In the tech-savvy world of work, technology has transformed human existence into a contentious discussion, with the rapid adoption of Artificial Intelligence (AI) in the 21st century. As humans adjust their behaviour in response to social norms and cues, AI adjusts what it generates based on human input, following the process of the human brain. The recent article in Harvard Business Review (2023) on “AI Will not Replace Humans – But Human with AI Will Replace Human Without AI” suggests that AI will reduce the cognitive cost of humans, which is a part of Neuroscience. Rationally, this argument creates a space to investigate the Neuroscience: basis of both biological intelligence and artificial intelligence, as a fact of human existence. Neuroscience examines the structure and function of the brain and nervous system.
The human brain controls and coordinates higher cognitive functions (ex, decision making, emotions, social behaviour, etc.) via several components, including mainly the prefrontal cortex, hippocampus, basal ganglia, and limbic cortexin an interconnected and multidirectional way. Furthermore, neuronal activities are controlled and coordinated through several chemical neurotransmitters that transmit signals between neurons and from neurons to target cells. These neurotransmitters, including dopamine, cortisol, serotonin, oxytocin, gamma-aminobutyric acid (GABA), and norepinephrine, play a significant role in coordinating higher cognitive functions.
In this context, neuroleadership, the application of neuroscience into leadership moves some miles away to explore how the brain works in areas including decision making, emotional regulation, collaboration and adaptability to change to the development of Human Capital (HC), which is the accumulation of productive capabilities including skills, knowledge, health, abilities, and competencies, which drives the economic growth. In Sri Lanka, the Tourism and Hospitality sector makes a significant contribution to the GDP as a service-driven and labour-intensive sector, which was severely impacted by the COVID-19 pandemic, economic crisis, and labour migration. However, hotels are now seeking ways to rebuild and reconnect their workforce. President of the Hotels Association of Sri Lanka, H. Gunarathna (2024) emphasised the severe need for HCD of hotel sector staff – “The hospitality industry is experiencing a severe dearth of skilled and unskilled staff at all levels. Hence, there is a need to develop the necessary human capital in large numbers on a priority basis and to reorganise the SLITHM, to churn out the much-needed hotel sector staff by training the youth to fit into the hospitality industry.” (Sunday Island E-paper 07/12/2024). Followed by prevailing issues such as labour shortages of both skilled and unskilled workers, uncertain and low wages, and limited career progression (Central Bank of Sri Lanka, 2021), a neurotic leadership style is necessary to accelerate the health of the current workforce. Several previous studies have been conducted in the context of neuroscience and neuroleadership in education. Still, limited studies were conducted in the Tourism Industry, and no study was found on the neuroleadership and HCD in the Tourism Field in the Sri Lankan context.
While standing on the above-explained research problem, this study was conducted in a quantitativenature, followed by four objectives to examine the effect of neuroleadership (decision making, emotional regulation, collaboration and adaptability to change) on HCD. The study population consisted of 110 middle managers from 3-star and 4-star hotels in the Western Province of Sri Lanka. Data were collected through a self-administered questionnaire with 24 items in asix-point Likert scale: Decision making (French et al., 1993), Emotional Regulation (Preece et al., 2023), Collaboration (Kenaszchuk et al., 2010), Facilitating change (Gagné et al., 2000), and Human Capital Development (Vidottoet al., 2017).SPSS (version 25) was used, and multiple regression analysis was employed to measure the objectives.
Based on the results, it was statistically proven that neuroleadership, including decision-making, emotional regulation, collaboration, and adaptability to change, has a strong positive effect on HCD. When it comes to the effect of decision-making on hotel managers, the prefrontal cortex of the leader’s brain is involved in strategic planning and impulse control. Then, decision-making can be enhanced through cognitive training techniques such as mindful practices, practising decision trees or the OODA loop (Observe, Orient, Decide, Act), and scenario planning for unforeseen events. Sound cognitive training for hotel managers leads to fair and data-driven decisions, such as the appropriate alignment between employee skills and jobs at hotels, improved team cohesion and delegation, and effective talent utilisation.
Furthermore, human emotional regulation occurs through the limbic system of the brain. It processes emotions and memories, and risk assessments; it often influences how decisions are shaped by emotions such as fear, pleasure, anxiety, and others. When hotel managers experience negative emotions towards employees, they may be risk-averse, which can negatively influence the HCD of the workforce.
A manager with sound emotional control fosters psychological safety among subordinates, creating a learning environment where employees can learn, innovate, and become resilient. Furthermore, they effectively resolve employee conflicts. As a result, such a climate enables employees to build resilience and grow professionally, key elements of HCD in hospitality, where service quality heavily depends on emotional labour.
Correspondingly, the study revealed that collaboration between hotel managers and subordinates encourages HCD. In hotels, effective collaboration is not optional; it is vital. Each department, from housekeeping to the kitchen, and each employee, from the security officer to the CEO, must work collaboratively to deliver exceptional guest experiences. A hotel manager shares KSA (knowledge, skills, and abilities), experience, and tacit knowledge with subordinates in a learning culture, which speeds up the learning curve of subordinates. As a result, they ask questions without hesitation because they feel empowered to stretch their capabilities. The feedback-rich, psychologically safe learning environment encourages curiosity and experimentation at the hotel, which is needed for HCD.
Ultimately, the study demonstrated that the hotel manager’s adaptability to change enhances the effectiveness of HCD. External variables, such as global pandemics, economic instability, climate events, and shifts in tourism trends, have a profound impact on the hotel sector in Sri Lanka.
Therefore, adaptability becomes the most crucial leadership trait as well as a cognitive skill. In cognitive training, hotel managers are given real-time simulations under pressure, which managers feel familiar with for uncertain events. When a change occurs, hotel managers struggle with confusion, resistance, low morale, fear, and a lack of direction. In contrast, adaptable managers become a model of resilience for their subordinates, reducing fear among employees and supporting them through critical transitions. Together, neuroleadership will accelerate the HCD of subordinates at hotels.
Based on the findings of this study, the authors made some recommendations for policymakers, tourism authorities, education authorities, and HCD-related bodies in Sri Lanka. 1) Neuroleadership modules should be integrated into national tourism training programs. The Sri Lanka Institute of Tourism & Hotel Management (SLITHM) can incorporate neuroleadership into its curricula, enabling both hotel managers and supervisors to develop skilled subordinates. 2) Hotels can implement mandatory free or paid cognitive training workshops for Hotel Managers and other leaders. This can also be linked to promotional schemes at hotels. Meanwhile, the Tourism Development Authority can introduce mandatory certification in cognitive training for executive hotel managers.3) Public-private partnerships can be strengthened for collaborative training on neuroleadership funded by the Sri Lankan Government. Then, the hotel chain can implement regular leadership development boot camps.
Then, hotels that complete such boot camps can be given recognition, tax incentives, or certifications. 4) Performance evaluation of hotel managers can be linked with incentives for effective HCD practices. Hotel managers who are involved in staff development through coaching, peer learning, or adaptability training can be rewarded. Meanwhile, a national framework for measuring HCD in the hospitality sector can be introduced by the Ministry of Labour, jointly with the Ministry of Tourism. Tracking and benchmarking progress at hotels at the national level will help identify skill gaps, inform future policy, and ensure the effectiveness of leadership-focused interventions across the sector.
Authors:
Shashikala Kamarasiri, Department of Human Resource Management, Faculty of Management Studies, Rajarata University of Sri Lanka
Rasanjalie Dedunu, Department of Human Resource Management, Faculty of Management Studies, Rajarata University of Sri Lanka
Dr. Lahiru Wijayarathna (MBBS), Department of Physiology, Faculty of Medicine and Allied Sciences, Rajarata University of Sri Lanka
