Emotional Competencies of Leaders: A Comparison of Managers in a Financial Organization by Performance Level

Abstract

As companies increasingly are required to do more with less, seemingly "soft" skills, based on emotions, are associated with leadership effectiveness and organizational success. Research suggests that emotional "competencies", such as those related to empathy, adaptability, self-control, emotional self-awareness, ability to develop others, and so forth, contribute significantly to leader effectiveness.

The purpose of this study is to determine if differences in EI levels exist among high performers in one organization. Specifically, the study assesses whether managers in this financial organization who are deemed most effective according to their performance ratings exhibit higher emotional intelligence competencies than managers with lower performance ratings. The researcher also compared EI levels and various demographic characteristics of the sample.

The data were gathered from a sample of 57 from the study population—79 members of the management team of a large regional financial organization selected to participate in an internal study on emotional intelligence. The participating managers completed self-report versions of the Emotional Competence Inventory 2.0 (ECI 2.0) (Hay/McBer, 2002). They, in turn, asked others with whom they work closely to complete 360-degree versions of the instrument, providing feedback on the participants. Participants also completed an instrument that gathered demographic data, including title, position, area, management tenure, gender, educational level, and type of degree, and their most recent performance ratings (three, four, or five on a five-point scale).

The researcher analyzed the ECI scores provided by the Hay Group, performance ratings, and demographic data via a statistical analysis computing system, SAS 8. The researcher employed the general linear model (GLM) version of analysis of variance (ANOVA), T-test, and union-intersection test methods.

Findings indicated that high ratings and high emotional intelligence were not significantly related at a 95&45;percent confidence level. They were significantly related on three competencies—Achievement, Adaptability, and Optimism—at a 90 percent confidence level. The EI average scores of the sample differed significantly from the average scores of other groups in the ECI North American Database on three competencies: Achievement, Accurate Self-assessment, and Emotional Self-control. Statistically significant differences between Sales and Support functions were evident in three competencies: Empathy, Emotional Self-awareness, and Transparency. For all three, Support EI levels were greater than Sales EI levels. Position, title, gender, and management tenure did not significantly impact the emotional intelligence of the sample.

While educational level did not significantly impact the emotional intelligence of the sample, statistically significant differences existed between those with a Bachelor of Science degree and those with a Bachelor of Arts degree on four competencies: Conflict Management, Emotional Self-awareness, Initiative, and Organizational Awareness. EI levels of those with BS degrees were greater than EI levels of those with BA degrees in Conflict Management, Initiative, and Organizational Awareness while EI levels of those with BA degrees were greater than EI levels of those with BS degrees on one competency: Emotional Self-awareness.

Results of the self versus total others ratings indicated that statistically significant differences exist in four competencies: Emotional Self-control, Influence, Inspirational Leadership, and Self-confidence. For each of the four competencies, EI levels of total others were greater than self-reported EI levels.