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Chapter 1: Introduction

1.1 Background Statement

Emotional Intelligence (EI) of leaders has been recognized as a key factor in influencing the work environment within organizations (Goleman, 1998). The leaders who are aware of their emotions and thus practise the associated skills have been recognized to enhance growth and development within an organization (Goleman, 1998). In this period of globalisation, the management of human resources contributes positively to the efforts of an organization to remain competitive in difficult external environments (Momeni, 2009). For the growth of an organization, the presence of consistent and committed followers has been extremely important.

It has been observed that job satisfaction of followers is directly related to organizational commitment (Lacity, Iyer, and Rudramuniyaiah, 2008).Turnover intentions can be considered as an indicator of the commitment of the followers towards the organization and their involvement towards their job (Momeni, 2009).  The extent of turnover intentions can have adverse effects on costs of operations of an organization (Tziner and Birati, 1996).

The concept of emotional intelligence was popularized by the Goleman as he described it has the ability to manage and control one’s emotions and use these abilities to deal with other individuals (Anbu, 2008). Employee turnover can be measured as the ratio of the number of followers leaving their jobs to the average number of followers in a given period of time (Price, 1977). The presence of emotional intelligence in leaders benefits the followers as they can use these abilities to better understand the social relationships and thus take actions to reduce the stress and negative emotion in the work environment. The purpose of the paper is to study the impact of emotional intelligence on job satisfaction and turnover intentions of the subordinates.

 

1.2 Significance of the Research

The significance of the study is to measure whether emotional intelligence of the leaders has any impact on the job satisfaction and the turnover intentions of the followers. The employee turnover significantly affects the productivity of a firm (Bergiel et al., 2009). This is because it is associated with the cost of training the followers who left the organization and also the cost related to the recruitment and selection of the employees. The results of the study may lead to better understanding of the employee turnover intentions and assist the organizations to develop better strategies to reduce the turnover of followers. According to the existing literature, the incorporation of emotional intelligence in the college curriculum enhances the team performance of students in group projects and also contributes to the personality development of students (Myers and Tucker, 2004).

 

1.3 Aim and Objectives

The aim of this study is to identify the effects of emotional intelligence of leaders on employee’s job satisfaction and turnover intention. Thus the objectives of the paper are as follows:

  1. To determine the effects of emotional intelligence of the leaders on job satisfaction of the followers.
  2. To identify the impacts of emotional intelligence of leaders on turnover intention of the followers.
  3. To identify the factors that caused to employee’s turnover intention.

 

1.4 Structure of the Research

The first chapter in the research paper introduces the reader to the subject matter of the study as it describes the background statement of the topic of research. This section also describes the significance of carrying out the particular analysis and how it will help the organization to improve their productivity and increase the competitive advantage. Moreover, purpose of the study and the specific objectives to be pursued during the research work has been stated in this section.

In Chapter 2, a literature review has been provided on the evolution of emotional intelligence, job satisfaction and turnover intentions. Moreover, the relation among the emotional intelligence and job satisfaction and the turnover intensions has also been studied based on the existing literature. Also, the gap in research about the impact of the emotional intelligence on the job satisfaction and intentions of employee turnover has been described. The null as well as alternative hypotheses have been formulated in this section.

In Chapter 3, the methodology followed in the paper to evaluate the impact of emotional intelligence on the job satisfaction and turnover intensions has been explained. This includes the description of the different research philosophy, research approaches and the research methods that are widely used in the field of research. This chapter also explains the benefits and limitations of the different research methods and why a particular research method is used in the paper. The quantitative research approach is taken to develop the model to measure the impact of emotional intelligence on the job satisfaction of followers and the extent to which they are ready to change the job. The first data has been collected on the influences of emotional intelligence of the leaders on employee’s satisfaction and turnover intention Bank of China, ICBC (Industrial and Commercial Bank of China), Agricultural Bank of China, CCB (China Construction Bank), CMBC (China Minsheng Banking Corp.Ltd.), etc.

A set of questionnaire were designed to collect data on emotional intelligence and also data on job satisfaction from the followers in the institutions. The other questionnaires were based on the data collected regarding the demographic variables of the   followers. The data has been analysed with the help of Statistical Package for the Social Sciences (SPSS).

This section also describes the sampling technique used to choose the sampling units from the population and also the detailed analysis of the data collected from the banking institution. The reliability of the measures used to analyse the data has also been stated in this section of the paper.

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