Published Online:September 2024
Product Name:The IUP Journal of Business Strategy
Product Type:Article
Product Code:IJBS030924
Author Name:Danesh Kumar Dewangan
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:18
In today’s dynamic business environment, effective leadership and sound decision-making are crucial components for achieving sustainable organizational growth. The paper explores the role of psychological insights in enhancing leadership capabilities and optimizing decision-making processes within organizations. It specifically focuses on key psychological areas, including emotional intelligence (EI), cognitive biases, ethical leadership, and resilience, which significantly influence leaders’ ability to manage teams and navigate complex decisions. Emotional intelligence, for instance, is examined as a critical factor in fostering trust, enhancing communication, and promoting collaboration among team members. The paper also investigates the impact of cognitive biases on decision-making, highlighting how unconscious preferences and distortions can affect leaders’ judgments. Furthermore, ethical leadership is explored in terms of its role in maintaining integrity, building organizational culture, and ensuring long-term sustainability. Finally, resilience is analyzed as a crucial trait for leaders to manage challenges, setbacks, and organizational crises. The study provides actionable recommendations for enhancing leadership effectiveness, thereby promoting organizational success, ethical governance, and long-term sustainability. The proposed framework serves as a guide for leaders looking to leverage psychological insights to drive positive organizational change and achieve enduring growth.
Leadership and decision-making are essential components that drive organizational success, influencing both short-term outcomes and long-term sustainability. While technical expertise, industry knowledge, and experience contribute significantly to effective leadership, the role of psychological factors is often overlooked.