The relationships among emotional intelligence, leadership styles and perfprmance of employees in enterprise in hanoi, vietnam

Is there any relationship among emotional intelligence, leadership styles and employee performance.. CONCEPTUAL FRAMEWORKFrom the review of the related literature and studies, the Resear

SUMMATION THESIS BY NGUYEN THI THU HUONG

PREFACE

In this summary dissertation, all figures and tables are numbered as in dissertation Emotional Intelligence plays an important role in helping the managers and employees to cope with this dynamic change in the business environment

Leaders who possess emotional intelligence can easier guide own behaviours and thinking processes to achieve results Emotional intelligence is crucial especially for leaders; it helps the leaders to motivate the team and achieve company’s objectives through superior performance of the team Vietnam enterprises need to find out how it works more efficiently, one of the ways it is adopt leadership approaches that facilitate performance to improve the efficiency of human resources

Thus, the theme of " The relationships among Emotional Intelligence, Leadership Styles, and perfprmance of Employees in Enterprises in Hanoi, Vietnam” is chosen to

study

The structure of dissertation includes 5 chapters

CHAPTER I: INTRODUCTION

1.1 BACKGROUND OF STUDY

Vietnam’s Renovation Policy (doi moi), which effectively started in 1987, has

encouraged investments both from inside and outside Vietnam It has significantly boosted

the country’s economy and the living standard of the Vietnamese Opening up the market

brought both threats and opportunities Some businesses thrived in the new business environment and were able to improve productivity, product quality, and ultimately profit

Others failed to meet the new challenges and declined (Quang & Vuong, 2002) Human

Resources are playing a vital role in almost all aspects of life and in organizational development As more and more organizations are making progress, by making the use of human resources, they need some means to increase the performance in human resource

by increasing the efficiency of leaders and their followersIn the Vietnamese complex situation, a organization both public and private sector have to change their leadership style

in an effective way research on leadership style has found that Emotional Intelligence is

playing the vital role in the performance of the leaders and the efficiency of leadership skills

1.2 STATEMENT OF THE PROBLEM

This study attempts to examine the relationship between leadership, emotional intelligence and employees by dealing with the following issue:

1 Is there any relationship between leadership styles and employee performance?

2 Is there any relationship between employee performance and leaders’ emotional intelligence?

3 Is there any relationship among emotional intelligence, leadership styles and employee performance?

4 Which is the most effective leadership style in Vietnamese companies?

1.3 SIGNIFICANCE OF THE STUDY

There has been no known research regarding the relative effectiveness of

an emotionally intelligent transactional leader and an emotionally intelligent transformational leader with respect to employee performance in a Viet nam organisation This study therefore aims to investigate and explore the relationship between employee performance, leadership and emotional intelligence in a Viet nam organisations

1.4 SCOPE AND LIMITATION OF THE STUDY

As in any research, financial constraint posed a limitation Instruments are costly to purchase, and this initially posed a problem in finding instruments suitable for this research This study used instruments t h a t available to the researcher free of charge The sample composition in this research chosed in ha noi, where the of the government and a large number of enterprises are located The data generated by this research, therefore, is limited to the geography

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES

2.1 REVIEW OF RELATED STUDIES

This section present of 15 literatures related to the topic

2.2 THEORETICAL FRAMEWORK

This section present the theoretical about three fators: Employee performance, Emotional intelligence and leadership styles

2.3 CONCEPTUAL FRAMEWORK

From the review of the related literature and studies, the Researcher designed the conceptual framework illustrated below:

INI

I

H1

H1: There is a relationship between leadership styles and employees’ performance

H2: There is a relationship between employee performance and emotional intelligence

H3: There is a relationship among emotional intelligence, leadership styles and

employees’ performance

CHAPTER III: METHODOLOGY

3.1 Research design

The steps below is a representation of the research design employed for the purposes of this study

Step 1: Administer Questionares to both the leader and subordinate in the enterprises in Ha noi

Step 2: Capture the data and inspect the data using descriptive statistics and frequency tables

Step 3: Test for reliability of data (Cronbach’s alpha reliability coefficient)

Step 4: Test the research hypotheses using correlation, Anova, linear regression analysis Step 5: Analyse and discuss the results

Emotional Intelligence

of Leader

Employees’

Performance

H2

3

The Conceptual Framework

3.2. Population and Sample

The sample consisted of a nonrandom convenience (availability) sample of 375 leaders and 730 subordinates, making the total sample equal to 1105 participants

3.3 Measuring Instruments Used

The scale for leadership style in the questionnaire:

The scale was modified from the multifactor leadership questionnaire called the MLQ (Bass and Avolio, 1997) and 28 questions for use in the study After factor analysis, 4 factors were extracted as the charismatic leadership, the transactional leadership, the transformational leadership, the visionary leadership

The scale for Emotional intelligence in the questionnaire

Following extensive research on the topic of Emotional Intelligence, an appropriate instrument was identified, called the ECP The questionnaire contains 46 statements that measure levels of current emotional intelligence competence

The scale for employee performance in the questionnaire

The scale adopts the design method of positive questions, through 7 evaluation factors: quality, productivity, job knowledge, reliability, initiative, teamwork, customer service After factor analysis, 1 factors were extracted as employee performance

The instruments, consisting of a leadership questionnaire (leader version) and an emotional intelligence questionnaire, accompanied by a covering letter were mailed

to those identified as leaders The leader respondents were requested to complete the leader version The leader respondents were also asked to complete the ECP

on a scale of 1 to 7 In both measuring instruments, the respondents were informed that they were allowed to leave a question/answer blank if the question appeared unclear or ambiguous

Similarly, a leadership questionnaire (subordinate version) and an emotional intelligence questionnaire, accompanied by a covering letter were mailed to those identified as subordinates of the leaders

3.6 Statistical Analysis

The data was presented in a manner that allowed for easy analysis and testing, using

SPSS

CHAPTER IV: RESULTS AND DISCIUSSIONS

4.1 The Survey Respondents

There were a total of 1,105 survey respondents among leaders and subordinates from the various business and offices in Vietnam

As to gender, the next table shows that, overall, the male respondents outnumbered the female counterpart by some 14%

4.2 Relationship Between Leadership Styles and Employee Performance

Leadership Styles.

The scores for each leadership style based on the responses of 375 leader-respondents was calculated by the average of 3 questions, one for the leader and two for his/her subordinates The sample sizes, mean scores and standard deviations of each of the leadership styles factors are shown in the next table

Table 4.3: Mean Scores and Standard Deviations of Leadership Styles

Std Deviation

Employees’ Performance: The scores for employee’s performance based on the

responses of 375 leader-respondents was calculated by the average of 3 questionaires, one for the leader (as a member in organization, answer questionnaire for performance of own his/her work) and two for his/her subordinates answer questionnaire for performance of them

Table: 4.4: Mean Scores and Standard Deviations of Employee Performance

N Minimum Maximum Mean Std.

Deviation

Employee performance 375 2.64 3.77 3.2090 40198 Valid N (listwise) 375

Hypothesis One:

H01 There is no significant relationship between leadership styles and employee performance

H11 There is significant relationship between leadership styles and employee performance

The summary of the linear regression model for this hypothesis shows a high

adjusted R2 (Adjusted R² = 0 902) indicative of an over-all very high correlation between the independent and the dependent variables With 90.2% variation in employee performance an d F v al ue to 859.761, and p = 0.000, the null hypothesis (Ho1) is hereby rejected and concludes that there is sufficient evidence, at the 5% level

of significance, that there is a linear relationship between employee performance and leadership styles This means, the leadership styles have strong effect on employee performance

The significant parameters are the intercept (beta coefficient = 0.905, p = 0.001) and transactional leadership parameter (beta coefficient = 0.04, p = 0.001) transformational leadership parameter (beta coefficient = 0.156, p = 0.000), charismatic leadership parameter (beta coefficient = 0.303, p = 0.000) The visionary leadership parameter is not significant (beta coefficient = 0.048, p = 0.072) in this model This implies that visionary leadership is not having a significant effect on the employee performance scores at the 5% level of significance, when considered in this model

Results of hypothesis one testing showed that there is linear relationship between leadership styles and performance of employees The leaders use any leadership styles also affecting the performance of their subordinates and the different styles will have

different effects However, in this model indicates that relationship depends only on transformational leadership, charismatic leadership and transactional leadership i.e there

is no effect due to visionary leadership.

4.3 Relationship Between Employee Performance and Leaders’ Emotional Intelligence

Leaders’ Emotional Intelligence The leaders’ emotional intelligence were

rated on a Likert’s scale ranging from 1 – 7 where 1 is equal to low EI, 4 is equal medium EI and 7 is equal to high EI The details of the statistical treatments are provided for in Appendix L The ECP factors which include the emotional literacy, self-esteem, self-management, self- motivation, change resilience, interpersonal relations and integration of head and heart were combined (summed) to generate the emotional intelligence scores

Table 4.5: Mean Scores and Standard Deviations of Emotional Intelligence

Std.

Deviation

For the dimensions of emotional intelligence, the mean Emotional Literacy score was the highest out of the seven dimensions at 4.5533 This score, however, was only slightly higher than the a medium EI The standard deviation of Change Resilience was lowest (SD=0.45475) showing a low variation in the level of change resilience amongst leaders The mean score of EI was 4.3064 showing that the overall emotional intelligence of the leaders was only a little higher than medium EI As detailed in Figure 4.1 below, there was a very low variation in the emotional

intelligence score 75% leaders have scores of EI under 5 score indicating that most of leaders in Vietnam companies have medium emotional intelligence scores That mean most of Vietnamese leaders need improve their emotional intelligence to reach higher emotional intelligence Emotions help leaders adapt to the physical and social world

By combining social and emotional issues it has beome possible to develop way of achieving a competitive advantage in the business environment

Figure 4.1 Box Plot of Emotional Intelligence Scores.

Hypothesis Two:

H21 There is no relationship between employee performance and emotional intelligence

H22 There is relationship between employee performance and an emotional intelligence

Table 4.6: Correlations Between Emotional Intelligence and Employee Performance

Emotional Intelligence

Employee Performance Emotional Intelligence Pearson Correlation 1 897**

Employee performance Pearson Correlation 897** 1

** Correlation is significant at the 0.01 level (2-tailed)

The statistical tests as shown in table above clearly show that there was relatively strong, significant, positive linear relationship between emotional intelligence and employee performance (r = 0.897, p= 0.0001) Therefore, the null hypothesis (Ho2)

w a s b e i n g r e j e c t e d T here was sufficient evidence, at the 5% level of significance, that there was a positive linear relationship between emotional intelligence and employee performance T h e a b o v e r e s u l t s h o w e d t h a t a l e a d e r w i t h high emotional intelligence were increasingly more effective leaders and as performance of their employees were also higher

4.4 Relationships among Emotional Intelligence, Leadership Styles and Employee Performance

In the previous sections, the respondents’ scores on emotional intelligence,

leadership styles and the employees’ performance were already discussed exhaustively This sections presents the discussions on the relationships of the three variables by working on the third hypothesis

Hypothesis Three

H03 There is no significant linear relationship among emotional intelligence, l e ad e rs h i p s t yl es and employee performance

H13 There is a significant positive linear relationship among emotional intelligence, l ead ers h i p s t yl es and employee performance

The tests clearly showed that there was relatively high positive linear relationship among emotional intelligence, leadership styles and employee performance (Adjusted R²

= 0.998) Therefore, the researcher rejected the null hypothesis (H03) and concluded that there was sufficient evidence, at the 5% level of significance, that t h e r e

e x i s t e d a positive linear relationship among emotional intelligence, leadership styles and employee performance Conversely, the regression analysis result showed that the leadership styles and emotional intelligence of leaders affected the employee performance With the same leadership style, a leader with higher emotional intelligence can inspire his subordinates and raise their performance level However, when combined with emotional

intelligence the different leadership styles have different effects on the performance of employees While emotional intelligence transactional leadership, emotional intelligence -charismatic leadership and emotional intelligence - transformational leadership have a significant positive effect on the employee performance as compared to emotional intelligence - visionary leadership which has negative effect on the employee performance (beta coefficient = -0.413, p = 0.000) implying that this leadership style was not effective

The previous sections presented that emotional intelligence and leadership styles have significant effects on the employee performance This section discusses the most effective leadership styles among leaders in Vietnamese companies

The results of statistical tests implies that the relationship between the emotional intelligence - charismatic leadership (beta coefficient = 0.410, p = 0.000) was stronger than emotional intelligence - transformational leadership (beta coefficient = 0.134, p = 0.000), emotional intelligence - transactional leadership (beta coefficient = 0.226, p = 0.000) and emotional intelligence - visionary leadership (beta coefficient = -0.413, p = 0.000)

The t-test was used to determine if beta coefficient of charismatic leadership (ß3 ) was biggest or not A t-test rejects Ho in favor of H1 when ttest  z  (z - the upper 

 quantile of the standard normal distribution).

The summary of hypothesis testing result pointed out that all the null hypotheses

H0 must be rejected It was clear that the beta coefficient of charismatic leadership(ß3 ) was greater than the beta coefficient of transactional leadership (ß2 ), greater than the beta coefficient of visionary leadership (ß4 ), and greater than the beta coefficient of transformational leadership (ß5)