Import nce of emotional

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Import nce of emotional

  1. 1. Aarhus School of Business Master ThesisUniversity of Aarhus August 2008  Emotional IntelligenceThe Importance of Emotional Intelligence in the Recruitment Process     Margrét Grétarsdóttir 280040 Supervisor: Frances Jørgensen
  2. 2. Emotional Intelligence Executive SummaryThe idea with this paper is to investigate the term emotional intelligence and its importanceduring the recruitment process. Over the last few decades a continuous growth has been in theinterest in the area of leadership, with both managers and leadership researchers trying toidentify the behaviour which increases a leader’s effectiveness. Despite of research, thereappears to be little emerging consensus regarding what characterises an effective leader. Italso seems to be quite common to recruit managers on the basis of their technicalqualifications rather than their ability to communicate with others which could be prevented,or at least minimised, by taking so called “soft” management procedures (focus on thepersonal aspects in working environment) into considerations during the recruitment process.Recently, emotional intelligence as a predictor of effective leadership has gained the attentionof researchers and recruiters. Emotional intelligence can be generally defined as a set of non-cognitive competencies that are linked to interpersonal effectiveness or “people skills” atwork. More specifically, emotional intelligence includes the ability to monitor one’s own andothers’ feelings and emotions, to discriminate among them, and to use that information toguide one’s thinking and actions. Emotional intelligence has become extremely popularwithin the fields of management because it is thought to underlie various aspects of workplaceperformance and success not accounted for by traditional intelligence measures or personality.The research question put forward in the paper is: “to what degree are managers recruitedand selected on the basis of emotional characteristics versus technical qualification?” Inorder to connect theories of emotional intelligence with reality interviews were conductedwith six HR managers of different companies in Iceland. They were all asked the same tenquestions and the findings indicate that managers are being recruited on the basis of theiremotional intelligence characteristics rather than technical qualifications but that the bestcombination would be good people skills as well as good technical qualifications. Gradeswere also mentioned in connection to this which contradicts the theories that this paper wasbased on. According to researchers David McClelland and Daniel Goleman grades in schooland IQ do not indicate how likely it is that an individual will succeed in life and at a workplace. 2
  3. 3. Emotional Intelligence No evaluation measure gives perfect results. Self-evaluations are vulnerable to skews frompeople wanting to look good. Therefore, when it comes to assessing emotional competencies,there is always the danger that a person with low self-esteem does not evaluate accurately hisor her own strengths and weaknesses. Even though self-evaluations can be helpful, if peoplereally trust that the results will be used for their own good, they can be less reliable withoutthis trust. Having emotionally intelligent managers does not guarantee that the company gainsmore market share or a better bottom line but research throughout the years have indicatedhow important the human mind is for the growth of organisations and therefore “soft”management like emotional intelligence has gained increased popularity.The outline of this paper is twofold; the first two chapters cover theories of traditionalmanagement and leadership and the main chapters cover the concept of emotionalintelligence, both in theory and practice. It is important to understand the evolution ofmanagement because management problems remain mostly the same over time. While valuesystems and perspectives may have changed, experts have gained a better understanding ofwhat motivates employees.In the beginning of the twentieth century Mary Parker Follett pointed out in her behaviouraltheory that the role of the manager and his influence on employees was becoming more andmore important. Henry Fayol argued that leaders emerged from managers’ authority derivedfrom their position in the hierarchy but Follett proposed that knowledge and expertise shoulddecide who would be the leader at any particular moment. Characteristics of managers arevery personal but they are very important for understanding how managers behave, how theytreat and respond to others and how they help contribute to organisational effectivenessthrough the four managerial functions; planning, leading, organising and controlling.When people approach tasks in life with emotional intelligence they should be at anadvantage to solving problems. The kind of problems that people identify and the way theyhandle them will probably be more related to internal emotional experience. Such individualsare more likely to choose a career that will make them happy instead of thinking how muchthey will earn and they are also more likely to be more creative and flexible in arriving atpossible alternatives to problems. Individuals who have developed skills related to emotional 3
  4. 4. Emotional Intelligence intelligence understand and express their own emotions, recognise the emotions of others andthey also use moods and emotions to motivate adaptive behaviour.A person with emotional intelligence can be thought of as having attained at least some formof positive mental health. These individuals are aware of their own feelings and those ofothers, are open to positive and negative aspects of internal experience and are able tocommunicate them when appropriate. This leads to the fact that an emotionally intelligentperson is often a pleasure to be around, has good influence and makes others feel better. Thisperson however does not mindlessly seek pleasure, but rather attends to emotions which leadto growth.People are being judged by new yardsticks and it is not how smart they are or what kind ofeducation they have or expertise, more focus is on how people handle themselves and others.This yardstick is becoming more important and is increasingly applied when choosing whomto hire. This new measurement focuses on personal qualities but takes for granted peoplesintellectual abilities and technical skills. Emotional intelligence is even more crucial today,because organisations are shrinking and the people who remain are more accountable andvisible. 4
  5. 5. Emotional Intelligence Introduction ................................................................................................................................ 6 1. Traditional Management ........................................................................................................ 9  1.1 Theoretical Scope of Management ...................................................................................................... 11  1.2 Management Theories ......................................................................................................................... 13  1.2.1 The Universal Process Approach ................................................................................................. 14  1.2.2 The Operational Approach ........................................................................................................... 16  1.2.3 The Behavioural Approach .......................................................................................................... 18  1.2.4 The Systems Approach ................................................................................................................ 20  1.2.5 The Contingency Approach ......................................................................................................... 21  1.2.6 The Attributes of Excellence Approach ....................................................................................... 22 2. Leadership ............................................................................................................................ 24  2.1 Models of Leadership .......................................................................................................................... 27  2.1.1 The Trait Theory .......................................................................................................................... 27  2.1.2 The Behaviour Theory ................................................................................................................. 28  2.1.3 The Contingency Theory ............................................................................................................. 28  2.1.4 The Transformational Theory ...................................................................................................... 29  2.2. Management vs. Leadership ............................................................................................................... 30  2.3. The Human Side of Managers ............................................................................................................ 32 3. Emotional Intelligence ......................................................................................................... 35  3.1 Theoretical Scope of Emotional Intelligence ....................................................................................... 37  3.2 Models of Emotional Intelligence ........................................................................................................ 41  3.2.1 The Abilities Model ..................................................................................................................... 42  3.2.2 The Mixed Model ........................................................................................................................ 43  3.3 Emotional Intelligence and Its Effect on Leadership ............................................................................ 46  3.4. Emotional Intelligence and the Recruitment Process .......................................................................... 47  3.4.1. The Selection Process ................................................................................................................. 48 4. Emotional Intelligence in Reality ......................................................................................... 50  4.1 Business Research Methods ................................................................................................................ 51  4.2 The Research Method .......................................................................................................................... 52  4.3 The Process of the Interviews .............................................................................................................. 54  4.3.1 Participants .................................................................................................................................. 54  4.3.2 The Interviews ............................................................................................................................. 55  4.2 Findings of the Interviews ................................................................................................................... 57  4.3 Analysis of Findings  ........................................................................................................................... 59  .5. Discussion of Findings ......................................................................................................... 62  5.1 Evaluation of Methods and Findings ................................................................................................... 64 6. Conclusion ............................................................................................................................ 65 Bibliography ............................................................................................................................. 67 Appendix 1 ............................................................................................................................... 70 Appendix 2 ............................................................................................................................... 72 Appendix 3 ............................................................................................................................... 74 Appendix 4 ............................................................................................................................... 76 Appendix 5 ............................................................................................................................... 78 Appendix 6 ............................................................................................................................... 80 Appendix 7 ............................................................................................................................... 82 Appendix 8 ............................................................................................................................... 84  5
  6. 6. Emotional Intelligence IntroductionDuring the last few decades a continuous growth has been in the interest in the area ofleadership, with both managers and leadership researchers searching to identify the behaviourwhich increases a leader’s effectiveness. Despite of research, there appears to be littleemerging consensus regarding what characterises an effective leader. Recently, emotionalintelligence as a predictor of effective leadership has gained the attention of researchers andrecruiters. Emotional intelligence can be generally defined as a set of non-cognitivecompetencies that are linked to interpersonal effectiveness or “people skills” at work. Morespecifically, emotional intelligence includes the ability to monitor one’s own and others’feelings and emotions, to discriminate among them, and to use that information to guide one’sthinking and actions.1Emotional intelligence has become extremely popular within the fields of managementbecause it is thought to underlie various aspects of workplace performance and success notaccounted for by traditional intelligence measures or personality. Several studies highlightthat traditional forms of intelligence only account for twenty percent of overall success atwork.2 That leaves eighty percent of the variance unaccounted for. With personality andmotivational measures approximately contributing another ten percent to the puzzle, there stillseems to be a lot that is unknown about what makes some individuals perform better or whysome people are always a step ahead. Therefore, measuring emotional intelligence or the‘softer skills’, as they are often known, could explain what differentiates between who will bean effective leader and who will not.In today’s competitive business world, where the “higher education” level of many leadersand managers is increasing, emotional intelligence has the potential to become a coredifferentiator in terms of selecting the best leaders for organisations. Lack of interpersonalskills can have tremendous influence over the career prospects of highly intelligent, qualified,and experienced professionals and can easily destroy them. Scoring high on IQ tests and1 Salovey and Mayer (1990)2 Goleman (1995) 6
  7. 7. Emotional Intelligence getting high grades in school counts for little if the individual has difficulty in dealing withe.g. uncertainty and pressure at work and handles relationship with others badly.3This paper is about emotional intelligence and to what degree managers are recruited andselected on the basis of emotional intelligence characteristics versus technical qualification. Itis important to understand the evolution of management because management problemsremain mostly the same over time. While value systems and perspectives may have changed,experts have gained a better understanding of what motivates employees. In the first chapterthe concept of management is defined and various theories are covered in order to see howthey have developed, where the human mind was considered valuable and made a difference.In the beginning of the twentieth century Mary Parker Follett pointed out in her behaviouraltheory that the role of the manager and his influence on employees was becoming more andmore important. Henry Fayol argued that leaders emerged from managers’ authority derivedfrom their position in the hierarchy but Follett proposed that knowledge and expertise shoulddecide who would be the leader at any particular moment.4 With this in mind the secondchapter is focused on leadership as more and more managers are becoming aware of howimportant different leadership styles are and are trying to incorporate them into their personalleadership style.Characteristics of managers are very personal but they are very important for understandinghow managers behave, how they treat and respond to others and how they help contribute toorganisational effectiveness through the four managerial functions; planning, leading,organising and controlling. The third chapter covers the theory of emotional intelligence andfocus is put on the importance of the emotions of managers and to what degree companiesrecruit and select managers on the basis of emotional intelligence characteristics versustechnical qualifications. This chapter is mostly based on the theory of David McClelland andDaniel Goleman.5In modern management, many words have been written about the value of soft management(focus on the personal aspects in working environment). It is therefore interesting to find out3 McClelland (1973)4 Meyer, et al. (2007)5 McClelland (1973) and Goleman (1998) 7
  8. 8. Emotional Intelligence if this is something that is preached more than practiced, if managers today are reallyfollowing the theories that they claim to do and if this is really something that is being used asa guideline when managers are recruited. Chapter four and five cover this matter with adescription of the research which was conducted in order to connect theory to practice and theresult of that research. 8
  9. 9. Emotional Intelligence 1. Traditional ManagementThe world is changing more rapidly than ever before and managers and other employeesthroughout an organisation need to perform at higher and higher levels. In the last twentyyears, competition between organisations, both nationally and internationally, has increaseddramatically. Managers need to learn and adapt to changes in the global environment in orderto achieve the goals of the organisations.6Today, the term competencies is often used to refer to a specific set of skills, abilities andexperiences that gives a manager the ability to perform at a higher level. Developing suchcompetencies through education and training has become a major priority for managers andthe organisations they work for.To understand better the role of managers it is necessary to define what management is.Management is the organizational process that includes strategic planning, managingresources, deploying the human and financial assets needed to achieve objectives, andmeasuring results. Management also includes recording and storing facts and information forlater use or for others within the organization.Management functions are not limited to managers and supervisors. Every member of theorganization has some management and reporting functions as part of their job. Jones, Georgeand Hill describe management as: “Management is the planning, organising, leading and controlling of resources to achieve organisational goals effectively and efficiently.”7According to them there are a few key concepts; organisations, goals, resources andmanagers. They explain organisations as collections of people who work together andcoordinate actions to be taken to achieve certain goals. These goals, which are to be achieved,are what are desired in the future. Resources are the company‘s assets such as people,machines, information, skills and financial capital. The role of the managers is to supervise6 Meyer et al (2007)7 Jones, George and Hill (2000) 9
  10. 10. Emotional Intelligence the use of the resources so the goals can be achieved.8 Figure one shows the four functions ofmanagement:9Planning is the process that managers useto identify and select appropriate goals andcourses of action. There are three steps inplanning: 1) deciding what the goals of theorganisation are, 2) deciding what actionsneed to be taken in order to achieve thesegoals, and 3) deciding how to allocateorganisational resources to accomplishthem. Planning is a complex activity because normally the goals of an organisation are notimmediately clear. Managers take risks when they commit organisational resources to pursuea particular strategy.Organising is a process which managers use to establish a structure of working relationshipsso that all members of the organisation interact and co-operate to achieve the goals.Organising involves grouping people into departments according to the job-specific tasks theyperform. Managers lay out the lines of authority and responsibility between individuals andgroups and decide how organisational resources can be best utilised.Leading is the process of articulating a clear vision for organisational members to follow. Thisshould enable the members to understand the role they play in achieving organisational goals.An ideal outcome of good leadership is a high level of motivation and commitment oforganisational members.Controlling is the ability to measure performance accurately and regulate organisationalefficiency and effectiveness. Managers evaluate how well an organisation is achieving itsgoals and take action to maintain or improve performance. They monitor the performance ofindividuals, departments and the organisation as a whole and if standards are not met theyneed to take action in order to improve performance.108 Jones, George and Hill (2000)9 Meyer et al. (2007) p. 610 Ibid,. p. 6-9 10
  11. 11. Emotional Intelligence Management is an organizational function but does not necessarily mean managing people; itcan also be the management of other resources like capital sales areas and marketing.Management is like an investment. Managers have resources to invest; their time, talent and,possibly, human resources. The goal (function) of management is to get the best return onsuch resources by getting things done efficiently. This doesnt imply being mechanical ornarrowly controlling as some writers on management suggest. The managers style is apersonal or situational matter and has evolved over time. With highly skilled and self-motivated knowledge workers, the manager must be very empowering. Where the workforceis less skilled or not very motivated, the manager may need to monitor output more closely.Skilled managers know how to vary their style, coach and motivate diverse employees.Getting things done through people is what they do. By saying that management is a function,not a type of person or role, it is easier to account for self-managed work teams where no oneis in charge. In a self-managed team, management is a group effort with no one being thedesignated manager.11Improvements in management have taken place because the relevant stakeholders have foundthat the current management styles are insufficient in dealing with the problems of thefuture.12 The next chapter tells how management theory has developed over time from firstfocusing on how to increase the effectiveness of machines to the importance of the humanmind in the organisational process.1.1 Theoretical Scope of ManagementAs an area of academic study, management is essentially a product of the twentieth century.However, the actual practice of management has been around for thousands of years. Tangibleexamples can be found throughout history, for example the pyramids of Egypt stand asevidence of the ancient world’s ability to manage. Even though Egyptian managementtechniques were coarse by modern standards, many problems they faced are still around 13today. They, like today’s managers, had to make plans, obtain and mobilize human andmaterial resources, coordinate interdependent jobs, keep records, report their progress and11 McCrimmon (2007)12 Meyer et al (2007)13 Kreitner (2001) 11
  12. 12. Emotional Intelligence take corrective action as needed.14 Since the buildings of the pyramids, entire civilizationshave come and gone and management has been practised in each of them. One modernelement has been missing though and that is a systematically record of managementknowledge. In early cultures management was something one learned by word of mouth andtrial and error. It was not something one studied in school or read about in textbooks. 15The evolution of modern management began at the end of the nineteenth century, after theindustrial revolution had swept through Europe and America. As the economy was changing,managers in all kinds of organisations, both public and private, were constantly trying to findbetter ways to satisfy the needs of customers. Major economic, technical and cultural changestook place at this time.16 Utilization of steam powered machines was made more efficient andthe development of new machinery and equipment changed the way goods were produced.This especially applied in the clothing industry as small workshops run by skilled workers,who produced hand-manufactured products, were being replaced by large factories wheremachines were controlled by thousands of unskilled workers who made the products.Managers and owners of the new factories faced problems as they were often engineers whohad the technical skills to support the machinery but often lacked the craft-specific expertise.There were also other problems, for example social problems that occurred when peopleworked together in large groups. Managers had to search for new techniques to manage theirorganisations and soon they began to focus on ways to increase the efficiency of the worker-task mix.17Figure 2 The Evolution of Management Theory1814 Kreitner (2001)15 Ibid,.16 Meyer et al. (2007)17 Ibid,.18 Ibid,. p. 34 12
  13. 13. Emotional Intelligence To begin with, the management theorists were interested in the subject of why the newmachine/factory systems were more efficient and produced greater quantities of goods thanolder production operations. In the mid-eighteenth century, Adam Smith was one of the firstwriters to investigate the advantages associated with producing in factories. He provided atheoretical background to resource-allocation, production and pricing issues. Smith found outthat increasing the level of job-specialisation increased efficiency and led to higherorganisational performance.19 This inspired many managers and researchers to investigatefurther how job-specialisation could be improved in order to increase performance. The focuswas on how managers should organise and control the work processes to maximise theadvantage of job-specialisation and the division of labour.20 Since that time many theorieshave developed throughout the decades and in the next chapter some of these theories will bediscussed.1.2 Management TheoriesTo be able to study modern management it is necessary to provide a useful historicalperspective of management. It is safe to say that no single theory of management isuniversally accepted today. There have been different approaches to management throughouthistory and some of them are: • The universal approach • The operational approach • The behavioural approach • The systems approach • The contingency approach • The attributes of excellence approach.Understanding these general approaches to the theory and practice of management isnecessary to see how management has evolved, where it is today and where it appears to beheaded.2119 Smith (1982)20 Meyer et al. (2007)21 Kreitner (2001) 13
  14. 14. Emotional Intelligence 1.2.1 The Universal Process ApproachThe universal process approach is the oldest and the one of the most popular approaches tomanagement thoughts. According to this approach, the administration of all organizationsrequires the same rational process. One core management process remains the same across allorganisations even though the purpose of the organisations varies. Therefore, successfulmanagers are equivalent among organisations of different purposes. The universal approachcan also be reduced to a set of separate functions and related principles.22In 1916, Henry Fayol published his book Administration Industrielle et Générale. Fayol wasfirst an engineer and later a successful administrator in a large French mining company. Hewas a manager who tried to translate his broad administrative experience into practicalguidelines for the successful management of all types of organisations. It was Fayol’s beliefthat a manager’s job could be divided into five managerial functions which all were essentialto being a successful manager; planning, organising, command, coordination and control.23These five elements were Fayols definition of management roles and actions:24 1. To plan. (Forecast & Plan). Examining the future and drawing up a plan of action. The elements of strategy. 2. To organize. Build up the structure, both material and human, of the undertaking. 3. To command. Maintain the activity among the personnel. 4. To coordinate. Binding together, unifying and harmonizing all activity and effort. 5. To control. Seeing that everything occurs in conformity with established rule and expressed command.His fourteen universal principles of management (see table 1) were intended to showmanagers how to carry out their functional duties.25 Fayol’s elements and principles havewithstood the test of time because of their widespread applicability. These functions can stillbe found in almost all management texts, as Carroll and Gillen put it: “The classical functions still represent the most useful way of conceptualising the manager’s job, especially for management education, and perhaps this is why it is still the most favoured description of managerial work in current management textbooks. The22 Kreitner (2001)23 Ibid,.24 Marino (2008)25 Kreitner (2001) 14
  15. 15. Emotional Intelligence  classical functions provide clear and discrete methods of classifying the thousands of different activities that managers carry out and the techniques they use in terms of the functions they perform for the achievement of organisational goals.26”Table 1. The 14 Management Principles from Henri Fayol (1841-1925)27: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flow from it. 6. Subordination of individual interest (to the general interest). Management must see that the goals of the firm are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system. 8. Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity. 12. Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers. 14. Esprit de Corps. Management must foster the morale of its employees. Fayol further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”Fayol’s main contribution to management thought was to show how the complex process ofmanagement can be separated into interdependent areas of responsibility. His idea was thatmanagement is a continuous process beginning with planning and ending with controlling andthis remains popular today.The functional approach is useful because it describes what managers should do. However, itdoes not help explain why and how something should be done. For that purpose, otherapproaches are needed.28 The basic concerns that motivated Fayol continue to motivatemanagers today. The principles that he set forward have provided a clear and appropriate setof guidelines that managers can use to create a work-setting that makes effective and efficientuse of organisational resources. The principles are a foundation for modern management26 Carroll and Gillen (1987) p. 4827 Marino (2008)28 Kreitner (2001) 15
  16. 16. Emotional Intelligence theory and other researchers have developed them so that they fit in today. An examples ofthis is Fayol‘s thoughts for equity and the links between performance and reward which todayare central themes in modern theories of motivation and leadership.291.2.2 The Operational ApproachThe operational approach is a convenient description of the production-oriented area ofmanagement dedicated to improving efficiency and cutting waste.30 This is a systematic studyof the relationships between people and tasks for the purpose of re-designing the work processin order to increase efficiency. Throughout history this approach has been technically andquantitatively oriented and it has been given many names, such as scientific management,management science and operations management. The best known protagonist of theoperational approach is Frederick W. Taylor who is best known for defining a set ofprinciples which have become known as scientific management.31Taylor was the epitome of the self-made man. In his early life he had problems with his eyeswhich prevented him from going to Harvard University so instead he went to work as acommon labourer in a small machine shop. He later became a manufacturing manager andeventually became a consultant and taught other managers how to use his techniques.It was Taylor’s believe that the production process would become more efficient if theamount of time and effort to produce a unit of output could be reduced by increasing job-specialisation. Based on his findings, Taylor developed four principles to increase efficiencyin the workplace (the four principles are shown on next page).3229 Meyer et al. (2007)30 Kreitner (2001)31 Meyer et al. (2007)32 Ibid,. p. 36-37 16
  17. 17. Emotional Intelligence Table 2. The Four Principles of TaylorPrinciple 1: Study the way workers perform their tasks, gather all the informal job knowledge that workerspossess, and experiment with ways of improving how tasks are performed. Taylor studied and measured in greatdeal the way different workers went about performing their tasks to discover the best method of completing atask. One of the main tools he used was a time-and-motion study, which involves the careful timing andrecording of the actions taken to perform particular tasks. Once Taylor understood the existing methods ofperforming a task, he made experiments in order to increase specialisation.Principle 2: Codify the new methods of performing tasks into written rules and standard operating procedures.Once the best method of performing a task was determined, Taylor specified that is should be recorded so thatthe procedure could be taught to all workers performing the same task. By standardising and simplifying jobsfurther, the efficiency would be increased throughout an organisation.Principle 3: Carefully select workers who possess skills and abilities that match the needs of the task, and trainthem to perform the task according to the established rules and procedures. Taylor believed that workers had tounderstand the tasks that were required of them in order to increase specialisation. It was his believe that theyneeded to be trained to perform a task at an optimum level. Workers who could not be trained to this level wereto be transferred to a job where they were able to reach the minimum required level.Principle 4: Establish a fair or acceptable level of performance for a task, and then develop a pay system thatprovides a reward for performance above the acceptable level. To encourage workers to perform at a higherlevel of efficiency, Taylor wanted workers to benefit from any gains in performance. He provided them with anincentive to reveal the most efficient techniques for performing a task. They should receive bonuses and somepercentage of the performance gains achieved through the more efficient work process.By 1910, the system of scientific management had become nationally known in the UnitedStates and was fully practised. Among the many that followed in Taylor’s footsteps, Frankand Lillian Gilbreth and Henry L. Gantt stand out. Frank and Lillian Gilbreth were reallyinspired by Taylor’s time-and-motion studies. They turned motion studies into an exactscience. In doing so they pioneered the use of motion pictures for studying and streamliningwork motions. Henry L. Gantt contributed to scientific management by refining productioncontrol and cost-control techniques. He also humanised Taylor’s differential piece-rate systemby combining a guaranteed day rate, or a minimum wage, with an above-standard bonus.Gantt was ahead of his time in emphasising the importance of the human factor and in urging 17
  18. 18. Emotional Intelligence management to concentrate on service rather than profits.33 Here is where the researchers firststarted to think of the importance of the human mind1.2.3 The Behavioural ApproachThe behavioural approach originates from American management theorists who began theirstudies and research when Taylorist theories were at the height of their influence. Eventhough the approach of these theorists differed, they all focused on behavioural management;how managers should behave to motivate their employees and encourage them to perform at ahigher level so that the goals of organisations could be reached.34 The advocates of thebehavioural approach believed that people deserved to be the central focus of organisedactivity. According to them, successful management depends on the manager’s ability tounderstand and work with people who have a variety of backgrounds, needs and perception.Mary Parker Follett was one of the theorists, in the beginning of the twentieth century, whofocused their work on the way managers should behave towards their employees. Shecriticised Taylor’s approach because it didn’t take into account the difference betweenindividuals and ignored the human side of the organisation. It was her opinion thatmanagement often overlooked the multitude of ways in which employees could contribute tothe organisations if their managers would allow them to participate and use their initiatives intheir every day work lives.35 What made the procedures of Follett and Taylor different wasthat Taylor used time-and-motion experts to analyse the jobs of the workers while Follettthought that the workers should be involved in the job analysis process. It was her opinionthat the workers were the most qualified to analyse their own jobs and therefore they shouldparticipate in the process. The managers should behave as coaches or guides rather thansupervisors. Follett anticipated the emergence of self-managed teams and employeeempowerment which is so popular today. She also saw the importance of differentdepartments working together or, as it is called today, “cross-functioning”.3633 Kreitner (2001)34 Meyer et al. (2007)35 Graham (1995)36 Follett (1924) 18
  19. 19. Emotional Intelligence While acknowledging Fayol’s opinion of acknowledged expertise as an important source of amanagers’ authority, Follett went even further. Fayol argued that leaders emerged frommanagers’ authority derived from their position in the hierarchy but Follett proposed thatknowledge and expertise should decide who would be the leader at any particular moment. Itwas her belief that power is fluid and should flow to the person who could do the most for theorganisation and help it achieve set goals. She looked at the organisation horizontally insteadof Fayol’s hierarchical, bureaucratic view and believed that effective management came fromthe way people interacted and reinforced each other. This approach was very radical at thattime but is well recognised today.37As the socio-political climate changed, behavioural scientists from prestigious universitiesbegan to conduct on-the-job behaviour studies. Instead of studying tools and techniques in thescientific management tradition, they focused on people.38 One of these studies wasconducted from 1924 to 1932 at the Hawthorne Works of the Western Electric Company.The Hawthorne studies were a small-scale scientific management study of the relationshipbetween light intensity and productivity. The performance of a selected group of employeestended to improve no matter how the physical surroundings were manipulated. Even when thelights were dimmed to moonlight intensity, productivity continued to grow. As scientistscould not figure out why this happened, a team of behavioural science researchers fromHarvard, headed by Elton Mayo, was asked to conduct a more thorough study. TheHawthorne studies ended in 1932 and by then over twenty thousand employees hadparticipated in it. After extensive interviewing with the employees, it became clear thatproductivity was much less affected by changes in the work environment than by the attitudesof the workers themselves. The relationship between the worker and his supervisor andbetween members of a group was found to be more significant. This finding influenced manyresearchers to turn their attention to managerial behaviour and leadership. If managers couldbe taught how to behave and how to motivate their employees then productivity could beincreased.39 From this view emerged the human relations movement, which advocated thatmanagers should be behaviourally trained to manage their employees in order to increase theirco-operation and as a consequence productivity would also increase.37 Meyer et al. (2007)38 Mayo (1933)39 Kreitner (2001) 19
  20. 20. Emotional Intelligence One of the main assumptions of the Hawthorne studies was that the behaviour of managersand workers in the work place is as important in explaining the level of performance as thetechnical aspects of the task. It is very important for managers to understand how the informalorganisations works, i.e. the system of behavioural rules and norms that emerges in a groupwhen they try to change behaviour in an organisation. The Hawthorne studies demonstratedthe importance of understanding how feelings, thoughts and behaviour of group members andmanagers affected performance. With these studies it was becoming clear to researchers thatunderstanding behaviour in organisations was critical so that performance could beincreased.40The increasing interest in the management style known as organisational behaviour dates backto these early studies. Organisational behaviour is a modern approach to management thatattempts to determine the causes of human work behaviour and translate the results intoeffective management techniques. It has had a significant impact on modern managementthoughts by helping to explain why employees behave as they do. Above all else, thebehavioural approach has made it clear that people are the key to productivity. Technology,work rules and standards do not guarantee good job performance; instead success depends onmotivated and skilled individuals who are committed to organisational goals.411.2.4 The Systems ApproachAn important milestone in the history of management development occurred when researcherswent beyond the study of how managers could influence behaviour within organisations toconsider how managers control the organisation’s relationship with its external environment.Universal process, scientific management and human relations theorists studied managementby taking things apart. They assumed that a whole was equal to the sum of its parts and couldbe explained in terms of its parts. Systems theorists thought differently, they studiedmanagement by putting things together and assumed that the whole was greater than the sumof its parts. System thinking presented the field of management with a huge challenge whichwas to identify all relevant parts of organised activity and to discover how they interacted.According to Chester I. Barnard, willingness to serve, common purpose and communication40 Carey (1967)41 Kreitner (2001) 20
  21. 21. Emotional Intelligence are the principal elements in an organisation.42 His opinion was that organisations could notfunction if these three elements did not exist interdependently. Barnard’s systems perspectivehas encouraged management and theorists to study organisations as complex and dynamicwholes instead of piece by piece. 43One of the most influential views on how an organisation is affected by its externalenvironment was developed by three theorists, Katz, Kahn and Thompson in the 1960s. Theyviewed the organisation as an open system; a system that takes resources from its externalenvironment and transforms them into products and services which are then sent back to theenvironment and bought and consumed be customers.44 The system is said to be open becausethe organisation draws from and interacts with the external environment to survive, i.e. theorganisation is open to its environment. A closed system, on the other hand, is a self-contained system that is not affected by changes in the external environment.45 Due to thesystems approach, managers now understand the importance of seeing the whole picture.Open-systems thinking does not permit the manager to become preoccupied with one aspectof the organisation while ignoring other internal and external angles. Another positive point isthat the approach tries to integrate various management theories, for example both operationsmanagement and organisational behaviour have been strongly influenced by systemsthinking.461.2.5 The Contingency ApproachThe contingency theory was developed in the 1960s by several researchers both in UnitedKingdom and the United States. This approach is an effort to determine, through research,which managerial practises and techniques are appropriate in specific situations. The crucialmessage of this theory is that there is no one best way to organise; managers choose theorganisational structure and the control systems which depend on characteristics of theexternal environment in which the organisation operates.47 Contingency has becomesynonymous with situational management. According to Shetty, a contingency theorist, the42 Barnard (1938)43 Kreitner (2001)44 Katz and Kahn (1966) Thompson (1967)45 Meyer et al.(2007)46 Kreitner (2001)47 Meyer et al. (2007) 21
  22. 22. Emotional Intelligence effectiveness of a given managerial pattern is contingent on numerous factors and how theyinteract in certain situations.48 The appropriate use of a management concept or theory is thuscontingent or dependent on a set of variables that allows the user to fit the theory to thesituation and particular problems. It also allows for management theory to be applied to anintercultural context where customs and culture must be taken into consideration.49An important characteristic of the external environment which affects an organisation‘s abilityto obtain resources is the degree to which the environment is changing. These changes can befor example technological, entry of new competitors or unstable economic conditions. Themore rapidly the environment changes the more important it is for managers to find new waysto respond to these changes. The contingency theory was an extension of the systemsapproach but it added more practical directions.1.2.6 The Attributes of Excellence ApproachIn 1982, Peters and Waterman wrote a book that took the management world by storm. Intheir book, “In Search of Excellence” they attempted to explain what made the best-runcompanies in America successful. Their approach to management was unconventional forseveral reasons. They criticised conventional management theory for being too conservative,analytical, inflexible and negative. They replaced conventional management terms with catchphrases and they made their key points with stories and anecdotes rather than with quantifieddata and facts. Their aim was to take a fresh look at management.50 Peters and Watermanconducted a research where they isolated eight attributes of excellence after studying many ofthe best-managed and most successful companies in America. The eight attributes where areshown on the next page.5148 Shetty (1974)49 Kreitner (2001)50 Ibid,.51 Peters and Waterman (1982) 22
  23. 23. Emotional Intelligence Table 3. The Eight Attributes of Excellence 1. A bias for action: Small scale, easily managed experiments to build knowledge, interest and commitment. 2. Close to the customer: Learning from the people served by the business. 3. Autonomy and entrepreneurship: Fostering innovation and nurturing champions. 4. Productivity through people: Individuals are treated with respect and dignity. 5. Hands-on, value-driven: Management philosophy that guides everyday practice - management showing its commitment. 6. Stick to the knitting: Stay with the business that you know. 7. Simple form, lean staff: Authority is decentralised as much as possible. 8. Simultaneous loose-tight properties: Tight overall strategic and financial control is counterbalanced by decentralised authority, autonomy and opportunities for creativity.Peters and Waterman pointed out and reminded managers that they should pay closerattention to the basics such as customers, employees and new ideas.It is important to understand the evolution of management because management problemsremain mostly the same over time. While value systems and perspectives may have changed,experts have gained a better understanding of what motivates employees. Peter Drucker, awriter and management consultant, was under the impression that management had to do withempowerment; he saw employees as resources rather than simply costs. He argued thatmanagement had to move from the influence of Taylorism, where people are treated as cogsin a machine, and start to treat them as if the employees had brain. Knowledge and educationwas the single most important resource for any advanced society.52  During the twentiethcentury managers received more respect and proved their importance. Practitioners of thescience of management also received a certain amount of prestige and that opened the way forpopularised systems of management ideas. At the end of the twentieth century, managementconsisted of six separate branches; human resource management, operation management,strategic management, marketing management, financial management and informationtechnology management. The role of the manager and his influence on employees wasbecoming more and more important as Mary Parker Follett pointed out. Henry Fayol arguedthat leaders emerged from managers’ authority derived from their position in the hierarchybut Follett proposed that knowledge and expertise should decide who would be the leader atany particular moment. In the next chapter the role of a leader will be discussed.52 Drucker (1990) 23
  24. 24. Emotional Intelligence 2. LeadershipThere are almost as many definitions of what leadership is as there are commentators. Manyassociate leadership with one person leading but four things stand out in this respect. First ofall, to lead involves influencing others; secondly where there are leaders there are followers.Third, leaders seem to step forward when there is a crisis or special problem and fourthly,leaders are people who have a clear idea of what they want to achieve and why. It can be saidthat leaders are people who are able to think and act creatively in non-routine situations andwho set out to influence the actions, beliefs and feelings of others. In this sense, being a leaderis personal; it flows from an individual’s qualities and actions. However, it is also often linkedto some other role such as manager or expert but it is important to remember that not allmanagers are leaders and not all leaders are managers.53 One of the four primary tasks ofmanagers is leading and leadership is a key ingredient in effective management. Effectiveleaders make people highly motivated and committed but when they are ineffective it is likelythat their subordinates do not perform up to their capabilities and become dissatisfied.54 Theconcept of leadership is about getting people to do things willingly and influencing others tofollow you. It can also be seen as a behavioural category. Leadership can be defined as: “A process in which leader and follower interact in a way that enables the leader to influence the actions of the follower in a non-coercive way, towards the achievements of certain aims or objectives.55”Definitions of leadership often suppose that leadership is a one-way process but other factorsshould be considered. Being non-coercive means that it is possible to influence all members.The nature of leadership should always be goal-directed so that the subordinates know whatthey should achieve and they also have to approve of being influenced by the leader.56 Thepersonal leadership style of a manager, i.e. how he chooses to influence the employees,shapes the way the manager approaches planning, organising and controlling. All managershave their own leadership style that determine how they lead their employees and performtheir management tasks. Even though leading is one of the four principal tasks of managing, adistinction is often made between managers and leaders. Managers are more likely to have53 Doyle and Smith (2001)54 Meyer et al. (2007)55 Ibid,. p. 46056 Ibid,. 24
  25. 25. Emotional Intelligence formal authority to direct their employees; this may be seen as a “top-down” approach. On theother hand leaders have to earn their authority through influence and that is more a “bottom-up” approach.57There are many different leadership styles in traditional leadership and many ways of defininga good leader. There are also different leadership styles across cultures, which suggests thatleadership styles do not only differ from person to person but also between countries andcultures. Leaders in Europe are said to be more humanistic or people oriented than leaders inAmerica and Japan. American leaders are also thought to be short-term and focused on profitswhile in Japan they are thinking of profits in a long term perspective.58It is stated in classical leadership that the key to effective leadership is found in the power theleader has to affect other people’s behaviour or getting them to act in a fixed manner.59 Thereare several types of power a leader must have: legitimate, coercive, expert, reward andreferent power (see figure 3).60 Effective leaders should make sure that they have sufficientlevels of each type and that they use the power they have in a beneficial way. Figure 3 Sources of Managerial Power • Legitimate power is the authority that a manager has by virtue of his position in the organisation and gives him the power to hire new employees, assign projects, monitor their work and appraise their performance.57 Meyer et al. (2007)58 Calori and Dufour (1995)59 Mintzberg (1983).60 French and Raven (1960) 25
  26. 26. Emotional Intelligence  • Reward power is the ability to withhold or give tangible (e.g. pay-rises and bonuses) and intangible (e.g. verbal praise and respect) rewards. Being able to give or withhold rewards based on performance is a major source of power that allows managers to have a highly motivated workforce. Effective managers use their reward power to let their employees know that their work is appreciated. Ineffective managers on the other hand, use reward power in a more controlling manner. • Coercive power is the ability to punish others. Punishments can range from verbal reminders to reduction in pay or actual dismissal. Excessive use of coercive power seldom results in high performance and is questionable ethically, but may at times be useful. • Expert power is based in some special skills or knowledge that the leader has. First- level and middle managers often have technical expertise relevant to the tasks of their employees. Their expert power gives them considerable influence. Effective leaders take steps to make sure that they have an adequate amount of expert power to perform their leadership roles. They can do that by obtaining additional training or education and make sure that they are well informed about latest developments and changes in technology. Expert power tends to be best used in a guiding or coaching manner rather than in an arrogant way. • Referent power is more informal than the other kinds of power; it is more a function of the personal characteristics of a leader. It is a power that comes from subordinates’ and co-workers’ respect, admiration and loyalty. Here it is vital that the leader has the charisma needed to motivate his employees. Leaders who are likable and whom employees consider a role model are especially likely to possess referent power.61More and more managers today are becoming aware of how important different leadershipstyles are and are trying to incorporate them into their personal leadership style.Empowerment, which is the process of giving employees at all levels in the organisation theauthority to make decisions and making them more responsible for their tasks, is very populartoday. This might seem to be the opposite of effective leadership because managers areallowing their employees to take more active role in leading but actually, empowerment cancontribute to effective leadership for several reasons. Empowerment increases a manager’sability to get things done because he has the help of the employees who might have special61 Meyer et al. (2007) 26
  27. 27. Emotional Intelligence knowledge needed to complete the tasks. Empowerment also increases motivation andcommitment of the employees and they are working toward organisational goals. It also givesmanagers more time to concentrate on the tasks they need to complete because they don’thave to spend all their time on day-to-day supervisory activities.622.1 Models of LeadershipLeading has become very important process in all kinds of organisations. Early approaches toleadership were to determine what effective leaders were like as people and what they did thatmade them so effective. In recent literature of leadership the focus has been on four maintheories of leadership; trait theory, behavioural theory, contingency theory andtransformational theory. The next sub-chapters go into more details about each theory.2.1.1 The Trait TheoryThe Trait model of leadership focused on identifying the personal characteristics that causeeffective leadership. It was assumed that effective leaders must have certain personalqualities, or traits, which made them different from ineffective leaders and from people whonever became leaders. This research started in the 1930s where hundreds of studies wereconducted. The results indicated that there were in fact some personal characteristics whichseemed to be associated with effective leadership. Some of those characteristics were relatedto intelligence, knowledge, integrity and self-confidence of the leaders. However, thesecharacteristics are insufficient in explaining a do not alone explain leader’s effectiveness assome effective leaders do not possess all of them and some leaders who do possess them arenot effective.63 Since there seemed to be a lack of consistency between the characteristics ofleaders and their effectiveness researchers needed a new focus. Rather than focusing on whatleaders are like, they began to look at what effective leaders actually do, i.e. their behaviour.62 Meyer et al. (2007)63 Ibid,. 27
  28. 28. Emotional Intelligence 2.1.2 The Behaviour TheoryThe Behaviour model describes two kinds of behaviour that most leaders are supposedlyengaging in; consideration and initiating structure. Leaders engage in consideration when theyshow their subordinates that they trust, respect and care about them. When leaders engage ininitiating structure they make sure that the work gets done and that the workers perform theirwork acceptably and that the organisation is efficient and effective. Examples of initiatingstructure are assigning tasks to workers, letting employees know what is expected of them,deciding how the work should be done and motivating people to perform well.64 Therelationship between performance of consideration and initiating structure behaviour andleaders effectiveness is not clear. Some leaders are ineffective when they perform both andsome are effective even though they do not perform consideration or initiating structure. Likethe Trait model, this behaviour model does not alone explain why some leaders are effective.What was researched next and added to the picture were the situations in which leadershipoccurs.2.1.3 The Contingency TheoryManagers lead in a wide variety of situations and have various kinds of employees performingdiverse tasks in many kinds of environmental context. The Contingency models of leadershiptake into account the situation which leadership occurs in. According to these model, whatmakes a manager effective is combined with what the manager is like as a person, what hedoes and the situation in which the leadership takes place.65 The Contingency models coverfew different styles. One of them is the contingency model of Fred E. Fiedler which helpsexplain why a manager may be an effective leader in one situation and ineffective in another.According to Fiedler, all managers can be described as having either of two leadership styles;relationship-oriented (managers want to develop a good relationship with employees and beliked by them) or task-oriented (managers focus on task accomplishment and making sure thateach job gets done).66 Another contingency theory is House’s path-goal theory whichdescribes how leaders can motivate their subordinates by four different kinds of behaviour:directive, supportive, participative and achievement - oriented.67 A directive leader sets goals,assigns tasks and shows the employees how to complete tasks. A leader which is supportive64 Meyer et al. (2007)65 Ibid,.66 Fiedler (1967)67 Evans (1970) 28
  29. 29. Emotional Intelligence expresses his concern for subordinates and looks out for their interests. Those who showparticipative behaviours give workers the opportunity to say what they think and be involvedin decision making. Achievement-oriented behaviours motivate employees to perform at thehighest level possible by e.g. setting goals, expecting that they will be met and believing inthe capabilities of the workers.2.1.4 The Transformational TheoryTransformational leadership is a leadership style where people follow the leader because theyare inspired by him, a leader with a vision and passion that can achieve great things.68Transformational leadership starts with the development of a vision, a view of the future thatwill excite and convert potential followers. This vision may be developed by the leader, by thesenior management team or may emerge from a broad series of discussions. The next step,which in fact never stops, is to constantly sell the vision. The transformational leader thustakes every opportunity and will use whatever method that works to convince others to climbon board.69 In order to create followers, the transformational leader has to be very careful increating trust, and their personal integrity is a critical part. In effect, they are sellingthemselves as well as the vision. The route forward may not be obvious, but with a clearvision, the direction will always be known. Transformational leaders are always visible andwill stand up to be counted rather than hide behind their troops and they show by theirattitudes and actions how everyone else should behave. They also make a continuous effort tomotivate their followers, constantly listening, soothing and keeping up the enthusiasm. Theyare people-oriented and believe that success comes first and last through deep and sustainedcommitment. Transformational leaders are often charismatic, but are not as narcissistic aspure charismatic leaders, who succeed by believing in themselves rather than believing inothers. One of the traps of transformational leadership is that passion and confidence caneasily be mistaken for truth and reality, they tend to see the big picture, but not the details,which can be a problem if they don’t have people to take care of this level of information.Working for a transformational leader can be great and very inspiring, they put passion andenergy into everything they care about and want you to succeed70.68 Changing Minds (Year unknown)69 Ibid,.70 Ibid,. 29
  30. 30. Emotional Intelligence According to Bass, transformational leadership occurs when managers change theirsubordinates in three ways:71 • Transformational managers make their employees aware of how important their jobs are for the organisation and that it is very important that those jobs will be done in a best way possible so that the organisational goals can be achieved. • Transformational managers make sure that every need of their employees is met and that they are aware of what their needs are themselves. Those needs can be personal growth, development and accomplishment. • Transformational managers motivate their employees to think of the organisations as a whole, not just for their own personal gain or benefit.When managers affect employees in these three ways, it is more likely that the employeestrust the manager and are highly motivated and that helps the organisations in achieving itsgoals.72Now both management and leadership have been defined, but what is it that differs betweenthem? The next chapter will focus on this difference.2.2. Management vs. LeadershipAn important question is how management differs from leadership. For some, there is nodifference. Due to increasing complexity there is even more need for specialization so it isreally necessary to recognize that leadership and management are two different functions.73According to Mitch McCrimmon “...a clear way of differentiating the two is to say thatleadership promotes new directions while management executes existing directions asefficiently as possible.74” The manager’s job is not just to make sure that tasks are completedon a daily bases, it involves more complex projects. Often, management is mistakenly seen astask-oriented, controlling and insensitive to peoples needs. By contrast, leaders are portrayedas emotionally engaging, visionary and inspiring. Separating leadership from management is71 Bass (1985)72 Meyer et al. (200773 McCrimmon (2007)74 Ibid,. 30
  31. 31. Emotional Intelligence difficult as leading is one of the four functions of management.75 The best managers are verystrategic about themselves because they know that time and other resources are scarce andthat they have to work efficiently and effectively if the organisational goals are to be met.Working efficiently is however not enough, it is essential to do the right things. Managementis primarily a decision-making role and managers are responsible for making a profit. Thisrequires them to make wise decisions.76 By contrast, leadership is strictly an informalinfluence and what leaders do is to convince people of changing directions. The maindifference between managers and leaders is that “leadership is an occasional act;management is an ongoing role.”77 Table four shows the main difference between managersand leaders:78Table 4. The Difference between Leaders and Managers Subject Leader Manager Essence Change Stability Focus Leading people Managing work Have Followers Subordinates Horizon Long-term Short-term Seeks Vision Objectives Approach Sets direction Plans detail Decision Facilitates Makes Power Personal charisma Formal authority Appeal to Heart Head Energy Passion Control Dynamic Proactive Reactive Persuasion Sell Tell Style Transformational Transactional Concern What is right Being rightLike people everywhere, managers have their own personalities, values, ways of viewingthings and personal challenges and disappointments. In the next chapter the focus is on themanager as a person with feelings.75 Meyer et al. (2007)76 McCrimmon (2007)77 Ibid,.78 Changing Minds (Year unknown) 31
  32. 32. Emotional Intelligence 2.3. The Human Side of ManagersAll people have certain characteristics that influence how they think, feel and behave. Thesecharacteristics are personality traits which according to Meyer et al. are “...particulartendencies to feel, think and act in certain ways that can be used to describe personality ofevery individual.79” It is important to understand the personalities of managers because theyinfluence their behaviour and what approach they use to manage people and resources. Somemanagers are demanding and difficult to get along with but others easy to get along with andare likeable yet may be demanding as well. Both styles may turn out to be successful but theway it affects employees is quite different. Research has been conducted and the resultsindicate that the way people react to different conditions depends partly on personalities.80There are several psychological theories that try to explain whether personalities are innate ordevelop from socialisation. In these theories there is a distinction between the traits thatpeople hold (a predisposition towards an enduring behaviour that occurs over time) and thetype of personality they fit into (fits people into categories e.g. extrovert or neurotic). One ofthe most influential type theories come from Carl Jung and was developed during the 1950s.81The Myers-Briggs Type Indicator (MBTI) was developed from this approach. According toJung’s theory both types and traits are inborn to a degree but traits can be improved in asimilar way to skills. Types on the other hand evolve naturally over a lifetime.82 The MBTIcategories are four and are based on people’s preferences; extroversion/introversion,sensing/intuition, thinking/feeling, judging/perceiving. People are given one of sixteen fourletter acronyms such as ESTJ or INFP. This indicates what their preferences are. For examplea person whose category is ENFP is open when dealing with other people as the categories areextroversion, intuition, feeling and perceiving.83 The MBTI is used in many organisations andfor all kinds of reasons, e.g. the training of employees, personal development and recruitment.In connection to this it is possible to think of an individual’s personality as being made of fivegeneral traits (characteristics); extroversion, negative affectivity, agreeableness,conscientiousness and openness to experience.84 Each of these traits can be viewed as acontinuum along which every individual falls. Managers may be at the high end, low end or inthe middle of the continuum.79 Meyer et al. (2007) p. 6880 Carpenter (2001)81 Jung82 Myers et al (1998)83 Meyer et al. (2007)84 Digman (1990) 32
  33. 33. Emotional Intelligence  • Extroversion is the tendency to experience positive emotions and feel good about oneself and others. People who score high on extroversion tend to be affectionate and outgoing. Managers who have a job which requires a lot of social interactions benefit if they are high on extroversion. • Negative affectivity is the tendency to experience negative emotions and be critical of oneself and other people. People who score high on this trait are often angry and dissatisfied. • Agreeableness is the tendency to get along well with others. People who score high on this trait are likely to be affectionate and care about other people. If a manager has the responsibility of developing close relationships with others than he could benefit from scoring high on this trait. • Conscientiousness is the tendency to be careful and preserving. People who score high on this trait are organised and self-disciplined. • Openness to experience is the tendency to be original, have broad interests, be open to a range of stimuli and take risks. People who score high on this trait may be very likely to take risks and be innovative in their planning and decision making.85Members of an organisation should understand these differences among managers becausethey can explain why managers behave in certain ways. Managers should also be aware oftheir own personality traits and of others.In addition to this there are other traits which also describe people’s personalities. Some ofthem are: locus of control, self-esteem and the need for achievement, affiliation and power.86Locus of control is about how people differ in their view of how much control they have overwhat happens to and around them. This can be put into to two categories, internal locus ofcontrol (those who belief that they are responsible for their own fate) and external locus ofcontrol (those who belief that outside factors are responsible for what happens to them). Self-85 Meyer et at. (2007) p. 7286 Ibid,. 33
  34. 34. Emotional Intelligence esteem is the degree to which individuals feel about themselves and their capabilities. Theneed for achievement is how strongly an individual desires to perform challenging tasks welland to meet personal standards for excellence. The need for affiliation is about how concerneda person is about establishing and maintaining good interpersonal relations. The need forpower is how much a person desires to control or influence others.87 These threecharacteristics suggest that managers need to be assertive and not only believe that their ownactions determine their own and their organisation’s fates but also believe in their owncapabilities.Other things can be explored in order to try to explain how managers actually feel at work andwhat they think about their jobs. Values, attitudes, moods and emotions capture howmanagers and other employees experience their jobs as individuals. Values tend to be deeplyrooted in a person’s socialisation and learning but attitudes emerge through personaldevelopment and social interaction. Values describe what managers are trying to achievethrough work and how they think they should behave, attitudes capture their thoughts andfeelings about their job, moods and emotions encompass how managers actually feel in theirjob. These characteristics of a manager are very personal but they are very important forunderstanding how managers behave, how they treat and respond to others and how they helpcontribute to organisational effectiveness through the four managerial functions; planning,leading, organising and controlling.88 As the topic of this paper is emotional intelligence, afocus will be put on the importance of mood and emotions of managers and to what degreecompanies recruit and select managers on the basis of emotional intelligence characteristicsversus technical qualifications.87 Meyer et al. (2007) p. 74-588 Ibid,. 34
  35. 35. Emotional Intelligence 3. Emotional IntelligenceIn order to understand the effects of managers’ and all employees’ moods and emotions, it isimportant to take into account their level of emotional intelligence. The concept of emotionalintelligence has its roots from the work of two American psychologists, John Mayer and PeterSalovey. They defined emotional intelligence as a subset of social intelligence. Socialintelligence is the ability to understand and manage people, but might also be directed inwardsand therefore could be the ability to understand and manage oneself.89 According to thememotional intelligence is the ability to know, understand and have influence over one‘s ownemotions, “...the ability to monitor one‘s own and others feelings and emotions, todiscriminate among them and to use this information to guide one‘s thinking and actions. “90It does not include the general sense of self and appraisal of others, rather it is more about therecognition and use of one‘s own and others emotional states to solve problems and regulatebehaviour.When people approach tasks in life with emotional intelligence they should be at anadvantage to solving problems. The kind of problems that people identify and the way theyhandle them will probably be more related to internal emotional experience. Such individualsare more likely to choose a career that will make them happy instead of thinking how muchthey will earn and they are also more likely to be more creative and flexible in arriving atpossible alternatives to problems. Individuals who have developed skills related to emotionalintelligence understand and express their own emotions, recognise the emotions of others andthey also use moods and emotions to motivate adaptive behaviour.91A person with emotional intelligence can be thought of as having attained at least some formof positive mental health. These individuals are aware of their own feelings and those ofothers, are open to positive and negative aspects of internal experience and are able tocommunicate them when appropriate. This leads to the fact that an emotionally intelligentperson is often a pleasure to be around, has good influence and makes others feel better. Thisperson however does not mindlessly seek pleasure, but rather attends to emotions which leadto growth. Salovey and Mayer say that:89 Salovey and Mayer (1990)90 Ibid,. p. 18991 Ibid,. 35
  36. 36. Emotional Intelligence  “...emotional intelligence involves self-regulation appreciative of the fact that temporarily hurt feelings or emotional restraint is often necessary in the service to greater objective....thus emotionally intelligent individuals accurately perceive their emotions and use integrated, sophisticated approaches to regulate them as they proceed toward important goals. ”92Mayer and Salovey published their theory in 1990 but at that time it did not receive muchattention from the public or scholars. This however did catch the attention of a psychologistnamed Daniel Goleman. He took the concept further and published two books about theconcept which became very popular.Goleman defines emotional intelligence as the ability to understand and manage one’s ownmoods and emotions, and the moods and emotions of other people: “...abilities such as being able to motivate oneself and persist in the face of frustrations; to control impulse and delay gratification; to regulate one’s moods and keep distress from swamping the ability to think; to empathize and hope.”93People are being judged by new yardsticks and it is not how smart they are or what kind ofeducation they have or expertise, more focus is on how people handle themselves and others.This yardstick is becoming more important and is increasingly applied when choosing whomto hire. This new measurement focuses on personal qualities but takes for granted peoplesintellectual abilities and technical skills.94 Emotional intelligence is even more crucial today,according to Goleman, because organisations are shrinking and the people who remain aremore accountable and visible, as Goleman puts it: “Where earlier a midlevel employee might easily hide a hot temper or shyness, now competencies such as managing one’s emotions, handling encounters well, teamwork, and leadership show, and count, more than ever.”95The corporate world is changing and no one is guaranteed a job anymore. For many olderworkers who were taught that education and technical skills were a permanent ticket tosuccess this new landscape is quite shocking. People are beginning to realise that to besuccessful another type of skills are necessary to survive as Goleman puts it: “Internalqualities such as resilience, initiative, optimism and adaptability are taking on a new92 Salovey and Mayer (1990) p. 20193 Goleman (1995) p. 3694 Goleman (1999)95 Ibid,. p. 9 36
  37. 37. Emotional Intelligence valuation.96” All too often, in the context of reviewing competences of leaders or managersfor development purposes, they are told that they need to improve their “people skills”. Thatmeans that these persons are having difficulties in the interpersonal aspects of theirrelationships with supervisors, peers and their employees. The problem may be that themanagers are not communicating enough to maintain effective work relationship or there maybe problems at the emotional level, i.e. not connecting emotionally with others.97According to Goleman, emotional intelligence is more important than traditional intelligencetests. Goleman pointed out that results of intelligence tests would not predict completely howwell people would do in school, in a job or in life in general. It is his opinion that emotionalintelligence can predict better how well people will actually do, rather than their intelligencequotient (IQ). Intelligence tests are not a good yardstick on how well people communicate. Asimple job where a person has to be agreeable and be able to communicate well with othersbut where understanding, reasoning and judgement is not as important, could be an exampleof where emotional intelligence would predict better than their IQ how well a person wouldperform on the job.983.1 Theoretical Scope of Emotional IntelligenceIn the 1930s there was no published research on methods of developing a leader’sinterpersonal skill and very few empirical studies were done prior to 1950 that dealt with anysort of leadership or managerial development.99 In 1973 David McClelland wrote an articlecalled “Testing for Competences rather than for Intelligence”. In exploring the ingredients ofa superb job performance, McClelland was joining an enterprise that got its first scientificfooting at the beginning of the twentieth century with the work of Frederick Taylor. Tayloristefficiency experts analysed the most mechanically efficient moves a worker´s body couldmake, the measure of human work was the machine. The next step was another standard ofevaluation, the intelligence quotient (IQ) test and the thought was that the correct measure ofexcellence was the capacities of the human mind. By the 1960s personality tests andtypologies were a part of the standard measures of work potential. The tests were used to96 Goleman (1999) p. 1197 Riggio and Lee (2007)98 Goleman (1995)99 Riggio and Lee (2007) 37
  38. 38. Emotional Intelligence indicate whether an individual was outgoing or introverted or a “feeling” or “thinking” type.The problem with these kinds of measurements was that they did not predict how well peopleactually performed on the job. People with a high IQ often performed poorly at work whilethose with a moderate IQ did extremely well.100McClelland shifted the terms of the debate. He argued that traditional academic talents andgrades did not predict how well people would perform on the job or whether they wouldsucceed in life. McClelland proposed that a set of specific competencies including empathy,self-discipline and initiative distinguished the most successful from those who were merelygood enough to keep their jobs.101 With his paper, he came forward with an entirely newapproach to the measure of excellence, one that assesses people’s competencies in terms ofthe specific job they are doing. The competences he refers to are the personal traits or set ofhabits that lead to more effective or superior job performance; the ability that adds economicvalue to the efforts of a person on the job.102 McClelland questions intelligence tests and thepower they have over who is considered to be more qualified than the other, as he puts it: “Itstests have tremendous power over the lives of young people by stamping some of them“qualified” and others “less qualified” for college work”.103 He also wonders in his articleshow valid grades are as predictors. Researchers have had great difficulties showing that thegrades which people get in school are related to any other behaviour on importance other thandoing well on e.g. intelligence tests. Despite that, the general public seems to look atintelligence tests as a way of saying how talented people actually are, that those who do wellin school must do better in life than others.104 McClelland tested this himself with the class hetaught in college. He took the top eight students in his class in the late 1940s who all were toplevel students and compared what they were doing in 1960s to eight really poor students fromhis class, those who barely passed their exams. To his surprise he could not distinguish thetwo lists of men fifteen to eighteen years later. There were doctors, lawyers, researchscientists and college teachers in both groups. The only difference that he noted was that thosewith better grades got into better law or medical schools but despite of that they did not havenotably more successful careers than the poorer students who were only capable of going to100 Goleman (1999)101 McClelland (1973)102 Goleman (1999)103 McClelland (1973), p. 1104 Ibid,. 38
  39. 39. Emotional Intelligence mediocre medical or law schools.105 The findings of McClelland are thus that neither theamount of education nor grades are related to how successful people become in their jobs.The main points of McClelland’s article can be summarized into five major themes; a) gradesin school did not predict occupational success, b) intelligence tests and aptitude tests did notpredict occupational success or other important life outcomes, c) tests and academicperformance only predicted job performance because of an underlying relationship with socialstatus, d) such tests were unfair to minorities and e) personal competencies would be betterable to predict important behaviours that would more traditional tests.106 It was his belief thatintelligence tests would be replaced by competency-based testing as intelligence tests havebeen correlated with each other and with grades in school but not with other life outcomes.Barrett and Depinet (1991) questioned the findings of McClelland that top level studentscould not be distinguished from barely passing students in later occupational success. Theypointed out that McClelland findings differed greatly from the result of a study done byNicholson in 1915.107 Nicholson study showed that academically exceptional students weremuch more likely to achieve distinction in later life. According to Barrett and Depinet thefundamental problem with McClelland’s research was his failure to define the concept ofcompetency. They’re opinion was that the evidence which McClelland put forward did notshow that competencies can surpass cognitive ability tests in predicting any importantoccupational behaviour.Decades of leadership research suggest that “people skills” are crucial for leadereffectiveness. Over the last years there has been an explosion of interest in emotionalintelligence and emotions in the workplace.108 There are a number of leader and managerdevelopment programs that focus on improving the interpersonal skills but there seem to beno agreed-upon models that focus on emotional skills and general communication abilities ofmanagers and leaders.109 According to Riggio and Lee (2007) there are many leadershipdevelopment programs, offered by independent consulting groups, which involve developingemotional and interpersonal competences of leaders. They point out that theoretical modelsand research basis for developing these kinds of leader competences are very recent as the105 McClelland (1973), p. 2106 Barrett and Depinet (1991)107 Ibid,.108 Riggio and Lee (2007)109 Ibid,. 39

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