Positive Leadership Report: Impact of Emotions on Employee Performance

This report delves into the multifaceted aspects of positive leadership, emphasizing its role in fostering optimal human conditions within organizations. It examines the interplay between authentic leadership, leader-member exchange (LMX), and employee psychological capital, highlighting how these elements contribute to enhanced performance and ethical conduct. The report provides a detailed analysis of building psychological capital across diverse employee types, including professional, administrative, blue-collar, and white-collar workers. It underscores the significance of positive organizational behavior and tailored strategies to cultivate a positive state of development. Furthermore, the report explores the impact of emotions on employee performance, differentiating between the effects of positive and negative emotions and their influence on job satisfaction, team spirit, and overall productivity. The report concludes by reinforcing the importance of positive leadership in driving organizational success and sustainable development.

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The positive leadership

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Contents
Introduction................................................................................................................................2
The relationship between authentic leadership, leader-member exchange, and employee’s
psychological capital..................................................................................................................2
How to build psychological capital of some different types of employees...............................3
Why do emotions significantly impact employee’s performance..............................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
The positive leadership focuses on facilitating the best human conditions. It unlocks the
potential of the humans in the organization. It is grounded on the ethical values and uses
human growth mindset. The positive leadership drives to a higher level of performance across
an organization. The positive leadership results in bringing people together for a communal
purpose. It permits employees to step up in such a way to generate value for all the
stakeholders. The employees who hold positive leadership are reliable and obsessive
individuals and their work is formed by a value-based foundation. The value-driven
employees automatically enhance the performance of the organization even in the situations
of pressure. It is automatically likely to achieve long-term commercial and social
sustainability. This report focuses on the aspects of positive leadership. It defines the
association between authentic leadership, leader-member exchange (LMX) and psychological
capital. Further, it is defined to build psychological capital of some dissimilar types of
employees such as professional, administrative, blue collar and white collar employees. The
psychological capital states to a positive state of development of the employees. Finally, it is
explained that why emotions significantly impact employee’s performance. The emotions can
be of two types that are positive or negative. The positive emotions lead to a positive
outcome whereas the negative emotions lead to negative results.
The association between authentic leadership, leader-member exchange, and employee’s
psychological capital
The authentic leaders behave as per the deep personal values and opinions. Their behavior
builds integrity and gains trust as well as the respect of the followers. The authentic
leadership developed as a formal leadership theory in reaction to the stimulating and stormy
times, ethical corporate meltdowns and corporate scandals (Shamir and Eilam-Shamir, 2018).
The qualities of the authentic leadership are knowing and being true to one. They are totally
engrossed in their beliefs and core values.
The authentic leaders have a optimistic effect on follower performance. They can even
influence follower performance. The authentic leaders behave in unity to accomplish
openness and honesty in the relationship with followers. The behavior of the authentic leaders
is taken as guidance by the followers such as high moral standards considered by the fairness,
morality, and reliability. The values are shared with the followers through transparency,

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positivity and great ethical standards. It develops a sense of self-worth in the followers (Rego,
Sousa, Marques, and e Cunha, 2014).
According to Gu, Tang and Jiang, 2015, the leadership member exchange focus on the
exclusive relationship between a leader and follower. The leadership member exchange
theory involves the scope to which leaders and followers improve a trusting, self-directed and
communally beneficial relationship (Gu, Tang, and Jiang, 2015). It directs devotion to the
significance of communication in leadership. The relationship between a leader and
individuals develop over a period of time. These interfaces are even categorized as a high
LMX or a low LMX exchange. The high LMX comprises relationship features whereas low
LMX is considered by ‘exchanges’ based on the tasks. The low LMX followers are defined
as less compatible and tend to obtain negligible support and trust from the supervisors. The
followers attain benefits form the high LMX such as followers can accomplish more material,
confidence, sinspiration, and concern from the leader. The followers even high involved and
communicative than the out-group (Vidyarthi, Erdogan, Anand, Liden and Chaudhry, 2014).
As per the opinion of Iqbal, Saeed, Saeed and Manzoor, 2017, the psychological capital states
to an individual’s optimistic state of development which is categorized by having confidence.
The confidence is put in the essential efforts to succeed at stimulating tasks (Iqbal, Saeed,
Saeed and Manzoor, 2017). It makes positive acknowledgment about succeeding now and in
the future. An individual psychological development is depended on the four states like hope,
resilience, self-efficacy, and optimism. The performance is one of the outcomes of
psychological capital which identifies whether individuals does their work properly and best
of their abilities. If the individuals have a high level of efficiency, confidence, hope, and
flexibility than they are likely to perform better in the job. They will be more innovative,
have a clear career path and work better. The authentic leadership is definitely associated to
the psychological capital. It is considered that physiological development is the key
development change which is created by the authentic leaders among the followers. This
change is faced due to the authentic leader’s effect on the organizational work culture
(Laschinger, Wong, Cummings and Grau, 2014).
How to build psychological capital of some different types of employees
According to the Alqasmi, Manzoor and Hassan, 2015, the psychological capital are
absolutely related to the organizational citizenship behaviors and it is destructively related to

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the counterproductive work behaviors and purposes to quit the organization (Alqasmi,
Manzoor and Hassan, 2015). The professional employee’s psychological state of
development is considered by the necessary efforts to prosper at challenging tasks. It is
characterized by the succeeding now and in the future. As per Luthans, Luthans and Palmer,
2016, the psychological capital can be built among the professional employees by writing
down specific goals which are required to be accomplished (Luthans, Luthans and Palmer,
2016). They can even rewrite this goal as a required approach goal along with what is wanted
by the employees and what is not wanted by them. For instance, more relaxation and
confidence is required by professional employees. The stress is related to the
counterproductive work behavior. The professional employees can even brainstorm all kinds
of actions taken to accomplish the goal. The ideas can be written down to overcome potential
obstacles. The capacity such as self-efficacy has the capabilities to execute the courses of
actions essential to managing prospective situations. It has a substantial impact on the
outcome of the performance. The efficacy is regarded as an employee’s confidence about
capabilities in mobilizing courses of action and the motivation required to perform the duty.
The efficacy applies a person’s personal capabilities. The sources of efficacy advancement
can be in the way employees will be more confident in the competence of achieving
challenging objectives. The physiological capital can be built in the professionals by
becoming skilled through observation. It is also influenced by factors like emotional,
wellness, physiological or psychological awakening (Waller, Reitz, Poole, Riddell and Muir,
2017). Whereas the psychological capital can be built of the administrative employees by
considering elements like intensity, direction, and persistence. By putting human resource
into action, improving the efficiency of the employees, building friendly relationship and
stability of the workforce leads to achieving organizational goals. There are some actions
which help to build physiological capital among specifically administrative employees such
as knowing the staff, giving feedback, educating employees, partnering with staff in
achieving goals and using a reward system (Roche, Haar and Luthans, 2014). The duties of
the administrative employees can be bookkeeping, planning, scheduling, and documentation.
Their involvement helps to overcome the strategic issues which help to carry out the vision of
the organization. It also helps in attaining a new level of engagement.
The blue collar employees execute labor jobs and generally work with their hands. The skills
obligatory to vary occupation to occupation. Some blue-collar occupations necessitate highly
skilled personnel who are officially trained and specialized. Others require unskilled and low

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skilled workers in order to achieve simple tasks. Whereas the white-collar employees perform
employment duties in the office atmosphere. They are extremely accomplished and formally
expert professionals. The white-collar workers can be accountants, bankers, real estate agents
and offer professional to the clients. Other white-collar workers can be architects, engineers
who provide service to businesses, corporations, and agencies (Seibert, Sargent, Kraimer and
Kiazad, 2017). The Psychological Capital of employees can be built by positive
organizational behavior which emphasizes the positive approach. As per Ahmed, Mozammel
and Ahmed, 2018, the blue-collar employees will be automatically positive if they are
provided proper tools for the jobs and are involved in the decision-making process (Ahmed,
Mozammel and Ahmed, 2018). The blue collar employees can be encouraged if they voice
against their suggestions and opinions. The physiological capital can be built of the blue
collar employees by involving them in the decision making process. They should be offered
working conditions with improved processes. It even promotes to the trust and positive
involvement of the employees. Evaluation of the performance and adequate feedback on the
regular basis develop professionalism in a consistent manner. The chances like working on
the special projects improve the skill set of the employees. The employees can be realized
that they are contributing towards the success of the organization by compensating well.
Psychological Capital can be built in the white collar employees by recognizing and
appreciating them. As per the opinion of Cicekli and Kabasakal, 2017, the hard work and
exceptional performance of the white collar employees should be appreciated by the
managers in order to retain them (Cicekli and Kabasakal, 2017). The financial security can
be provided to the white-collar employees. Getting attention from the employees about their
career growth leads to the enrichment of physiological capital. The seminars and training
programs create a positive state of development which enriches them with confidence. It
creates a positive sense of leadership.
Why do emotions significantly impact employee’s performance
The emotions of the leaders affect the employee’s performance. It has been considered that
the happiness and sadness of the leaders can be beneficial to the employee’s performance.
The happiness of leader enhances the employee’s creative performance whereas
representation of the sadness enhances the analytical performance of the employees.
According to Goswami, Nair, Beehr and Grossenbacher, 2016, the positive leaders tend to do
better at the workplaces and open to taking information (Goswami, Nair, Beehr and

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Grossenbacher, 2016). The leader’s emotions affect the willingness of the employees to
perform tasks such as working overtime when needed or helping a new worker.
The manager’s emotions impact an employee’s performance at the workplace. The manager’s
emotions affect the employee’s overall job satisfaction, organizational commitment and
employee’s customer's service behavior. The manager’s emotions create social awareness and
determine how employees can handle relationships. It also develops a sense of emotions in
others. It also creates awareness of other’s feelings, needs, and concerns. The positive
emotions of managers guide employees and groups. It creates a sense of development needs
and boosting abilities. The managers initiate change in the organization. The positive
emotions of the managers maintain a standard of excellence which persists in pursuing goals.
Whereas the negative emotions of the managers create inflexibility in handling change and
create obstacles in pursuing goals (Boyatzis, 2016).
The emotions critically affect the performance of the employees at the workplace. The
awareness behind emotional intelligence is a ability through which employees delight
emotions as appreciated data in directing a state. The emotions have significant impacts on
job performance along with job performance, team spirit, decision-making skills, leadership,
and turnover. The emotions in the workplace are deliberated important in relation to
employees’ well-being and job gratification. The anger indicates to the aggression whereas
sadness leads to the dissatisfaction with the job. The emotions can be either positive or
negative. The lack of the positivity sucks the energy from any brainstorming session. The bad
mood of the employees often put others in the same. The negativity can even infect good
news (Li, Wang, Yang and Liu, 2016). It is said that emotions often travel from one person to
another like a virus.
Conclusion
The positive leadership has a role in the overall development of the employees. The authentic
leadership behavior builds integrity and gains trust as well as the respect of the followers. The
leadership member exchange guides responsiveness to the prominence of communication in
leadership. The relationship between a leader and individuals cultivate over a period of time.
These connections are even categorized as a high LMX or a low LMX exchange. The
physiological capital can be constructed among the professional employees by writing down
precise goals which are required to be accomplished. It is completely related to the

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organizational citizenship behaviors. From the above report, it is concluded that the
physiological capital can be built in the professionals by becoming expert through
observation. It is influenced by features like emotional, wellness, physiological or
psychological awakening. Whereas, administrative employees can build physiological capital
by considering elements like intensity, direction, and persistence. On the other side
physiological capital of the blue collar employees can be built by involving them in the
decision making process. They can be offered desired working conditions with improved
processes. In the case of white-collar employees, physiological capital can be built by
providing them with financial security. The emotions expressively impact an employee’s
performance as positive emotions leads to greater results and vice versa.

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