Leader Emotional Capital Matters in The Automotive Manufacturing Industry

Abstract

The ability of an organisation to adapt to constant change determines its long-term viability. Organisations that understand the value of excellent leadership in organisational performance will see growth and sustainable profitability. This research focused on the automotive industry in Isipingo, Durban, KwaZulu-Natal, South Africa. To thrive and remain competitive, the automotive sector must adapt to changing conditions, be efficient, and respond rapidly to external forces. Managers are frequently challenged with balancing the frustrations of different interest groups within the sector; becoming skilled and successful leaders; and steering the organisation in the appropriate direction. The emotional competency of employees is a valuable resource designated as emotional capital. The purpose of this study was to investigate whether the emotions of leadership influence employee performance in this Industry Therefore, the research question entailed, what is the role of leaders' emotions? Analysis of extant literature was related to aspects that impact leaders’ emotional capability. The main variables included emotional capital, leadership, emotions, and employee performance. This study was based on a quantitative approach. Primary data was collected through a survey which was analysed using Spearman’s rho correlation. The results highlighted how a leader's emotions affect employees and demonstrated a substantial association between employee performance and the leader's overall emotional state. It was determined that a leader's emotions can have both beneficial and negative effects on employee performance. The recommendations offered useful advice on how to choose tactics that would yield appropriate results for the organisation to be sustainable.