2020). The impact of emotional intelligence on job performance during the COVID-19 crisis: A cross-sectional analysis. Psychology Research and Behavior Management, 13, 749–757. https://doi.org/10.2147/PRBM.S263656​

 

​Aslam, U., Muqadas, F., Muhammad-Kashif, I., & Saboor, A. (2018). Emerging organizational parameters and their roles in the implementation of organizational change. Journal of Organizational Change Management, 31(5), 1084–1104. https://doi.org/10.1108/JOCM-08-2017-0300

 

Baba, M. M. (2020). Navigating COVID-19 with emotional intelligence. International Journal of Social Psychiatry, 66(8), 810–820. https://doi.org/10.1177/0020764020934519

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Bavel, J. J., Baicker, K., Boggio, P. S., Capraro, V., Cichocka, A., Cikara, M., Crockett, M. J., Crum, A. J., Douglas, K. M., Druckman, J. N., Drury, J., Dube, O., Ellemers, N., Finkel, E. J., Fowler, J. H., Gelfand, M., Han, S., Haslam, S. A., Jetten, J., . . . Willer, R. (2020). Using social and behavioural science to support COVID-19 pandemic response. Nature Human Behaviour, 4(5), 460–471. https://doi.org/10.1038/s41562-020-0884-z

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Boyatzis, R. E., Goleman, D., & Rhee, K. (2000). Clustering competence in emotional intelligence: Insights from the Emotional Competence Inventory (ECI). In R. Bar-On & J. D. A. Parker (Eds.), The Handbook of Emotional Intelligence (pp. 343–362). Jossey-Bass.

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Bradberry, T., & Greaves, J. (2009). Emotional intelligence 2.0. TalentSmart.

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Chambers, A. L. (2022). Emotional intelligence as a leadership strategy before and during the COVID-19 pandemic: A phenomenological study [Doctoral dissertation, Drexel University]. Drexel University Libraries. https://doi.org/10.17918/00001021

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Cherniss, C. (2001). Emotional intelligence and organizational effectiveness. In C. Cherniss & D. Goleman (Eds.), The emotionally intelligent workplace (pp. 3–12). Jossey-Bass.

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Druskat, V. U., & Wolff, S. B. (2001). Building the emotional intelligence of groups. Harvard Business Review, 79(3), 80–164. https://hbr.org/2001/03/building-the-emotional-intelligence-of-groups/

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Fernández-Berrocal, P., & Extremera, N. (2006). Emotional intelligence: A theoretical and empirical review of its first 15 years of history. Psicothema, 18, 7–12. https://www.redalyc.org/articulo.oa?id=72709502/

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Ferres, N., & Connell, J. (2004). Emotional intelligence in leaders: An antidote for cynicism towards change? Strategic Change, 13(2), 61–71. https://doi.org/10.1002/jsc.665

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George, J. M. (2000). Emotions and leadership: The role of emotional intelligence. Human Relations, 53(8), 1027–1055. https://doi.org/10.1177/0018726700538001

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Goleman, D. (1998). Working with emotional intelligence. Bantam Books.

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Goleman, D. (2004, January). What makes a leader? Harvard Business Review. https://hbr.org/2004/01/what-makes-a-leader/

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Mayer, J. D., Salovey, P., & Caruso, D. R. (2004). Emotional intelligence: Theory, findings, and implications. Psychological Inquiry, 15(3), 197–215. https://doi.org/10.1207/s15327965pli1503_02

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McKenzie, K. L. (2010). Leading an organization through change using emotional intelligence (Publication No. 763492259) [Doctoral dissertation, University of Phoenix]. ProQuest Dissertations and Theses Global.

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O’Connor, P. J., Hill, A., Kaya, M., & Martin, B. (2019). The measurement of emotional intelligence: A critical review of the literature and recommendations for researchers and practitioners. Frontiers in Psychology, 10, 1–19. https://doi.org/10.3389/fpsyg.2019.01116

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Smollan, R., & Parry, K. (2011). Follower perceptions of the emotional intelligence of change leaders: A qualitative study. Leadership, 7(4), 435–462. https://doi.org/10.1177/1742715011416890

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Trougakos, J. P., Chawla, N., & McCarthy, J. M. (2020). Working in a pandemic: Exploring the impact of COVID-19 health anxiety on work, family, and health outcomes. Journal of Applied Psychology, 105(11), 1234–1245. https://doi.org/10.1037/apl0000739

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Wong, C., & Law, K. S. (2002). The effects of leader and follower emotional intelligence on performance and attitude. Leadership Quarterly, 13(3), 243–274. https://doi.org/10.1016/s1048-9843(02)00099-1

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Wu, Y. L., Shao, B., Newman, A., & Schwarz, G. (2021). Crisis leadership: A review and future research agenda. The Leadership Quarterly, 32(6), 101518. https://doi.org/10.1016/J.LEAQUA.2021.101518

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