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- International Journal of Management (IJM)
Volume 11, Issue 5, May 2020, pp. 366-375, Article ID: IJM_11_05_036
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=5
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.5.2020.036
© IAEME Publication Scopus Indexed
MENTAL AND EMOTIONAL COMPETENCIES
OF LEADER’S DEALING WITH DISRUPTIVE
BUSINESS ENVIRONMENT - A CONCEPTUAL
REVIEW
Dr. Rajesh W. Vaidya
Assistant Professor, Faculty In-charge Training and Placement, (DMT)
Shri Ramdeobaba College of Engineering & Management, Nagpur, India
Dr. KDV Prasad
ICRISAT - International Crops Research Institute for the Semi-arid Tropics, h 502324,
Telangana, India
Dr. Mruthyanjaya Rao Mangipudi
Karvy Stock Broking Limited, Financial District, Gachibowli, Hyderabad, India
raomangipudi@gmail.com
ABSTRACT
The paper conceptually explores and analyses the relevant literature dealing with
mental and emotional competencies, which the leaders should possess and would
require in order to overcome challenges of this disruptive and unruly business
environment in the VUCA world. Mental wellbeing is one of the most critical facets of
human actions that can affect one's emotional intelligence and self-concept. Self-
concept and emotional intelligence are essential aspects of individual mental
wellbeing. Goldman (1995) opined emotional intelligence is another dimension of
knowledge which is more effective than rational intelligence in people achieving
achievement in different areas of life. From a psychological point of view, emotional
intelligence is the capacity to correctly interpret your and other emotions; to
recognize the messages that emotions convey regarding relationships; and control
your and others' emotions. In an article “what makes a leader” published in Harward
business review (HBR) Daniel Goleman (1998) establish the significance of emotional
intelligence to business leadership. Leadership in business and the related issues
focused during the late 20th century due to virulent and unruly business environment
with high volatility and with stiff competition, uncertain, complex and ambiguous
(VUCA). Further with the advent of Industry 4.0 and emergence of technologies like
AI, Machine learning block chain etc. the entire business environment as well as work
settings is becoming highly disruptive. COVID 19 has further added fuel to the fire by
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- Mental and Emotional Competencies of Leader’s Dealing with Disruptive Business Environment - A
Conceptual Review
changing the entire dynamics of business, and working environment. The working
environment and work culture is undergoing a paradigm shift with new and emerging
technologies contributing to this change. To survive in this disruptive environment
new avenues and solvable discoveries to the problem are needed, and for this reasons
organizations required leaders with high mental and emotional competencies to take
them to greater heights.
Key words: Disruptive and unruly business environment, Mental and Emotional
Competencies, Leadership, Industry4.0, COVID 19
Cite this Article: Dr. Rajesh W. Vaidya, Dr. KDV Prasad and Dr. Mruthyanjaya Rao
Mangipudi, Mental and Emotional Competencies of Leader’s Dealing with Disruptive
Business Environment - A Conceptual Review. International Journal of Management,
11 (5), 2020, pp. 366-375.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=5
1. INTRODUCTION
1.1. Disruptive Business Environment
Today's pace of transition is far different from that of the past, and the speed is such that
historical precedent and past experience is losing significance, and seldom serves as a basis
for forecasting the nature of things to come. For example, many MNCs (both indigenous and
overseas) like Tata Consultancy Services, Google, Facebook, Amazon have been evolving
new business strategies at present, to engage its workforce and their stakeholders as well.
Whenever the civilization passed through the stages of social disorder, there have been
technical revolutions and technological disruptions that include the way the business conducts
itself. There's something special about the change that's going on in the world today. Such
drastic changes are qualitatively distinct from other rapid shifts in the past. This cycle of
transition is taking place at a very rapid pace, directly or indirectly impacting the mankind on
the earth. The potential for size and magnitude disruption, depends on the rate of transition to
new era, and this was not even considered in the past. The experiences of organizations, who
could not steer the pace at which the changes are taking in their marketplace in the past by
way of technology and cultural shifts can be an eye opener and learning to all the businesses,
institutions, various sorts of communities, public and private sector organizations and the
Government as a whole the that are now facing these inevitable and unpredictable changes.
It's not that they're not smart enough or not aware of the changes, the rate and velicity of
change actually overwhelms them. The fast changes creating a new climate that strategic
business leaders called the "VUCA" climate in the late twentieth century, the acronym which
was derived from the military reprent for volatility, instability, complexity, and the miserties
that represent an unpredictable and rapidly evolving business world (Kinsinger & Walch,
2012). Subsequently, VUCA was embraced by smart thinking business leaders to elucidate
the volatile, unpredictable and rapidly evolving market climate that has become the "new
standard." This VUCA climate, combined with the uncertainty of the emergence of emerging
technology in industry 4.0, has the potential and will result several business models obsolete,
and companies around the world are thrown into volatile conditions similar to those
experienced by the 2008-09 financial crisis.
With the rapid changes and technological developments, the world’s mankind is being
subjected to global pandemic (COVID 19) a worldwide infectious disease that effect lives,
disrupt economies, and businesses across the world. This VUCA environment, coupled with
the disruption of the advent of newer technologies in Industry 4.0, will require organizational
leaders to change their focus and leadership methods to meet the challenges of the future.
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- Dr. Rajesh W. Vaidya, Dr. KDV Prasad and Dr. Mruthyanjaya Rao Mangipudi
Leaders have to emerge much stronger to deal with VUCA using their cognitive, behavioural
and emotional well-being. In this endeavor, the mental and emotional competencies of the
future leaders will play a crucial role in dealing with the disruptive environment.
1.1. Leadership and Disruptive Business Environment
With the world getting flatter than ever before, as we might imagine, leadership is an acumen
to deal the new disruptive situations. The leadership stature with this acumen will influence
the group or community pushing them to achieve the target or goal. Leaders are required to
prove themselves in developing potential goals and to inspire the community of the company
to achieve goals. Leadership is the ability to convince others to follow established goals with
enthusiasm. It's the human element that ties a community together and motivates it towards
goals (Keith Davis).
The focus on the Leadership in business, become an important aspect during the late 20th
century with business environment became, volatile, uncertain, complex and ambiguous
(VUCA) and only small initiatives like small improvement in productivity no longer
guaranteed success. To survive in this VUCA environment new initiatives and discoveries
and solutions to the problem were required and for this reasons, organizations required leaders
to take them to greater heights.
The new era of business needs the Leadership with expertness, new talent, alertness with
competitive strategies to face hard times and uncertain environment, and now this seems to be
a continuous and evolving factor.
The market climate of the coming years will be defined by, stiff, competition, relatively
faster transition. The only thing that is certain in the new age of business is uncertainty in the
business environment and new era leaders need to find new solutions to address the intricacies
in the environment with new mans to survive in this disruptive environment.
A vast and varied literature is available on leadership theories, styles and skills. Various
contemporary theories and styles of leadership have emphasized on the mental and emotional
competencies of leaders. The greater the degree of mental and emotional competency, the
more effective leadership becomes in this contemporary world.
2. OBJECTIVES
With the above background the paper tries to explores the following-
To explore literature available pertaining to mental and emotional competencies of a
leader.
To explore relevant available literature on mental and emotional Competencies and
Leadership.
To explore Leadership Competencies in dealing with disruptive business environment
3. MENTAL COMPETENCIES OF LEADERS- A CONCEPTUAL
REVIEW
The available relevant literature pertaining to various aspects of mental competencies which
are related to leadership in general are being discussed here.
WHO (2001) defines The psychological wellbeing in that an individual can grasp his/her
own abilities, and mange normal stresses of life, will work efficiently and productively, and is
able to contribute to his /her community. Productively and fruitfully, and is able to make a
contribution to his or her community. Here the world ―mental‖ is persona specific, and the
state of brain The term "mental" usually implies something that is purely related to the brain
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- Mental and Emotional Competencies of Leader’s Dealing with Disruptive Business Environment - A
Conceptual Review
function at that time taking of the decisions. During this time a person may emotionally
attached with his/her relations and establishes contacts with other persons. The balanced state
of mind, a person mental toughness, and his/her preparedness to address the environmental
and occupational stress that prepare him/her for a psychosocial well-being. A positive mental
attitude and health person is also characterized by proper insight and understanding of
themselves through self-adequate knowledge and also self-evaluation.
The psychological wellbeing or mental health balanced growth of personality, and
increase human's emotional insight in relation with how to live harmoniously with other
human beings and society. Healthy people have three major features from the view point of
psychology. They have self-calmness, feeling and respect for themselves. They observed
other's right. They can supply their needs logically and by correct decision making. Mental
health is one of the most important aspect of an individual behavior that may influence his
emotional intelligence and self-concept. The self-concept and emotional intelligence are
important elements of an individual's mental health. The psychological wellbeing of leader is
important as it keep him/her cheerful and gives required energy to address the life problems
and offer inner strength.
Jagdish and Srivastava (1983) elucidated the mental health as Positive self-evaluation,
self-acceptance, self-identity of one's potentialities and self confidence. The Perception of
reality is unambiguous representation of facts, absence of high emotions and fantasies and a
will to fight and address the problems. To have the ability to under the stand other problems
and balanced state of mind is integration of personality. Taking a firm control with self-
confidence and working with minimal and without assistance dealing and addressing the
situation with non-dependency incarnates the Autonomy and good state of mental health.
Group oriented attitudes are associated with the ability to get along with others, that
integrates his various function and roles in life according to consistent, harmonious pattern
and is thus is able to make best use of his time and efforts.
Environmental mastery includes efficiency in meeting. Situational conditions and
willingness to function and capacity to take on responsibilities and capacity for adaptation.
Singh and Gupta (1983) described six indices of mental health. They are:
1. Emotional stability is a subjective firm feeling that has positive or negative values of a
person.
2. Overall adjustment: The achievement of an overall harmonious balance among the
demands of various subjects of the environment.
3. Autonomy: Autonomy is a stage of self-independence and self-determination.
4. Security-Insecurity: This is a high sense of security, trust, freedom of expression,
apprehension, or depression, especially with regard to the fulfillment of the present or future
requirements of a person.
5. Self-concept: Self-concept is the a complete in total person's attitude and awareness
towards himself and the measuring his/her accomplishments.
6. Intelligence: Intelligence is a general mental capacity that allows a person to think
rationally and to act consciously in his or her environment.
Bhatia (1982) defines mental wellbeing to be the ability to balance emotions, interests, goals
and values in one's everyday life. It means being able to face and embrace the facts of life.
Thus from the literature cited above various mental competencies like proper insight and
understanding, correct decision making, cope with problems, understand and to share other
people's emotions , self-directing, self-governing, responsibilities and capacity for
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- Dr. Rajesh W. Vaidya, Dr. KDV Prasad and Dr. Mruthyanjaya Rao Mangipudi
adjustments, freedom from fear, apprehension or anxiety, thinking rationally emerge, which
are important to be a successful leader.
4. EMOTIONAL COMPETENCIES OF LEADERS- A CONCEPTUAL
REVIEW
Analysis The available applicable literature on different aspects of emotional competencies
that are typically linked to leadership is discussed here. Goleman (1995) believes that
emotional intelligence is another aspect of intelligence that is more effective than cognitive
intelligence in people's achieving success in various aspects of their lives. Emotional
intelligence is the capacity of an person to identify his or her own emotions and to become
sensitive to those they experience from the world. Emotional intelligence is the way we learn
how to deal with various circumstances, and then take a decision that will benefit us.
Emotional intelligence is commonly characterized as the ability to use emotion for motives,
troubleshoot, handle relationships, improve thinking and performance. Emotional intelligence
is a set of emotional characteristics or abilities that can motivate and suppress one's desires,
identify and control one's emotions, and handle interpersonal relationships in an effective
manner. (Goleman,1995; 1998)
According to Freedman, Jenson, Rideout, and Freedman (1998), emotional intelligence is
an ability to understand, act, recognize, think and act on particular situation. "Emotional
intelligence is an individual's ability to respond appropriately and effectively to a wide range
of emotional stimuli that are produced. Emotional intelligence consists of three psychological
dimensions: emotional awareness, emotional maturity, and emotional competence that
motivates an individual to recognize actions." Singh (2003)
Mohan (2003) defines emotional intelligence A powerful combination of profound insight
into one's emotional and cognitive capacity and a charming style of expression, empathy and
inspiration, contributing to personal success, interpersonal confluence and organizational
excellence.
According to Singh (2006), Emotional intelligence is the capacity and freedom to evolve
from distrust to trust, from self-doubt to self-empowerment, from failure to confidence, from
isolation to synergy, and from disappointment to hope.
According to Hein (2007), Emotional intelligence is an inherent ability that can be used to
experience, interact, perceive, recall, define, recognise, know, control, understand, and
explain emotions.
Salovey and Mayer (I 997) proposed a model· This identified four different factors of
emotional intelligence; the perception of emotions, the ability to reason with emotions, the
ability to understand emotions, and the ability to manage emotions.
In 1995, Goleman popularized the concept of emotional intelligence or EQ, in his book"
emotional intelligence: why it can matter more than IQ." He identified the five components of
emotional intelligence which are as follows- i) Knowing your emotion., (ii) Managing our
emotions, (iii) Motivating ourselves, (iv) Recognizing and understanding other people's
emotions, (v) Handling relationships.
Thus, from the above-mentioned literature, following emotional competencies such as and
handling interpersonal relationships, choosing how we think, feel and act, responding to a
wide range of emotional stimuli, flair of communication, sympathy and motivation,
strategizing the mind and body, and a will to realize true and other potentials, Motivating
ourselves, move from mistrust to trust, self-doubt to self-empowerment emerge vital to be a
successful leader.
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Conceptual Review
5. MENTAL AND EMOTIONAL COMPETENCIES AND LEADERSHIP-
A CONCEPTUAL REVIEW
Daniel Goleman established the importance of emotional intelligence to business leadership.
In 1998, in an article published in Harward Business Review (HBR), ―What Makes a
Leader,‖ he states: The most powerful leaders are all the same in one critical way: they all
have a high degree of what has come to be known as emotional intelligence. It is not that the
IQ and the technological skills are meaningless. They matter, however ... they are the entry
level criteria for executive positions. His research, along with other recent studies, clearly
shows that emotional intelligence is a prerequisite for leadership. Without it, a person may
have the best training in the world, an incisive, logical mind, and an infinite supply of smart
ideas, but he's still not going to be a great leader. The article then introduces five aspects of
emotional intelligence that make individuals to identify, communicate and learn from their
own and other mental states self-awareness, self-regulation, motivation, compassion for
others, social skills, such as ability to manage relationships, and Empathy for other, Social
skills, such as , proficiency in managing relationships and building networks. Learning what
exactly constitutes emotional intelligence is crucial not just because it is fundamental to
leadership, but also because people who are high in some of its elements may be totally
deficient in others, often resulting in a catastrophic effect.
Goleman (2010) focuses more extensively on these various aspects of emotional
intelligence. He examined the connection between the emotional states of the leaders and the
infectious nature of their emotions at work. In 2008, Goleman and Boyatzis took a closer look
at the mechanisms of social intelligence (a source of empathy and social skills) in "Social
Intelligence and the Biology of Leadership."
Contextual Leadership intelligence is defined by Anthony Mayo and Nitin Nohria as the
ability to understand an evolving environment, and to capitalize on those evolving trends.
Contextual leadership is an intuitive diagnostic skill that helps a leader to align resources with
objectives. In ―Contextual Intelligence,‖ Professor Tarun Khanna explores how leaders build
what Goleman terms "cognitive empathy," an element of social intelligence that "allows
leaders to follow implicit norms and study the special mental models of a new society"
In Emotional Agility, Susan David and Christina Congleton, Focus on one element of
self-regulation, explaining the cycle of identification and re-emotion of the negative emotions,
an idea shared by Kellogg School Professor Leigh Thompson. ―Building the Emotional
Intelligence of Groups,‖ Steven Wolff of Marist College, and another CWR professor,
Vanessa Urch Druskat, examine how emotional intelligence is important in strengthening
teams.
Bodtker &Jameson (2001) have suggested that Individuals with higher level of EI are
more adept at managing & resolving conflict situations successfully. An empirical study
showed that individuals with high EI preferred to seek collaborative style of handling conflict
when confronted with it (Jordan & truth 2002). In another study collaborative and
compromising conflict management styles were found to significantly influence by the level
of Emotional intelligence (Yu et al 2006).
Lopes et al (2005) noticed that individuals with high level of EI experience less
relationship conflict. In a study analyzing the relationship between EI and negotiations
revealed that EI is a significant component in realizing integrative outcomes (Foo et al, 2004).
Druskat & Wolff (2001) highlighted some points that are relevant in understanding how
emotional intelligence may help in resolving the conflict. He noticed that leaders with high
level of Emotional intelligence convey trust within the workplace which promote constructive
attitude within and between the organizational members. Emotional intelligence enables
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leaders to manage their emotions effectively, which helps in developing effective leader-
subordinate relationship (Atwater & Yammarino, 1992; Yammarino & Atwater 1997).
Emmerling and Cherniss (2003) underscored that individuals high in EI are more aware of
their interest and values and hence are able to communicate them effectively during the
decision making process.
Thus from the literature cited above the various findings reveals that individuals with
higher levels of EI seem to manage their emotions in a constructive way when facing
organizational conflicts. Furthermore, the individuals who have control over their emotions
will probably be better able to take faster decisions, able to adjust to different contexts and
fast changing situations, handle conflict among their team member and develop leader-
subordinate relationship and thereby emerge as a successful leader.
6. LEADERSHIP COMPETENCIES IN DEALING WITH DISRUPTIVE
BUSINESS ENVIRONMENT- A CONCEPTUAL REVIEW
In the uncertain and disruptive environment, the most competent and successful leaders may
find their skills becoming obsolete as fast as they realize it. As the business landscape is fast
changing in this unpredictable and disruptive environment. Leadership agility and adaptability
are now required if organizations are to succeed in this changed business environment. To
succeed in this climate, leaders must make continuous changes in personnel, processes,
technology and structure. This requires flexibility and speed in decision making. (Horney,
Pasmore, O’Shea, 2010).
The BCG study concluded that companies now need to change their business models and
their leadership skills to "adaptive firms." Adaptive firms can evolve and learn better, quicker,
and more easily. More economical ways than their competing organizations, giving them an
advantage. The organization which can develop innovation, adaptability and agility in their
leaders will be benefitted with substantial benefits. The Adaptive Advantage Index developed
by BCG, estimates an organization’s ability to handle and mutate to the turbulence. This study
measured the adaptability scorings for 2,500 companies in USA over a 30- year period and
reported the ability to adapt faster create substantial value for an organization. The new era
leaders needed knowledge and ability mold the organization and prepare for new changes to
face complexities of the business environment (Petrie, 2011). The author further reports that
the leaders are using traditional and conventional methods for learning new skills, and as a
result, leaders are not fast enough to keep up with the ―new normal‖ for business.
Bob Johansen, distinguished fellow at the Institute for the Future and the author of
Leaders Make the Future: Ten New Leadership Skills for an Uncertain World. Johansen
proposes that the best future leaders are characterized by vision, clarity, and agility. Having a
clear vision is very crucial and vital in turbulent times. Visionary leaders with a clear vision of
where they want their organizations to be would take business decisions to counter the turmoil
while keeping the organization’s vision in mind. To be effective in this disruptive
environment, leaders must learn to look beyond their functional areas of expertise and be
multi-functional in order to make sense of volatility and lead with vision. This requires
leaders to collaborate and actively engage with the workers within their company, and to build
and demonstrate teamwork and collaboration skills. Clarity of thinking and a clear
understanding of the situation will transcend the uncertainty of the situation. Leaders who can
easily and clearly align themselves with the situation will make stronger and more educated
business decisions. Agility should allow the leader to resolve uncertainty.
Bob Johansen in his book ―Leaders Make the Future: Ten New Leadership Skills for an
Uncertain World‖ narrates that new leaders face the stiff challenges with any solutions to the
problems, and they should discover the solutions and deliver by making decisions. The
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- Mental and Emotional Competencies of Leader’s Dealing with Disruptive Business Environment - A
Conceptual Review
uncertain business environment provides adversary and this adversary need to be converted to
advantage. These leaders need to face depressions, stress, bad mental state of health.
However, the with the tough mental strength and positive changes and tough decisions will
deliver the results. These leaders should be ready to predict the unpredictable with future
vision.
The next general leaders should be able to forecast the where they are heading and be
flexible to modify themselves to meet and achieve the goals. Apollo Research Institute staff,
2012). The next generation leaders should measure and guestimate themselves doing SWOT
analysis to assess their strengths and weaknesses as leaders, and determine opportunities and
threats= with adaptable, changes. (Management Education Group staff, 2011).
7. DISCUSSION
The authors, having studied literature and past and contemporary practices on different styles
of leadership and the way in which they deal with situations and the need to be resilient, have
observed that leaders, more often than not, fall under the burden of situational pressures and
have no clue as to how to deal effectively with them. It is observed that the secret to dealing
with the stresses to business life is also to handle one's own self effectively first. It is like first
understanding and managing the components of our internal environment and then integrating
them to deal with external requirements. Inside the process of thought. Therefore, it is
essential to personify the mental abilities through three urges of cognitive abilities urges of
body, mind and intellect.
The authors attempted to represent the concept through the following diagram.
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- Dr. Rajesh W. Vaidya, Dr. KDV Prasad and Dr. Mruthyanjaya Rao Mangipudi
The leadership intelligence is embodied into four dimensions of factors that deal with its
functioning. If a leader is resilient enough turn the adverse VUCA into an opportunistic
VUCA, the leader can turn volatility into vision; uncertainty into understanding; complexity
into clarity; and ambiguity into adaptability with agility. Unless, the leaders transform
themselves to suit themselves to the changing world, they are challenged with times.
8. CONCLUSION
The disruptive business environment is an integral part of today's business world and is a
"new norm" and is changing not only how organizations do business, but also how business
leaders do business. Mental and emotional competencies, along with the skills and abilities of
leaders, will play a pivotal role in this disruptive environment. Furthermore, individuals who
have control over their emotions are likely to be better able to make faster decisions, deal with
problems, understand and empathize with other people's emotions, self-directed, self-
governing, able to adjust to different contexts and rapidly changing situations, deal with
conflict between their team members and develop a leader-subordinate relationship. Remote
work will be a new standard after the COVID 19 pandemic, and leaders who can interact
effectively by knowing the conditions of remotely working employees and placing them in
their shoes without leaving them for imagination and continuously engaging with the
workforce to build and demonstrate teamwork and communication skills would emerge as an
effective leader. Clarity of thoughts and better understanding of the situation can overcome
the complexity of situation due to disruptive business environment. The advent of Industry
4.0 and the emergence of technologies such as AI, Machine learning block chain, etc. The
entire business environment as well as work settings are undergoing radical change, decision-
making is becoming faster, more reliable due to the various tools available, but the leader with
good mental and emotional capacities will be more critical-thinking and able to take strategic
action above the technological tool to emerge as a successful leader in this disruptive business
environment. Thus, business leaders are expected to consider their intellect and finely tune
their cognitive tolerance, without drawing hasty conclusions and expressing frustration, and to
turn to a mode of rejection for all matters that have become aggressive. Maintaining it. Even
under extreme job pressure, great discipline yields compelling results.
10. LIMITATIONS
This study has limitations in so far as reality is ever evolving and changing, publications that
are highly important today that become obsolete in this disruptive environment in a short
time. Another drawback of this analysis is the fact that only theoretical studies have been
published.
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http://www.iaeme.com/IJM/index.asp 375 editor@iaeme.com
nguon tai.lieu . vn
