The Role of Emotional Intelligence in Leadership

Problem of Statement 

The banking sector is a service industry that plays an important role in the economy of the United States. A large percentage of citizens in the US require the banks for several reasons including saving, borrowing, and securing mortgages amongst others. It is also one of the sectors in the country that has continued to consistently provide services to the people and government even in the wake of the past economic hard times experienced by the nation. It, therefore, means that the banking sector is one of the industries that require professionals who can achieve the ultimate goals for both the organization and its employees. An organization that lacks enough money can resort to borrowing while that which is located in a poor location can move to a better place. However, an organization that experiences poor leadership has high chances of extinction due to poor management. There is considerable attention raised in the association between emotional intelligence and effectiveness in leadership. However, little research has been conducted in assessing the importance of emotional intelligence in the US banking sector. Therefore, the role of the research will be to assess how emotional intelligence contributes to better leadership within the US banking industry. 

Hypothesis and Objectives 

The paper has five major objectives. First, it will assess the cause-effect relationship between emotional intelligence and proper leadership. Secondly, it aims at illuminating the meaning of emotional intelligence. Thirdly, it will delve into some of the major concepts of emotional intelligence. It will hence analyze why emotional intelligence is required in leadership. Lastly, it will discuss how emotional intelligence plays a significant role in the development of leadership. The first hypothesis of the research is that emotional intelligence plays a significant role in the development of leadership. The second hypothesis is that emotional intelligence has a positive role in understanding leadership. 

Introduction 

Emotional Intelligence (EQ) is a trend that has taken root among business leaders such as human resource professionals. It has also been regarded as one of the most important psychological principles of the last decade. Boyatzis et al. (2013) noted that EQ had been considered as an umbrella term that focuses on various elements including the ability to cope with various demands, people skills, and soft skills shown by the leader. Therefore, many scholars have argued that EQ in leaders can give the company a competitive advantage over others. The term emotional intelligence or sometimes known as emotional quotient was coined by a scholar known as Dr. Reuven Baron in 1985. According to Baron, EQ addresses some of the fundamental aspects of intelligence including the personal, social, emotional, and survival dimensions, all of which are important in the daily functioning of people. Therefore, EQ enhances a leader with the tactical ability and common sense to meet the environmental demands and satisfy various leadership challenges. The power of EQ, therefore, emanates from an individual's ability not only to identify but also manage one's emotions and those of others (Boyatziset al. 2013). It comes with two fundamental skills that include emotional awareness and the ability to manage the emotions. The power of emotional intelligence is helpful in thinking, problem-solving and getting the best out of people through the management of their emotions. 

Literature Review 

The discussion of EQ in literature has mainly focused on its value in enhancing individual success among leaders. Scholars have hypothesized that EQ plays a significant role not only in psychological but also physical well-being of an individual. Therefore, when emotional intelligence is measured as an ability, it can act as an indicator for several outcomes. People that show high emotional intelligence “might also be more adept at describing motivational goals, aims, and missions” (Druskat, Mount, & Sala, 2013).  However, research is still underway on how EQ directly accounts for effective leadership. However, in the recent years, the concept of EQ has gained popularity as an important measure of effective leadership. However, many researchers agree that little research has been put forth to prove the relationship explicitly. The predictive value of EQ in the effective leadership has been criticized by many psychologists as unsupported, ill-defined, and even improbable. Boyatziset al. (2013) noted that researchers and scientists in various fields have greatly influenced the most acceptable and appreciated model of EQ. The theory of multiple intelligences postulated by Stenberg asserts intrapersonal and interpersonal intelligence is uniquely different from the logical and mathematical type found in general intelligence. Aristotle, one of the greatest philosophers of his time, provided a challenge relating to EQ when he asserted that “anyone can become angry-that is easy; but to be angry with the right person, to the right degree, at the right time” (Collins & Cooper, 2014). 

A significant area in which scholars have attempted to illuminate is on the reason why emotional intelligence is required in leadership. Today, the focus has significantly shifted from social intelligence as leaders today emphasize on the interpersonal behavior and the significant role it plays in effective leadership. Scholars have made significant steps in differentiating between general intelligence and emotional intelligence. Many have agreed that general intelligence should be defined as "the capacity of an individual to act purposefully” (Collins& Cooper, 2014). However, emotional intelligence takes a more sophisticated approach and is more detailed. Mayer and Salovey did a commendable job in describing what entailed EQ in 1997. They noted that "emotional intelligence involves the ability to perceive accurately, appraise, and express emotion” (Collins & Cooper, 2014). They further added that it involved the action of generating feelings or emotions necessary for facilitating a thought. It also involved regulation and promotion of emotions in a bid to foster intellectual growth. The Encyclopedia of Applied Psychology notes that there are three theoretical models used in the explanation of emotional intelligence. The first model is known as the Salovey-Mayer model which defines EQ as the ability to perceive, understands, and manages the use emotions in a bid to facilitate thinking (Collins & Cooper, 2014). The second approach is known as Goleman model. It views EQ as a group of competencies and skills aimed at enhancing managerial performance. The third and the last theory is called the Bar-On model which essentially asserts that EQ is a combination of emotions and social competencies that interact to influence intelligent behavior that can effectively act in problem-solving. 

Scholars have also attempted to assess the pros and cons of EQ as a tool for leadership. Starting with the advantages, it is an aspect that can easily be learned by anyone. It is neither a natural talent nor a genetic trait. It is, therefore, a skill that one could take so long as they show the needed level of interest. It reduces the incidences of bullying within an organization by mitigating negative emotions. As leaders can better control their emotions, it means that the likelihood of conflict diminishes within an organization. Druskat, Mount, and Sala (2013) intimated that the social effectiveness of an individual improves thereby enabling them to make meaningful relationships at all levels of the company. 

Furthermore, the chances that a person engages in destructive social behavior go down as a result of increased management of emotions. Scholars have also opined that EQ is essential in improving the decision making process of a leader because there is an improved coordination between logic and emotions. However, research has also shown that emotional intelligence can have its reservation. According to Zeidner, Matthews and Roberts (2012), researchers have noted that evidence exists that EQ can be used as a manipulative tool. It is vital to appreciate the role of emotions in enhancing a unique individuality. However, when one is coached to use their emotions as skills, they become easily manipulated. It also prevents an individual from using their critical thinking skills due to an overemphasis on the use of emotions. Training an individual to embrace emotional intelligence can be a complicated process that takes large chunks of time. Also, some people might fail to take it seriously because they feel that general intelligence overrides any other form of expertise. 

Scholars have also opined that the art of leadership is increasingly facing a revolution. As such, the application of EQ as the basis of leadership becomes more essential. Leaders today are tasked with the duty of managing a more empowered task force by going beyond the traditional democratic, cooperative, and consultative styles. Leaders are required to communicate their visions and purposes in a compelling manner (Sadri, 2012). They are also required to take full responsibility whenever things go bad. They are also required to act as mentors and coaches in a bid to develop the full potential of their staff members. Lastly, leaders are challenged to offer recognition and acknowledgment to their workers to enhance morale and team loyalty. Therefore, emotional intelligence becomes the overriding rule that could assist a leader to attain all these modern demands. Studies have revealed that leaders who perform well in their respective jurisdictions not only depict technical skills but also show the required levels of emotional intelligence. According to the Harvard Business Review, EQ comes with five different components that are important for every leader (Druskat, Mount, & Sala, 2013). Goleman noted that these five attributes include self-regulation, self-awareness, empathy, motivation, and social skills. Many researchers have attempted to provide several pieces of evidence that point to the fact that emotional intelligence is a precursor for success both in the workplace and in an individual's life. Emotional intelligence or the lack of thereof has been closely associated with leadership effectiveness or ineffectiveness respectively. 

Today, many questionnaires and models have been developed with the aim of measuring the level of emotional intelligence. One of the significant vital aspects of the EQ is self-awareness. It is through this attribute that a leader can know how they feel and how their emotions will subsequently affect those surrounding them. Self-awareness in a leadership position means that a person is well aware of their strengths and weaknesses. It also helps in depicting humility. Some of the ways that an individual can improve their level of self-awareness include through keeping a journal and embracing patience. The second primary attribute is known as self-regulation which encompasses that act of remaining in control. It, therefore, means that a leader will not rush into conclusion, verbally attack, or stereotype others. Goleman noted that "this element of emotional intelligence also covers a leader's flexibility and commitment to personal accountability” (Goleman, Boyatzis & McKee, 2013).  Some of the primary ways that one can improve their self-regulation include calmness, understanding one's values, and holding oneself to accountability. The third aspect is known as motivation which essentially means that leaders consistently work towards the achievement of their goals. Motivated individuals also depict a high standard for their work. Improving motivation will call on several strategies including constant reexamination, knowing one's stand, and having a sense of optimism. Empathy is also a major characteristic of EQ, and it involves the ability of the leaders to assume the position of their subjects. Lastly, leaders who perform well in EQ must show social skill such as communication. Druskat, Mount, and Sala (2013) asserted that they should be in a position to accommodate both bad and good news. Such social skills will provide them with the much-needed impetus to solve conflicts within their spheres of influence. 

Methodology 

The role of leadership is to influence people and provide guidance aimed at meeting the goals of an organization. Effective leaders have a unique way of handling challenges within an organization that might touch on stress, discipline, communication, and innovation amongst others. EQ has an essential position within an organization. It should assist the leader to address their subordinate, build functional relations, and trust with their followers. Out of 49 respondents that participated in the study, 30 were men while 19 were women. The age bracket of the respondents was between 25 and 50 years with an experience range between 1 and 25 years. Similar questionnaires were distributed to all 49 people with the survey remaining private and confidential. The process did not involve any mentioning of the names, and no form of payment or appreciation was provided to any of the respondents. The primary task of the research was to evaluate the impact of various factors on emotional intelligence and effective leadership. Some of the variables used in evaluating the relationship between these EQ and effective leadership included responsibility, workload, self-control, stress, performance, and discipline. The questionnaire also asked the respondents how emotional intelligence was critical in their handling of customers. 

After the respondents completed filling out the questionnaires, they were compiled and analyzed. Bias was minimized by ensuring that all the respondents were collected randomly from various banks in the country. Also, all of them were asked questions on the same variables. The relationship between EQ and effective leadership was therefore assessed through the lenses of these six attributes including responsibility, workload, self-control, stress, discipline, and performance. A combined bar graph and curve was plotted to ensure that the data collected was captured visually. Calculations including mean, standard deviation, and percentages also gave the response by the participants more meaning to the research. 

Findings 

The results of the survey were looked through the lenses of the six elements of emotional intelligence including responsibility, workload, self-control, stress, discipline, and performance. 42% of the respondents agreed that responsibility was an essential part of emotional intelligence. Out of these, 80% strongly agreed that responsibility played a significant role in effective leadership. The second criteria aimed at assessing the impact of the workload on the relationship between EQ and effective leadership. Only 20% noted that workload was an essential measure of emotional intelligence. However, 76% of this number strongly agreed that workload management is a vital tenet in the effective leadership. The third aspect of analysis was self-control. 98% of the respondents noted that self-control was an important measure of emotional intelligence. All of these respondents went ahead to strongly agree that self-control was a significant indicator of effective leadership. The research also sought to analyze the significance of stress in the relationship between emotional intelligence and effective leadership. The first major finding was that 80% of the respondents noted that stress management was a significant part of emotional intelligence. Out of this population, 50% strongly supported the fact that stress management was a major indicator of good leadership abilities. 

The other major factor that was assessed in the survey was discipline. The first question posed to the respondents was whether discipline was an important measure of emotional intelligence. 100% of the respondents felt that this was true. 98% of the respondents felt that discipline played an important role in the development of effective leadership. The final tenet of analysis was performance. 98% of the respondents agreed that performance was a fundamental measure of emotional intelligence. Furthermore, 100% of this number strongly agreed that performance was, therefore, a measure of effective leadership. From these results, it is essential to recall the hypotheses that the research sought to answer. The first hypothesis aimed at assessing the relationship between emotional intelligence and the development of leadership. The research has candidly shown that out of the indicators of emotional intelligence utilized, a majority of the respondents agreed that they were a good measure of effective leadership. It is therefore vital to conclude that there is a positive correlation between emotional intelligence and leadership development. The second hypothesis aimed at analyzing how emotional intelligence influenced an individual's understanding of leadership. From the study, approximately 50% and above of the respondents agreed that the six indicators used are essential factors for measuring emotional intelligence. Therefore, it is a positive sign that emotional intelligence plays a significant role in understanding leadership. 

Conclusion 

The implementation of emotional intelligence is an important factor in enhancing effective and efficient leadership. The survey and literature review have shown that EQ not only has a role in effective leadership but also provides the company with the much-needed impetus to reach the organizational goals. The research in the US banking sector has also shown that EQ helps in the management of stress, improves performance, and also creates an environment that motivates the employees to improve their productivity and meet organizational goals. Furthermore, it is important to note that emotional intelligence helps a leader to develop their interpersonal skills. It assists leaders to judge people clearly and ensures that meaningful connections are created within the organization. It enhances creative thinking, logical, and communicational skills, all of which are important in the execution of the mandate as a leader. Therefore, emotional intelligence has a significant impact on effective leadership. The research in the banking sector has thus indicated that the training of leaders in EQ will potentially create more benefits for the company in terms of meeting their organizational goals. 

Recommendations 

The research has shown that one of the areas that benefit from emotional intelligence within a company is the organizational performance. Some of the areas that emotional intelligence influences include the behavior, psychology, and the relationships formed by the workers (Goleman, Boyatzis, & McKee, 2013). In the wake of globalization and technological advancement, it becomes apparent for companies to work on their soft skills in a bid to compete globally. Although general intelligence is essential in many ways, emotional intelligence provides an extra push by availing an enriching environment for workers to express their skills and talents without negative criticism. As a result, the company will flourish in creativity and innovation that will subsequently push the organization to better heights. Another essential recommendation that organizations should utilize is the introduction of emotional intelligence course training as part of capacity building. It is important to understand the EQ is not only important for leaders at corporate levels but also subordinates within the organization. Colleges and universities must also incorporate these studies into their curriculum to ensure that graduates are well equipped with the leadership skills required to meet the challenges of the 21 st century (Collins & Cooper, 2014). 

Thirdly, an organization must ensure that they have a way of measuring the effectiveness of leadership that comes as a result of emotional intelligence. As a result, this will call for the creation of a model with several indicators that managers and staff members can make references on a daily basis. Some of the tenets that could be used in measurement include the six attributes used in the research such as performance, stress, discipline, work-load, self-control, and responsibility. Failure to perform within any of these indicators will likely mean that the emotional intelligence is failing in provision of effective leadership. However, performance in all these key areas will show a positive correlation between emotional intelligence and effective leadership. Lastly, the research has shown evidence that EQ is a modern leadership strategy that should be embraced by all leaders at different levels. The research utilized the data from the banking sector, and therefore, this means that all other industries, not only the service ones, will likely benefit from such an approach. 

References 

Boyatzis, R. E., Smith, M. L., Van Oosten, E., &Woolford, L. (2013). Developing resonant leaders through emotional intelligence, vision, and coaching. Organizational Dynamics ,  42 (1), 17-24. 

Collins, C. S., & Cooper, J. E. (2014). Emotional intelligence and the qualitative researcher.  International Journal of Qualitative Methods ,  13 (1), 88-103. 

Druskat, V. U., Mount, G., & Sala, F. (2013).    Linking emotional intelligence and performance at work: Current research evidence with individuals and groups . Psychology Press. 

Goleman, D., Boyatzis, R. E., &McKee, A. (2013).    Primal leadership: Unleashing the power of emotional intelligence . Harvard Business Press. 

Sadri, G. (2012). Emotional intelligence and leadership development.  Public Personnel Management ,  41 (3), 535-548. 

Zeidner, M., Matthews, G., & Roberts, R. D. (2012).    What we know about emotional intelligence: How it affects learning, work, relationships, and our mental health . MIT press.