Assessing whether emotional capital matters in the automotive manufacturing industry.

Abstract

The ability of organisations to adapt to constant change determines their long-term viability. Organisations that recognise the importance of strong leadership in organisational performance will achieve growth and sustained profitability. This research was based on the Automotive industry in Isipingo, Durban in KwaZulu-Natal. This Industry plays a major role in supporting the economy and are leaders in the market in South Africa. To thrive and remain competitive, the automotive industry must adjust to new circumstances, be effective, and react quickly to external influences. Managers are frequently confronted with reconciling the frustrations of conflicting interest groups within the industry; to be competent and successful leaders; and to drive the organisation on the right path. Therefore, these managers will need interpersonal and intrapersonal skills amongst their employees. A vital resource for people is their emotional competence. They must think of emotional competencies as having emotional capital. The purpose of this study was to assess whether emotional capital matters in the Automotive Manufacturing Industry. Moreover, the objective of the study was to investigate whether the emotions of leadership influence employee performance in the Automotive Manufacturing Industry, and to ascertain whether a connection exists between the leader’s style and employee performance. Extensive research analysed literature related to aspects that impact leaders’ emotional capability. The questions for inquisition were: what is the role of leaders' emotions and how do leaders influence employee performance? These questions were addressed through a review and discussion of pertinent literature on emotional capital, leadership, leadership theory, emotions and leadership, and employee performance. The results and conclusions of the analysis of the findings showed how they affected the employees, and the recommendations provided insightful guidance on how to select strategies that would provide the desired results for the organisation.