IJTEMT; www.ijtemt.org ; ISSN: 2321-5518; Vol. II, Issue IV, Aug 2013 IJTEMT; INDEXING: Ulrich, DOAJ, Google Scholar, J-Gate, Scribd., .Docstoc and Slideshare ;Vol. II, Issue IV, Aug 2013 Page27 Page27 Impact of Negative Emotions on leader’s Performance (An empirical study of banking sector of Pakistan) Shuja Ilyas* Assistant Professor Department of Management Sciences PMAS-Arid Agriculture University, Rawalpindi. Pakistan Ayaz Elahi** Deputy Controller Exams Department of Examinations PMAS-Arid Agriculture University , Rawalpindi Pakistan Abstract Organizations involve emotions and passions. The management of emotions is complex and unstable. Some emotions maybe controlled and some may be redirected, yet many have roots in unconscious origins. Exhibit of Negative emotions had a significant and negative affect on follower assessment of leader effectiveness as compared to neutral emotional display. This study focused on three main negative emotions like depression, anxiety and irritation that directly affect the leader’s performance. This study uses questionnaire approach in order to examine the extent to which these negative emotions affect the leader’s performance. Results indicated that anxiety, irritation and depression have significant impact on leader’s performance. There is an instruction for managers to create and keep a positive emotional climate in their workplaces rather than negative emotions. Keywords: Negative emotions, Leader performance, Banking sector I. Introduction In today’s dynamic world, leaders play an important role in every organization. As the competition between the service oriented organizations is very high, and there is the need of continuous change and development of these organizations especially for commercial banks where the only possibility to survive profitably and successfully is due to the effective and productive leadership. Leadership is process of social interaction where leaders attempt to influence the behavior of their followers (Yukl, 2002). Leadership originally was thought to be inherent in an individual. It was argued that leader was born not made (Bass, 1999). Leadership has been a hot topic of research for over 50 years. More than 15,000 articles and books have been published. Approximately organizations spend fifty billion dollars per year on leader’s development (Fulmer and Conger, 2004). Regardless of this knowledge and investment many organizations feel that they have deficiency of effective leaders. Approximately fifty to seventy five percent leaders do not perform well (Hogan and Hogan, 2007), the reason behind this is a leader’s negative emotions such as depression, anxiety and irritation; they usually show on the work place. For decades, relationship of leadership and emotions has been the topic of debate. Frijda (1988) defines emotions as an “action state produce by a mismatch between an organism’s goal and some internal or environmental stimulus”. Interest in emotions in the work place has accelerated rapidly over decades. The study of emotions in the work settings has a long history. The starting point for modern research on emotion in organization seems to have been sociologist (Hochschild, 1983) seminal book on emotional labour: The Managed Heart. Emotions are known as an inescapable characteristic of organizational life. Emotions are learned aspects of behavior and are situation specific and they arte generally not irrational but quiet practical. Negative emotions shown had a substantial and negative effect on overall organization (Kristi M. Lewis).This research also to find out the impact of irritation on leader effectiveness. Negative emotions could also affect follower’s perception of leader’s effectiveness and credibility (Congers and Kanungo, 1994). The objective of the study is to find out the impact of depression, anxiety and irritation on leader’s performance. In this study focus is at how to deal with negative emotions of leaders in order to make them more effective and productive. The aim of this research was to find out the impact of depression on leader effectiveness. This research also aims to find out the impact of anxiety on leader performance of banking sector Pakistan. Research is going to conduct in Islamabad/Rawalpindi; different bank managers are surveyed through questionnaire to clearly examine the extent to which their negative emotions affect their performance. In this ever changing world of today it is difficult for the organization