Here are four things to know about why happy people make better leaders.
1. The link between happiness and leadership effectiveness is transformational leadership. Skilled transformational leaders inspire, motivate and intellectually stimulate their team. They also take time to mentor their employees.
2. Trait positivity is a key indicator of effective leadership. Trait positivity — or the general tendency to respond positively to situations — is a better predictor of successful leadership than extroversion or neuroticism. In fact, 11 percent of the variance in leadership effectiveness was due to this trait, according to the study.
3. The less happy someone is, the less likely they are to be a great leader. Negativity accounted for 6 percent of the variance in leadership effectiveness, according to the study. However, not all negative emotions were linked to poor leadership: Anxiety-prone individuals were perceived as better leaders than those who were angry.
4. Companies should evaluate employees’ overall happiness levels. Study author Dana Joseph, PhD, suggests companies should not only measure their employees’ positivity levels, but also levels of potential candidates. “Positive affect allows people to be inspirational, motivational and respectful of their followers,” she said. “For example, when you’re giving a speech to a room and you have difficulty being positive, it’s difficult to inspire and motivate the audience.”
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