Term Paper 1

IMPACT OF EMOTIONAL INTELLIGENCE ON EMPLOYEE’S

PERFORMANCE AND ORGANIZATIONAL COMMITMENT: A STUDY
BASED ON THE BANKING SECTOR OF PAKISTAN

SUBMITTED BY
MADIHA GOHAR
SUBMITTED TO
Dr. AHMAD QAMAR
DATE: 5/19/2017
DEPARTMENT OF MANAGEMENT SCIENCES
COMSATS INSTITUTE OF TECHNOLOGY, LAHORE

Table of Content
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Introduction ................................................................................................................................................. 2
Literature Review ....................................................................................................................................... 3
Research Gap .............................................................................................................................................. 5
Objectives..................................................................................................................................................... 6
Problem Statement...................................................................................................................................... 7
Research Question ...................................................................................................................................... 8
Hypothesis.................................................................................................................................................... 8
Data & Methodology................................................................................................................................... 8
References .................................................................................................................................................... 9

Introduction

Emotional intelligence has attracted the attention of many researchers for the past few years. As

a matter of fact, it has now become the most frequently researched topic by the research groups.
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The research has depicted that the emotional intelligence is the significant determinant of the

organizational performance, which is based on job performance, the organizational citizenship

behaviors, job satisfaction and organizational commitment. Emotional intelligence, in essence,

refers to the management of one’s feeling and emotions. It enables people to work together for a

common goal and enhance their productivity. Hence, it is important for the manager to remain

optimistic, compassionate, flexible, tolerant and respectful, so these emotions will likely to be

seen in the employees as well.

Organizational commitment refers towards the organizational effectiveness. Organizational

commitment can potentially determine an organizational outcome, job performance, and

organizational citizenship behavior. The employees committed to the organization always spend

their time energy towards achieving the organizational goals. Such employees are acknowledged

as a primary asset to an organization.

The researchers that are focusing on management have claimed that emotional intelligence

deeply affects the productivity or performance of the employees. Now a researcher is taking into

account the impact of emotional intelligence on job functions.

The purpose of this study is to figure out the role emotional intelligence play in determining the

employee’s performance and organizational commitment. The study basically examines the links

between emotional intelligence, employee’s performance, and the organizational commitment.

(Gunu & Oladepo , 2014)

Literature Review

Gunu&Oladepo (2014) analyzed the impact of emotional intelligence on employee’s

performance in an organization and their commitment to the organization. It has been found that
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managing our emotions and identifying our feelings as well as the feeling of others, significantly

contribute towards the performance of the employees and their organizational commitment. The

manufacturing sector has particularly been targeted to conduct a research. The descriptive design

has been used. The 206 questionnaire were distributed among the respondents randomly.

Regression analysis has been used. The study disclosed that the emotional intelligence of the

employees has a significant impact on the performance of the employees and their commitment

to the organization. The relation between the organizational commitment and emotional

intelligence is stronger than the relationship between the employee’s performance and emotional

intelligence. (Gunu & Oladepo , 2014)

Kumar (2014), illustrated the impact of emotional intelligence on the employees’ performance in

the Himachal Pradesh University Shimla. The research was based on the fluctuating budget of

the university which disturbed the emotions of the employees. The emotions of the employees

are usually based on the pay scale, facilities, benefits, and career development at the job. So the

variations in these factors lead to the fluctuation in the emotions of the employees which

ultimately affects their performance. So, emotional intelligence is deeply linked with the

employees’ performance. This research is conducted by Himachal Pradesh University. The four

dimensions are considered to study the emotional intelligence of the employees, which include

self-management, relationship management, self-awareness and social awareness. The data is

collected from the employees of the university. Moreover, correlational analysis and the analysis

of variance have been used. The study contributed significantly to understanding the relationship

between emotional intelligence and the performance of the employees. Emotional intelligence

plays an important role in performance, productivity and teamwork. ( Kumar, 2016)

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Another research undertook the impact of emotional intelligence on the front line and back office

employees’ relationship. The behaviors of the employees are interdependent on each other this

interdependence among their behavior, in turn, affects the organizational performance related to

the customers. The moderating influence of emotional intelligence of the back office employees

and front line salespeople are also taken into account in this paper. The sample consists of 77

back office employees and 105 front-line sales employees. The data on the customer related

organizational performance was collected from the business to business (B2B) electronic

company of the United Kingdom. The methodology used comprises of partial least square. The

front line employees affect the customer related organizational performance. The emotional

intelligence of front line employees is deeply related to the citizenship’s behavior which has an

impact on organizational performance. (Kearney, et al., 2017)

Palmer, Walls, Burgess, and Stough (2000), analyzed the impact of emotional intelligence on

effective leaders. They considered emotional intelligence as a tool that gives rise to emotional

intelligence. The Trait Meta-Mood has been adopted based on 43 participants in the management

roles. The effective leaders recognized as those who possess transactional and transformational

leadership style. It was found that the emotional intelligence is correlated with transformational

leadership. (Palmer et al., 2001)

Research Gap

Gunu&Oladepo (2014) has found out the impact of emotional intelligence on organizational

commitment as well as the performance of the employees. He particularly focuses on the

Dangote Flour Mills Workers. Kuman (2014) has seen the impact of emotional intelligence on

the employee’s performance of Himachal Pradesh University Shimla. He found that pay scale,

benefits and career development opportunities are the job expectations which are assessed by the
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employees. Another study analyzed the impact of the behavior of front-line salesperson and

back-office employees on the customer related organizational performance. Here the impact of

the behavior by a back-office employee is taken as a moderating variable. Similarly, another

study has taken the emotional intelligence as a tool to develop effective leadership skills among

the employees. (Gunu&Oladepo , 2014; Kearney, et al., 2017; Kumar, 2016; Palmer et al., 2001)

As we can see that prior studies have targeted manufacturing sector industry and the educational

university. Rest of the studies does not include organizational commitment into them. None of

the studies has captured the impact of emotional intelligence on the employee's performance and

organizational commitment in Pakistan. The banking sector is leading sector of the world; it

plays the role of a backbone in every economy these days. None of the studies has analyzed this

impact in the context of the banking sector. Hence this creates a gap in the literature. To address

this gap we are going to see the impact of emotional intelligence on employees’ performance and

organizational commitment in the banking sector of Pakistan. It is assumed that the performance

of employees significantly gets affected by their emotions, which are developed by the perks and

privileges of the job. The employees of the banking sector in Pakistan are underpaid which

affects their performance negatively.

Objectives

The emotional intelligence is a topic that is researched very deeply into the area of organizational

study as psychological factors such as consumer behavior and the emotional intelligence of the

employees play very significant role in the productivity of an organization.

The objectives of our study is to

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 Find out the relationship between feelings/emotions of the employees and the

productivity of the employee.

 Find the relationship of feelings/emotions of the employees and their level of

commitment to the organizational.

Problem Statement

The feelings of the employees affect their performance, for instance, if they feel negative about

their colleagues and their boss then it will affect their working. Similarly when they feel positive

about their co-workers and their boss when they get incentives and bonuses as a result of their

work then it will trigger their performance. The management of the feelings of the employees is

used to predict the job satisfaction, job performance, the citizenship behavior in the organization

and the commitment to the organization. Jobs demand the emotional maturity, emotional

competencies, and emotional sensitivity. The competitive salary, regular facilities and benefits,

and incentives encourage the employees to work more efficiently.

There are many organizations that do not provide competitive salary package to their employees,

regular incentives, and promotion; furthermore, they compel the employees to work long hours

without giving them any commission. This has affected the self-esteem of the employees which

in turn has affected their work performance. Employees when see no incentive for their hard

work, and become reluctant to work efficiently, they lose their enthusiasm for work and starts

searching for other opportunities.

Hence it is the need of the time to find out the impact of emotional intelligence on the

productivity.
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Research Question

The emotions depicted by the employees during the interaction with customers quickly shape the

opinions of the customers regarding the service quality as well as the performance of the

employees. Emotions of the employees are linked directly to the job satisfaction of the

employees. (Kearney, et al., 2017)

Our research question is how the feelings/emotions of the employees affect their productivity in

an organization and their level of commitment to the organization?

Hypothesis

H1: High emotional intelligence leads to enhance the employee’s performance

H2: High emotional intelligence leads to increase the organizational commitment of the

employees

Data & Methodology

The study is entirely based on the banking sector of Pakistan. Hence descriptive research design

has been employed. The variables used are qualitative in nature. Simple random sampling

technique will be used. The sample size would consist of 500 respondents belonged solely to the

banking sector. The data collected will be analyzed on the basis of graphs, percentages,

regression analysis and the correlational analysis.

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References:

Gunu, U., & Oladepo , R. (2014). Impact of Emotional Intelligence on Employees’ Performance

and Organizational Commitment: A Case Study of Dangote Flour Mills Workers.

University of Mauritius Research Journal – Volume 20– 2014, 20. Retrieved from

https://www.ajol.info/index.php/umrj/article/viewFile/134563/124197

Kumar, R. (2016). Impact of Emotional Intelligence on Employees’ Performance: A Study of

Employees Working in Himachal Pradesh University Shimla. Himachal Pradesh (HP)

University. Retrieved from http://dx.doi.org/10.2139/ssrn.2451027

Kearney, T., Walsh, G., Barnett, W., Gong, T., Schwabe, M., & Ifie, K. (2017). Emotional

intelligence in front-line/back-office employee relationships ", Journal of Services

Marketing, Vol. 31 Iss 2 pp. -. Journal of Services Marketing, 31(2), 1-33. Retrieved

from http://dx.doi.org/10.1108/JSM-09-2016-0339

Palmer, B., Walls, M., Burgess, Z., & Stough, C. (2001). Emotional intelligence and effective

leadership. Leadership and Orgnaizational Development Journal, 22(1), 5-10.