Examining emotional intelligence and self-efficacy to business management at a state-owned entity in South Africa.

Abstract

The recent past has been challenging for the state-owned company because of mismanagement and abuse of leadership power. The devasting effects of weakening leadership, in critical business processes have resulted in a breach of business processes and the contravention of the Public Finance Management Act (PFMA). The organisation has also suffured a devasting lost of critical skills due to the impact of COVID-19. All these issues are largely linked with the emotions of individuals, the calibre of leaders in this organisation and the overall approach to business management. The contamporary environment requires leaders that are able to work with others, lead and be prepared to be led, and ensure collaboration amongst stakeholders. This requires emotional intelligence and positive self-efficacy. It is necessary to examine the contribution of Emotional Intelligence and Self-efficacy in managing the state-owned entity. The study used a quantitative research approach to examine the relationships between variables. A census method of sampling was employed, and the entire population (n = 130) of management was studied through the distribution of the questionnaire made up of four tests; demographical questionnaire, GEIQ adopted questionnaire, GSE adopted questionnaire and BMT self-created questionnaire. Reliability, validity, and ethics were considered. The study findings revealed that demographics such as race, age, gender, and education had no statistical significance on EI and SE at this organisation. The correlation analysis revealed that there is correlation and statistical significance between the managers’ EI, SE, and business management in organisation. Recommendations from the study are such that all management levels and divisions, or departments of the organisation should be studied, and probability sampling should be considered to comprehensively study the variable. The methodology should be mixed-method approach gain full insight of managers’ emotions. The organisations can improve performance by giving continuous support to employees, this will create confidence in their capabilities and create a positive work environment. The emotional transitions in the organisation caused by COVID-19 and the repositioning strategy requires an effective change management process and transparency to be driven by top management. This study contributed to the sustainability of SOEs under the era of ethical leadership.