PSYCHOLOGY OF STRATEGIC LEADERSHIP: UNVEILING COGNITIVE BIASES AND EMOTIONAL INFLUENCE

Usman Jayadi
Nur Sayidah
Sri Utami Ady

Multidiciplinary Output Research for Actual and International Issue (Morfai Journal)
Vol. 4 No. 4 (2024): Multidiciplinary Output Research For Actual and International Issue

Strategic leadership plays a crucial role in steering organizations through the complexities of a rapidly evolving global landscape. In today's competitive environment, effective leadership transcends informed decision-making and technical expertise, encompassing a deep understanding of the psychological dynamics that influence decisions. This study examines the psychological foundations of strategic leadership, emphasizing the impact of cognitive biases and emotional intelligence on leadership behaviors and decision-making processes. Key cognitive biases such as overconfidence, confirmation bias, and anchoring are explored for their potential to distort leaders' perceptions and strategic choices. Concurrently, the role of emotional intelligence, including self-awareness, self-regulation, empathy, and relationship management, is analyzed for its capacity to enhance leadership effectiveness by mitigating the adverse effects of these biases. Utilizing a qualitative approach, the research incorporates literature review, expert interviews, and case studies to investigate how cognitive biases disrupt decision-making and how emotional intelligence can counterbalance these distortions. Findings indicate that integrating emotional intelligence training and bias mitigation strategies into leadership development programs significantly improves strategic leadership effectiveness. However, challenges remain in consistently applying these techniques, particularly in high-pressure situations. Therefore, ongoing and dynamic leadership development initiatives are essential to ensure the effective application of emotional intelligence and cognitive bias mitigation in strategic decision-making.