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ANALYSIS OF EMOTIONAL INTELLIGENCE IMPACT ON LEADERSHIP SUCCESS
Milica Popović, MA
Abstract
Indication of emotional intelligence in a company as a crucial condition of a team management that
creates dynamic, motivating relations is an important factor of successful management, and therefore
deserves an attention. Emotional intelligence in leadership includes an entire spectrum of skills and
techniques for interpretation of emotions and their usage in order to achieve success in management
and interpersonal relations, as well as personal satisfaction. The adequate use of emotional
competence helps the leader in managing the company in a highly productive way. This includes
elements of self-consciousness, human relations management, as well as elements of social
awareness. The leader affects employees, their work and their results this way. The employee’s job
satisfaction can be observed through their commitment to work, their relations to other colleagues
and their success in reaching a top of job or career. This dyadic relation in company implies the
existence of reciprocating bond between the leader and the employees and shares the workload into
equal parts by the principle of subsidiarity. The leader-member exchange functions as the exchange
of quality and information, as well as social exchange, which creates the team spirit and creative
working atmosphere. Emotional dynamics encourages employees to be innovative and creative, to
accept changes and professional challenges. The adoption of unique approach based on emotional
intelligence and its use in human relations, sets up organizational altruism. The influence of
emotional intelligence on leadership success is measured through leader's flexibility towards
employees, the sense of we, development of vision and enhancement of knowledge through
innovation, creativity and continuous motivation.
Key words: emotional intelligence, leader and employees, communication, emotional dynamics.
emotional competence
Introduction
This paper aims to investigate a topicality that has been attracting attention for the past few decades. The
popularity emotional intelligence in leadership is gaining more and more weight and significance, possible due
to the lack of the idea in practice, as well as necessity for changes in organizations. On the other hand, one of
the main reasons that could be valid and justified are proved studies on the importance of its presence in large
and medium corporations, especially in the time of great political, economic and technological turmoil. The
emotional literacy of leadership helps the employees in the manner specific for this theory, including
appreciated skills of a leader. The skills put the leader figure forward, stimulate the employees to work and
contribute, which moves the organization towards success and far from stagnation.
Intelligent education of leaders
Intertwining and interconnection of a leader being a serious business role model for employees and the idea of
emotional intelligence has become topical and serious issue in the past few years. In connecting these two
phenomena, it is necessary to pay attention to the thread of significance connecting them, on one hand, and
construing the organizational structure on the other. In the beginning, it is necessary to emphasize the
importance of learning and adoption of emotional competences by leadership. This learning phase was
appropriately and comprehensively described by Michael Williams in his book “Leadership for Leaders”
(Williams M., 2005, 144, 145).
Acquiring of emotional competences is achieved through two stadiums:
- Emotional literacy
- Emotional chemistry
Emotional literacy foresees the acquiring of emotional awareness regarding the existence and presence of
emotions in the sphere of life and work. Emotional integrity anticipates the understanding of man, i.e. the
leader’s understanding of it.
Emotional chemistry is featured by competence and synergy. Once the emotional education has been
established, it becomes a behaviour pattern for the leader, and thereby actions by the pattern reflect certain
competences acquired. Habits created in the newly-created opinion and action build up a continuous synergy.
The elements mentioned above are the corner stone of the leadership way of thinking and acquiring knowledge.
By acquiring interpersonal intelligence, leaders gain skills such as successful interpersonal relations
management, ability to nurture the relations, affiliation development, business resilience, conflict resolution
and social analysis skills (Goleman, D., 2005, 150, 151).
Transfer and influence of emotional competences on employees
Roles within an organization are recognizable and clearly defined, especially if we consider the size of the
organization. Emotionally intelligent leaders have several various complementary mechanisms they use at
work:
- Correct social perception of the organization
- Raising the group awareness of individuals .(Cote S., Lopes N., Salovey P., Miners C.2010, 498)
Through the mechanism of social and emotional perception, an emotionally competent leader recognizes the
levels of commitment to the organization, intensity of satisfaction regarding work obligations and tasks, career
ambition [4].
A complementary illustration of measuring the intensity of employees’ commitment to the organization has
been illustrated by the Winston and Heartsfield. The levels of commitment to organization can be measured in
as follows:
- Normative level
- Affective level
- Continuance level
The normative level is characterized by basic organizational commitment, with respect for business ethics and
beliefs. The affective level is featured by a high-level work consistency and performance, with emphasized
sense of belonging. The continuance level is characterized by an average performance level, justifying the long-
lasting tenure, comfortability at work and feeling safe. The most desirable level is affective commitment
(Winston B., Hartsfield M. 2004, 2-7).
A very important segment of interpersonal relations, the leader-employee relation is openness to feedback. In
addition to classical interpretation, openness to feedback, openness to information, anticipates also openness to
promotions and gaining new knowledge, skills and experiences. There is an inevitable fact that seminars,
workshops, group discussions and courses increase the level of organization productivity and enrich the
professional sphere of employees. The goal is unique: to be familiar with the work methodology without the
leader’s presence, and readiness to accept changes. Skills acquired by the employees this way are: self-
efficiency, independent contribution to organization, knowledge and creativity. In addition to importance and
readiness of employees to enrich their professionalism and emergence of research spirit, it is extremely
important to follow the leader’s openness toward them. This process can depend on the extent to which they
receive feedback from leadership. Feedback in this context foresees recognition, profit or benefit. This process
called “balanced processing of information” by Gardner, is a two-way process from which both sides benefit
and, more importantly, remain open i.e. expect further feedback (Winston B., Hartsfield M. 2004, 2-7).
The theory concept on leadership-employee feedback orientation undoubtedly resembles the LMX theory. This
concept is based on sharing knowledge, experience, emotions between leadership and employees, where power
is evened to other levels i.e. by the principle of subsidiary; the power of an individual is transferred to others.
The LMX concept is similar to the concept of shared leadership, where teams become independent for staff
leadership and management (Chang J., Sy T.,m Choi J., 2010, 80-90)
Importance of creating emotional dynamics in organization
Leadership is a social interaction process where leadership is able to influence the employees, as well as their
performance outcomes. In essence, leadership is an emotional process of organizational management,
encouraging emotions in employees for the purpose of contribution, work and engagement, thus influencing the
outcome and the goal. (Kerr R., Garvin J., Heaton N., Boyle E. 2006, 268).
Managing employees as the basic element of organizational management is reflected through actions that
provide the leader with certain roles. Considering that leaders earn their authority in a certain way, at the same
time, they gain certain roles within the organization. That way, in addition to recognizable leader’s roles, he
also becomes a model of imitation and admiration, i.e. the main actor. The above mentioned facts introduce
certain atmosphere, known as emotional dynamics. Emotional dynamics within an organization is conditioned
by emotional energy. Emotional energy anticipates a fluid that mobiles the organization employees and
therewith is the key of successful changes and innovations. Each leader is oriented towards the organization
productivity. In the outside world, he cares about the effective maintenance of relations with key players and
clients and thereby maintaining contacts. In the inner world, the leader is focused on gathering the team,
holding productive meetings, creation of clear communication and maintenance of organizational climate.
Emotional dynamics is being built for years by having the leader balancing between the external and internal
challenges. The dynamics in work and nurturing relationships can be equalled to the organization’s successful
performance. (Williams M., 2005, 70).
The most obvious example of emotional dynamics, attitudes and respect for the work and effort of others is an
example of Japanese leaders. The Japanese leaders do not lead from their offices, but from the offices of their
employees. During their office hours, they constantly walk around from desk to desk, monitor the work, assist
the employees and communicate, criticizing in a suggestive way e.g. “Maybe it could be better to do it this
way...Do you really think that this would be practical and productive...Think again...?” This way of
communication and establishment of interpersonal relationships based on advices encourages productivity and
innovations creating the feeling of safety and belonging to the staff. (Cangemi J., Burga B., Lazarus H., Miller
R., Fitzgerald J., 2008, 1030,1031)
Intelligent team management
Team management is not a simple endeavour, considering that people are of different character and temper. By
adopting a unique approach based on emotional intelligence and its application to interpersonal relations, it is
possible to appraise the team climate. This topic is best described by the term organizational altruism as a type
of organizational commitment, where the phenomena of organization and staff are understood personally.
Elements of successful team management, and therewith the creation of organizational altruism, are:
- Visualization of the organization’s future
- Empowering the we sense
- Communicating for meaning (Kent T., 2006, 60, 62)
Visualization of the organization’s future foresees the creation of the sense of unity and safety, as well as
seeing the future within the team. Leaders being by nature enthusiastic or having a long-term vision, tend to
“infect” their employees in the same way, which calls forth some kind of inspiration and optimism in the staff.
The creation of the we sense anticipates collectivism in work, mutual respect and trust, as well as ensuring of
personal safety. Communication for meaning is a two-way communication between the employees and the
leaders, communication with a goal, ability to listen or establishing a way to listen. Generally, communication
for meaning comprises the communication both in informal network and in the formal or professional one. By
creating the organizational culture, in addition to formal communication, a network of informal relations is also
created, significantly influencing the employees’ productivity. The informal part of the communication
includes symbols, jokes and gossip communication building the concept of group emotional intelligence.
(Ghuman U., 2011, 423-427)
Group emotional intelligence is connected to team work and comprises a set of norms controlling the processes
of nurturing social relations in the organization and represents a collective process defining roles, statuses and
position of the employees. This way, the group applies socialization skills. Viewed from another angle, the
group becomes able to see itself in a wider system, together with its advantages. This concept has arisen from
two contexts:
- Group socialization
- Collective mind (Ghuman U., 2011, 423-427)
Group socialization is made of ethical norms, standards, codes of conduct, monitoring of relationship
dynamics. Collective mind refers to the awareness of the development and understanding of collectivism, need
for belonging, understanding of the organization personally and integration into group dynamics.
Road to success
Success in acquiring emotional intelligence is reflected primarily in one’s own qualities, empathy,
understanding, care and respect for other people. Competences related to work and cooperation include the
organizational awareness, team work, freedom of opinion, awareness of constant progress and training, struggle
for success, self-confidence and self-control. By successful application of emotional intelligence, leader
achieves his maximum performance. (Goleman D. 2006, 140-144)
Advices for successful organizational management are versatile. The most important is to focus on some most
appropriate and possible to conduct, and which are, on the other hand, able to make a difference and point to
faults. The duty of an emotionally intelligent leader is to create a successful organization the employees of
which will be satisfied with the leader and the salary, in which motivation and performance will always be on a
high, productive level. Advices or directions for such leadership is massively mentioned in literature and
become a new and attractive place serving leaders in daily organizational management.
Productive advices are:
- Continuous professional development
- Introducing case study analysis practice in job interviews
- Semi-annual evaluation
Continuous professional development provides leaders with new knowledge to be used in work and assist the
very organization in finding a better placement in the market. This type of development comprises various
courses, trainings and programmes. The programmes are based on learning the importance of improving
interpersonal relations in the organization, good communication, effective management and building
confidence in employees. They include directions for leaders on how to improve their emotional intelligence
competence, step-by-step instructions for promotions, coaching and similar. (Riggio R., Lee J., 2007, 423)
Case study analysis in job interviews anticipate familiarization of the potential employee with organization’s
policies, i.e. situation analysis, identification of key business issues, dilemmas, threats or chances for recovery.
This would make job interviews more comprehensive and productive since, in addition to common
conversation upon traditional pattern, the interview would also include the most inspirational part of the story
about an issue, which could easily lead toward a conclusion on someone’s education, logics, agility and other
cognitive, social and emotional competences. Specifically, this type of interviews tests: communication skills,
analytics, logics, creativity, innovation, quick response ability and decision making under pressure, as well the
synthesis of entire knowledge and negotiation skills.
Evaluation of leaders and employees anticipates the practice of filling in questionnaires. The questionnaires
mainly examine some issue or validate the very questionnaire in regard with certain issue. The introduction of
such a questionnaire practice, annually or semi-annually, would enable employees to evaluate their work and
effort in the company objectively, but to evaluate the leader as well. The evaluations of leadership abilities and
competences by employees would help the leadership in understanding the way they present themselves, the
way others see them and at which stadium they satisfy the employees’ needs. In other words, the questionnaire
would measure the general contribution of employees, interaction intensity, social relations and other.
Organizational benefits in case of an emotionally competent leader:
- Employees’ satisfaction
- Satisfaction in performing daily duties
- Motivation for additional training
- Contribution to the company productivity
- Sense of belonging to the staff
- Establishing good interpersonal relation with the leader and therewith useful and meaningful
communication
- Positive attitude towards the organization
- Positive opinion on the leader’s abilities, skills and knowledge
- Recognition, benefits, privileges for well-done work, which improves the employees’ contribution level
- Better job motivation, innovation and creativity
- Accepting changes and challenges
The success of an organization is measured by the success of the leader, contribution of his team to the creation
of informal and formal bonds, including emotions into work and seeking inspiration and motivation through
constant challenging of the vision. The stress is put on the leader’s behaviour and contribution to the
organization on one hand, while on the other, identical influence is expected from the employees. The creation
of group emotional intelligence and such an atmosphere resolves the problems faster and easier, changes are
readily accepted and lead towards progress. Internal relationships have much more significance for the
organization, its prosperity and profit than the external trends and policies. By understanding the organization
as a compact community, employees, headed by the leader, expand their knowledge and skills capacities, share
the vision, develop and deepen their emotional dynamics. By possessing and transferring emotional vibrations
in the organization, the leader teaches his team how to deal with stressors, distorted picture of the organization,
stagnation, bad communication and other obstacles. Collectivism in work should be renovated as well as the
highest stadiums of meaningful communication. The promotion of the aforementioned success factors
influences the organization’s position on the scale of success.
Empirical research
The main research elements are basically the key words defining this practical part: emotional intelligence,
leader, employees. The research area is an examination of the three management levels (lower, medium and
higher) in organizations on their opinions and attitudes in regard with the given topic. The number of
respondents in Serbia and Montenegro was 80, i.e. 40 in Belgrade and 40 in Tivat. The research comprises the
phases of management questionnaire, their opinions and attitudes and data analysis. It also includes the
comparative analysis of the two countries, i.e. the two towns in which this practical work was conducted,
Serbia and Montenegro, i.e. Belgrade and Tivat. The number of included companies in Montenegro was 25 and
as many in Serbia. The companies were of commercial type. The research was conducted in 2012 and lasted for
two months, October to December. It was interesting to investigate the opinions of the private sector employees
about their leaders, productivity and economic position of the company, as well as emotional intelligence as a
significant condition for better performance. The data were collected by the questionnaire technique. The
questionnaire was anonymous. The method applied was the comparative method, occasionally supported by the
generalization method.
The research was aimed to investigate several parameters set through a survey questionnaire and draw
conclusions based on the stated opinions about the leader, his abilities, company profitability and innovative
part of the work. The purpose of the research is in the clearly defined question within the survey questionnaire
on the presence and importance of emotional intelligence in leaders, being an important emotionally competent
figure. The goal was to reveal the factors affecting the employees’ opinions about their leader and the company,
testing the influence relationship leader-job satisfaction, current attitudes and satisfaction intensity related to
the leader, position and the working environment. The goal is the mission of this practical work, aiming to
prove that the employees estimate the aspect of emotional intelligence at workplace as highly significant.
Problem definition is the starting point of a scientific draft. It establishes the relationship between the real
social situation, problem arising from it, scientific and other knowledge on the phenomenon. The questions are
focused on the very problem we deal with, starting with the employee’s age, gender, state of origin, marital
status, followed by questions related to the specific problem i.e. subject of this research i.e. company
productivity, job satisfaction, organizational commitment, impact and intertwining of the personal and
professional life. (Radosavljević I., Milosavljević S., 2006, 43). Specific approach to the research problem is
the question “Do you believe that emotional intelligence plays a significant role in improving the business
productivity?” which reveals the attitude of employees towards the importance of emotional intelligence in
business. This question can be considered the main research problem. Further questions follow the very essence
and components of emotional intelligence, thus the dominant question words are: emotional control,
interpersonal relations, communication quality, vision and charisma and stress management.
The research hypotheses are questions of importance, i.e. doubts arising from this research on the given topic.
The hypotheses are numerous; still, the most important are the following serving to provide answers to the
research questions.
H1 The importance of emotional intelligence as the factor of improving organizational performance and
success
H2 Positive impact of introducing semi-annual evaluation of leader(s) and employees
H3 Significance of introducing case study analysis in job interviews
Illustration of the results obtained by generalization method
1. Investigation of the importance of emotional intelligence as the factor of improving organizational
performance and success
This hypothesis concludes an important segment of empirical research by stressing the importance of emotional
intelligence in professionalism i.e. leadership. The question of importance refers to employees and reads: “Do
you believe that emotional intelligence has an important role in improving the business productivity?” The
answers are illustrated by the graph bellow and explained by the generalization method, supported by the
comparative method.
This question is a key point of the entire questionnaire and is defined as the research problem and main
hypothesis from one side, and as the paper’s mission, purpose and goal on the other. Positive answers to this
question are mainly indicators that emotional intelligence, together with its components, is a very important
constituent of business and success.
2. Importance of semi-annual evaluation of leaders and employees
The graph above illustrates the importance of introducing this method as an innovation that can be very useful
to a company since it includes the leader’s evaluation of employees as well as the employees’ evaluation of the
leadership. This method is very significant since it comprises opinions and attitudes of both employees and
leaders, which would be a preventive work on mistakes and disputes. Although the question: “What is your
opinion on the introduction of semi-annual evaluation of company employees and leaders?” comprised the
answers: very poor, poor, fair, very good and excellent, we would like to note that not a single respondent gave
the answer very poor or poor. The goal of this method is the relationship management in the invisible part of
the company, enhancement of skills and communication.
3. Importance of introducing case study analysis in job interviews
The question related to this hypothesis is “What is your opinion on the introduction of
creative conversation and job interview that would, among other things, include a case study
analysis?” This question aims to investigate the employees’ opinions on the introduction of
this novelty and enrichment of the patterned job interview. The answers offered to this
question were: very poor, poor, fair, very good and excellent. As in the previous question,
none of the respondents chose the answer very poor or poor. Out of the total number of
respondents, 44.87% considered this idea excellent and applicable, 16.67% believed it was
fair, and 38.46% thought it was good. This illustration confirms the need for introducing and
nurturing this practice in standard job interviews.
Illustration of data gained by comparative method
1. Professional development of employees
The question related to this comparative sphere reads: “Do you undergo professional
trainings?” The answers offered were: “No, I don’t”, “Yes, through workshops”, “Yes,
through courses” and “Yes, through seminars”.
On the graph, there is a visible difference between the two countries in the case of additional
education and training of staff. Considering Montenegro, only 4 employees undergo
professional trainings through courses, 12 through workshops, 2 through courses, workshops
and seminars, 3 of them through seminars and 17 employees do not undergo professional
training. In Serbia, we have a different situation, 5 employees undergo professional trainings
through courses, 8 through workshops, 13 through workshops, seminars and courses, 3
through workshops and seminars and 11 employees through seminars. Based on the above
stated data, the difference is notable. In Serbia, more employees undergo professional
trainings through workshops, seminars and courses, while in Montenegro as many as 17
respondents do not undergo professional trainings, followed by 12 respondents undergoing
solely workshops. Courses, seminars and workshops help employees achieve better
performance, put more effort into their work, enhance their knowledge and skills, at the same
time moving the company faster towards a better position on the scale of success.
2. Company leadership position in the market
This refers to the comparison of the company leadership position between the two countries.
The question relating to this part requires the employees’ opinion on the company’s position
in the actual market.
Considering company positioning in the Montenegrin market, as many as 38 respondents
believe that their company is the leader, which would be the absolute majority of the
employees, while, in Serbia, we have a completely different situation, where 34 employees
believe that their company is not the market leader, while 6 of them believe it is.
3. Salary satisfaction
Job i.e. salary satisfaction was also a question given for employees ‘estimate, with the
satisfaction on 1-5 point satisfaction scale. The comparison of the two countries looks as
follows.
In Montenegro, 19.23% respondents believe that their income is very good, 16.67% believe
that it is fair, 11.54% believe that they are excellent and only 1.28% estimate it as poor. None
of the respondents chose the score 1, i.e. very poor. Considering Serbia, the situation is a bit
different. The majority of the respondents chose the score 3 or the category fair, then 16.67%
chose the category very good, 8.97% chose the score poor and only 2.56% chose the score
excellent. The difference between the countries is evident. The situation in Montenegro
regarding incomes is expressively different and better than in Serbia. Although we don’t
know the salaries of the employees specifically, it is clear that they are satisfied, since the
majority of the respondents chose the option very good, and the least of them chose poor. In
Serbia, the employees are mainly satisfied with their salaries, approving for the highest score
of 3 or the option fair, while, on the other hand, more respondents chose the score poor.
4. Evaluation of leadership work energy and dynamics
Putting the focus on leadership competences and differences in employees’ evaluation proved
very interesting for analysis. Leadership competences given in the evaluation questionnaire
were: work energy and dynamics, professional knowledge and motivation, empathy and
respect for employees, self-confidence and independence, persistence and consistency. The
employees were required to evaluate the leader on 1-5 point scale.
Both in Montenegro and Serbia, the employees provided high scores for their leaders. In
Montenegro, 26.92% of the respondents evaluated their work energy and dynamics as
excellent, 6.41% as fair and 15.38% as very good. In Serbia, 26.92% of the respondents gave
their leader the score excellent, 10.26% the fair one, and 14.10% chose the score very good.
The comparison and consideration of differences between the two countries clearly show that
there are no significant differences in evaluation of leaders.
5. Empathy and respect for employees
Considering the direct impact on employees, empathy and respect for employees also deserve
certain attention.
In Montenegro, 28.21% of the respondents believe that the leader has excellent attitude
towards them, 5.13% believe that it is fair, 12.82% believe that it is very good and 2.56%
estimated it as poor. In Serbia, as many as 26.92% believe that it is very good, 6.41% finds it
fair and 17.95% that it is excellent, without the option poor. The differences in this aspect are
minor, except for few respondents in Montenegro that evaluated the leader by “poor”, while
in Serbia there were no such answers. Also, the highest percentage in Montenegro was taken
by the option excellent, while in Serbia it was the option very good. The leader’s attitude
towards the employees, taking into account empathy and respect, proved very good and
successful.
6. Leader’s team work skills
Team work skills are presented on comparative basis. The graph illustrates the following
results:
Team work skills are managerial skills of interaction with employees, where the leader-
employee relationship is equalled in business engagement and contribution. This two-way
relationship is characterized by feedback orientation. The comparison provides the following
results. In Montenegro, 23.08% of the respondents believe that their leader has excellent team
work skills, 17.95% gave the score very good, 5.13% believe that they are fair about it and
1.56% of the respondents gave their leaders score poor. In Serbia, the situation is somewhat
different; 19.23% of the respondents gave the score very good, 17.95% chose the score
excellent, 10.26% gave the score fair and the option poor was chosen by 3.85% of the
respondents. In Montenegro, we have a better situation, fewer respondents gave bad scores to
their leaders and more respondents gave the score excellent. In Serbia, the majority of the
respondents chose the option very good and more respondents gave the score poor than in
Montenegro.
Concluding discussions of empirical research
Based on the above presented results i.e. processed and explained responses by employees,
their opinions on the topic, it is evident that emotional intelligence as a factor of improving
organizational performance and success, is considered and recognized as an important
business factor. Positive answers to this question are the main indicator that emotional
intelligence together with its components is a very important constituent of successful
business and progress. The innovation evaluated by best grades comprises two practice
methods that should be present in companies. These are the evaluation of leadership and
employees and case study analysis. These two methods have good applicability potential.
Considering the importance of emotional intelligence at work, the focus is put on emotional
competences to be used and applied by individuals in various situations. By applying the
method of comparing the two countries, we notice that there are huge differences in some
business segments, while in some other the differences hardly exist. Considering the biggest
differences, in analysing the results, we came to the conclusion that the employees in
Montenegro have poor professional training or hardly ever undergo it, while in Serbia we
have a completely different situation, i.e. it is estimated positively. Constant informal
professional trainings of both leaders and employees is extremely important for the purpose
of personal promotion and enhancement, better company positioning in the market,
expanding knowledge and skills. Although the employees in Montenegro rarely undergo
professional trainings, they believe that their companies are market leaders, while the Serbian
employees do not believe that it is the case with their companies. The salary satisfaction is
also a significant factor of emotional satisfaction in the organization, with various relevant
estimates. The situation in Montenegro is better than in Serbia. By the direct evaluation of
leaders by employees and analysis of leadership competences and skills by the comparison
method, we came to the conclusion that the differences between the two countries are minor
when talking about the competences: work energy and dynamics and empathy and respect for
employees. Generally speaking, the employees responding to the given topic and issue notice
the importance of emotional intelligence recognize the emotional intelligence components
both in leaders and in themselves. In the figures of the obtained results, we can notice the
objective evaluation of leadership competences and skills and the comparison method did not
show great differences between the leaders of the two countries. It is also important to note
the significance of introducing the mentioned novels in organizations for their better
performance, better problem resolution and free communication.
Conclusion
By understanding the organization as a compact community, employees, headed by the
leader, increase their capacities and possibilities, expand their knowledge, share the vision,
train and expand their emotional dynamics. By possessing and transferring emotional
vibrations within the organization, the leader teaches his/her team how to manage the
stressors, distorted picture of organization, stagnation, bad communication and other
obstacles. Collectivism in work should be nurtured and renovated as well as the highest
stadiums of meaningful communication. The promotion of the abovementioned factors of
success, positions the organization on the scale of success.
The actual research has proved that the employees recognize the significance of the
emotional intelligence existence in leadership, i.e. at work. Furthermore, the research also
included the objective evaluation of leaders in the context of emotional intelligence through
evaluation of their skills and competences. The emphasized characteristics recognized by the
employees would be emotional competence, which, according to the research results, seems
to be positively evaluated. This practical part is a positive indicator that the employees
understand the importance of emotional intelligence. The contribution put forward as this
paper’s innovation is the introduction of evaluation method and case study analysis into job
interviews, which was proved to be a feasible and desired move.
REFERENCES
Goleman Daniel, 2005, Emocionalna inteligencija, Beograd, Geopoetika
Goleman Daniel, 2006, Emocionalna inteligencija u liderstvu, Beogard, AdidĆŸes
Ghuman Umar, 2011, Building a model of group emotional intelligence, Team Performance
Management, Vol. 17 No. 7/8, USA pp.423-427.
Cangemi Joseph, Burga Bill, Lazarus Harold, Miller Richard, Fitzgerald Jaime, 2008, The
real work of the leader: a focus on the human side of the equation; Journal of Management
Development Vol. 27 No. 10, USA pp.1026-1036.
Carmeli Abraham, 2003, The relationship between emotional intelligence and work attitudes,
behavior and outcomes, An examination among senior managers, Journal of Managerial
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Cote Stephane, Lopes Paulo, Salovey Peter, Miners Cristopher, 2010, Emotional intelligence
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ANALYSIS OF EMOTIONAL INTELLIGENCE IMPACT ON LEADERSHIP SUCCESS

  • 1. ANALYSIS OF EMOTIONAL INTELLIGENCE IMPACT ON LEADERSHIP SUCCESS Milica Popović, MA Abstract Indication of emotional intelligence in a company as a crucial condition of a team management that creates dynamic, motivating relations is an important factor of successful management, and therefore deserves an attention. Emotional intelligence in leadership includes an entire spectrum of skills and techniques for interpretation of emotions and their usage in order to achieve success in management and interpersonal relations, as well as personal satisfaction. The adequate use of emotional competence helps the leader in managing the company in a highly productive way. This includes elements of self-consciousness, human relations management, as well as elements of social awareness. The leader affects employees, their work and their results this way. The employee’s job satisfaction can be observed through their commitment to work, their relations to other colleagues and their success in reaching a top of job or career. This dyadic relation in company implies the existence of reciprocating bond between the leader and the employees and shares the workload into equal parts by the principle of subsidiarity. The leader-member exchange functions as the exchange of quality and information, as well as social exchange, which creates the team spirit and creative working atmosphere. Emotional dynamics encourages employees to be innovative and creative, to accept changes and professional challenges. The adoption of unique approach based on emotional intelligence and its use in human relations, sets up organizational altruism. The influence of emotional intelligence on leadership success is measured through leader's flexibility towards employees, the sense of we, development of vision and enhancement of knowledge through innovation, creativity and continuous motivation. Key words: emotional intelligence, leader and employees, communication, emotional dynamics. emotional competence
  • 2. Introduction This paper aims to investigate a topicality that has been attracting attention for the past few decades. The popularity emotional intelligence in leadership is gaining more and more weight and significance, possible due to the lack of the idea in practice, as well as necessity for changes in organizations. On the other hand, one of the main reasons that could be valid and justified are proved studies on the importance of its presence in large and medium corporations, especially in the time of great political, economic and technological turmoil. The emotional literacy of leadership helps the employees in the manner specific for this theory, including appreciated skills of a leader. The skills put the leader figure forward, stimulate the employees to work and contribute, which moves the organization towards success and far from stagnation. Intelligent education of leaders Intertwining and interconnection of a leader being a serious business role model for employees and the idea of emotional intelligence has become topical and serious issue in the past few years. In connecting these two phenomena, it is necessary to pay attention to the thread of significance connecting them, on one hand, and construing the organizational structure on the other. In the beginning, it is necessary to emphasize the importance of learning and adoption of emotional competences by leadership. This learning phase was appropriately and comprehensively described by Michael Williams in his book “Leadership for Leaders” (Williams M., 2005, 144, 145). Acquiring of emotional competences is achieved through two stadiums: - Emotional literacy - Emotional chemistry Emotional literacy foresees the acquiring of emotional awareness regarding the existence and presence of emotions in the sphere of life and work. Emotional integrity anticipates the understanding of man, i.e. the leader’s understanding of it. Emotional chemistry is featured by competence and synergy. Once the emotional education has been established, it becomes a behaviour pattern for the leader, and thereby actions by the pattern reflect certain competences acquired. Habits created in the newly-created opinion and action build up a continuous synergy. The elements mentioned above are the corner stone of the leadership way of thinking and acquiring knowledge. By acquiring interpersonal intelligence, leaders gain skills such as successful interpersonal relations management, ability to nurture the relations, affiliation development, business resilience, conflict resolution and social analysis skills (Goleman, D., 2005, 150, 151). Transfer and influence of emotional competences on employees Roles within an organization are recognizable and clearly defined, especially if we consider the size of the organization. Emotionally intelligent leaders have several various complementary mechanisms they use at work: - Correct social perception of the organization - Raising the group awareness of individuals .(Cote S., Lopes N., Salovey P., Miners C.2010, 498) Through the mechanism of social and emotional perception, an emotionally competent leader recognizes the levels of commitment to the organization, intensity of satisfaction regarding work obligations and tasks, career ambition [4]. A complementary illustration of measuring the intensity of employees’ commitment to the organization has been illustrated by the Winston and Heartsfield. The levels of commitment to organization can be measured in as follows: - Normative level - Affective level - Continuance level
  • 3. The normative level is characterized by basic organizational commitment, with respect for business ethics and beliefs. The affective level is featured by a high-level work consistency and performance, with emphasized sense of belonging. The continuance level is characterized by an average performance level, justifying the long- lasting tenure, comfortability at work and feeling safe. The most desirable level is affective commitment (Winston B., Hartsfield M. 2004, 2-7). A very important segment of interpersonal relations, the leader-employee relation is openness to feedback. In addition to classical interpretation, openness to feedback, openness to information, anticipates also openness to promotions and gaining new knowledge, skills and experiences. There is an inevitable fact that seminars, workshops, group discussions and courses increase the level of organization productivity and enrich the professional sphere of employees. The goal is unique: to be familiar with the work methodology without the leader’s presence, and readiness to accept changes. Skills acquired by the employees this way are: self- efficiency, independent contribution to organization, knowledge and creativity. In addition to importance and readiness of employees to enrich their professionalism and emergence of research spirit, it is extremely important to follow the leader’s openness toward them. This process can depend on the extent to which they receive feedback from leadership. Feedback in this context foresees recognition, profit or benefit. This process called “balanced processing of information” by Gardner, is a two-way process from which both sides benefit and, more importantly, remain open i.e. expect further feedback (Winston B., Hartsfield M. 2004, 2-7). The theory concept on leadership-employee feedback orientation undoubtedly resembles the LMX theory. This concept is based on sharing knowledge, experience, emotions between leadership and employees, where power is evened to other levels i.e. by the principle of subsidiary; the power of an individual is transferred to others. The LMX concept is similar to the concept of shared leadership, where teams become independent for staff leadership and management (Chang J., Sy T.,m Choi J., 2010, 80-90) Importance of creating emotional dynamics in organization Leadership is a social interaction process where leadership is able to influence the employees, as well as their performance outcomes. In essence, leadership is an emotional process of organizational management, encouraging emotions in employees for the purpose of contribution, work and engagement, thus influencing the outcome and the goal. (Kerr R., Garvin J., Heaton N., Boyle E. 2006, 268). Managing employees as the basic element of organizational management is reflected through actions that provide the leader with certain roles. Considering that leaders earn their authority in a certain way, at the same time, they gain certain roles within the organization. That way, in addition to recognizable leader’s roles, he also becomes a model of imitation and admiration, i.e. the main actor. The above mentioned facts introduce certain atmosphere, known as emotional dynamics. Emotional dynamics within an organization is conditioned by emotional energy. Emotional energy anticipates a fluid that mobiles the organization employees and therewith is the key of successful changes and innovations. Each leader is oriented towards the organization productivity. In the outside world, he cares about the effective maintenance of relations with key players and clients and thereby maintaining contacts. In the inner world, the leader is focused on gathering the team, holding productive meetings, creation of clear communication and maintenance of organizational climate. Emotional dynamics is being built for years by having the leader balancing between the external and internal challenges. The dynamics in work and nurturing relationships can be equalled to the organization’s successful performance. (Williams M., 2005, 70). The most obvious example of emotional dynamics, attitudes and respect for the work and effort of others is an example of Japanese leaders. The Japanese leaders do not lead from their offices, but from the offices of their employees. During their office hours, they constantly walk around from desk to desk, monitor the work, assist the employees and communicate, criticizing in a suggestive way e.g. “Maybe it could be better to do it this way...Do you really think that this would be practical and productive...Think again...?” This way of communication and establishment of interpersonal relationships based on advices encourages productivity and innovations creating the feeling of safety and belonging to the staff. (Cangemi J., Burga B., Lazarus H., Miller R., Fitzgerald J., 2008, 1030,1031)
  • 4. Intelligent team management Team management is not a simple endeavour, considering that people are of different character and temper. By adopting a unique approach based on emotional intelligence and its application to interpersonal relations, it is possible to appraise the team climate. This topic is best described by the term organizational altruism as a type of organizational commitment, where the phenomena of organization and staff are understood personally. Elements of successful team management, and therewith the creation of organizational altruism, are: - Visualization of the organization’s future - Empowering the we sense - Communicating for meaning (Kent T., 2006, 60, 62) Visualization of the organization’s future foresees the creation of the sense of unity and safety, as well as seeing the future within the team. Leaders being by nature enthusiastic or having a long-term vision, tend to “infect” their employees in the same way, which calls forth some kind of inspiration and optimism in the staff. The creation of the we sense anticipates collectivism in work, mutual respect and trust, as well as ensuring of personal safety. Communication for meaning is a two-way communication between the employees and the leaders, communication with a goal, ability to listen or establishing a way to listen. Generally, communication for meaning comprises the communication both in informal network and in the formal or professional one. By creating the organizational culture, in addition to formal communication, a network of informal relations is also created, significantly influencing the employees’ productivity. The informal part of the communication includes symbols, jokes and gossip communication building the concept of group emotional intelligence. (Ghuman U., 2011, 423-427) Group emotional intelligence is connected to team work and comprises a set of norms controlling the processes of nurturing social relations in the organization and represents a collective process defining roles, statuses and position of the employees. This way, the group applies socialization skills. Viewed from another angle, the group becomes able to see itself in a wider system, together with its advantages. This concept has arisen from two contexts: - Group socialization - Collective mind (Ghuman U., 2011, 423-427) Group socialization is made of ethical norms, standards, codes of conduct, monitoring of relationship dynamics. Collective mind refers to the awareness of the development and understanding of collectivism, need for belonging, understanding of the organization personally and integration into group dynamics. Road to success Success in acquiring emotional intelligence is reflected primarily in one’s own qualities, empathy, understanding, care and respect for other people. Competences related to work and cooperation include the organizational awareness, team work, freedom of opinion, awareness of constant progress and training, struggle for success, self-confidence and self-control. By successful application of emotional intelligence, leader achieves his maximum performance. (Goleman D. 2006, 140-144) Advices for successful organizational management are versatile. The most important is to focus on some most appropriate and possible to conduct, and which are, on the other hand, able to make a difference and point to faults. The duty of an emotionally intelligent leader is to create a successful organization the employees of which will be satisfied with the leader and the salary, in which motivation and performance will always be on a high, productive level. Advices or directions for such leadership is massively mentioned in literature and become a new and attractive place serving leaders in daily organizational management. Productive advices are: - Continuous professional development - Introducing case study analysis practice in job interviews
  • 5. - Semi-annual evaluation Continuous professional development provides leaders with new knowledge to be used in work and assist the very organization in finding a better placement in the market. This type of development comprises various courses, trainings and programmes. The programmes are based on learning the importance of improving interpersonal relations in the organization, good communication, effective management and building confidence in employees. They include directions for leaders on how to improve their emotional intelligence competence, step-by-step instructions for promotions, coaching and similar. (Riggio R., Lee J., 2007, 423) Case study analysis in job interviews anticipate familiarization of the potential employee with organization’s policies, i.e. situation analysis, identification of key business issues, dilemmas, threats or chances for recovery. This would make job interviews more comprehensive and productive since, in addition to common conversation upon traditional pattern, the interview would also include the most inspirational part of the story about an issue, which could easily lead toward a conclusion on someone’s education, logics, agility and other cognitive, social and emotional competences. Specifically, this type of interviews tests: communication skills, analytics, logics, creativity, innovation, quick response ability and decision making under pressure, as well the synthesis of entire knowledge and negotiation skills. Evaluation of leaders and employees anticipates the practice of filling in questionnaires. The questionnaires mainly examine some issue or validate the very questionnaire in regard with certain issue. The introduction of such a questionnaire practice, annually or semi-annually, would enable employees to evaluate their work and effort in the company objectively, but to evaluate the leader as well. The evaluations of leadership abilities and competences by employees would help the leadership in understanding the way they present themselves, the way others see them and at which stadium they satisfy the employees’ needs. In other words, the questionnaire would measure the general contribution of employees, interaction intensity, social relations and other. Organizational benefits in case of an emotionally competent leader: - Employees’ satisfaction - Satisfaction in performing daily duties - Motivation for additional training - Contribution to the company productivity - Sense of belonging to the staff - Establishing good interpersonal relation with the leader and therewith useful and meaningful communication - Positive attitude towards the organization - Positive opinion on the leader’s abilities, skills and knowledge - Recognition, benefits, privileges for well-done work, which improves the employees’ contribution level - Better job motivation, innovation and creativity - Accepting changes and challenges The success of an organization is measured by the success of the leader, contribution of his team to the creation of informal and formal bonds, including emotions into work and seeking inspiration and motivation through constant challenging of the vision. The stress is put on the leader’s behaviour and contribution to the organization on one hand, while on the other, identical influence is expected from the employees. The creation of group emotional intelligence and such an atmosphere resolves the problems faster and easier, changes are readily accepted and lead towards progress. Internal relationships have much more significance for the organization, its prosperity and profit than the external trends and policies. By understanding the organization as a compact community, employees, headed by the leader, expand their knowledge and skills capacities, share the vision, develop and deepen their emotional dynamics. By possessing and transferring emotional vibrations in the organization, the leader teaches his team how to deal with stressors, distorted picture of the organization, stagnation, bad communication and other obstacles. Collectivism in work should be renovated as well as the highest stadiums of meaningful communication. The promotion of the aforementioned success factors influences the organization’s position on the scale of success.
  • 6. Empirical research The main research elements are basically the key words defining this practical part: emotional intelligence, leader, employees. The research area is an examination of the three management levels (lower, medium and higher) in organizations on their opinions and attitudes in regard with the given topic. The number of respondents in Serbia and Montenegro was 80, i.e. 40 in Belgrade and 40 in Tivat. The research comprises the phases of management questionnaire, their opinions and attitudes and data analysis. It also includes the comparative analysis of the two countries, i.e. the two towns in which this practical work was conducted, Serbia and Montenegro, i.e. Belgrade and Tivat. The number of included companies in Montenegro was 25 and as many in Serbia. The companies were of commercial type. The research was conducted in 2012 and lasted for two months, October to December. It was interesting to investigate the opinions of the private sector employees about their leaders, productivity and economic position of the company, as well as emotional intelligence as a significant condition for better performance. The data were collected by the questionnaire technique. The questionnaire was anonymous. The method applied was the comparative method, occasionally supported by the generalization method. The research was aimed to investigate several parameters set through a survey questionnaire and draw conclusions based on the stated opinions about the leader, his abilities, company profitability and innovative part of the work. The purpose of the research is in the clearly defined question within the survey questionnaire on the presence and importance of emotional intelligence in leaders, being an important emotionally competent figure. The goal was to reveal the factors affecting the employees’ opinions about their leader and the company, testing the influence relationship leader-job satisfaction, current attitudes and satisfaction intensity related to the leader, position and the working environment. The goal is the mission of this practical work, aiming to prove that the employees estimate the aspect of emotional intelligence at workplace as highly significant. Problem definition is the starting point of a scientific draft. It establishes the relationship between the real social situation, problem arising from it, scientific and other knowledge on the phenomenon. The questions are focused on the very problem we deal with, starting with the employee’s age, gender, state of origin, marital status, followed by questions related to the specific problem i.e. subject of this research i.e. company productivity, job satisfaction, organizational commitment, impact and intertwining of the personal and professional life. (Radosavljević I., Milosavljević S., 2006, 43). Specific approach to the research problem is the question “Do you believe that emotional intelligence plays a significant role in improving the business productivity?” which reveals the attitude of employees towards the importance of emotional intelligence in business. This question can be considered the main research problem. Further questions follow the very essence and components of emotional intelligence, thus the dominant question words are: emotional control, interpersonal relations, communication quality, vision and charisma and stress management. The research hypotheses are questions of importance, i.e. doubts arising from this research on the given topic. The hypotheses are numerous; still, the most important are the following serving to provide answers to the research questions. H1 The importance of emotional intelligence as the factor of improving organizational performance and success H2 Positive impact of introducing semi-annual evaluation of leader(s) and employees H3 Significance of introducing case study analysis in job interviews Illustration of the results obtained by generalization method 1. Investigation of the importance of emotional intelligence as the factor of improving organizational performance and success This hypothesis concludes an important segment of empirical research by stressing the importance of emotional intelligence in professionalism i.e. leadership. The question of importance refers to employees and reads: “Do
  • 7. you believe that emotional intelligence has an important role in improving the business productivity?” The answers are illustrated by the graph bellow and explained by the generalization method, supported by the comparative method. This question is a key point of the entire questionnaire and is defined as the research problem and main hypothesis from one side, and as the paper’s mission, purpose and goal on the other. Positive answers to this question are mainly indicators that emotional intelligence, together with its components, is a very important constituent of business and success. 2. Importance of semi-annual evaluation of leaders and employees The graph above illustrates the importance of introducing this method as an innovation that can be very useful to a company since it includes the leader’s evaluation of employees as well as the employees’ evaluation of the leadership. This method is very significant since it comprises opinions and attitudes of both employees and leaders, which would be a preventive work on mistakes and disputes. Although the question: “What is your opinion on the introduction of semi-annual evaluation of company employees and leaders?” comprised the answers: very poor, poor, fair, very good and excellent, we would like to note that not a single respondent gave the answer very poor or poor. The goal of this method is the relationship management in the invisible part of the company, enhancement of skills and communication.
  • 8. 3. Importance of introducing case study analysis in job interviews The question related to this hypothesis is “What is your opinion on the introduction of creative conversation and job interview that would, among other things, include a case study analysis?” This question aims to investigate the employees’ opinions on the introduction of this novelty and enrichment of the patterned job interview. The answers offered to this question were: very poor, poor, fair, very good and excellent. As in the previous question, none of the respondents chose the answer very poor or poor. Out of the total number of respondents, 44.87% considered this idea excellent and applicable, 16.67% believed it was fair, and 38.46% thought it was good. This illustration confirms the need for introducing and nurturing this practice in standard job interviews. Illustration of data gained by comparative method 1. Professional development of employees The question related to this comparative sphere reads: “Do you undergo professional trainings?” The answers offered were: “No, I don’t”, “Yes, through workshops”, “Yes, through courses” and “Yes, through seminars”. On the graph, there is a visible difference between the two countries in the case of additional education and training of staff. Considering Montenegro, only 4 employees undergo professional trainings through courses, 12 through workshops, 2 through courses, workshops and seminars, 3 of them through seminars and 17 employees do not undergo professional training. In Serbia, we have a different situation, 5 employees undergo professional trainings through courses, 8 through workshops, 13 through workshops, seminars and courses, 3
  • 9. through workshops and seminars and 11 employees through seminars. Based on the above stated data, the difference is notable. In Serbia, more employees undergo professional trainings through workshops, seminars and courses, while in Montenegro as many as 17 respondents do not undergo professional trainings, followed by 12 respondents undergoing solely workshops. Courses, seminars and workshops help employees achieve better performance, put more effort into their work, enhance their knowledge and skills, at the same time moving the company faster towards a better position on the scale of success. 2. Company leadership position in the market This refers to the comparison of the company leadership position between the two countries. The question relating to this part requires the employees’ opinion on the company’s position in the actual market. Considering company positioning in the Montenegrin market, as many as 38 respondents believe that their company is the leader, which would be the absolute majority of the employees, while, in Serbia, we have a completely different situation, where 34 employees believe that their company is not the market leader, while 6 of them believe it is. 3. Salary satisfaction Job i.e. salary satisfaction was also a question given for employees ‘estimate, with the satisfaction on 1-5 point satisfaction scale. The comparison of the two countries looks as follows. In Montenegro, 19.23% respondents believe that their income is very good, 16.67% believe that it is fair, 11.54% believe that they are excellent and only 1.28% estimate it as poor. None of the respondents chose the score 1, i.e. very poor. Considering Serbia, the situation is a bit different. The majority of the respondents chose the score 3 or the category fair, then 16.67% chose the category very good, 8.97% chose the score poor and only 2.56% chose the score excellent. The difference between the countries is evident. The situation in Montenegro regarding incomes is expressively different and better than in Serbia. Although we don’t know the salaries of the employees specifically, it is clear that they are satisfied, since the majority of the respondents chose the option very good, and the least of them chose poor. In Serbia, the employees are mainly satisfied with their salaries, approving for the highest score of 3 or the option fair, while, on the other hand, more respondents chose the score poor.
  • 10. 4. Evaluation of leadership work energy and dynamics Putting the focus on leadership competences and differences in employees’ evaluation proved very interesting for analysis. Leadership competences given in the evaluation questionnaire were: work energy and dynamics, professional knowledge and motivation, empathy and respect for employees, self-confidence and independence, persistence and consistency. The employees were required to evaluate the leader on 1-5 point scale. Both in Montenegro and Serbia, the employees provided high scores for their leaders. In Montenegro, 26.92% of the respondents evaluated their work energy and dynamics as excellent, 6.41% as fair and 15.38% as very good. In Serbia, 26.92% of the respondents gave their leader the score excellent, 10.26% the fair one, and 14.10% chose the score very good. The comparison and consideration of differences between the two countries clearly show that there are no significant differences in evaluation of leaders. 5. Empathy and respect for employees Considering the direct impact on employees, empathy and respect for employees also deserve certain attention. In Montenegro, 28.21% of the respondents believe that the leader has excellent attitude towards them, 5.13% believe that it is fair, 12.82% believe that it is very good and 2.56% estimated it as poor. In Serbia, as many as 26.92% believe that it is very good, 6.41% finds it fair and 17.95% that it is excellent, without the option poor. The differences in this aspect are minor, except for few respondents in Montenegro that evaluated the leader by “poor”, while in Serbia there were no such answers. Also, the highest percentage in Montenegro was taken by the option excellent, while in Serbia it was the option very good. The leader’s attitude
  • 11. towards the employees, taking into account empathy and respect, proved very good and successful. 6. Leader’s team work skills Team work skills are presented on comparative basis. The graph illustrates the following results: Team work skills are managerial skills of interaction with employees, where the leader- employee relationship is equalled in business engagement and contribution. This two-way relationship is characterized by feedback orientation. The comparison provides the following results. In Montenegro, 23.08% of the respondents believe that their leader has excellent team work skills, 17.95% gave the score very good, 5.13% believe that they are fair about it and 1.56% of the respondents gave their leaders score poor. In Serbia, the situation is somewhat different; 19.23% of the respondents gave the score very good, 17.95% chose the score excellent, 10.26% gave the score fair and the option poor was chosen by 3.85% of the respondents. In Montenegro, we have a better situation, fewer respondents gave bad scores to their leaders and more respondents gave the score excellent. In Serbia, the majority of the respondents chose the option very good and more respondents gave the score poor than in Montenegro. Concluding discussions of empirical research Based on the above presented results i.e. processed and explained responses by employees, their opinions on the topic, it is evident that emotional intelligence as a factor of improving organizational performance and success, is considered and recognized as an important business factor. Positive answers to this question are the main indicator that emotional intelligence together with its components is a very important constituent of successful business and progress. The innovation evaluated by best grades comprises two practice methods that should be present in companies. These are the evaluation of leadership and employees and case study analysis. These two methods have good applicability potential. Considering the importance of emotional intelligence at work, the focus is put on emotional competences to be used and applied by individuals in various situations. By applying the method of comparing the two countries, we notice that there are huge differences in some business segments, while in some other the differences hardly exist. Considering the biggest differences, in analysing the results, we came to the conclusion that the employees in Montenegro have poor professional training or hardly ever undergo it, while in Serbia we
  • 12. have a completely different situation, i.e. it is estimated positively. Constant informal professional trainings of both leaders and employees is extremely important for the purpose of personal promotion and enhancement, better company positioning in the market, expanding knowledge and skills. Although the employees in Montenegro rarely undergo professional trainings, they believe that their companies are market leaders, while the Serbian employees do not believe that it is the case with their companies. The salary satisfaction is also a significant factor of emotional satisfaction in the organization, with various relevant estimates. The situation in Montenegro is better than in Serbia. By the direct evaluation of leaders by employees and analysis of leadership competences and skills by the comparison method, we came to the conclusion that the differences between the two countries are minor when talking about the competences: work energy and dynamics and empathy and respect for employees. Generally speaking, the employees responding to the given topic and issue notice the importance of emotional intelligence recognize the emotional intelligence components both in leaders and in themselves. In the figures of the obtained results, we can notice the objective evaluation of leadership competences and skills and the comparison method did not show great differences between the leaders of the two countries. It is also important to note the significance of introducing the mentioned novels in organizations for their better performance, better problem resolution and free communication. Conclusion By understanding the organization as a compact community, employees, headed by the leader, increase their capacities and possibilities, expand their knowledge, share the vision, train and expand their emotional dynamics. By possessing and transferring emotional vibrations within the organization, the leader teaches his/her team how to manage the stressors, distorted picture of organization, stagnation, bad communication and other obstacles. Collectivism in work should be nurtured and renovated as well as the highest stadiums of meaningful communication. The promotion of the abovementioned factors of success, positions the organization on the scale of success. The actual research has proved that the employees recognize the significance of the emotional intelligence existence in leadership, i.e. at work. Furthermore, the research also included the objective evaluation of leaders in the context of emotional intelligence through evaluation of their skills and competences. The emphasized characteristics recognized by the employees would be emotional competence, which, according to the research results, seems to be positively evaluated. This practical part is a positive indicator that the employees understand the importance of emotional intelligence. The contribution put forward as this paper’s innovation is the introduction of evaluation method and case study analysis into job interviews, which was proved to be a feasible and desired move.
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