Impact of emotional intelligence, leadership effectiveness on group performance: a review of literature.

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The transformations taking place in an organizations today due to uncertain forces from the environment have made organizations realized the importance of changes in structure.

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International Journal of Management (IJM) Volume 9, Issue 6, November-December 2018, pp.24–33, Article ID: IJM_09_06_003 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=6 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication IMPACT OF EMOTIONAL INTELLIGENCE, LEADERSHIP EFFECTIVENESS ON GROUP PERFORMANCE: A REVIEW OF LITERATURE. Swati John Research Scholar, Amity University Uttar Pradesh, India Prof. Dr. Shyamalendu Niyogi Director, AIBS, Amity University Uttar Pradesh, India ABSTRACT The transformations taking place in an organizations today due to uncertain forces from the environment have made organizations realized the importance of changes in structure. Earlier tall structure was very common to be implemented which is now shifted to more of flattened structure. More flexible systems are devised by management which supports creativeness and high rate of interactive culture in an organization. To be competitive it is needed that employees having learning attitude so that they can respond well to internal and external changes of the organization. Thus the need of effective leader for such scenario in organization is very essential and of high importance. Plethora of research on leadership indicates the importance of leadership effectiveness for any business organization. The importance of leadership effectiveness has been realized by the organizations and they are very cautious about decisions related to leader of the organization. Similarly ‘Emotional- Intelligence’ is found to be one of the most essential factors impacting the effectiveness of leader. Research studies indicate that leaders who are highly emotional intelligent are more important and produce better results as they can deal appropriate with any situations Keywords: Emotional-Intelligence’ is found to be one of the most essential factors impacting the effectiveness of leader Cite this Article: Swati John and Prof. Dr. Shyamalendu Niyogi, Impact of Emotional Intelligence, Leadership Effectiveness on Group Performance: A Review of Literature, International Journal of Management, 9 (6), 2018, pp. 24–33. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=6 1. INTRODUCTION With the changing role of leadership, role of employee changed immensely. Employees are held responsible for their performance directly and more of self-management and self- motivation are required for the employees. Employees are even expected to work in group and teams to manage the crisis or critical situations (Cohen & Bailey, 1997). Cross-functional http://www.iaeme.com/IJM/index.asp 24 editor@iaeme.com
Impact of Emotional Intelligence, Leadership Effectiveness on Group Performance: A Review of Literature groups are very common in case any crisis situation arise in an organization where employees from different background and knowledge work together to resolve the issue. Group performance has become one of the crucial factors for effective performance of the organization. It is very frequent that different department employees are working on one task or project to ensure successful results from that specific task. Therefore group performance is one of the important elements which are frequent to be seen and implemented in organizations today. Research proves that group with level of emotional-intelligence produce better results. Empirical research delineates that work groups with high degree of emotional-intelligence tend to be supportive, communicates effectively and are focused which leads to better results. Work groups with high degree of emotional-intelligence develop better understanding and communicate effectively which results in positive interpersonal relationship among the group members due to which members of group are encouraging and friendly (Thoits, 1989 & Abraham, 1999). Studies also found that highly emotional-intelligent work groups are able to work with creative and innovative perspective which is equally required when cross- functional groups are formed (Scott & Bruce, 1994). 2. EVOLUTION OF CONCEPT- EMOTIONAL INTELLIGENCE (Shanley, Walker and Foley, 1971) identified that social intelligence and academic intelligence are different and have supported the social intelligence over academic intelligence in their research findings. Further to that (Salovey and Mayer, 1990) suggests that social intelligence is a very broad concept and they gave the concept of emotional intelligence to be the key factor for success in place of social intelligence. (Sternberg’s, 1985), conjecture determined three capabilities that are- creative, analytical and practical intelligence and the individual with these capabilities produce effective teams. (Riggio, Murphy et al, 2002) identified that the capabilities like creative intelligence, analytical intelligence and practical intelligence are identical to effective leaders and with these capabilities a leader can take action more effectively in various situations. The interest and acceptance of emotional intelligence is brought by D. Goleman (1995, 1998) where in his book he describes how the emotional intelligence rules over academic intelligence. He indicates the importance of emotional intelligence in the organization for better work results. (Cooper & Sawaf, 1997) have also specified the significance of emotional intelligence for work force and the impact of emotional intelligence in work environment to make the work environment very effective. Various models have been developed on social intelligence and emotional intelligence. The acceptance and popularity of book by Goleman has convinced the thought that emotional intelligence is needed in the organization and social intelligence is still to be accepted. Two theories on emotional intelligence have materialized; the first is based on capabilities of an individual. This theory emphasizes the capability to interpret and analyze logically or through facts and information but such analysis is influenced by feelings. This model is given by (Mayer, Caruso and Salovey, 1999). The second theory on emotional intelligence assert that it is a behavioral attribute and proficiency of an individual, this theory is given by (Goleman, 1995, 1998) and (Bar-On, 1997). Many researchers recommended that emotional intelligence is a distinctive ability of an individual and has huge impact on people relationship and on performance through team work. The only aspect which was omitted was the measurement of the emotional intelligence. Mayer, Caruso and Salovey (1999) provided the scale to measure emotional intelligence; this tool was based on four major attributes of emotional intelligence- awareness, interpretation of thoughts, understanding of thoughts and managing the emotions and response, as per people and situation. http://www.iaeme.com/IJM/index.asp 25 editor@iaeme.com
Swati John and Prof. Dr. Shyamalendu Niyogi Figure 1 This paper is trying to identify the relationship between emotional intelligence and leadership effectiveness and their combined impact on group performance. Figure 1: depict the relationship which this study tries to find out and then understand the role of emotional intelligence and leadership effectiveness on group performance. 3. EMOTIONAL INTELLIGENCE (EI) Various constructs under psychology are unique and new, emotional intelligence is one of the recent concepts in the domain of psychology. The concept of emotional intelligence is still exploring the more specific and correct methods to measure it (Spector, 2005). The measurement tool given by (Mayer, Salovey and Caruso, 2008) is improved by them many times to determine more better and accurate results on emotional intelligence. According to the definition given by (Salovey and Mayer, 1990) of emotional intelligence describes that; awareness of self-emotions, exercising feedback in situations and regulating self emotionally and so in behavior are all core of emotional intelligence concept. The individual who has high degree of emotional intelligence is skilled in the ability of self- awareness, situation interpretation and self-regulation. All individuals are part of society they are brought up and living. While being part of such society individual faces variety of situations which make him understands the rules and believes of the society he is part of (Fisher and Chou, 1989). Through these rules and believes society review us and we also evaluate the people. Individual who have competency to self- monitor will utilize such information, which delineate the expectations of the society and will judge the reaction of other to get the desired response from others (Heise & Thomas, 1989 and Graziano & Waschull, 1995). A study (Miller & Leary, 1992) emphasizes the impact of embarrassment on emotional criticism received through it. They state that such situation make individual very cautious and alert about the interpretation of others in a situation to decide which action to be taken. Thus emotional intelligence helps an individual determine his social identity based on the behavior shown by them to the society, as they are conscious about their response to others. To attain this one must realize the importance of self-response in group and society. Models of emotional intelligence are used to determine the performance of employees. Variety of awards is provided to employee based on EI. Organizations are introducing vivid ways to measure award the attributes related to EI. America Society for Training and http://www.iaeme.com/IJM/index.asp 26 editor@iaeme.com
Impact of Emotional Intelligence, Leadership Effectiveness on Group Performance: A Review of Literature Development (ASTD) has provided contrivance to nurture EI-based skill and knowledge to help people excel in their performances (Cherniss &Adler, 2000). EI based models are so resourceful to the organization that it can help organization to identify and decide which candidate to be selected, which employees require to be considered under succession planning so that they can be put on leadership position of the organization. It also assist organization to identify which type of development is required to be done to develop the employee to make him ready for leadership position (Spencer & Spencer, 1993). 4. EI AS QUALITY OF LEADER Leadership is the process of influencing people to guide people to perform in a desired manner. Such process necessitates continuous involvement of socialization with people. Further to gain expected result through people the social interaction must be done considering the emotions of others and leader being cautious about behavior’s response on others. This aspect will play a very crucial role for the success of any interaction of leader with others. The aspect of social intelligence is requiring in higher degree for a leader (House and Aditya, 1997). Goleman (1996) asserts that emotional intelligence is required in high degree for a leader, other competencies may be moderate or low in a leader but possessing high degree of emotional intelligence is utmost essential for a leader. Specifically in top level (leadership level) emotional intelligence is most important to ensure better and favorable results. Studies proves that transformation leadership whenever is being found in an organization; emotional intelligence is the factor present in those leaders. Correlation between emotional intelligence and transformational leadership is very high (Gibbons, 1986 and Southwick, 1998). Research indicates that for transformational leaders emotional intelligence is most vital. Transformational leaders require vivid skills to be successful but relationship skills are most essential among all and such skill involves high degree of emotional intelligence (Bass 1997). Equally a manager is responsible to look after establishment of system and structure whereas leader is responsible for people, building trust and ensure right doing in an organization (Salovey & Mayer, 1989). Further researcher aver that the responsibility of leader is to identify the vision and provide path to reach that vision to his followers by encouraging and creating willingness in the people to move towards the vision and achieve it (Weathers by, 1999). Additional (George & Bettenhausen, 1990) initiate that positive mood of a leader and positive attitude and behavior of a leader towards any problem make others positive towards it and works as an encouragement for them to perform. 5. LEADERSHIP EFFECTIVENESS Importance of leadership is always determined by the organization since the external environment and competition has enhanced. Research shows that organization with effective leadership able to succeed more on the contrary organizations even fail because of poor leadership. Thus leadership effectiveness is one of the important factors to provide success to an organization. Therefore it is important for the organizations to identify Friedman (2008), mentioned that aftermath of any team may be large in size depends on the philosophy of top executives of organization. Teams do well when executive invests in supporting social relationships, demonstrate collaborative behavior themselves, and create a culture in which employee interacts with leaders and colleagues as valuable. Usually it has been observed that a team having more than twenty members will not be collaborative, but if appropriate leadership is applied then even a team of more than hundred people will produce performance outstanding. The leadership of team, the behavior of leaders, the way the tasks are designed to perform, human resource practices and general culture can totally influence the performance in positive and collaborative sense for the organization. (Tost, Gino & Larrick) 2011, includes that power includes individual to dominate behavior, in the discussion http://www.iaeme.com/IJM/index.asp 27 editor@iaeme.com
Swati John and Prof. Dr. Shyamalendu Niyogi between person with powerful and powerless, the powerful person dominates and it was found that power of perception of leader dominate the subordinate and hence the performance decreases. By doing most of the talking, powerful leaders conveyed a sense that they were not open to others’ input, and this dynamic produced a lower level of performance as measured by the employee’s ability to reach its goals in the simulation. Employee with powerful leaders reported lower levels of open communication and exhibited lower performance than in the control condition. However, these effects emerged only in the non-instrumental members’ condition. Kantabutra & Avery (2006), founded that vision-based leadership results in enhancing the performance of organization. Vision clarifies challenge, future orientation, stability, and desirability or ability to inspire had a significant, indirect relationship with customer satisfaction, while individually the vision clarity attribute was significantly associated with customer satisfaction. The significance of vision clarity supports many authors who assert that effective visions should have clarity because the degree of clarity influences how well a vision is understood and accepted and how to get the right thing done in an organization. (Jing & Avery, 2008), founded that leadership do have a positive relationship with the performance but it is still unclear that what the nature of connection between leadership and performance is. Therefore how and why leadership effect the performance is still an aspect covered less in the researches as of now (Dutton, Frost et.al, 2002), has discussed the actions and emotional care a leader should take at the time of trauma in an organization to let the employee still work with positivity towards outcomes. This could be done by demonstrating our own compassion and unleashing a company-wide compassionate response. A leader should help people make sense of terrible events and support one another, a leader can enhance the capability of employees to heal and strengthen bonds among colleagues and with organization. That is why it has been determined that if leader applies some proper behavior with employees then they may even give results to the organization at the time of difficulties. (Cohn, Khurana & Reeves, 2005), mentioned that growing talent of organization should be identified because the future business is dependent on them. The company may replace CEO & VP’s of the organization with growing talent. Hence integrated leadership development program be created by all the organization to avoid such risk and continue the action without obstacles in future. (Kaufman et.al, 2008), has talked about how a CEO’s performance could be better for the organization. Author discussed five dimensions which includes, first leadership of the CEO that is how he motivate the employees and what culture he develops, then it discuss the strategy of organization, then people management of CEO that means right people at the right job, next dimension is operating metrics which include profit, productivity, asset utilization and customer satisfaction and activities in its relation and fifth they discussed about relation with external consistencies that is how the CEO of the company connect with the stakeholders of the organization. (Rejas, Ponce et.al, 2006), aims to find out whether the leadership style influence the performance of small firms. The findings say that leadership style is the determinant in the effectiveness of organization. Small firms have a great influence and relationship between leadership style and effectiveness of the organization. (John Kotter, 2001), in his article suggest that key to good leadership is to stay focused on the change and to keep focused on the difference between the trivial and the important. The regular candid communication, to keep everyone focused in the organization. Commitment towards change by effective leadership will always help organization to grow. (Ulrich, Zenger & Smallwood, 1999), has discussed the connection between leadership attributes with the result of the organization. They founded that leadership attributes and results have a very high connect, if the leadership is not having proper attributes its success http://www.iaeme.com/IJM/index.asp 28 editor@iaeme.com
Impact of Emotional Intelligence, Leadership Effectiveness on Group Performance: A Review of Literature will not be for longer duration. Thus they suggest for leadership to produce result must have attributes of effective leadership. (Fulmar, Gibbs and Goldsmith, 2000), organizations that are effective in its performance and are always growing do have a practice of making leadership strategies and emphasize on leadership development in its organization. By monitoring the effectiveness of leadership- development processes, capitalizing on quick wins and communicating success throughout the organization an organization can increase its productivity always from time to time. (Conger & Fulmer, 2004), talks in there article that effective leadership is not necessarily present at top level only, it is even present in the other level of the organization and it is the job of the organization to identify that in different level and support it to grow so that organization even can grow with that leadership with them. Adopting talent mind by the organization is the sensible decision to have leadership in the organization from different levels. The authors call it the development of leadership pipelines with the organization for the growth of the organization. (Shadare & Ayo, 2009), investigated influence of work motivation, leadership effectiveness and time management on employees’ performance in some selected industries in Ibadan, Oyo State Nigeria. (Yukl, 2008), has discussed on flexible leadership and performance to organization through it. (Nsubuga, 2008), analyze the leadership styles of head teachers and school performance of secondary schools in Uganda. The study established that except teachers are well prepared with facts and skills in administration and leadership, they would not be able to recover school performance notably. The study recognized that successful school performance requires futurist leadership. Jing and Avery (2008), although the definition of leadership is contentious, leadership creates the vital link between organizational effectiveness and people’s performance at an organizational level. Uncertainty demands a strong sense of direction and the fortitude to stick with it. The discipline, creativity and resilience of every layer of an organization – not just the top – will be tested as companies strive to maintain a clear direction while reacting to a cacophony of local threats and opportunities. Survival in such an environment requires more leaders, not fewer. (Collins, 2005), discussed in his article importance of level 5 leaders, that blend the paradoxical combination of deep personal humility with intense professional will. This combination also defies about what make leader great. 6. EMOTIONAL INTELLIGENCE, LEADERSHIP EFFECTIVENESS AND GROUP PERFORMANCE Organizations have shown humongous interest in the area of emotional intelligence. Leadership is directly related to emotional intelligence (EI) proven in various research (Goleman, Boyatsiz and McKee 2002). By now we have determined that leadership effectiveness and emotional intelligence are vital to any organization and when EI is present in leadership it adds value to the organization. Research found that emotional intelligence is a skill which help people to interpret, analyze and understand emotions accurately and manage emotions for emotional, group and organizational growth (Brackett, Mayer and Warner, 2004). Prati, Douglas et.al (2003) the emotional intelligence of the team leader is important to the effective functioning of the team. The leader serves as the motivator toward collective action and facilities supportive relationships among team members. Through adhering team standards, empowering team members and charismatically encouraging team identity and pride, the leader is able to create an atmosphere of urgency to improve oneself and team processes for the collective good. Nowack (2011) leadership effectiveness, defined as involvement oriented and sensitive management practices can have a significant impact on employee’s commitment, perceptions of stress and retention. Shahmandi, Silong et.al (2011) effective academic leaders such the Deans and Head of Departments in research universities http://www.iaeme.com/IJM/index.asp 29 editor@iaeme.com
Swati John and Prof. Dr. Shyamalendu Niyogi should use various leadership styles related to the situational model. Vadeveloo et.al (2009), investigated that leadership performance, decision making skill, communication skill, personal skill, personal characteristic is positive and correlated to leadership effectiveness. McLoughlin and Wallis (2007), four “filters” are applied in assessing which behaviors need to be developed to enhance leadership effectiveness. These are (i) the “organizational filter” that assesses individual leaders against the desired leadership culture profile of their organizations; (ii) the “role filter” that focuses on the behaviors individuals need to be successful in their leadership roles; (iii) the “situational filter” that takes account of the different contexts faced by individual in similar roles; and (iv) the “individual filter” that can be applied in cases where individual style should be encouraged and demonstrated. Moreover, not only are the positive incentives to develop entrepreneurial behaviors provided by promotion incentives relatively weak, but managers who fail to respond to top-down exhortations to change their behavior are still likely to keep their jobs. LEA is one of a number of reputable and reliable instruments that have been used to provide feedback to individuals on their leadership competencies in a range of organizational contexts. Their use in the leadership development programs provided to public sector managers has also expanded, particularly in countries where they can complement competence frameworks that seek to define competence profiles for future leaders. 7. CONCLUSION Research delineates that mechanism to implement and get results through emotional intelligence is vital for leader’s performance. As mentioned earlier self-awareness is crucial factor of EI and it has been avowed that more than eighty three percent people with high degree of self-awareness were top performers of the organization and on the other side the low performers had close to two percent of self-awareness (Bradberry and Greaves, 2009). Leaders who demonstrate high emotional intelligence have the sense of identifying, deciding and adding value to EI of others. To assist leader-subordinate relationship leaders must incorporate the aspects of emotional intelligence. By imparting so they can identify the emotions of group and take decisions which add value to group members. (Goleman et.al, 2002) asserts that emotional intelligence append more than eighty percent competencies of stupendous leader in comparison to average leader or manager. If this claim is correct then emotional intelligence is key to effectiveness leadership and critical for effective leader- follower relationship to impact the group performance. Different leader has different style of leadership and so the degree of emotional intelligence with specific style of leadership will be different. Both transactional and transformational leadership styles provide better group performance because of effective leader-follower relationship. To make this possible emotional intelligence is imperative as EI supports and strengthen the leader-follower relationship (Dubinsky et.al, 1995). Research suggest that leaders are sometimes capable to get performance from the group beyond the expectation of group members, this is possible because a leader is capable to identify the vision and become role model for group to help them understand the vision and show them path to achieve such vision (Podsakoff, et.al, 1990). http://www.iaeme.com/IJM/index.asp 30 editor@iaeme.com
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