Relationship between Emotional Intelligence and Employee Performance - Literature review Example

Relationship between Emotional Intelligence and employee performance “The sign of intelligent people is their ability to control emotions by the application of reason” Marya Mannes Introduction: History is rife with examples where calmness in attitude has helped scale high peaks and get even the most difficult of tasks done, with ease. The same principle is now being increasingly adapted in organizational settings. It is argued that emotions play a major role in decision making, inter-personal communication, as well as motivating people at work. Those with a grip on their emotions and feelings, fare better at work, than those who can’t. This is because an organization entails a gamut of emotions – from elation to distress, and frustration (Ashkanasy, 2003, 9-54). There is often pressure to meet deadlines leading to stress and frustration. Thus, it is only by handling such varied emotions that can help the employees in achieving their desired organizational goals, with ease. A happy mind and mood, can think better – leading to productive decision making and successful accomplishments of organizational objectives. There is a growing fascination and interest among researchers and managers alike, on the subject of Emotional Intelligence and the role it plays in enhancing job performance of employees in organizations. The claim can be substantiated with the wide amount of literature linking emotional intelligence and job performance (Barsade, Brief, Spataro, 2003) in organizational context. In the earlier times, the aspect of emotional intelligence was rarely mentioned in literature on organizational studies (Martin, Knopoff, Beckman, 1998, 429) however, the scenario has changed drastically over the years, and "employee emotions" are now recognized and acknowledged as an integral and inseparable part of their performance, leading to valuable contributions in organizations (Ashkanasy, Zerbe and Hartel, 2005). Definitions: According to Wharam (2009, 11), Emotional Intelligence is: “The potential to be aware of and use ones own emotions in communication with oneself and others and to manage and motivate oneself and others through understanding emotions” According to According to Goleman (2006, 189) "Emotional Intelligence refers to the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and our relationships". According to Sparrow & Knight (2009, 29) emotional intelligence entails use of the following key elements: -ability to identify feelings; pay attention to others emotions; give importance to the way others feel about things; and consider ones feelings in decision making. Analysis The development of literature focusing on the relevance and influence of emotional intelligence on job performance, has broadened the visions of managers regarding the skills and abilities which are perceived as necessary for particular job types. Emotional intelligence is a critical element, particularly in an organizational setting, since it can play an important role in various key tasks such as hiring (Murphy, 2006). It has been established through research that people with high emotional intelligence quotient fare better than those with a low EQ. This significant discovery has helped managers understand the reasons behind the failure of certain academically high achieving employees in jobs requiring inter-personal skills. Emotional intelligence is known to improve the emotional and interpersonal skills of employees, which is required in managerial jobs (Lombardo, Ruderman, & McCauley, 1988, 199-216). On the basis of various studies conducted over the years, it has been established that employee performance is directly related to their emotions, i.e. positive or negative. Negative emotions such as anger, fear or distress were observed to have a negative impact on their performance and effectiveness on the job. Such negative feelings tend to distract the employees from their tasks at hand, resulting in unproductive work (Elfenbein & Ambady, 2002, 963-71). Furthermore, positive emotions i.e. emotional intelligence is said to influence / assist people in recognizing and identifying the feelings of those around them and help in interacting accordingly, in a way which is useful for accomplishing the job. Such a skill helps in motivating employees and helping them succeed in the accomplishment of their desired goals (Elfbein & Ambady, 2002). Based on the above studies, it can be safely presumed that emotional intelligence serves as a crucial tool in high pressure jobs, which require handling of varied emotions effectively and use the same for the accomplishment of common organizational goals. It also helps in motivating the other employees and in the process enhances their productivity as well. The ability to recognize, understand, manage and control emotions are the qualities required of leaders in organizations. This is because, the subordinates tend to emulate the leader and are more likely to get affected by the positive or negative emotions of their leader (Dasborough, 2006, 163-78; Bono & Ilies, 2006, 317-334; Sy, Côté, & Saavedra, 2005, 461-473). The role of leaders is of utmost significance in organizations, considering their various responsibilities such as assessing and foreseeing events and interpreting them for their subordinates; selecting appropriate alternatives; organizing and planning activities for accomplishment of organizational goals; establishing good rapport with their subordinates as well as their colleagues; motivating their team members; and seeking their support and cooperation while working on group activities; etc, among others. It is observed through various studies that emotional intelligence helps leaders in achieving all their desired goals effectively. Emotion is an inevitable part of motivation which helps in influencing people to work on their assigned tasks persistently and achieve the given targets (Lord, Kanfer, 2002). Thus, the various elements / characteristics of emotional intelligence such as the ability to recognize, interpret, manage and control emotions help the leaders in effectively manage their, motivate and lead their teams towards the successful achievement of organizational goals. The study of emotions and the role played by it - particularly with regard to employee performance within organizations is highly important, because it moods and feelings tend to influence employee cognition and performance. Positive emotion increase the cognitive flexibility of employees leading to increased efficiency and better problem solving skills thus translating into better productivity (Amabile, Barsade, Mueller, & Staw, 2005, 367-403). Similarly negative emotions such as hurt, distress, fear and frustration are known to affect the employees ability to effectively process critical information leading to confusions and failure to achieve desired results (Holmer, 1994, 49-72). Various peer-reviewed studies conducted to examine the influence of emotional intelligence on effective leadership, indicate that there is in fact, a clear, direct and positive relationship between emotional intelligence and performance of leaders. Those with higher emotional intelligence were observed to have better job satisfaction rates than their counterparts; better health; and higher job satisfaction. The studies also revealed that there is a positive relationship between emotional intelligence and job performance (Carmeli, 2003, 788-813; Dulewicz, Higgs, & Slaski, 2003, 405-420; Semadar, Robins, & Ferris, 2006, 443-61) positive relationshp between emotional intelligence and higher morale (Carmeli, 2003; Dulewicz, et al, 2003; Slaski & Cartwright, 2002; Sy et al., 2006). Furthermore there were several studies conducted in the past which show a direct relationship between higher emotional intelligence and stress, whereby it was observed that employees with high emotional intelligence were observed to have lower stress levels (Dulewicz, et al, 2003; Slaski & Cartwright, 2002). Thus on the basis of the above mentioned studies, it can safely be concluded that emotional intelligence leads to the development of positive traits such as improved interpersonal skills; increased dedication at work; increased job satisfaction and appropriate and effective use of emotions for the accomplishment of common organizational goals. It can also be observed, on the basis of the studies discussed above, that emotional quotient is perceived as a type of trait which is equally important as intelligence quotient. It is a skill which helps individuals perform better at work, and excel in their jobs. It also adds to several health benefits, by lowering stress levels. In cases or situations where an individual is required to work in groups or interact with fellow employees, this skill helps in dealing with people in a better manner, by gauging their emotions and motivating them to perform better. It also aids in coping with stressful situations at work and manage and control the situation effectively, a skill which is perceived as most important, for managers or employees applying for managerial jobs. The individuals with high emotional intelligence not only perform better themselves but also manage to motivate others and improve their productivity as well. Criticisms: According to critics the theories surrounding emotional intelligence is relatively new, and is its early stages of development. Moreover it has several conflicting constructs (Waterhouse, 2006, 207-225). According to Mayer et al (2003, 97-105) various models and theories related to EI have been developed so far, but there is a significant amount of overlap amongst them. For instance, in one model, one of the key dimensions of emotional intelligences i.e. perception of emotion is discussed - which entail the awareness of both - ones own emotion as well as the awareness of others emotions. In yet another model, another significant dimension of emotional intelligence is depicted i.e. Management of emotion which entails the management of emotions of oneself as well as others. A third model is a combination of both these models and differentiates the two key elements discussed in the previous model (Goleman, 2001). Furthermore, there is a considerable amount of confusion regarding the core elements or characteristics of emotional intelligence. According to Goleman (2001) the authors and researchers studying the concept of emotional intelligence are not very clear regarding the meanings and differences of key characteristic traits of the phenomenon. Furthermore it has also been stated by the critics that intelligence itself is a highly misleading term and emotional intelligence further deepens the confusion, by misappropriating the social intelligence and re-labeling it as emotional one. They also state that emotion cannot be associated with intelligence is falsely promoted as and having a range of positive traits, which in fact, are owing to social intelligence (Wegner, & Mayer, 1990). Self reflection and evaluation: EQ or emotional intelligence has been the subject of research over the past couple of decades. Today, it is one of the single biggest predictor of success within an organizational setting. Owing to its various characteristic traits it has helped employees in achieving various tasks with unprecedented ease such as managing emotions and hence behaviour, navigating skilfully through complex real-life situations; and making decisions under stress or high pressure and achieve positive results. It is increasingly being realized within the corporate world that intelligence of the mind alone, cannot help in achieving desired results. The intelligence of the heart too plays an important role. Most of the successful leaders today have higher emotional intelligence and are able to generate better profits for their firms, and steer their organizations towards growth and prosperity. It is also observed that IQ is an inherent trait, something which people are born with, while EQ on the other hand can be acquired. Emotional intelligence is about managing and controlling ones emotions, a trait which can be learned and practiced to perfection. Emotional intelligence, as is claimed and documented through various studies, can not only help in enhancing employee performance but also help in building effective and stronger interpersonal relationships, which may prove to be helpful in improving the organizational environment. A positive organizational environment can help in enhancing employee performance. Thus, despite the criticisms, the power and influence of emotional intelligence within organizational environment cannot be denied. Conclusion: The 21st century has seen a rise in trend of studies centered on emotions, which so far has been a relatively unchartered territory especially research regarding the contribution and influence of emotions within organizational settings. So far, IQ has dominated studies in almost all spheres of life, and across all sectors, and was regarded as a significant determinant of success. It was suggested through studies and research that IQ helps in increasing performance and contributes to organizational success. However with the advent of new studies centered on emotions, the concept of emotional intelligence has taken the corporate world by storm. The once popular belief that people with high IQ alone, can succeed within a corporate setting, is fast being replaced by the new phenomenon - that of emotional intelligence. It is increasingly evident from the studies mentioned above, that emotional quotient plays a major role in determining success and in enhancing employee performance. Although the differences and criticisms do exist, and surface from time to time, but the wide range of studies and the growing literature proving its validity, reaffirm its relevance and the role it plays in enhancing employee performance. Given the various elements and characteristic traits of emotional intelligence – such as: the ability to control and manage emotions, assess and gauge the feelings of others, and the ability to cope with negative emotions and use the same towards realization of desired goals; it cannot be denied that the intelligence of the heart is equally, if not more, important as the intelligence of the brain / mind. 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