Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
Emotional Intelligence as Determinants of Workplace
Performance: Evidence from Indian Industries
Arka Kumar Das Mohapatra
Various researchers in the past have put their claims and counter claims on the effects of
emotional intelligence (EI) on organizational performance. For instance, Goleman(1995) has
claimed that ‘emotional intelligence’ accounts for 80 percent of work performance and life
success. Pamela and Julie (1999) have found that EI increases employee cooperation,
motivation, productivity and profits. Other important claims in support of the effect of EI on
workplace performance being- EI is directly linked to career progression (Goleman, 1998); EI
results in individuals who are more altruistic (Cherniss and Adler, 2001); EI results in individuals
who make better leaders (Goleman, 1998); EI contributes to better teamwork (Druskatt and
Wolff, 2001); EI leads to better decisions (Jordan, Ashkanasy and Hartel, 2002). The counter
claims made by Antonakis J. (2003), Day and Carroll (2004), Jemie L. Callahan, et. al. (2005)
and Landy (2005) indicate that there are no such significant relationships between EI and
workplace performance. The present study undertaken on 260 corporate executives in India
working in 32 private and public sector companies selected at random however reveals that
there exists a positive correlation between EI and workplace performance; and that of the three
components of EI,it is emotional competency is the major contributor to the workplace
performance of corporate executives in India, followed by emotional maturity and the emotional
sensitivity; higher the experience higher is the EI; and the EI of female executives is higher than
their male counterparts.
Field of Research: Management
Key Words: Emotional intelligence, emotional competency, emotional maturity, emotional
sensitivity, workplace performance, task performance, contextual performance, Self Report
EI Scale (SRIES).
1. Introduction
‘Emotional Intelligence’ is a psychological construct that affects workplace performance.
Goleman (1998) has defined ‘Emotional Intelligence’, as ‘the capacity for recognizing one’s
own feelings and those of others, for motivating oneself and for managing emotions well in
oneself and in one’s relationship.’ Emotional intelligence includes the abilities to perceive
emotions accurately, to assess and generate emotions to assist thought, to understand
emotions and emotional knowledge, and to regulate emotions reflectively to promote
emotional and intellectual growth. Negative emotions like anxiety, fear, caution, guilt,
frustration, agitation, resentfulness, and depression in the executives affect the quality of
decisions they take which may even be contrary to the organizational interests. Team
accomplishments get adversely affected by the negative emotions of the team leaders.
Negative emotions also affect individual’s creativity and innovativeness. Employee
________________________________________________________________________
Professor, Head and Dean, Department of Business Administration, Sambalpur University, Sambalpur 768
019, Odisha, India, Tel. +9437158107, Fax +663-2430158
*Corresponding Author E-mail: akdm.2002@gmail.com
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
turnover, retentions, and overall performance get equally affected by the team leader’s
attitude, dealings, beviour and interaction with the employees in the organization. Large
scale communications that the executives receive in a day needing their immediate
attention too puts them under pressure of higher magnitude which may cause negative
emotions in them in turn may induce them to commit more mistakes, miscommunication
and blocked creativity. But, positive emotions contribute to better organizational
performance, enhanced creativity, and increased innovations. Enhanced emotional
intelligence (EI) skills in the corporate executives help them build trust, develop courage
and passion and overcome the feelings of anxiety, fear and depression.
As the success of every organization depends on the quality of decisions the executives
take amid their encounters with different stakeholders of varied temperaments, this paper
attempts to empirically establish the nature and extent to which workplace performance is
affected by emotional intelligence in the Indian organizational settings so as to enable the
executives appreciate the menace of negative emotions and inculcate positive EI skills.
2 LITERATURE REVIEW
Various researchers in the past have put their claims and counter claims on the effects of
emotional intelligence on organizational performance. Some of the important claims on EI
having positive correlations with workplace performance are- emotional intelligence
accounts for 80 percent of work performance and life success (Goleman, 1995); emotional
intelligence is directly linked to career progression (Goleman, 1998); emotional intelligence
results in individuals who are more altruistic (Cherniss and
Adler, 2001); emotional
intelligence results in individuals who make better leaders (Goleman, 1998); emotional
intelligence contributes to better teamwork (Druskatt and Wolff, 2001); emotional
intelligence leads to better decisions (Jordan, Ashkanasy and Hartel, 2002); emotional
intelligence leads to people being self-starters and self-motivated (Goleman, 1998);
emotional intelligence results in better coping with stress (Ashkanasy, Ashton-James, and
Jordan, 2002); emotional intelligence is a useful construct for addressing a broad array of
behavioral problems (Gillis, 2004); and emotional intelligence results in individuals who
have morally superior values (Cooper and Sawaf, 1997); EI increases employee
cooperation, motivation, productivity and profits ( Pamela and Julie, 1999); emotional
intelligence tends to increase as one matures and gains experience ( Abraham, R. ,2004);
administrative experience enhances EI (Click, 2002; Cote, and Miners,2006); EI increases
with the increase in age and rank(Srivastava and Bharamanaikar, 2004). Antonakis J.
(2003), Day and Carroll (2004), Jemie L. Callahan, et. al. (2005) and Landy (2005) have
found no such significant relationships between EI and workplace performance.
Adeyemo (2007) has also observed no significant relationships between EI and the
demographic variables like age, marital status, educational qualifications and salary of the
employees.
3 OBJECTIVES
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
Review of literature indicates that there are no significant studies in India as regards the
effect of EI on workplace performance and the interrelationship that exists between
demographic variables of the executives and EI. To bridge this gap in the literature and to
enable the organizations device appropriate and effective HR strategy to increase
employee productivity, the present study has been undertaken with the broad objective of
empirically investigating the nature and extent to which emotional intelligence and
workplace performance are interrelated in the Indian organizational settings. The specific
objectives are three fold:
1. examining the interrelationship that exists between emotional intelligence and
workplace performance;
2. determining the relative significance of EI parameters, namely, emotional
competency, emotional maturity and emotional sensitivity in explaining the EI and
workplace performance; and
3. examining if EI is influenced by demographic characteristics of gender and
experience of the employees.
4 METHODOLOGY
Data used in the study have been collected from primary sources by using structured
questionnaires. The questionnaires used are of two types- one for measuring the
emotional intelligence (EI) and the other for measuring the workplace performance. A total
of 260 executive respondents from 32 public and private sector companies in India have
been included in the study. The questionnaires used for measuring EI are a set of 15 self
assessment questions, called the Self Report EI Scale (SRIES), which have been
developed and used by Chadha and Singh (2001) and subsequently by Priti and
Mohapatra(2010). As per Chadha and Singh, it is the emotional competency, emotional
maturity and emotional sensitivity that make the EI of an individual.
‘Emotional competency’ consists of four skills such as tackling emotional upsets, having
high self-esteem, giving tactful response to emotional stimuli, and effective handling of ego,
whereas, ‘emotional maturity’ are self-awareness, developing others, delaying gratification,
adaptability and flexibility, and ‘emotional sensitivity’ consists of skills like understanding
threshold of emotional arousal, empathy, improving interpersonal relations and
communicability of emotions.
The ‘workplace performance’ has been taken as the combined measure of (a) ‘task
performance’ as developed by Pearce and Porter (1986), and (b) ‘contextual performance’
developed by Moorman (1993). Task performance is ‘role prescribed’ (Katz and Kahn,
1978), and contextual performance is discretionary and as such it is extra-role behaviour
(Werner, 1994). Both, task performance and contextual performance contribute to one’s
overall performance in the workplace.
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Proceedings of Annual Paris Business and Social Science Research Conference
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The respondents have been divided into three categories based on their overall EI score as
follows:
Category I: Low EI
Category II: Medium EI
Category III: High EI
Executives with overall EI score of less than 200
Executives with overall EI score from 200 to 250
Executives with overall EI score of more than 250
The task and contextual performance have been evaluated out of a total score of 100 and
based on the total score, called performance score (or PS) that the executives have been
categorized into three categories as follows:
Category A: Low PS
Category B: Medium PS
Category C: High EI PS
Executives with overall PS less than 80
Executives with overall PS from 80-85
Executives with overall PS of more than 85
5 HYPOTHESES
The following hypotheses have been formulated for the purpose of the study and tested
through statistical tools like Pearson’s correlation, regression, chi-square test, t-test, and
ANOVA:
H01:
There is no significant relationship between Emotional Intelligence (EI) and
workplace performance of corporate executives in India.
H02:
The EI parameters, namely, emotional competency, emotional maturity and
emotional sensitivity have no relevance in explaining the EI and workplace
performance of corporate executives in India.
H03:
There is no association between EI and demographic profile of gender and
experience of the corporate executives in India.
6 ANLYSIS AND FINDINGS
Analysis of the data has been made in respect to testing the interrelationship between EI
and workplace performance; the relative importance of EI components, namely, emotional
competence, emotional maturity and emotional sensitivity in explaining the workplace
performance; and the effect of demographic profile, namely, gender and experience on EI
as under:
(a) Interrelationship between EI and Emotional intelligence
Emotional intelligence is the ability in an individual to acquire and apply knowledge from
his own emotions and the emotions of others. An enhanced EI level in the individual
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
enables him to regulate his own emotion effectively. It is expected that employees with
higher EI will have higher achievements in the workplace. Therefore, a positive correlation
is expected between EI and workplace performance. To verify this, the null hypothesis
(H01) that there is no significant relationship between Emotional Intelligence (EI) and
workplace performance of corporate executives in India was formed and tested through
calculation of correlation coefficients as presented in Table 1.1, followed by chi-square test
(Table 1.2) and ANOVA (Table 1.3).
Table 1.1: Correlations of EI and workplace performance
Total EI
Performance score
Total EI
1
0.652 (**)
Significance
0.00
Performance score
0.652 (**)
1
Significance
0.00
** Correlation is significant at the 0.01 level (2 tailed)
Table 1.1 shows existence of a positive correlation between emotional intelligence and
workplace performance in the Indian settings with Karl Pearson’s correlation coefficient of
0.652.
Similarly, the Chi-square test, conducted by dividing the respondents into three subgroups
based on low, medium and high EI scores in relation to low, medium and high performance
scores as shown in Table 1.2 , shows a positive correlation, i.e., Pearson Chi-Square
value of 160.961 between EI and workplace performance at 0.01 level of significance.
Table 1.2: Chi-square test for correlation between the subgroups with Low,
Medium and High EI and workplace performance
Value
Df
Asymp. Sig. (2-sided)
Pearson Chi-Square
160.961(a)
4
.000
Likelihood Ratio
160.261
4
.000
Linear-by-Linear Association
92.301
1
.000
No of valid cases
260
‘a’ 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.47.
Table 1.3 that contains the results of ANOVA between the subgroups based on low,
medium and high EI scores in relation to low, medium and high performance scores also
indicates high mean values for the overall performance of the subgroups making it
significant at 0.01 levels. As mentioned before, the respondents have been divided into
three categories based on their overall EI score such as Category I: Low EI (Executives
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
with overall EI score of less than 200), Category II: Medium EI (Executives with overall EI
score from 200 to 250) and Category III: High EI (Executives with overall EI score of more
than 250). Similarly, they have been classified into three categories based on their overall
performance such as Category A: Low PS (Executives with overall performance score less
than 80), Category B: Medium PS (Executives with overall performance score between 8085), and Category C: High EI PS (Executives with overall performance score of more than
85).
Table 1.3: ANOVA of the subgroups of Low, Medium and High EI and workplace
performance
Sum of
Mean
Squares
Between
Df
Square
6398.242
2
Within Groups
9479.445
257
Total
15877.68
Groups
7
F
3199.121 86.5032
Sig.
.000
36.885
259
Descriptive statistics
Groups formed
on the basis of
total EI score
Low EI
Standar
Overall
d
performa Deviatio
nce score
n
70.2637 5.1676
Standard
Error
1.2306
Medium EI
81.4954
1.3218
0.1787
High EI
83.5822
1.8966
0.3289
The strong correlation between EI and workplace performance while rejecting the null
hypothesis that there is no significant relationship between EI and workplace performance
of corporate executives in India leads to drawing the inference that there exists a positive
correlation between EI and workplace performance and hence higher the EI higher will be
the workplace performance. This finding also corroborates with the findings of Langhorn
(2004), Abraham Carmeli and Zvi E. Josman (2006), Elizabeth J. Rozell et. al. (2006), and,
Law, Wong, Huang, Li (2007). It is therefore essential that organisations strive for
improving EI of their employees so that the organizational performance is improved.
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
(b)
EI components as determinants of workplace performance
The significance of EI components, namely, emotional competency, emotional maturity and
emotional sensitivity in explaining the overall work performance has been tested through a
multiple correlation analysis of the component wise EI score and the performance score,
taking a null hypothesis (H02) that there is no correlation between the EI components and
workplace performance. The result of the correlation analysis has been displayed in Table
1.4.
Table 1.4: Correlation between EI components (emotional competency, emotional
maturity and emotional sensitivity) and work performance
Competence
Correlation
Competence
1
Significance
Maturity
Sensitivity
Total PS*
Maturity
.491(**)
Total
performance
Sensitivity
score
.486(**)
.652(**)
.000
.000
.000
1
.422(**)
.574(**)
.000
.000
1
.281(**)
Correlation
.491(**)
Significance
.000
Correlation
.486(**)
.422(**)
Significance
.000
.000
Correlation
.652(**)
.574(**)
.281(**)
Significance
.000
.000
.000
.000
1
*Performance score ** Pearson correlation significant at 0.01 (2-tailed)
The Pearson’s multiple correlation analysis, as seen in Table 1.4 indicates that the three
parameters of EI, namely, competency, maturity and sensitivity are positively correlated to
the overall workplace performance with Pearson’s correlation coefficient of 0.652, 0.574
and 0.281, respectively at a significance level of 0.01. This further indicates that emotional
competency is the major contributor to the workplace performance of corporate executives
in India, followed by emotional maturity and emotional sensitivity.
(c) EI and demographic profile
The interrelationship between EI and the demographic profile of the executives expressed
in terms of gender and length of experience has been determined as under:
(i) EI and Gender
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
In the Indian society, female are considered to be more tolerant to adverse situations and
are groomed to be sympathetic with abundant social skills. As such the EI of female
executives in India is expected to be higher than their male counterparts for the latter’s
aggressiveness pursuit of life in general. Keeping this in view and in order to check the
validity of this proposition that a null hypothesis(H03) was formed that ‘ there is no
association between the EI of male and female executives in India which has been tested
through t-test with the result displayed in Table 1.5.
It is evident from Table 1.5 that the mean EI score of male and female executives
significantly differ at 0.01 level with female executives scoring higher mean ( =258.20)
compared to the male executives with mean score 239.48. The null hypothesis that ‘there is
no association between the EI of male and female executives in India is rejected. The
present finding comes in conformity to the findings of Meyer and Geher (1996), Mayer,
Caruso and Salovey (1999), Mandell and Pherwani (2003), Irina Goldenberg et. al.(2006).
Table 1.5: Result of t-test of EI components and gender
EI parameters
Gender
t-value
p-level (two-tailed)
N
Emotional
competence
Emotional maturity
Emotional sensitivity
Total EI
Male
149
127.33
Female
111
138.23
-3.351
0.001
55.93
56.22
239.48
61.48
58.49
258.20
-2.813
-1.731
-3.498
0.008
0.077
0.000
(ii) EI and Experience
It is expected that EI of an employee will increase with an increase in the length of his
experience. This is because the employee in the course of discharging his duties over time
amid encountering of diverse clients would have developed such skills as would be
required to handle variety of clients efficiently. To test the validity of this phenomenon, i.e.,
higher the experience higher is the EI, that the null hypothesis (H04) that ‘there is no
association between EI of the employee and his length of experience’ was formulated and
tested through t-test by dividing the respondent executives into two groups such as those
having experience of less than 10 years and those having experience of 10 years and
above, in relation to the three components of EI, namely, emotional competence,
emotional maturity and emotional sensitivity.
Table 1.6 exhibits that the EI of the two groups are significantly different at 0.01 level with
the mean EI score of employees having experience of 10 years and above being 266.47
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
Table1.6: Interrelationship between EI components and experience
EI parameters
Experience
tp-level
value
(two-tailed)
Experience Experience
up to 10
more than
years
10 years
N
157
103
Emotional competence
120.98
140.42
-4.81
0.002
Emotional maturity
46.88
65.69
-6.23
0.000
Emotional sensitivity
55.27
60.36
-3.57
0.001
223.13
266.47
-6.04
0.003
Total EI
compared to the mean EI score of 223.13 of the employees with experience less than 10
years. The null hypothesis therefore is rejected, leading to the conclusion that experience
has a significant bearing on the EI. This finding conforms to the findings of Abraham
(2004), Cote and Miners (2006), Click (2002) and Adeyemo (2007).
7 CONCLUSION
Organizational success in a competitive environment like the one that the present
organizations cutting across industries are facing the world wide will depend on how these
organizations are able to develop their human resource as a source of competitive
advantage. They will be able to do so by developing competencies in the workforce and
competencies in the workforce again will depend on their socio-behavioural chracteristics
coupled with their ability to adjust in their job-role and power-position in the organizations.
Differences in the competencies of these individuals get exhibited through their cognitive
and physical abilities, knowledge, skills, values, interests, experiences and a number of
other psychological constructs.
‘Emotional Intelligence’ is a psychological construct that affects the workplace performance.
Goleman (1998) has defined ‘Emotional Intelligence’, as ‘the capacity for recognizing one’s
own feelings and those of others, for motivating oneself and for managing emotions well in
oneself and in one’s relationship.’ Emotional intelligence (EI) includes the abilities to
perceive emotions accurately, to assess and generate emotions to assist thought, to
understand emotions and emotional knowledge, and to regulate emotions reflectively to
promote emotional and intellectual growth. EI describes one’s ability distinct from, but
complementary to, his academic intelligence or the purely cognitive capacities measured by
Intelligence Quotient (IQ).
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Proceedings of Annual Paris Business and Social Science Research Conference
7 - 8 August 2014, Hotel Crowne Plaza Republique, Paris, France, ISBN: 978-1-922069-57-3
Amid various claims and counterclaims about the association between emotional
intelligence and workplace performance by different researchers in the past, the present
study conducted on 260 corporate executives of 32 randomly selected public and private
sectors firms in India exhibits that EI and workplace performance are positively correlated;
emotional competency is the major contributor to workplace performance of corporate
executives in India, followed by emotional maturity and the emotional sensitivity; higher the
experience higher is the EI; and EI of female executives is higher than that of the male
executives.
Based on the above findings, it is necessary for the organizations that they understand the
EI of their employees better and accordingly formulate appropriate policies to make them
contribute more to organizational productivity and overall performance vis-à-vis their own
improved performance.
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Proceedings of Annual Paris Business and Social Science Research Conference
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