Relation between Emotional Intelligence and Employee Performance - Essay Example

Relation between Emotional Intelligence and Employee Performance The world is continuously changing making businesses catch up with its fast pace. Organizations, in their turn, have to look for newer and newer ways to remain competitive and successful in the globalized marketplace. Therefore, companies are constantly working on designing and implementing various initiatives for enhancing their competitive advantage. It is generally known that an effective organization must be effective in all of its aspect. One of the most important of them is, of course, HR, since one of the most important elements of any organization is its people. They, consequently, should perform as well as possible in order for the company to succeed in the market. Therefore, an idea that employee performance is better if those employees are emotionally intelligent is becoming more and more popular among businesses that will to be more adaptive to the ever changing market conditions and more competitive marketplace (Cherniss and Goleman 2001, 159). Since emotional intelligence has become such a popular concept among HR specialists, it is worth finding out whether this term is really related to employee performance. Therefore, the goal of this paper is to critically analyze some of the most recent works on the relation between emotional intelligence and employee performance with the purpose of determining whether there exists a strong dependence. The given work will try to determine whether it is really important for modern businesses to invest their resources in emotional intelligence and whether such investments will bring any profit. For this purpose, of course, the term itself should be defined in the first place. Definition A scientific study of emotional intelligence began, according to Ciarrochi, Forgas and Mayer (2001, 4), in 1900s. However, up until 1970, when intelligence and emotion were integrated in the field of ‘cognition and affect”, the studies of intelligence and emotions were separate. Finally, only in 1990s emotional intelligence became a subject of more profound research. The concept got popularized between 1994 and 1997 (Ciarrochi, Forgas and Mayer 2001, 4). However, several definitions of emotional intelligence have emerged in the process of the studies. Goleman (1998, 317), for instance, defines emotional intelligence as a “capacity for recognizing our own feelings and those in others, for motivating ourselves, for managing emotions well in ourselves and in our relationships." As such, emotional intelligence, according to this author, involves a person to have the following competencies: self- awareness, self- regulation, self-motivation, social awareness, and social skills. Self- awareness, self- regulation, self-motivation are, in this case, person’s ability to understand and manage own feelings and emotions. Social awareness and social skills, consequently, refer to the individual’s ability to understand emotions of the other and respond correctly. Another definition is given by Mayer and Solloway (1997, 3), who state that emotional intelligence is an ability “ to perceive emotions in the self and in others, use emotions to facilitate performance, understand emotions and emotional knowledge, and regulate emotions in the self and in others.” So, it can be said that emotional intelligence refers to a person’s ability to understand the feelings of oneself and the others, as well as react and respond to those emotions in the most proper for a particular situation way. The next issue to find out is whether this ability really has a significant impact on job performance. Literature Review The opinion that emotional intelligence is related to job performance is supported by Nikolaou and Tsaousis (2002). These scientists conducted a research with the purpose of determining the relation between emotional intelligence, occupational stress and organizational commitment. The results showed that the higher emotional intelligence of an individual is, the lower is one’s stress level at work. A correlation between emotional intelligence and organizational commitment showed to be positive, thus proving the positive relation between emotional intelligence and employees’ loyalty (Nikolaou and Tsaousis 2002, 327). However, the research was conducted not in a business environment, but among the employees of a mental health institution. Therefore, the sample population of this study is rather limited. Secondly, it is not clear whether in business environment the results would be the same. Furthermore, the purpose of the research was to find the dependencies between emotional intelligence, stress, and organizational commitment. So the study was not exactly focused on the relation between job performance and emotional intelligence. Nevertheless, since organizational commitment is positively related to job performance (Siu, 2003, 337), it can be said that emotional intelligence has an indirect positive relation to job performance: emotional intelligence leads to lower stress and higher commitment which, in their turn, lead to improved performance. In 2006 Lopes, Grewa, Kadis, Gall and Salovey published the results of their study that aimed at proving that emotional intelligence is related to job performance. The scientists also argue that emotional intelligence influences affect and attitudes at work (Lopes, Grewa, Kadis, Gall and Salovey 2006, 132). The researchers used a sample group of 44 employees of a Fortune 400 insurance company. The people that participated in the experiment were analysts, clerical and administrative employees from 23 to 61 years old (Lopes, Grewa, Kadis, Gall and Salovey 2006, 133). The employees were asked to assess own emotional intelligence, as well as that of their peers with the help of Mayer-Solovey-Caruso Emotional Intelligence Test. Their verbal abilities were measured too. In addition, managers were also required to fill in the questionnaires about their subordinates. Multilevel and correlational analyses were used to interpret the results. The results of the performance and ratings assessments showed that the level of emotional intelligence has a relation to a person’s company rank, percent merit increase, ratings of interpersonal facilitation, as well as affect and attitudes (Lopes, Grewa, Kadis, Gall and Salovey 2006, 137). So the scientists found out that more emotionally intelligent employees hold higher positions within the company and have better peer and supervisor rating. Lopes, Grewa, Kadis, Gall and Salovey conclude that emotional intelligence is the factor that makes these people more successful. At the same time, the authors admit that the study was limited by a small sample size and a narrow array of sample group’s parameters. Furthermore, it should not be forgotten that peer- or self-assessment method, though cannot be adequately replaced by any other, implies the possibility of subjectivity and biasness, since there is a great number of factors that might influence a person’s opinion about another individual. Such factors cannot, even physically, be integrated into the research. In addition, employees of only one company took part in the research. Therefore, there might be a possibility that people working in other industries might show totally different results. One of the latest researches in the area is represented by three field studies conducted in 2011 by Blair Kidwell, David M. Hardesty, Brian R. Murtha and Shibin Sheng. The scientists carried out their research in an attempt to prove that emotional intelligence positively influences marketing exchanges. In particular, according to the authors, sales people with higher levels of emotional intelligence show to make more sales and maintain better customer relationships (Kidwell, Hardesty, Murtha and Sheng 2011, 78). The first study targeted 500 randomly selected agents of a large real estate company and brought 181 responses. 69 people participated in the continuation of the study and the test results showed that emotional intelligence has a direct impact on the agents’ sales revenue (Kidwell, Hardesty, Murtha and Sheng 2011, 84). 107 responses from randomly selected agents were received in the second study, which showed that emotional intelligence has a positive impact on customer orientation and manifest influence, which, in their turn, influence sales revenue. The findings have also proved a mediating role of emotional intelligence on the customer orientation–performance relationship (Kidwell, Hardesty, Murtha and Sheng 2011, 86). 88 responses of the third study showed that emotional intelligence “increases revenue and retention beyond cognitive ability and self-reported EI” (Kidwell, Hardesty, Murtha and Sheng 2011, 88). At the same time, as the researchers mention, the studies were limited by real estate and insurance industries only. In addition, such variables as each agent’s sales territory or customer loyalty were not incorporated into the analysis. Therefore, it can be said that while emotional intelligence, through customer orientation and manifest influence, has a positive relation to sales revenue and, thus, job performance, due to the peculiarities of sales jobs, it is questionable whether representatives of other professions will show a similarly strong relation. Other studies, such as those of Côté (2006) or Afolabi, Awosola and Omole (2010) also suggest that there is a relation between emotional intelligence and job performance, but, in most cases, it is indirect. Côté, for instance, argues that emotional intelligence has a positive impact on job performance only with a decrease in cognitive intelligence. At the same time, according to Côté, an increase in cognitive intelligence may compensate a lack of emotional intelligence (Côté 2006, 19). Afolabi, Awosola and Omole (2010) prove that higher levels of emotional intelligence increase job satisfaction, which, in its turn, improves performance. Conclusion On the basis of the presented above information it can be concluded that emotional intelligence does have a positive relation to job performance. However, in most cases this relation is indirect, meaning that emotional intelligence influences job performance through such factors as: Lower stress and improved organizational commitment (Nikolaou and Tsaousis 2002, 327); Percent merit increase, ratings of interpersonal facilitation, affect and attitudes (Lopes, Grewa, Kadis, Gall and Salovey 2006, 137); Customer orientation and manifest influence (Kidwell, Hardesty, Murtha and Sheng 2011, 88). Job satisfaction (Afolabi, Awosola and Omole 2010). Therefore, it can be concluded that emotional intelligence contributes to employee performance through the majority of aspects that influence performance directly. Consequently, it seems to be reasonable to recommend businesses paying more attention to emotional intelligence of their employees because more emotionally intelligent workers seem to be more productive. Nevertheless, it should be remembered that each of the studies presented in the given report has a number of limitations. For that reason businesses might be willing to carry out own, more wide scale and more focused on particular business needs of each company, research. I believe the goals set for this paper have been met. The paper presents a critical review of some of the most recent works that deal with the relation between emotional intelligence and employee performance. The results have shown that the dependence between emotional intelligence and job performance is indirect. The given work has also determined whether businesses should pay attention to the emotional intelligence of their employees. Furthermore, the literature review showed that higher levels of employees’ emotional intelligence will, potentially, bring higher profits to a commercial organization. References Afolabi, O.A ., Awosola, R.K. and Omole, S .O. 2010. “Influence of Emotional Intelligence and Gender on Job Performance and Job Satisfaction among Nigerian Policemen.” Current Research Journal of Social Sciences, 2(3): 147-154. Cherniss, Cary and Goleman, Daniel. 2001. The emotionally intelligent workplace: how to select for, measure, and improve emotional intelligence in individuals, groups, and organizations. John Wiley and Sons. Ciarrochi, Joseph, Forgas Joseph P., Mayer, John D. 2001. Emotional intelligence in everyday life: a scientific inquiry. Psychology Press. Côté, Stéphane and Miners, Christopher. 2006. “Emotional Intelligence, Cognitive Intelligence, and Job Performance.” Administrative Science Quarterly, 51: 1-28. Goleman, Daniel. 1998. Working with Emotional Intelligence. Bantam. Kidwell, Blair, Hardesty, David M., Murtha, Brian R. and Sheng, Shibin. 2011. “Emotional Intelligence in Marketing Exchanges.” Journal of Marketing, 75: 78-95. Lopes, Paulo N., Grewa, Daisy, Kadis, Jessica, Gall, Michelle and Salovey, Peter. 2006. “Evidence that Emotional Intelligence is Related to Job Performance and Affect and Attitudes at Work.” Psicothema 18: 132-138. Mayer J. and Salovey P. 1997. “What is emotional intelligence?” in Salovey, P. and Sluyter, D. (Eds) Emotional development and emotional intelligence: Implications for educators, Basic Books, New York. Nikolaou, Ioannis and Tsaousis, Ioannis. 2002. “Emotional Intelligence in the Workplace: Exploring Its Effects on Occupational Stress and Organizational Commitment.” International Journal of Organizational Analysis, 10(4): 327-342. Siu, Oi-ling. 2002. “Job stress and job performance among employees in Hong Kong: The role of Chinese work values and organizational commitment.” International Journal of Psychology, 38(6): 337-347. Read More