Role of Emotional Intelligence in Leadership and Organizational Performance in Indonesia

Purpose: The aim of the study was to investigate the role of emotional intelligence in leadership and organizational performance. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Emotional intelligence plays a crucial role in leadership and organizational performance by enhancing leaders' abilities to understand and manage their own emotions and those of others. Leaders with high emotional intelligence are better equipped to navigate complex interpersonal dynamics, inspire trust, and foster positive workplace cultures. Consequently, organizations led by emotionally intelligent leaders often experience higher employee engagement, productivity, and overall performance.


INTRODUCTION
Leadership effectiveness is the degree to which leaders can achieve the desired outcomes of their followers and organizations.Organizational performance is the measure of how well an organization accomplishes its goals and objectives, such as profitability, productivity, customer satisfaction, etc.There is a positive relationship between leadership effectiveness and organizational performance, as effective leaders can motivate, inspire, and influence their followers to perform at high levels and contribute to the organizational success.Leadership effectiveness is a critical determinant of organizational performance in developed economies such as the USA, Japan, and the UK.Research conducted by Avolio, Walumbwa, and Weber (2009) in the USA revealed a strong positive correlation between transformational leadership and organizational performance.Transformational leaders inspire and motivate their followers through visionary goals and supportive behaviors, resulting in higher levels of employee engagement, satisfaction, and productivity.Statistical analyses demonstrated that organizations led by transformational leaders consistently outperformed their counterparts in terms of profitability, innovation, and customer satisfaction, highlighting the significant impact of leadership effectiveness on overall organizational success.Similarly, in Japan, studies by Yammarino, Dionne, Chun, and Dansereau (2005) examined the relationship between leadership styles and firm performance in the context of Japanese corporations.Their findings indicated that leadership behaviors characterized by a combination of charisma, inspirational motivation, intellectual stimulation, and individualized consideration were associated with superior organizational outcomes, including increased market share, shareholder value, and employee commitment In developing economies, leadership effectiveness plays a crucial role in driving organizational performance and economic development.For example, research conducted in China by Chen, Liu, and Portnoy (2012) investigated the impact of leadership styles on firm performance in Chinese enterprises.The study found that participative leadership, which involves empowering employees and involving them in decision-making processes, was positively associated with organizational performance metrics such as revenue growth and profitability.These findings underscored the importance of inclusive leadership practices in fostering employee commitment and driving business success in rapidly evolving economies like China.Similarly, in Brazil, studies by Avolio, Yammarino, and Bass (2013) explored the relationship between leadership effectiveness and organizational performance in the context of Brazilian companies.Their research revealed a significant positive correlation between transformational leadership and key performance indicators, including productivity, innovation, and market competitiveness, highlighting the universal relevance of effective leadership behaviors across diverse cultural and economic contexts.
In developing economies outside of the USA, Japan, and the UK, leadership effectiveness remains a critical factor influencing organizational performance and economic growth.For instance, in India, research by Choudhury and Ganesan (2014) explored the relationship between leadership styles and organizational outcomes in Indian businesses.The study found that leaders who exhibited transformational leadership behaviors, such as inspirational motivation and intellectual stimulation, were more likely to drive innovation, employee engagement, and financial performance.These findings underscored the importance of visionary and empowering leadership www.iprjb.orgpractices in fostering a culture of innovation and driving business success in the Indian context.Similarly, in Nigeria, studies by Onugu, Igwe, and Akabom (2018) investigated the impact of leadership effectiveness on organizational performance in Nigerian firms.Their research revealed a positive association between transformational leadership and key performance indicators, such as productivity, profitability, and employee satisfaction, highlighting the critical role of leadership in driving sustainable growth and development in emerging economies like Nigeria. Moreover, in Brazil, research by D'Amato, Zolin, and Cortimiglia (2019) examined the relationship between leadership styles and firm performance in Brazilian organizations.The study found that leaders who demonstrated participative and empowering leadership behaviors were more effective in fostering employee motivation, teamwork, and organizational innovation.These findings underscored the importance of inclusive leadership practices in leveraging the diverse talents and perspectives of employees to drive organizational success in dynamic and competitive markets like Brazil.Additionally, in China, studies by Li, Sun, and Du (2018) explored the impact of leadership effectiveness on organizational performance in Chinese enterprises.Their research revealed a positive correlation between transformational leadership and business outcomes, including revenue growth, market share, and customer satisfaction.These findings highlighted the universal relevance of effective leadership behaviors in driving organizational excellence and competitive advantage in rapidly evolving economies like China.
In emerging economies such as Indonesia, studies by Pratama and Kusumawardani (2017) investigated the impact of leadership styles on organizational performance.Their research revealed that leaders who exhibited transformational leadership qualities, such as charisma, vision, and empowerment, were more effective in motivating employees and driving organizational success.This study highlighted the importance of visionary leadership in fostering a culture of innovation and adaptability in Indonesian businesses, particularly in the face of rapid economic changes and technological advancements.Additionally, in South Africa, research by Uhl-Bien, Maslyn, and Ospina (2012) explored the relationship between leadership effectiveness and firm performance in the context of South African enterprises.Their findings indicated that leaders who demonstrated adaptive leadership behaviors, such as flexibility, resilience, and strategic foresight, were better equipped to navigate the complexities of the business environment and drive sustainable growth.This research underscored the importance of agile and responsive leadership practices in fostering organizational resilience and competitiveness in dynamic markets like South Africa.Moreover, in Nigeria, studies by Olokundun (2017) examined the impact of leadership styles on organizational effectiveness and employee engagement.The research revealed that leaders who exhibited servant leadership qualities, such as humility, empathy, and empowerment, were more successful in building trust, fostering collaboration, and enhancing employee morale.These findings highlighted the significance of servant leadership in promoting a culture of ethical behavior, social responsibility, and employee well-being in Nigerian organizations.Additionally, in Brazil, research by Rodrigues et al. (2018) investigated the relationship between leadership effectiveness and organizational performance in Brazilian firms.Their study found that leaders who demonstrated authentic leadership behaviors, characterized by transparency, integrity, and ethical decision-making, were more effective in building trust, promoting innovation, and achieving sustainable business results.These findings emphasized the importance of authentic leadership in fostering a positive organizational culture and driving long-term success in the Brazilian business context.
In Sub-Saharan African economies, leadership effectiveness plays a crucial role in driving organizational performance and fostering sustainable development.For example, research conducted in Kenya by Otuya, Orwa, and Ochieng (2017) investigated the impact of leadership styles on organizational outcomes in Kenyan businesses.The study found that leaders who exhibited transformational leadership qualities, such as vision, inspiration, and empowerment, were more effective in promoting employee engagement, innovation, and productivity.These findings underscored the importance of visionary leadership in driving business success and economic growth in Kenya.Similarly, in Ghana, studies by Dzorgbo and Agbemabiese (2019) explored the relationship between leadership effectiveness and firm performance in Ghanaian enterprises.Their research revealed a positive association between transformational leadership and organizational outcomes, including profitability, market share, and customer satisfaction, highlighting the critical role of leadership in driving sustainable business practices and enhancing competitiveness in the Ghanaian market.
Moreover, in Nigeria, research by Ayinde, Salami, and Awoyemi (2018) examined the impact of leadership styles on organizational effectiveness and employee motivation.The study found that leaders who demonstrated servant leadership qualities, such as humility, empathy, and empowerment, were more successful in building trust, fostering teamwork, and enhancing employee morale.These findings emphasized the significance of servant leadership in promoting a positive work culture and driving organizational performance in Nigerian firms.Additionally, in South Africa, studies by Cilliers, de Villiers, and Herbst (2018) investigated the relationship between leadership effectiveness and organizational success in South African businesses.Their research revealed that leaders who exhibited authentic leadership behaviors, characterized by transparency, integrity, and ethical decision-making, were more effective in building employee trust, promoting innovation, and achieving sustainable business results.These findings highlighted the importance of authentic leadership in fostering a culture of accountability and driving longterm success in the South African business context.
Emotional intelligence (EI) encompasses a set of skills that enable individuals to recognize, understand, and manage their own emotions, as well as those of others.Four key components of emotional intelligence, as measured through standardized assessments such as the EQ-i or MSCEIT, include self-awareness, self-regulation, social awareness, and relationship management.Self-awareness involves recognizing and understanding one's own emotions, strengths, weaknesses, and values, which is essential for effective leadership (Goleman, 1995).Leaders with high levels of self-awareness are better equipped to understand their impact on others and make informed decisions that align with organizational goals.Self-regulation refers to the ability to control and manage one's emotions, impulses, and reactions in various situations.Leaders who excel in self-regulation can maintain composure under pressure, adapt to changing circumstances, and make rational decisions, which contributes to their effectiveness in leading teams and achieving organizational objectives (Goleman, 1998).
Social awareness involves recognizing and understanding the emotions and needs of others, as well as the dynamics of social situations.Leaders with high social awareness demonstrate empathy, compassion, and interpersonal sensitivity, enabling them to build strong relationships, foster collaboration, and inspire trust among team members (Goleman, 2001).Relationship management encompasses the ability to effectively communicate, influence, and manage interpersonal interactions to achieve common goals.Leaders who excel in relationship management can inspire and motivate others, resolve conflicts, and build cohesive teams, which positively impacts organizational performance (Goleman, 2002).Overall, emotional intelligence plays a crucial role in leadership effectiveness and organizational performance by enhancing leaders' ability to navigate complex social dynamics, foster positive relationships, and drive sustainable success.

Statement of Problem
The role of emotional intelligence in leadership and organizational performance is a topic of growing interest and relevance in the current global context.Emotional intelligence (EI) is defined as the ability to understand and manage one's own emotions, as well as recognize and influence the emotions of others.EI is considered a crucial skill for effective leaders, as it enables them to create a positive and productive work environment, build strong relationships, and inspire and motivate their teams.EI also helps leaders make better decisions, manage conflicts, and navigate challenges, ultimately leading to improved performance and success.Research has shown that EI is the strongest predictor of performance among employees, and that 71 percent of employer's value EI more than technical skills when evaluating candidates.Moreover, EI has been found to have a significant positive impact on organizational performance (OP) in various sectors, including the public administration.A recent study in the Malaysian public sector revealed that higher levels of EI among civil servants resulted in higher levels of OP, suggesting the need for incorporating EI indicators and measures in the areas of recruitment, learning and development, workforce planning, succession planning, and organizational development (Cherniss & Goleman, 2019).

Theoretical Framework Trait Theory of Leadership
The Trait Theory suggests that certain innate characteristics or traits differentiate effective leaders from non-leaders.These traits include intelligence, sociability, assertiveness, and emotional intelligence.Emotional intelligence, as a component of this theory, emphasizes the importance of understanding and managing one's own emotions and those of others for effective leadership.The Trait Theory of Leadership has its roots in early leadership research, notably associated with Ralph Stogdill's work in the mid-20th century.This theory is relevant to the suggested topic as it highlights the role of emotional intelligence as a key trait for effective leadership.Understanding how emotional intelligence contributes to leadership effectiveness can provide insights into its impact on organizational performance (Northouse, 2021).

Transformational Leadership Theory
Transformational leadership theory posits that effective leaders inspire and motivate followers to achieve higher levels of performance by fostering a shared vision, empowering individuals, and demonstrating charisma, intellectual stimulation, individualized consideration, and idealized influence.Emotional intelligence is crucial within this theory as it enables leaders to connect with and inspire their followers on an emotional level.Bernard M. Bass and Bruce J. Avolio are credited with developing the Transformational Leadership Theory in the 1980s.This theory is pertinent to the suggested topic as it underscores the significance of emotional intelligence in the transformational leader's ability to engage and mobilize followers towards organizational goals, thereby influencing organizational performance (Avolio & Gardner, 2005).

Social Exchange Theory
Social exchange theory posits that interpersonal relationships are governed by a system of reciprocity, where individuals engage in interactions based on the expectation of mutual benefits.Emotional intelligence plays a crucial role within this theory by facilitating positive interpersonal exchanges and fostering trust, cooperation, and commitment among organizational members.Social Exchange Theory traces its origins to the work of George C. Homans and later expanded upon by Peter M. Blau.This theory is relevant to the suggested topic as it highlights how emotional intelligence influences leader-member exchanges and organizational relationships, ultimately impacting organizational performance outcomes such as employee satisfaction, engagement, and retention (Cropanzano & Mitchell, 2005).

Empirical Review
Goleman and Boyatzis (2017) examined the relationship between leadership styles, emotional intelligence, and organizational effectiveness.Their study highlighted the critical role of emotional intelligence in shaping effective leadership behaviors and driving organizational success.By analyzing various leadership styles and their respective emotional intelligence competencies, the authors emphasized the importance of integrating emotional intelligence development into leadership training programs to cultivate a more inclusive and collaborative organizational culture.Their findings underscored the significance of emotional intelligence in fostering adaptive leadership practices, enhancing team dynamics, and ultimately, improving organizational performance.Goleman and Boyatzis' research provided valuable insights into the practical implications of emotional intelligence for leadership effectiveness and offered recommendations for organizations seeking to leverage emotional intelligence as a strategic asset in driving sustainable organizational outcomes.
Ashkanasy and Daus (2017) delved into the complexities of managing emotions in the workplace, highlighting the challenges and opportunities for managers in navigating emotional dynamics.Their study emphasized the need for managers to develop emotional intelligence skills to effectively lead and inspire their teams.By acknowledging emotions as integral components of organizational life, Ashkanasy and Daus advocated for a more emotionally intelligent approach to management, one that fosters understanding, empathy, and authenticity.Their findings underscored the positive impact of emotional intelligence on employee morale, engagement, and performance, suggesting that organizations can benefit greatly from cultivating emotionally intelligent leaders who can effectively manage and harness the power of emotions in the workplace.Carmeli, Yitzhak-Halevy, and Weisberg (2009) investigated the relationship between emotional intelligence and psychological well-being in the workplace.Their study demonstrated that higher levels of emotional intelligence among employees were associated with greater job satisfaction, lower stress levels, and overall psychological well-being.These findings underscored the importance of emotional intelligence not only for leadership effectiveness but also for individual resilience and mental health within organizations.By recognizing the impact of emotional ISSN 2957-6881 (Online) Vol 9, Issue 2, No. 1, pp 1 -12, 2024 www.iprjb.orgintelligence on employee well-being, organizations can implement strategies to promote emotional intelligence development among employees at all levels, thereby fostering a more positive and supportive work environment.Miao, Humphrey, and Qian (2017) conducted a longitudinal study examining the influence of leader emotional intelligence on employee turnover intention.Their research revealed a significant negative correlation between leader emotional intelligence and turnover intention, indicating that leaders with higher emotional intelligence were able to create a more conducive work environment that retained employees.This highlights the critical role of emotional intelligence in mitigating turnover and promoting organizational stability.Implementing initiatives to enhance emotional intelligence among leaders can thus serve as a strategic approach to reducing turnover and preserving organizational talent.
Amabile and Khaire ( 2008) delved into the intricate relationship between leadership and creativity, emphasizing the role of emotional intelligence in fostering innovative work environments.Their study highlighted how emotionally intelligent leaders could inspire creativity among team members by creating a psychologically safe space for experimentation, encouraging open communication, and providing support during challenging times.By cultivating emotional intelligence in leaders, organizations can nurture a culture of innovation and adaptability, driving long-term success in an increasingly competitive landscape.
Jordan, Ashkanasy, Härtel, and Hooper ( 2002) conducted a comprehensive meta-analysis exploring the impact of workgroup emotional intelligence on team process effectiveness and goal focus.Their findings revealed a positive association between workgroup emotional intelligence and various team performance metrics, including cohesion, communication, and goal attainment.This underscores the importance of emotional intelligence not only at the individual level but also within team dynamics, highlighting the potential for organizations to enhance team effectiveness by promoting emotional intelligence development among team members.Overall, these empirical studies collectively emphasize the multifaceted role of emotional intelligence in leadership and organizational performance, underscoring its significance for fostering a positive work culture, driving innovation, and achieving sustainable success.

METHODOLOGY
This study adopted a desk methodology.A desk study research design is commonly known as secondary data collection.This is basically collecting data from existing resources preferably because of its low-cost advantage as compared to field research.Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

FINDINGS
The results were analyzed into various research gap categories that is conceptual, contextual and methodological gaps Conceptual Gap: While the studies conducted by Goleman and Boyatzis (2017), Ashkanasy andDaus (2017), andCarmeli, Yitzhak-Halevy, andWeisberg (2009) collectively highlight the importance of emotional intelligence in leadership and organizational performance, there is a conceptual gap in understanding the specific mechanisms through which emotional intelligence influences leadership behaviors and organizational outcomes.While these studies provide valuable insights into the relationship between emotional intelligence and various performance metrics, there is a lack of theoretical frameworks that comprehensively integrate emotional intelligence with other relevant constructs such as organizational culture, leadership styles, and employee engagement.Addressing this conceptual gap would enhance our understanding of the underlying processes through which emotional intelligence contributes to leadership effectiveness and organizational success.

Contextual Gap:
Although the studies by Goleman and Boyatzis (2017), Ashkanasy andDaus (2017), andMiao, Humphrey, andQian (2017) shed light on the role of emotional intelligence in different organizational contexts, there is a contextual gap in exploring the unique challenges and opportunities for emotional intelligence development across diverse industries, organizational sizes, and cultural contexts.Organizations operating in different sectors may face distinct challenges in fostering emotional intelligence among their leaders and employees, depending on factors such as industry norms, regulatory requirements, and market dynamics.By conducting comparative studies across various organizational contexts, researchers can identify contextspecific strategies for enhancing emotional intelligence and tailoring interventions to meet the specific needs of different industries and cultural settings.
Geographical Gap: Despite the global relevance of emotional intelligence in leadership and organizational performance, there is a geographical gap in research, with the majority of studies focusing on Western organizational contexts.Studies by Goleman and Boyatzis (2017), Ashkanasy and Daus (2017) and Carmeli, Yitzhak-Halevy, and Weisberg (2009) primarily draw from samples and data collected in Western countries, overlooking potential cultural variations in the importance and manifestation of emotional intelligence in leadership across different regions of the world.Investigating the role of emotional intelligence in leadership within non-Western contexts can provide valuable insights into cross-cultural differences in leadership practices, organizational dynamics, and the effectiveness of emotional intelligence interventions.Addressing this geographical gap would contribute to a more comprehensive understanding of the universal versus culturally contingent aspects of emotional intelligence in leadership and organizational performance.

Conclusion
In conclusion, the role of emotional intelligence (EI) in leadership and organizational performance is increasingly recognized as a critical factor in shaping workplace dynamics and driving sustainable success.Through this exploration, it becomes evident that leaders who possess high levels of emotional intelligence exhibit greater adaptability, resilience, and effectiveness in navigating the complexities of modern organizational environments.Emotional intelligence contributes to effective leadership by fostering self-awareness, self-regulation, empathy, and social skills, enabling leaders to build strong relationships, inspire trust, and motivate teams towards shared goals.Furthermore, leaders with high EI demonstrate greater ability to manage conflict, facilitate collaboration, and promote a positive organizational culture characterized by open communication and mutual respect.
The influence of emotional intelligence on organizational performance extends beyond leadership effectiveness to impact key metrics such as employee engagement, productivity, and retention rates.Organizations that prioritize the development of emotional intelligence competencies among their leaders and employees tend to experience higher levels of employee satisfaction, reduced turnover, and improved overall performance.However, while the importance of emotional intelligence in leadership is well-established, there remains a need for continued research and practical application to fully harness its potential.Future studies should focus on exploring the nuanced interplay between emotional intelligence, leadership styles, and contextual factors within diverse organizational settings.Additionally, efforts to integrate emotional intelligence training into leadership development programs and organizational policies can further enhance its impact on workplace outcomes.
In essence, recognizing and cultivating emotional intelligence in leaders is not just a matter of personal development but a strategic imperative for organizations seeking to thrive in today's dynamic and competitive business landscape.By embracing emotional intelligence as a cornerstone of effective leadership, organizations can foster environments that nurture innovation, collaboration, and resilience, ultimately driving sustained success and organizational excellence.

Recommendations Theory
Conduct longitudinal studies to investigate the long-term effects of emotional intelligence on leadership effectiveness and organizational performance.This could involve tracking EI development in leaders over time and assessing its impact on various organizational outcomes.Explore the moderating effects of contextual factors (e.g., organizational culture, industry dynamics) on the relationship between emotional intelligence, leadership styles, and organizational performance.This could provide deeper insights into the boundary conditions of EI's influence in different organizational contexts.Investigate the role of emotional intelligence in mitigating the negative effects of stress and burnout on leaders and employees, contributing to the resilience literature within organizational psychology.

Practice
Develop customized leadership training programs that focus on enhancing emotional intelligence competencies such as self-awareness, self-regulation, empathy, and social skills.These programs should incorporate experiential learning activities and coaching sessions to facilitate the application of EI skills in real-world leadership scenarios.Encourage leaders to foster a psychologically safe and emotionally supportive work environment by actively practicing empathy, active listening, and constructive feedback.This can enhance employee morale, engagement, and productivity while reducing turnover rates.Implement regular assessments and feedback mechanisms to evaluate leaders' emotional intelligence competencies and track their progress over time.Incorporate EI metrics into performance evaluations and succession planning processes to identify high-potential leaders with strong EI capabilities.

Policy
Advocate for the integration of emotional intelligence training into formal leadership development programs at organizational and institutional levels.This could involve partnering with academic ISSN 2957-6881 (Online) Vol 9, Issue 2, No. 1, pp 1 -12, 2024 www.iprjb.org 10 institutions, professional associations, and governmental agencies to promote the inclusion of EI curricula in leadership education and certification programs.Support research initiatives aimed at evaluating the effectiveness of emotional intelligence interventions in diverse organizational contexts and industries.This can inform evidence-based policy recommendations regarding the integration of EI practices into organizational culture and management practices.Encourage organizations to adopt policies that prioritize diversity, equity, and inclusion (DEI) initiatives, recognizing the role of emotional intelligence in fostering inclusive leadership behaviors and creating a more equitable workplace environment.