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

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 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: Is there any relationship between leadership styles and employee performance? Is there any relationship between employee performance and leaders’ emotional intelligence? Is there any relationship among emotional intelligence, leadership styles and employee performance? 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 transformational leader with respect to employee performance intelligent 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 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: The Conceptual Framework Emotional Intelligence of Leader H1 INI I Leadership Style H3 H2 Level of Employees’ Performance 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 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, 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 evaluation factors: quality, productivity, job knowledge, reliability, initiative, teamwork, customer service After factor analysis, factors were extracted as employee performance 3.5 Data gathering procedure 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 to 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 leaderrespondents was calculated by the average of 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 Charismatic Leadership Transactional Leadership Transformational Leadership Visionary Leadership Valid N (listwise) N 375 375 375 375 375 Minimum 3.28 3.05 3.29 3.11 Maximum 5.22 5.28 5.57 5.61 Mean 4.3085 4.1877 4.2718 4.2663 Std Deviation 65434 83704 68488 79225 Employees’ Performance: The scores for employee’s performance based on the responses of 375 leader-respondents was calculated by the average of 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 Quality 375 2.42 3.83 3.0944 45687 Productivity 375 2.50 3.67 3.2138 39681 Job knowledge 375 2.36 4.00 3.2429 53340 Reliability 375 2.86 3.64 3.2737 31402 Initiative 375 2.50 4.08 3.2367 57484 Teamwork 375 2.20 3.50 3.0275 44819 Customer Service 375 3.00 4.00 3.3743 36621 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 = 902) indicative of an over-all very high correlation between the independent and the dependent variables With 90.2% variation in employee performance and F value 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 – where is equal to low EI, is equal medium EI and 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 N Minimum Maximum Mean Deviation Emotional Literacy 375 3.56 5.67 4.5533 69056 Self-Esteem/ Self –regard 375 3.39 5.33 4.4027 62833 self- Management 375 2.61 5.44 4.0613 82849 self- Motivation 375 3.61 5.06 4.1477 45485 Change Resilience 375 3.71 4.95 4.2705 45475 Interpersonal Relationships 375 3.67 5.89 4.5211 82558 Integration of Head and heart 375 3.17 5.22 4.1881 68575 Emotional intelligence 375 3.40 5.34 4.3064 59559 Valid N (listwise) 375 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 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 Pearson Correlation Emotional Employee Intelligence Performance 897** Sig (2-tailed) Employee performance 000 N 375 375 Pearson Correlation 897** Sig (2-tailed) 000 N 375 ** Correlation is significant at the 0.01 level (2-tailed) 375 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) was being rejected T here was sufficient evidence, at the 5% level of significance, that there was a positive linear relationship between emotional intelligence and employee performance Th e ab o v e resu lt s ho wed th at a lead er wit 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, leadershi p st yles and employee performance H13 There is a significant positive linear relationship among emotional intelligence, l ead ers hip st 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 4.5 Most Effective Leadership Style in Vietnamese Companies 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 (ß ) 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) 10 Table 4.7: Summary of Hypothesis Testing Results Hypothesis t-test ( t  test  z Results ˆ3  ˆi ) se( ˆ3  ˆi ) H :     H1 :    41.37726 1.649949 Reject the null hypothesis H0 H :     H1 :    127.7264 1.649949 Reject the null hypothesis H0 H :     H1 :    55.13461 1.649949 Reject the null hypothesis H0 These results implied that the charismatic leadership has the strongest effect on employee performance out of four leadership styles Therefore, the charismatic leadership is the most effective leadership styles in Vietnamese companies That is to say, a leader with personal charisma can inspire his/her subordinates and raise their performance and agglomerate group consensus to promote the business performance of the enterprise CHAPTER V SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings There exists a relationship between leadership styles and employee performance The results of the linear regression analysis indicate that, at the 5% level of significance, there is a linear relationship between employee performance and leadership styles Furthermore, the results indicate that a visionary leadership has no significant effect on employee performance when considered in this model (beta coefficient = -0.48, p = 0.072) In other words, leadership styles can either motivate or discourage employee, which in return can cause employee’s increase or decrease in their level of performance However, only three leadership styles: the transactional leadership, the transformational leadership and the charismatic leadership was seen to have a positive effect on the significant subscales of employee performance and a visionary leadership has no significant effect on employee 11 performance i.e employee performance is not effected by the level high or low score of the visionary leadership of the leaders There exists a positive relationship between employee performance and leaders’ emotional intelligence based on linear correlation analyses, at the 5% level of significance That’s mean, it sugest effective leaders use their emotional intelligence to not only manage themselves but to effectively manage their subordinates, the leaders with high degrees of emotional intelligence will generate outcomes for their employee of company, their employee have higher performance than leaders with lower levels of emotional intelligence At 5% level of significance, there is a relatively high, positive linear relationship among emotional intelligence, leadership styles and employee performance This results showed that a combination of the various leadership styles and emotional intelligence of the leader will bring more effective and enhance employee performance However, out of four leadership styles, the visionary leadership combine leader’ emotional intelligence has negative effect on employee i.e with the same level of emotional intelligence, the leaders show higher level of the score of the visionary leadership seem their employee have the score of performance lower than others Although emotional intelligence and leadership styles had a significant effect on employee performance, the emotional intelligence, charismatic leadership were affected more than others That’s mean subordinates will be inspired with more personal charisma of the leaders, make more performance for company The same emotional intelligence, the leaders have a higher degree of the charismatic leadership cause their employee have higher performance than the leaders have lower level of the charismatic leadership 5.2 Conclusion The broad objective of this research was to examine the relationship between employee performance, leadership and emotional intelligence in a enterprise in Hanoi, Vietnam In terms of this research, employee performance, leadership styles and emotional intelligence were discussed in terms of the research context In an effort to investigate the broad objective of the research, four specific research questions were generated The research question presented at the beginning of this dissertation questioned whether there was empirical evidence to substantiate or support the surmised relationship 12 between leadership styles and employee performance, emotional intelligence and employee performance, a combination of leadership styles and emotional intelligence effect on employee performance In this study employee performance was identified as the dependent variable, and leadership and emotional intelligence as the independent variables The general methodology consisted of the use of three instruments The Leadership styles questionnaires was used to collect information about leadership styles of the leaders and the ECP was used to collect information about emotional intelligence of the leaders The third variable, Employee performance evaluation was captured performance of both leaders and employees The data was analysed using linear regression analysis, simple correlation analysis and t-test The result of the first hypothesis showed, through linear regression analysis, that there is a statistically significant relationship between employee performance and leadership styles The second hypothesis showed, through simple correlation analysis, that there is positively correlated between employee performance and an emotionally intelligent The third hypothesis showed that there is a relative significant linear relationship between emotional intelligence, leadership styles and employee performance The answer of final question was found through testing three hypothesis indicated the emotional intelligence, charismatic leadership has a greater impact on employee performance After a review of the literature on employee performance, leadership styles, emotional intelligence of leaders in Vietnam, some reference to this research context could be found That is the empirical evidence to prove the role of emotional intelligence of leaders in their work And descriptive statistic and the result of testing show that the charismatic leadership have the more important to employee performance This is support to the research Vietnam context in chapter 1, personal charisma like: titles, status, and formality are very important in Vietnamese society This research therefore adds a new dimension to employee performance, leadership and emotional intelligence, as this research takes place in a Vietnamese companies context 5.3 Recommendations 5.3.1.Recommendations for the leaders 13 - The results of this study suggest that emotional intelligence does have a significant effect on employee performance, indicating that emotional could help leaders improve their leadership performance Emotional intelligence can be taught and improved via training and development activities within the workplace The leaders or the persons who want to become a leader should take part in these programs, it could help increase their emotional intelligence and thus have a positive effect on their leadership performance The ability to manage one’s emotions and the emotions of others has been shown to be an important indicator of success at work - Many scholars and experts think that excessive division of labor and specialization will make employees feel a drab and boring job Thus, in order to improve performance of employees, leaders should also tend to the charismatic leadership conforming to no conventional patterns and engaging in innovative and normative actions, besides introducing a development and inspiring strategic incentive system When subordinates’ willingness and ability to work are low, they may show behavior deviation from rules and standards or even high proportion below the standards 5.3.2.Recommendations for the enterprises - Enterprises should encourage and support training programs regarding aspects of emotional intelligent/ emotional quotient, charismatic leadership and performance.Emotional intelligent can be improved upon with training and development Therefore, training programs within the enterprises could have a positive effect on leadership and leadership performance, hence driving the enterprises to enterprises success - Enterprises would to create an assessment tool that focus on an applicant’s knowledge, skills and abilities to include a measure of emotional intelligence to increase the probability of successful person job fit for the enterprises - Selection committees can use an emotional intelligence appraisal tool to help identify candidates with high levels of emotional intelligence, candidates best able to use their emotional intelligence to enhance their leadership performance within the enterprise environment or try to assess a leaders’level of emotional intelligence during the interview process 5.3.3.Recommendations for future researchers 14 - Demographics must be explored further to ascertain the disparity of emotional intelligence levels in men and women - This study only chose sample in enterprises in north of Vietnam, Future research could examine larger samples of age groups and/or work teams Geographical regions also could be included - Further research also should focus on emotional intelligence, leadership styles and employee performace in specific fields, such as the service industry, retail, or financial institutions to name a few 15 [...]... among emotional intelligence, leadership styles and employee performance This results showed that a combination of the various leadership styles and emotional intelligence of the leader will bring more effective and enhance employee performance However, out of four leadership styles, the visionary leadership combine leader’ emotional intelligence has negative effect on employee i.e with the same level of. .. intelligence in a enterprise in Hanoi, Vietnam In terms of this research, employee performance, leadership styles and emotional intelligence were discussed in terms of the research context In an effort to investigate the broad objective of the research, four specific research questions were generated The research question presented at the beginning of this dissertation questioned whether there was empirical... significant linear relationship between emotional intelligence, leadership styles and employee performance The answer of final question was found through testing three hypothesis indicated the emotional intelligence, charismatic leadership has a greater impact on employee performance After a review of the literature on employee performance, leadership styles, emotional intelligence of leaders in Vietnam, ... methodology consisted of the use of three instruments The Leadership styles questionnaires was used to collect information about leadership styles of the leaders and the ECP was used to collect information about emotional intelligence of the leaders The third variable, Employee performance evaluation was captured performance of both leaders and employees The data was analysed using linear regression analysis,... level of emotional intelligence, the leaders show higher level of the score of the visionary leadership seem their employee have the score of performance lower than others 4 Although emotional intelligence and leadership styles had a significant effect on employee performance, the emotional intelligence, charismatic leadership were affected more than others That’s mean subordinates will be inspired... has the strongest effect on employee performance out of four leadership styles Therefore, the charismatic leadership is the most effective leadership styles in Vietnamese companies That is to say, a leader with personal charisma can inspire his/her subordinates and raise their performance and agglomerate group consensus to promote the business performance of the enterprise CHAPTER V SUMMARY OF FINDINGS,... scholars and experts think that excessive division of labor and specialization will make employees feel a drab and boring job Thus, in order to improve performance of employees, leaders should also tend to the charismatic leadership conforming to no conventional patterns and engaging in innovative and normative actions, besides introducing a development and inspiring strategic incentive system When subordinates’... explored further to ascertain the disparity of emotional intelligence levels in men and women - This study only chose sample in enterprises in north of Vietnam, Future research could examine larger samples of age groups and/ or work teams Geographical regions also could be included - Further research also should focus on emotional intelligence, leadership styles and employee performace in specific fields,... taught and improved via training and development activities within the workplace The leaders or the persons who want to become a leader should take part in these programs, it could help increase their emotional intelligence and thus have a positive effect on their leadership performance The ability to manage one’s emotions and the emotions of others has been shown to be an important indicator of success... OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings 1 There exists a relationship between leadership styles and employee performance The results of the linear regression analysis indicate that, at the 5% level of significance, there is a linear relationship between employee performance and leadership styles Furthermore, the results indicate that a visionary leadership has no significant