Mối quan hệ giữa trí tuệ cảm xúc, phong cách lãnh đạo và hiệu suất làm việc của nhân viên

khóa luận, luận văn, thạc sĩ, tiến sĩ, cao học, đề tài

Thai Nguyen University

Socialist Republic of Vietnam

Southern Luzon State University

Republic of Philippines

THE DISERTATION OF DBA

THE RELATIONSHIPS AMONG EMOTIONAL INTELLIGENCE, LEADERSHIP STYLES AND PERFORMANCE OF EMPLOYYEES IN

ENTERPRISES IN HANOI, VIETNAM

Name of Student : Nguyen Thi Thu HuongEnglish Name : Alice

Date of Birth : 13/02/1977

ABSTRACTThis study aims to determine the effect of leadership styles and emotional intelligence onemployee performance The subjects of this study include 375 leaders and 730 subordinates inenterprises in Hanoi, Vietnam The questionnaire has two parallel forms, one for the leaders torate themselves and another in which subordinates can rate owns performance andleadership styles, emotional intelligence of their leaders Leadership styles and emotionalintelligence were identified as the independent variables and employee performance as thedependent variable Data obtained from each of the research instruments was thenstatistically analysed Through linear regression analysis it was concluded that there is asignificant relationship between leadership styles and employee performance, However, onlythree leadership styles: the transactional leadership, the transformational leadership and thecharismatic leadership was seen to have a positive effect on the significant subscales ofemployee performance and a visionary leadership has no significant effect on employeeperformance Simple correlation analysis showed that there is a positive significantlinear relationship between emotional intelligence and employee performance Moreover, thisresults showed that a combination of the various leadership styles and emotional intelligence ofthe leader will bring more effective and enhance employee performance However, out of fourleadership styles, the visionary leadership combine leader’ emotional intelligence has negativeeffect on employee

Finally, although emotional intelligence and leadership styles had a significant effect onemployee performance, the emotional intelligence, charismatic leadership were affected more

than others

This research therefore adds a new dimension to employee performance, leadership stylesand emotional intelligence, since no similar study has been conducted As this research takesplace in the Vietnam context, the findings of this study were expected to provide references to acorporate body in operating the human resource management strategy and developing theleadership style

• All the leaders and employees who took the time to complete the questionnaires.

• Dr Nguyen Thanh Hai and Trinh Thi Hieu, from the International training center ofThai nguyen University, for their help and assistance with the research

• My colleagues in The University of Labour and Social Affair, for their continuousencouragement and support through the good and bad times, and also for helping with theproofreading of the document

Finally, Many thanks and much appreciation to my family members and friends who bothsupported and encouraged me throughout this process

Contents

ABSTRACT ii

ACKNOWLEDGEMENTS iv

LIST OF TABLES vii

CHAPTER I: INTRODUCTION 1

1 Background of the study 1

2 Statement of Objectives 4

3 Statement of the Problem 4

4 Hypotheses 5

5 Significance of the study 5

6 Scope and Limitations of the Study 6

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES 9

2.1.Leadership 9

2.2 Emotional intelligence 18

2.3.Employee performance 23

2 4 Relationship between employee performance, leadership and emotional intelligent 30

CHAPTER III: RESEARCH METHODOLOGY 36

3.1 Research design 36

3.2 Population and Sample 37

3.3 Measuring Instruments Used 37

3.5 Data gathering procedure 39

3.6 Statistical Analysis 40

CHAPTER IV: RESULTS AND DISCIUSSIONS 45

4.1 The Survey Respondents 45

4.2 Relationship Between Leadership Styles and Employee Performance 46

4.3 Relationship Between Employee Performance and Leaders’ Emotional 49

4.4 Relationships among Emotional Intelligence, Leadership Styles and 53

4.5 Most Effective Leadership Style in Vietnamese Companies 54

CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMADATIONS 56

5.1 Summary of Findings 56

5.2 Conclusion 58

5.3 Recommendations 59

5.3.1.Recommendations for the leaders 59

5.3.2.Recommendations for the enterprises 60

5.3.3.Recommendations for future researchers 61

APPENDIXES 62

Appendix G: 78

Appendix H: 79

Appendix I: 80

Appendix K: Covariance Matrix 87

List of References 90

LIST OF TABLES

Table 4.1: Sample and Response Rates………45

Table 4.2 The Distribution of the Participants in Terms of Gender……… 46

Table 4.3 Leadership Style Survey – Item Descriptions………47

Table 4.4: Means and standard deviations of leadership style………48

Table 4.5 Emotional intelligence Survey – Item Descriptions………50

Table 4.7: Means and standard deviations of employee performance………52 Table 4.12 Correlations between Emotional Intelligence and Employee performance….55

CHAPTER I: INTRODUCTION

1 Background of the study

In the global competitive market of today, Human Resources are playing a vital role inalmost all aspects of life and in organizational development As more and more organizationsare making progress, by making the use of human resources, they need some means toincrease the performance in human resource by increasing the efficiency of leaders andtheir followers Emotional Intelligence is playing the vital role in the performance ofthe leaders T.Quang & N.T.Vuong (2002) state that management styles are profoundlyinfluenced by the social cultures in which organisations operate It is important to identify themost suitable style of management to the specific operating circumstances of an organisation.This research investigates the relationships among employee performance, leadership stylesand emotional intelligence in enterprises in Hanoi, Vietnam

To understand clearly that relationships, there is a need to consider some features of theVietnamese culture Vietnam has a deep cultural heritage, which was developed over 4,000years However, Vietnam’s history is characterized by turbulence due to centuries of foreigninvasions and occupations The northern part of Vietnam was strongly influenced by theChinese culture due to 1,000 years of dominance of the Chinese feudalism

In general, the Vietnamese people are hospitable and industrious The history andgeographic vicinity meant that Vietnamese people share many of the cultural and businesspractices of their Chinese neighbours In the words of Hofstede (1980), the Vietnameseculture can be described as high power distance, high collectivism, moderate uncertaintyavoidance, and high context (Swierczek, 1994, Quang, 1997; Ralston et al., 1999)

The high power distance characteristic is present in the daily life of Vietnamese as well

as in business In the family, sons and daughters have to obey parents’ orders Inorganisations, there is a clear subordinate-superior relationship Titles, status, and formalityare very important in Vietnamese society Collectivism has existed for a very long time inVietnam It is characterised by tight social frameworks and self-functioning communities.People expect ‘in groups’ to look after their members to protect them, and provide them withsecurity in return for their loyalty Vietnamese people place importance on fitting inharmoniously and avoiding losing the other’s face In conflicts, they prefer to come out with awin-win situation Vietnamese culture displays moderate uncertainty avoidance People insociety feel threatened by ambiguous situations and try to avoid these situations by providinggreater job stability, establishing more formal rules, and rejecting deviant ideas andbehaviour One of the distinctive features in the Vietnamese society is indirect speech,resulting from the importance of saving face In compensation, the Vietnamese have a verygood sense of humour that surfaces often in every opportunity and conversation

In economy, Vietnam is a nation in transition and a country full of opportunities It has alarge, young, dynamic and highly literate population that has potential to be developed as aresource to attain high levels of sustained economic growth (Quang, 2006) Before 1986,Vietnam was a command economy dominated by large bureaucratic state-owned enterprises(SOEs), an inefficient agricultural base and small family businesses Vietnam started aprofound economic reform in 1986 that aimed to transform the country from a command

economy into market oriented economy called Doi moi.

As a consequence, Vietnam has substantially elevated its economy and the livingstandards of Vietnamese people The country reaped average economic growth rate (GDP) of

over 7% during the 1990s and early 2000s, especially more than 8% in 2006, which made

it one of the highest growing economies in the World (World Bank, 2006)

Excessive reliance on factor accumulation to support rapid growth is bound to beunsustainable There is a limit to how fast factors can grow to support a rapidly growingeconomy Although Vietnam has a large population base, people with necessary educationand skill to work in industry and services are getting increasingly scarce This has led theSEDP to identify skills and human capital as one of the breakthroughs for the next five years

At the same time, rapid growth in credit, which is the basis for brisk growth in capitalaccumulation, has led to macroeconomic instability, forcing the government to pursue atighter monetary policy in recent year

Another sign of weakness in Vietnam’s economy is its persistent macroeconomicinstability For four years in a row, Vietnam has had one of the highest inflation rates in Asia,averaging nearly 16 percent a year between 2008 and 2011 Along with high inflation,Vietnam has also been coping with persistent pressure on its currency, falling levels of foreignexchange reserves, an underperforming stock market, high sovereign spreads and domesticcapital flight It has thus become an exception to the broader trend of the rest of the emergingmarkets in Asia, which are dealing with appreciating currencies, rising foreign exchangereserves, and increasing capital inflow.WEF showed more pessimistic view of Vietnam's two-digit surging inflation situation currently In addition, high state budget deficit ratio (6 percent in 2010) and substandard infrastructure continue to be the major concerns of experts toVietnam (road infrastructure ranked at No 123 and port at No 111) The quality of education,despite gaining significant progresses from last year, was still ranked in the low averagegroup

Global Competitiveness Report (GCR) 2011 - 2012 announced by the World EconomicForum (WEF) ranked Vietnam at the 65th position on a total of 142 countries surveyed Thecountry dropped six spots from last year, losing points in 10 of the 12 indicators considered byWEF For Vietnam to improve this ranking and become more competitive in theglobal environment, it is necessary to find out how enterprises work more efficiently andidentify how human resources are managed by looking into the level of emotional intelligenceand the leadership styles that can possibly facilitate the utilization of human resources to thefullest This is the reason why this study on the the relationships among emotionalintelligence, leadership styles, and performance of employees in enterprises in Hanoi,Vietnam was undertaken.

2 Statement of Objectives

This study was intended to achieve the following specific objectives:

1 To statistically test the significance of relationship between leadership styles andemployee performance;To statistically test the significance of relationship betweenemployees’ performance and leaders’ emotional intelligence;

2 To statistically test the significance of any relationships among emotional intelligence,leadership styles and employee performance; and

3 To identify the leadership style which is most effective in Vietnamese companies

3 Statement of the Problem

This study attempted to examine the relationships among leadership styles, emotionalintelligence and employees’ performance It specifically found answers to the followingspecific problems:

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

2 Is there any relationship between the employee performance and the leaders’ emotionalintelligence?

3 Is there any relationship among emotional intelligence, leadership styles andemployees’ performance?

4 Which leadership style is most effective in Vietnamese companies?

4 Hypotheses

The following hypotheses were statistically tested:

H1: There is a relationship between leadership styles and employees’ performanceH2: There is a relationship between employee performance and emotionalintelligence

H3: There is a relationship among emotional intelligence, leadership styles andemployees’ performance

5 Significance of the study

There has been no known research regarding the relative effectiveness ofemotional intelligence and leadership styles with respect to employees’ performance in aVietnam organisation This study therefore investigated and explored the relationshipbetween employees ’ performance, leadership s t y l e s and emotional intelligence inVietnam organisations

This study offers empirical evidence to prove the role of leadership styles and emotionalintelligence of leaders in their work This information will help Vietnamese leaders improvetheir leadership skills, enhance leadership effectiveness in their work, and help Vietnamese

enterprises have grounds to develop strategies to improve effective use of human resources toincrease competitiveness and success in business.

6 Scope and Limitations of the Study

Scope and Limitations of this study were as follow:

1 One of the main limitations of the literature review was that there was too littleinformation on the Emotional intelligence tool used in this study, especially in the contextrelevant to this study Because emotional intelligence is a new topic in Vietnam, there are toolittle research in this topic which can provide the literature about emotional intelligence in thecontext relevant to this study

2 The data generated by this research is limited to the geography, t he samplecomposition in this research chosed in Hanoi Therefore, in the region the custom and habitscan be affect to behavior of the leaders, maybe they have the similar action for the samesituations in psychology

3 Another shortfall of the sample, there were no differences between males andfemales regarding overall emotional intelligence In fact, the demography can be affect toemotional intelligence and leadership styles

4 Definition of Terms

Emotional intelligence – Emotional intelligene is the capacity for recognizing our own

feelings and those of others, for motivating ourselves, and for managing emotions well inourselves and in our relationships

Leadership –Leadership is defined as a process of social interaction where performance

outcomes are strongly influenced by the leader’s ability to influence the behavior of theirfollowers

Leadership styles - is the manner and approach of providing direction, implementing

plans, and motivating people

Employee’s Performance – Employees’ performance is a relative concept defined in

terms of some referent employing a complex set of time-based measurements of generatingfuture results Employees are performing different jobs in an organization depending upon thenature of the organization They mainly perform tasks are inter-related to achieve thetargets These are to be performed by the employees properly so they can give their best output at the job This will have great impact on the total production, sales, profit, progress andmarket position of the company in the market In this study, employees’ performance will beevaluation through seven factors: Quality, productivity, job knowledge, reliability, Initiative,teamwork, custormer service

Transformational leadership – Transformational leaders are described as leaders who

improve followers’ accomplishments and success by influencing their values and needs.Transformational leaders change their followers’ attitudes, beliefs, and values to align themwith the attitudes, beliefs, and values of the organization Transformational leaders guide theirfollowers towards self development and higher levels of success

Charismatic leadership: Charismatic leaders are describle as one of five types: (1)

socialized charismatic which refers to a leader who is in pursuit of fulfilling the needs of thegroup members and providing intellectual stimulation to them; (2) personalized charismaticreferring to a leader who offers consideration, help, and support to group members only

when it helps to achieve their own goals; (3) office holder charismatic pertaining to aleader who owns respect and recognition through the office or status he holds not because

of his personal characteristics; (4) personal charismatic which refers to a leader who exertsinfluence on others owing to his personal traits and skills not his high status or position; and(5) divine charismatic referring to a leader who is believed to be endowed with a gift ordivine grace

Transactional Leadership: The transactional leadership style as being based ontraditional bureaucratic authority and legitimacy Transactional leaders are able to enticesubordinates to perform and thereby achieve desired outcomes by promising themrewards and benefits for the accomplishment of tasks

Visionary leadership: Visionary leadership is the ability to create and express a

realistic, attainable, and attractive vision of the future for organizations which growcontinuously Visionary leaders should create inspiring and innovative visionsfor their organizations rendering them credible in the eyes of the people in theorganization at the same time

ECP - ECP is abbreviation of Emotional Competency Profiler, it is identified byWolmarans to measure emotional intelligence through seven onstituent competencies: self-motivation; self-esteem; self- management; change resilience; interpersonal relations;integration of “head and heart” and emotional literacy

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES

Introduction

The purpose of this study is to investigate the effects of emotional intelligence andleadership styles and employees’ performance This chapter reviews literature related TOTHE three factorS and the relationships among them The literature review includes thefollowing topics: (1) leadership theories, (2) research and findings on emotional intelligence,(3)employee performance, (4) Relationship between emotional intelligence, leadership andemployee performance

2.1.Leadership

There are various theories of leadership, which attempt to explain the factorsinvolved in the emergence of leadership, the nature of leadership, or the consequences ofleadership (Bass, 1990) These theories attempted to identify various leadership styles,which is the general manner in which leadership is practiced (Barling, Fullagar andBluen, 1983)

2.1.1 Traditional leadership approach

Three traditional leadership approaches that have been developed over time are the trait approach, the behavioural approach and the situational/contingency approach.

Each of these leadership approaches describes different dimensions of leadership, and has

its own effect on the association between the leader and his followers(Senior,1997) The leadership trait model was established in the early 1900s, with its associated theories and

perspectives In essence, this was the first attempt at the theoretical understanding of thenature of leadership Most leadership research before 1945 suggested that certain traits

were inherent in all leaders and were transferable from one situation to another (Hersey andBlanchard, 1988) This research led to the identification of some traits that areinherent in most leaders The trait approach attempts to explain leadership effectiveness interms of the personality and psychological traits of the leader (Maude, 1978) These traitsincluded emotional intelligence; having an extrovert personality (charisma); dominance;masculinity and conservatism and being better adjusted than non-leaders (Senior, 1997).Numerous studies identified emotional intelligence as a critical element for the success

of a leader and as a vital resource for any group (Senior, 1997) Alternative approaches toleadership began to develop after the decline in popularity of trait theories (Swanepoel, etal., 2000) Researchers moved away from assessing individuals in terms of traits, andfocused on assessing how leaders’ behaviour contributes to the success or failure ofleadership (Draft, 1999) But the move away from the trait approach ignited researchwhere leaders were studied either by observing their behaviour in laboratory settings

or by asking individuals in field settings to describe the behaviour of persons in positions

of authority, then applying different criteria of leader effectiveness to these descriptions.This resulted in the development of a leadership-behaviour model which led to the

establishment of the “behavioural school of leadership” The behavioural approach to

leadership suggests that the leader’s behaviour, not the leader’s personalcharacteristics, influence followers (Shriberg, Lloyd, Shriberg and Williamson, 1997).Extensive research has been done in the area of behavioural approaches to leadership Themain behavioural models include the Theory of Lewin, Lippit and White (1939), McGregor’sTheory (1960), the Managerial Grid Model of Blake and Mouton (1964) and the Ohio StateUniversity of Michigan Models (Bass, 1990) The restrictions of these behavioural theories

are their omission of situational factors on the level of leader effectiveness One concern iswhether one particular method of leading is appropriate for all situations, regardless of thedevelopment stage of the organisation, the business environment in which it operates, orthe type of people employed by the organisation (Senior, 1997) The perception ofleadership progressed past the view that there is one best way to lead, and the theoristsbegan to focus on how a leader ought to behave in order to be effective (Senior, 1997).Dissatisfaction with the trait and behavioural theories gave rise to the situational/contingency approach to leadership This approach to leadership examined how

leadership changes from situation to situation According to this model, effectiveleaders diagnose the situation, identify the leadership style that will be most effective, andthen determine whether they can implement the required style (Mullins, 1999; Swanepoel, etal., 2000) Prominent among these theories are Fielder’s Contingency Theory of leadership,the Path-Goal Theory of leader effectiveness which embodies transactional leadership,Hersey and Blanchard’s Life-Cycle Theory, the Cognitive- Resource Theory, and theDecision-Process Theory (Bass, 1998) Situational approaches to leadership have comeabout as a result of attempts to build upon and improve the trait and behaviouralapproaches to leadership The situational approaches emphasise the importance ofthe situation as the dominant feature in effective leadership, together with the leaderand the followers (Mullins, 1999) Different environments require different types ofleadership (Hersey and Blanchard,1988) Situational leadership does not promote an idealleadership style, but rather considers the ability of a leader to adapt to the environment.Situational leadership studies the behaviour of leaders and their followers in varyingsituations (Hersey and Blanchard, 1988) Hersey and Blanchard (1988) argued that there was

no best leadership style, but rather that there could be best attitudes for managers The majoradvance of the situational approach is the recognition that for different development levelsand different types of situations, different leadership styles are more effective.

Organisations and their environments have changed rapidly over the past years and as aresult a new style of leadership, one that is less bureaucratic and more democratic, is needed

in order to ensure the survival of organisations (Johnson, 1995) There have also beennumerous criticisms regarding the traditional approaches already discussed Consequently, anew style of leadership has emerged in order to ensure the survival of organisations and to

overcome limitations of the trait, behavioural and contingency theories of the past The new theories of leadership evolved in reaction to the increasingly sophisticated traditional

models, which became difficult to implement (Bass, 1990; Carlton, 1993)

2.1.2 Recent Approaches to Leadership

This new leadership approach suggests that there are four views of leadership –transactional leadership and transformational leadership, vision leadership and charismaticleadership

2.1.2.1 Charismatic Leadership Theory

Sinha (1995) defines charisma as a ‘‘magical aura’’ which only a few leader may begranted Max Weber (cited in Sinha, 1995) maintains that there are three bases ofauthority which are traditions, rights and privileges and charisma which is synonymouswith heroism and an exemplary character of a person

Owing to his character, strength and skill, super human qualities are attributed to aleader who saves his followers from a crisis or a catastrophic event and becomes an idol

providing direction and inspiration to his followers.

The charismatic leader attaches utmost importance to his vision, speech, capacity

to take risks and above all the emotions of his subordinates (Sinha, 1995) Robert J House(as cited in DuBrin, 1995) identified nine effects which charismatic leaders have on theirfollowers such as group member’s trust in the correctness of the leader’s beliefs, congruencebetween the leader’s and the group’s beliefs, acceptance of the leader, affection for theleader, willing obedience to the leader, identification with and admiration for the leader,emotional involvement of the group member in the mission, challenging goals of the groupmember and belief in the accomplishment of the mission

Later, these nine effects were statistically clustered into three dimensions: referent power refers to the ability of the leader to influence others with the help of his desirable

traits and characteristics; expert power refers to the ability of the leader to influence others through his specialized knowledge and skills; job involvement refers to the ability of

the leader to encourage group members toward the accomplishment of the job(DuBrin, 1995)

Bass (1990) categorized charismatic leaders into five types:

Socialized charismatic: a leader who is in pursuit of fulfilling the needs of the group

members and providing intellectual stimulation to them

Personalized charismatic: a leader who offers consideration, help, and support to

group members only when it helps to achieve their own goals

Office holder charismatic: a leader who owns respect and recognition through the

office or status he holds not because of his personal characteristics

Personal charismatic: a leader who exerts influence on others owing to his personal

traits and skills not his high status or position

Divine charismatic: a leader who is believed to be endowed with a gift or divine grace

2.1.2.2 Transactional leadership

Bass and Avolio (1997) describe the transactional leadership style as being based ontraditional bureaucratic authority and legitimacy Transactional leaders are able toentice subordinates to perform and thereby achieve desired outcomes by promising themrewards and benefits for the accomplishment of tasks (Bass, 1990) Bass (1990) describes thetransactional leader’s relationship with the subordinates as having three phases Firstly, herecognises what subordinates want to get from their work and ensures that they getwhat they want given that their performance is satisfactory Secondly, rewards andpromises of rewards are exchanged for employee’s effort Lastly, the leader responds tohis employee’s immediate self interests if they can be met through completing the work.Transactional leaders are those leaders who implement structure and are understandingtowards their employees (Senior, 1997) Bass (1985:27) indicates that transactional leaders

“generally reflect on how to marginally improve and maintain the performance, how toreplace one goal for another, how to decrease resistance to particular actions, and how

to execute decisions” This form of leadership emphasizes the clarification of goals,work principles and standards, assignments and equipment (Bass, 1985)

Transactional leaders focus their energies on task completion and compliance and rely

on organisational rewards and punishments to influence employee performance, with rewardbeing contingent on the followers carrying out the roles and assignments as defined by theleader (Bass and Avolio, 2000; Mester, et al., 2003) In other words, the leader rewards

or disciplines the followers depending on the adequacy of the follower’s performance

(Senior, 1997) The transactional leader is known to change promises for votes and workswithin the framework of the self-interest of his or her constituency (Bass, 1990).

The transactional leader pursues a cost-benefit, economic exchange to meetsubordinates’ current material and physical needs, in exchange for ‘contracted’ servicesrendered by the subordinates (Bass, 1985) Therefore, transactional leaders are thought tohave an exchange-based relationship with their followers (Burns, 1978; Senior, 1997) Bass(1985) suggests that transactional leadership uses satisfaction of lower order needs as theleader basis for motivation The focal point of transactional leadership is on roleelucidation The leader assists the follower in understanding precisely what needs to beachieved in order to meet the organisation’s objectives (Bass, 1985)

Leaders who display a transactional leadership style define and communicate thework that must be done by their followers, how it will be done, and the rewards theirfollowers will receive for completing the stated objectives (Burns, 1978, in Bass and Avolio,1990a; Avolio, Waldman and Yammarino, 1991; Meyer and Botha, 2000) Transactionalleadership occurs when leaders approach followers either to correct a problem or toestablish an agreement that will lead to better results Additionally, transactionalleadership concerns the style of leadership where the leader makes work behaviour moreinstrumental for followers to reach their own existing goals while concurrentlycontributing to the goals of the organisations (Brand, et al., 2000)

Transactional leaders are suited to a more stable business environment with littlecompetition, as characterized by the business arena prior to the 1980s (Tichy andDevanna, 1986) In a stable environment, transactional leaders manage what they find andleave things much as they found them when they move on (Howell and Avolio,1993)

However, the current competitive business environment requires a new style of leadership inorder to ensure the organisation’s survival and performance, namely transformationalleadership (Bass, 1985; Brand, et al., 2000).

2.1.2.3 Transformational Leadership

Transformational leadership has emerged as one of the most extensively researchedleadership paradigms to date (Bass, 1985) Perhaps the reason that research ontransformational leadership has become somewhat self-sustaining is that positive resultscontinue to emerge on the effects of transformational leadership (Hater and Bass, 1988).Transformational leadership concerns the transformation of followers’ beliefs, values,needs and capabilities (Brand, et al., 2000) Yukl (1989, in Kent and Chelladurai, 2001:204)defines transformational leadership as "the process of influencing major changes inattitudes and assumptions of organisational members andbuilding commitment for

the organisation's mission and objectives" ransformational leaderstherefore teach their followers to become transformational leaders in their own right (Bass,1994)

Transformational leaders encourage subordinates to adopt the organisational vision astheir own, through inspiration (Cacioppe, 1997) In addition, it is widely accepted thattransformational leadership occurs when people engage with each other in such a way thatleaders and followers raise each other’s levels of motivation (Burns, 1978) Furthermore,these leaders attempt to elevate the needs of the follower in line with the leader’s own goalsand objectives Transformational leadership communicates a vision that inspires andmotivates people to achieve something extraordinary Hughes, Ginnett and Curphy (1994)believe that transformational leaders also have the ability to align people and the systems so

there is integrity throughout the organisation.

Moreover, transformational leaders are responsible for motivating their employees to

go beyond ordinary expectations by appealing to their higher order needs and moral values.This leadership has consistently shown advantages on a range of individual andorganisational outcomes, such as objectives and performance (Bass, 1998) Throughsetting more challenging expectations and raising levels of self and collectiveefficacy, such a leadership style typically achieves significantly higher performance andcommitment levels from their employees (Yukl, 1998; Arnold, Barling and Kelloway,2001; Hater and Bass, 1988 in Mester, et al., 2003) of transactional or transformationalleadership (Bass, 1997; Ristow, 1998) While transformational leadership inspires commongoals and aspirations that tend to transcend followers' individual needs and result inthe attainment of major transformation in work-place effectiveness, it would be narrow-minded to view transformational leaders as the exclusive participants in the process ofleader-follower exchanges Transformational leadership extends transactional leadership

to attain higher levels of subordinate performance, but achieves this addition byutilising various motivational methods and diverse types of objectives and goals (Bass,Avolio and Goodheim, 1987) Barling, et al., (2000) found that subordinates’ organisationalcommitment was positively correlated with the transformational leadership behaviours oftheir supervisors In summary, empirical literature indicates that transformationalleadership is positively connected with leaders’ effectiveness (Bass,1998) Research byPruijn and Boucher (1994) shows evidence that transformational leadership is an extension

of transactional leadership; therefore these two leadership styles are not mutually exclusive,

as a leader may display a varying degree

2.1.2.4 Visionary Leadership

Visionary leadership is the ability to create and express a realistic, attainable, andattractive vision of the future for organizations which grow continuously Visionaryleaders should create inspiring and innovative visions for their organizationsrendering them credible in the eyes of the people in the organization at the same time.Visionary leaders have three qualities, which are related to their effectiveness First, isthe ability to explain and articulate the vision to the others Second, is to express thevision not just verbally but through the leader’s behavior Third, is to communicate thevision to different leadership contexts For example, the vision of the organization shouldappeal to employees in different departments (Robbins,1998)

2.2 Emotional intelligence

The concept of emotional intelligence is not a new one It has been suggested that itwas Aristotle who was the first to mention the importance of emotions in humaninteraction (Langley, 2000) “As Aristotle put it, those who possess the rare skill to be angrywith the right person, to the right degree, at the right time, for the right purpose, and in theright way are at an advantage in any domain of life” (Goleman, 1996 in Langley, 2000:177).But perhaps the first real theory of emotional intelligence came from the writings ofThorndike (1920), who believed that there were different types of intelligence He namedthe type of intelligence that is measured using IQ tests, abstract intelligence The type

of intelligence that is used in understanding and manipulating objects and shapes, he namedconcrete intelligence The third type of intelligence that Thorndike identified was socialintelligence He defined it as “the ability to understand and relate to people” (Bagshaw,2000:63) This third type of intelligence is what is today known as emotional intelligence

In the past fifteen years, much has been written about emotional intelligence and its role

in the workplace The experts in the field of emotional intelligence have offereddefinitions and models to understand the concept of emotional intelligence and its impact

on employee’s life and work The theory of emotional intelligence is developed andconceptualized into three models ability model, traits model and mixed model

According to John Mayer and Peter Salovey emotional intelligence is the ability toaccurately identify and understand one’s own emotional reactions and those of others It alsoinvolves the ability to regulate one’s emotions to use them to make good decisions and to acteffectively

Further, Reuven Bar-On defined emotional intelligence as being concerned witheffectively understanding oneself and others, relating well to people and adapting to andcoping with the immediate surroundings to be more successful in dealing with environmentaldemands

Daniel Goleman defined emotional intelligence as a capacity for recognizing our ownand others feeling for motivating our self and for managing our emotions, both withinourselves and in our relationship (Neal M Ashkanasy et al, 2000) The above definitionsindicate that, for an employee to perform effectively on the job emotional intelligenceabilities are required by the employee The employees who have the ability to manage theiremotions in an effective way are more successful on the job

Models of emotional intelligence have been developed on three aspects that is, ability,traits and combination of ability and traits called as mixed model of emotional intelligence.Ability model of emotional intelligence described emotional intelligence as the “ability to

monitor one’s own and others’ feelings and emotions, to discriminate among them, and touse the information to guide one’s thinking and actions.

Traits model of emotional intelligence viewed emotional intelligence and included cognitive competencies such as self-esteem, self-actualization, general mood, and generalwell-being As would be expected, measures based on trait approaches to emotionalintelligence do not correlate highly with measures of intelligence However, they stronglycorrelate with personality measures, leading researchers to refer to this approach asemotional intelligence as personality

non-Mixed Model of emotional intelligence is a combination of ability model and traitsmodel of emotional intelligence The mixed model denotes the idea that emotionalintelligence assesses aspects of personality and cognitive intelligence in addition to theemotional intelligence (Schutle, 2006)

David Wechsler, (1940) viewed intelligence as an effect rather than a cause andbelieved that assessments of general intelligence is not sufficient but also non-intellectualfactors, such as personality, influence the development of an individual’s intelligence

H.Gardner, (1983) developed social intelligence and referred to two types of personal

intelligences interpersonal and intrapersonal Payne, (1986) coined the term, emotionalintelligence, in a doctoral dissertation This qualitative study proposed that one can overcomedeficiencies in emotional functioning and regulation by showing strength in the face of fear ordesire Reuven Bar-On, (1997) developed the term “EQ” (“Emotional Quotient”) anddescribed his approach to assess emotional and social competence He created the EmotionalQuotient Inventory (EQ-i), which is the first test of emotional intelligence Psychologists JohnMayer and Peter Salovey, (1990) published their article, “Emotional Intelligence,” in the

journal Imagination, Cognition and Personality Daniel Goleman, (1995) brought emotionalintelligence to the mainstream He reviewed the work of John Mayer and Peter Salovey anddeveloped his own model of emotional intelligence.

Recently, Wolmarans (2001) identified several constituent competencies of emotionalintelligence that were used to develop the ECP to measure emotional intelligence.According to Theron and Roodt (2001), a multi-subordinate assessment provides theindividual (ratee) with holistic feedback which is seen to facilitate personal growth.Wolmarans (2001) believes that the purpose of the ECP is to allow the individual to lookat:

• emotional skills in a “mirror” through his own eyes;

• behaviour through the eyes of other people, as indicated by the ratings ofothers; and

• strengths and development areas

The competencies measured by the ECP are based on a content analysis of currentleadership competency requirements as outlined by various authors and serviceproviders (Wolmarans, 1998) The ECP divides emotional intelligence into seven constituentcompetencies or clusters: self-motivation; self-esteem (and self-regard); self-management;change resilience; interpersonal relations; integration of ‘head and heart’; and emotionalliteracy (Wolmarans and Martins, 2001)

Self-motivation refers to the ability to create a challenging vision and set goals, and isalso the ability to remain focused and optimistic despite any setbacks that may occur inobtaining set goals Self-motivation means taking action every day and remainingcommitted to a particular cause Finally, self-motivation requires taking responsibility for

one’s successes and failures (Wolmarans and Martins, 2001) Self-esteem refers to “anhonest, objective and realistic assessment of, and respect for, one’s own worth as an equalhuman being” (Palmer, et al., 2005:10) Having self- esteem includes unconditional,non-defensive acceptance of one’s talents, values, skills and short-comings According toWolmarans and Martins (2001), a high self- esteem is illustrated by the ability to have thecourage to stand by one’s values in the face of opposition, as well as the ability to admit

to mistakes in public and even possibly laugh at oneself, if and when appropriate management refers to the ability to manage stress and harness energy in order to createwellness and a healthy balance between body, mind and soul, without neglecting one

Self-in order to gratify another The concept of self-management is displayed through theability to remain calm during conflict and provocative situations, while at the sametime keeping defensiveness to a minimum and ultimately restoring rationality with theaggravated party (Wolmarans and Martins, 2001)

Change resilience indicates that one is able to remain flexible and open to new ideasand people, encouraging the necessity for change and improvement, but taking into accountthe emotional impact that this change may have on other individuals “An advancedlevel of change resilience is demonstrated by an ability to cope with ambiguity, tothrive on chaos, without forcing premature closure, and to get re- energised by thebeautiful scenes encountered along the way, as well as the anticipation of theunknown” (Wolmarans and Martins, 2001 in Palmer, et al.,2005:11) Interpersonalrelations are characterised by an intuitive understanding of, and a deep level of caring andcompassion for, people This means one needs to have a real concern for otherpeople’s well-being, growth and development, as well as taking pleasure in and

recognising their success Interpersonal relations involve motivating others by setting highexpectations and willing them to commit to a cause It also includes the ability to be ateam leader as well as a team contributor in order to achieve set goals A high level ofinterpersonal relations is demonstrated through the ability to connect with others on anemotional level and by being able to build trust and loyalty in order to sustain long-term relationships (Wolmarans and Martins,2001) The integration of ‘head and heart’ isthe ability to access the functions of both sides of the brain This involves using one’s headand one’s heart – or the facts as well as feelings and emotions – in order to make decisionsand solve problems.

An ability to turn adversity into opportunity and to make intuitive and implementablebreakthroughs during moments of crisis demonstrates an advanced integration of ‘headand heart’ (Wolmarans and Martins, 2001) Wolmarans (2001) model of emotionalcompetence is particularly relevant to this research study as it was developed for use in theViet nam context, and is a statistically validated emotional intelligence assessment tool

2.3.Employee performance

The topic of performance is not a straightforward one (Corvellec, 1995) Anorganisation is judged by its performance The word “performance” is utilised extensively inall fields of management Despite the frequency of the use of the word, its precise meaning

is rarely explicitly defined by authors even when the main focus of the article or book is onperformance The correct interpretation of the word performance is important and must never

be misread in the context of its use Often performance is identified or equated witheffectiveness and efficiency (Neely, Gregory and Platts, 1995) Performance is a relativeconcept defined in terms of some referent employing a complex set of time-based

measurements of generating future results (Corvellec, 1995) Performance is important to

us as people and organisations In fact, most of us believe that we can, and will, improve atwhat we do, and we expect others to improve over time as well (Temple, 2002) Peopleare an organisation’s greatest assets: individuals and organisations have learned about theimportance of the role of people in an organisation, and how the success of an organisationdepends on its people (Bartlett and Ghoshal, 1995) The role of human resources isabsolutely critical in raising performance in an organisation (Armstrong and Baron,1998) Ultimately it is the performance of many individuals which culminates in theperformance of an organisation, or the achievement of goals in an organisational context(Armstrong and Baron, 1998)

Organisational performance worldwide has been deeply affected by theever-changing environment, competition, new challenges, economics and globalisation(Hayward, 2005) Employees play a massive role in organisational performance, becausewithout them there is no organisation (Hayward, 2005) However, one needs to bear in mindthat the nature of performance is dictated by the organisation and the environment, and not

by the individuals involved (Mullins,1999)

Human resources can play key role in helping a company gain a competitive edge (e.g.through selection, recruitment, training or strategies) (Brewster, Carey, Doling, Grobler,Holland & Wärnich, 2003) However, what makes the company outstanding and competitive,

is its leadership, superior leaders have the capacity to optimise the performance of theirpersonnel This, in turn impacts on organisational performance in general (Hayward, 2005).Individual performance can be defined as actions and behaviours individuals carry outwhich are linked to company goals (Campbell, et al., 1993) In order for any company to

reach its goals and strategic objectives, individual performance needs to be managedeffectively and efficiently (Amos, Ristow & Ristow, 2004) It is through the individuals(their attitudes and actions) that the company is able to achieve a competitive edge(Sutherland, De Bruin & Crous, 2007) Individual performance is in fact the most criticalcomponent impacting companies’ success (Meihem, 2004).

Individual performance is influenced not only by employees’ behaviour andpersonal characteristics but also by external circumstances Six main external factorsinfluence one’s performance (Cascio & Aguinis, 2005):

environmental and organisational characteristics (situational factors): factors, such

as turnover or absenteeism, empowerment, policies and role clarity can potentially have asignificant impact on one’s performance, especially those in leadership positions (Cascio &

Aguinis, 2005; Funder, 1994; Sutherland et al., 2007)

environmental safety: accidents and injuries may affect outputs

life space variables: circumstances (such as life stability, personality match with a directreport) that surround an employee on and off the job

job and location: factors such as policies and practices of an organisation

leadership: managers may impact on individual performance by encouraging competenceand creating a culture in which competence is valued (Cascio & Aguinis, 2005)

Dispositional factors such as personality, attitude, motivation, ability, EI and behaviouralso play a significant role in employees’ performance, where personality is concerned,conscientiousness has the greatest impact on a person’s performance (Johnson, 2003;

Sutherland et al., 2007) In a study of organisational factors, empowerment was identified as

one of the main factors influencing individual performance (Liden, Wayne & Sparrowe, 2000;

Spreitzer, 1995) Awareness of the different factors that impact on work performance helpsone to consider different ways of managing and measuring performance.

Performance appraisal (PA) is an important management tool to assess employees’efficiency in the workplace, and may be defined (Pearce & Porter 1986), as a structuredformal interaction between a subordinate and supervisor that usually takes the form of aperiodic interview (annual or semi annual) to evaluate the work performance PA is intended

to engage, align, and coalesce individual and group effort to continually improve overallorganisational mission accomplishment (Grubb 2007) It provides a basis for identifying andcorrecting disparities in performance Thus, it is activities oriented and is a rational,formalised, legitimate test using observation and judgment Systematically, PA reviews eachemployee’s work performance during a specific period, evaluates and records it for futurereference Essentially, weaknesses and strengths of individuals are examined and discussed toidentify opportunities in view of establishing improvement and skills development Manyauthors (Oberg 1972, Colby & Wallace 1975) have pointed out the shortcomings of existingappraisal systems They have noted that many appraisal systems are: (a) not relevant toorganisational objectives, (b) subject to personal bias, and (c) are often influenced moreheavily by personality than by performance With a view to eliminate these shortcomings, anattempt with a computer based tool called Data Envelopment Analysis (DEA) is used in thepresent work to evaluate the performance Nevertheless, several have agreed that welldesigned and properly used appraisal systems are essential for effective functioning oforganisations (Slusher 1975)

For a long period, PA has been one of the most researched topic areas in the fields ofIndustrial- Organisational Psychology and Human Resource Management The face oftraditional Human Resource (HR) services in progressive organisations is currentlyundergoing a dramatic change According to Renton (2000), the focus in future will be muchmore on guiding and implementing business strategy and much less on managing established

HR functions As a result, professionals in the HR field are increasingly being challenged totake a more strategic perspective on their role in the organisation According to Becker,Huselid and Ulrich (2001), as HR professionals respond to this challenge, measuring HRperformance consistently emerges as a key theme Grote (2002) indicated PA enablesmanagers to mobilise the energy of the people to achieve strategic goals A PA system cantightly link strategy (mission, vision and values) with daily performance Many companiespay close attention to the hard science of performance measurement, particularly the financialand operational sides, while successful companies play equal attention to the art, which is thesofter aspect of selecting and applying performance measures (Singh & Finn 2003)

An effective PA programme should do more than set salary and promotion decisions onpast performance It should aid in the development of a performance improvement plan thatutilises coaching from the department supervisor or manager to increase skills development.This puts it in the same category as training, which is all about looking ahead and developingpractical programmes that result in improved performance The interest is perceptible in asmuch as organisations appraise employee performance for a variety of purposes PA forms thefoundation for many HR functions, effectively setting the standards to drive recruiting efforts,and it is customary to use these criterion in hiring, promoting, evaluating and equitably

compensating employees, and forming the basis for many employee training programmes(Gibson, Harvey & Harris 2007).

There is an obvious need for tools to improve the PA process A great deal of effort hasbeen made in this direction to develop suitable software tools, which can act as ‘consultants’for managers The advances in computer technology and the computer based techniques forhandling information allow the development of decision support systems that can play acrucial role in the progress of a firm (Alexouda 2005) Organisations are preparing reports orprofiles periodically for each employee The profiles include detailed information regardingwages/salaries costs, utilisation of resources, and outcome quality (e.g., cost per product, andreworking rates) These indicators are compared against performance in other organisations.Multiple factors involved profiling can effectively identify underutilisation of inputs, uncoverproblems with the efficiency and quality of work, and assess an individual’s performance(Sherman 1984) These profiles are designed to generate a specification, if the performanceindicators for a particular employee differ from the average by a certain amount Andappraisal results are used, either directly or indirectly, to determine reward outcomes (Colby

& Wallace 1975) as well as to identify the poor performers who may require some form ofcounselling, or training, or in extreme cases, demotion, dismissal or a decrease in pay Sinceemployees consume sizable portions of investment, the better management of employees canhave a significant impact on the overall efficiency of the organisation This PA system isschematically illustrated in Figure In general, the PA (Scheneier, Richard & Lloyd 1986) isconcerned with three possible measures namely assessing results, behaviours, and personalcharacteristics Each dictates a specific type of appraisal format based on competency or job

related behaviour These forms of appraisals are made by single or multi subordinate (two ormore of supervisor/ peer/self/subordinate/outsider).

T R Manoharan, C Muralidharan & S G Deshmukh(2011) said that there are manymethods of performance appraisal It is based on qualitative features, quantitative dimensionsand is objective in nature The former two elements take the category of either an absolute or arelative standard These forms of appraisals are normally made by a supervisor, teammembers, peers, self, a subordinate or even an outsider Organisation managements establishperformance standards and devise instruments and methods that can be used to measure andappraise an employee’s performance

T R Manoharan, C Muralidharan & S G Deshmukh(2011) also give a method, which

is called data envelopment analysis DEA focuses on the best practices of efficient employeesfor the purpose of improving overall performance Unlike traditional performance appraisalsDEA searches for the efficient employees who will serve as peers The DEA process identifiesinefficient employees, magnitude of inefficiency and aids to eliminate inefficiencies with arelatively easy to employ framework This study supports the ideas that rating formats needreexamination with a focus on computer based models as an alternative to traditional ratingmethods Earlier adopted methods have seldom identified and quantified the individual factorsfor inefficiency whereas DEA could overcome these shortfalls Based on the results of DEAthe improvement of employees’ performance are possible by way of providing training, talentenhancement and further qualification wherever required

Humance resource of Princeten University show a Staff Performance Appraisal based

on 6 factors, which is quality of work, flexibility, initiative, dependability, interpersonalrelations, safety complian In addition, they add 6 factors for supervisory personnel and

members of the administrative staff, which is: organization, comminication ability, facingissues, utilization of resource, staff development and affirmative action.

West Virginia Division of Personnel Employee Relations Section( 2005) give also 6factors for employees and add three factors for supervisors and managers Include maintainsflexibility, demonstrates credibility, customer service, quanlity of work, quality of work andavailability for work

This study researchs enterprises in Viet nam context, it is suitable to appraisal employeeperformance throw 6 factors: maintains flexibility, demonstrates credibility, interpersonalrelations, quanlity of work, quality of work and availability for work

2 Relationship between employee performance, leadership and emotional

intelligent

In the global competitive market of today, Human Resources are playing a vital role inalmost all aspects of life and in organizational development As more and more organizationsare making progress, by making the use of human resources, they need some means toincrease the performance in human resource by increasing the efficiency of leaders andtheir followers Emotional Intelligence is playing the vital role in the performance ofthe leaders and the efficiency of leadership skills Despite the very valued job that emotionalintelligence could play in enhancing individuals’ recital and line of work prospects inadministration, people employed, managers and line of work professionals through the worldare still in search of practical frameworks for understanding the concept This isbecause emotional intelligence examine end yield from academics still continue mostly asrelationships, co-variations and associations between emotional intelligence and other

variables Next to summarizes key points in the research on Relationship between employeeperformance, leadership and emotional intelligent.

Brett Antony hayward (2005) examined the linkage between emotional intelligence,leadership, and employee performance, Leadership and emotional intelligence wereidentified as the independent variables and employee performance as the dependent variable.Data obtained from each of the research instruments was then statistically analysed.Through linear regression analysis it was concluded that there is a significantrelationship between employee performance and an emotionally intelligent, transactionalleader However, no significant linear relationship was found between employee performanceand an emotionally intelligent, transformational leader Simple correlation analysisshowed that there is a relatively weak significant linear relationship betweenemotional intelligence and transactional leadership Moreover, it was found that there is avery strong significant linear relationship between emotional intelligence andtransformational leadership

Hsin-Kuang Chi and Hsien-Pei (2007) aimed to study the relationship among leadershipstyles, organization commitment and emotional intelligence affected to salespeople’s jobperformance The study examined the relationship through transformational andtransactional leadership styles influenced job performance by mediating the effect oforganization commitment and also explored the moderating role of emotional intelligence onthe relationship between leadership styles and job performance Results obtained fromsurveying a sample of 186 salespeople in Thailand showed that organization commitment wascomplete mediating the relationship between leadership styles and job performance

Similarly, the emotional intelligence of salespeople was moderating the relationship betweenleadership styles and job performance.

Lisa Gardner and Con Stough (2001) Investigates whether emotionalintelligence measured by the Swinburne University Emotional Intelligence Test

predicted transformational, transactional and laissez-faire leadership styles measured

by the multifactor leadership questionnaire in 110 senior level managers Effectiveleaders were identified as those who reported transformational rather thantransactional behaviours Emotional intelligence correlated highly with all components

of transformational leadership , with the components of understanding of emotions(external) and emotional management the best predictor s of this type of leadershipstyle The utility of emotional intelligence testing in leadership selection anddevelopment is discussed

Gardner and Stough (2002) investigated whether emotional intelligence measured by theSwinburne University Emotional Intelligence Test (SUEIT) predicted leadership stylemeasured by Bass’s (1985) Multifactor Leadership Questionnaire (LEADERSHIP STYLES).Results supported a strong relationship between transformational leadership and overallemotional intelligence This study provides strong evidence for the usefulness of emotionalintelligence in identifying effective leaders (Gardner & Stough, 2002) The results indicatethat two SUEIT dimensions (the ability to identify and understand the emotions of others andthe ability to manage positive and negative emotions within themselves and with others)stimulate effective leadership styles

Examining the relationship between Performance Based Emotional Intelligence andTransformational Leadership Behavior of Senior Managers, Deepika Dabke and V.N.Bedekar

(2012) revealed that overall emotional intelligence and Strategic emotional intelligence werepositively correlated to Intellectual Stimulation, Individualized Consideration,Inspirational Motivation and Idealized Influence Behavior components of TransformationalLeadership, whereas Experiential emotional intelligence correlated with only the IntellectualStimulation, and Inspirational Motivation component.

Barbara A Alston (2009) provide empirical evidence for relationships between theemotional intelligence and leadership practices with multiple regression analysis byregressing the four dimensions of emotional intelligence on LPI, the dependent variable Onlyone of the emotional intelligence factors, the appraisal of emotion in self or others, issignificantly related to leadership In addition, there is one demographic variable that issignificantly related to leadership Therefore, years of supervision is positively related toleadership Today, successful leaders are defined by inspiring and motivating others,promoting a positive work environment, perceiving and understanding emotions, and fostering

an organizational climate in which people turn challenging opportunities into successes.This investigation explored the relationship between emotional intelligence andleadership practices This researcher used the Schutte Self Report Emotional Intelligence Test(SSEIT) (Schutte et al., 1998) to assess emotional intelligence of managers, and Kouzes andPosner’s (1995) Leadership Practices Inventory (LPI) to measure leadership practices.Emotions play a key role in decision-making This study supports the position that emotionalstability and emotional intelligence are important factors for organizational leadership MagdaGryn (2010) studied whether there is a relationship between perceived emotional intelligenceand job performance among inbound call centre leaders in the medical aid environment The