~ 53 ~ International Journal of Research in Human Resource Management 2023; 5(2): 53-57 E-ISSN: 2663-3361 P-ISSN: 2663-3213 IJRHRM 2023; 5(2): 53-57 www.humanresourcejournal.com Received: 12-05-2023 Accepted: 19-06-2023 Dr. Anna Rostomyan Lecturer, Berlin School of Business and Innovation, Berlin, Germany Dr. Armen Rostomyan Independent Researcher, Yerevan State University, Yerevan, Armenia Corresponding Author: Dr. Anna Rostomyan Lecturer, Berlin School of Business and Innovation, Berlin, Germany The importance of emotional capital in companies Dr. Anna Rostomyan and Dr. Armen Rostomyan DOI: https://doi.org/10.33545/26633213.2023.v5.i2a.150 Abstract In today’s fast-growing world, there is a certain need for companies to stay ahead of others in terms of a well-structured and strategic sustainable management. When we speak about human resources, we mainly speak about not only rational beings, but also people endowed with certain emotions and feelings, expectations and motivations, which in case being taken into consideration may have a huge impact on the overall labour output. The present paper sheds light on the importance of emotional capital in businesses and its relevance for the success of therein. Keywords: Emotions, emotional capital, emotion management Introduction Being humans, we almost always experience a certain emotion or feeling that may vary throughout the whole day depending on various outward stimuli making our emotional repertoire that guide us during our entire lives. When speaking about humans, Dale Carnegie truly stated, “When dealing with people, remember, you are not dealing with creatures of logic, but creatures of emotion”. This statement truly hints to the fact that we humans are mostly governed by our internal emotional states that have an immense impact on our verbal and non-verbal extra linguistic behaviour (Rostomyan, 2022a) [9] that greatly shapes our relationships both in our personal lives and in business. Therefore, while dealing with Human Capital in businesses all over the world, especially in emerging countries where the economy is unstable, and in particular in family businesses, we have by all means also to take into consideration the so-called “emotional capital” that any company can greatly benefit from. According to Oxford Business English Dictionary (2005) [8] , “emotional capital” in HR is the feelings, beliefs and values of a certain company’s employees that make good relationships possible and help a business to be successful and grow. This includes all our internal states, our awareness of therein and our ability to manage, harness and express our very own emotions, as well as recognizing them in ourselves and in the others in our surroundings (Rostomyan, 2022b) [10] . The Oxford definition comes to suggest that for a company to succeed and flourish the emotional capabilities of its employees, especially in building lasting bonds with their partners, customers and consumers, are of paramount importance since without the latters no business can flourish in the real sense of the word, since the people make up the business. This holds true especially for family business, where it is all about the people involved. Like economic capital, emotional capital is unequally distributed in society and is distinct from practice—in this case, the situated activation and embodiment of emotional experience, expression, and management (Hochschild, 1983, 1979) [6, 5] . For this, a new term has been introduced to science, namely “emotional labour”, which indicates that people must act in certain ways in terms of expressing and suppressing their emotions according to their professions. So, in fact, the term “emotional labour” was first coined by the sociologist Arlie Hochschild in her book “The Managed Heart” published in 1983. According to the author, emotional labour referred to managing one’s very own emotions according to their profession (Hochschild, 1983) [6] . Hence, the author actually suggested that there are certain professions that require management of the expression of emotions.