Professional Documents
Culture Documents
on
MBA(Section-B)
1st-Semester
1. Introduction
The success of any organization in the long run depends on its human resource. Of all the prime
resources of an organization, the human resource is the most vital and important because it is
ultimately the human being who uses and controls all the other resources and determines the
efficient utilization of these resources. Thus, human resource reflects an inherent dynamism
and development potential.
Human resource is the aggregate of employee attributes including knowledge, skill, experience
and health which are presently and potentially available to an organization for the achievement
of its goal. The key objective in the management of any organization should be to provide
various kinds of learning experiences to its people with the objective of developing human
beings for their advantage and harnessing their physical, mental, emotional and intellectual
endowments and abilities for the growth of the organization. Unfortunately our management
policies emphasize only on the cognitive aspect of the human resource, whereas the emotional
or affective aspect of human resource is neglected. Emotional competence is as important,
sometimes more important than academic competence in managing the organization. As a child
will not learn if he does not ‘want’ to learn or feel the ‘need’ to learn despite having good
ability or intelligence; similarly an employee will not put in his maximum effort unless his
emotional needs are taken care of. Human being is not merely a cognitive man, possessing
various abilities and skills. He is also an emotional being which determines the effective and
efficient utilization of his cognitive abilities.
Today, many management scholars and practitioners are beginning to emphasize the
importance of Emotional Intelligence in order to improve individual as well as organizational
effectiveness. Emotional Intelligence has become increasingly popular as a measure for
identifying potentially effective leaders. Despite the popularity of the concept, there was little
empirical research regarding the impact of emotional intelligence on organizational
commitment.
1.1 CONCEPT OF EMOTIONAL INTELLIGENCE (Independent
variable)
The concept Emotional Intelligence came out of the term emotion, which refers to a feeling
with its distinctive thoughts, psychological and biological states, and ranges of propensities to
act. There can be a number of emotions like anger, sadness, fear etc. A manager’s ability to
balance the emotions with the reason to maximize long term happiness i.e. capacity of
effectively recognizing and managing one’s own emotions and those of others may be termed
as emotional awareness or emotional management of skills. In the words of Daniel Goleman
emotional intelligence is “the ability to motivate oneself and persist in the face of frustration;
to control impulse and delay gratification; to regulate one’s moods and keep distress from
swamping the ability to think; to emphasize and to hope”. In simple words the concept of
emotional intelligence is an umbrella term that captures a broad collection of individual skills
and dispositions, usually referred to as soft skills or inter or intrapersonal skills, which are
outside the traditional areas of general intelligence, and technical or professional skills.
The Encyclopedia of Applied Psychology states that there are three major models of emotional
intelligence:
a) The Mayer-Salovey model: which defines this construct as the ability to perceive,
understand, manage and use emotions to facilitate thinking;
b) The Bar-On model: which describes El as a cross-section of interrelated emotional and
social competencies, skills and facilitators that impact intelligent behavior and
c) The Goleman model: which views it as an array of emotional and social competencies that
contribute to managerial performance.
The Bar-On Model and the Goleman Model are also known as the “Mixed Models of Emotional
Intelligence”. Models that mix together emotional intelligence qualities with other personality
traits unrelated to either emotion or intelligence are often referred to as mixed models of
emotional intelligence.
Meyer and Allen (1997) defined it in a variety of ways as an attitude or an orientation that
links the identity of the person to the organization, a process by which the goals of the
organization and those of the individual become congruent, an involvement with a particular
organization, the perceived rewards associated with continued participation in an organization,
the cost associated with leaving, and normative pressures to act in a way that meets
organizational goals.
Organizational commitment is the bond employees have towards their organization. In layman
terms, employees who are committed towards their association for the most part feel an
association with their association, feel that they fit in and, feel they comprehend the objectives
of the organization. These employees have a tendency to be more dedicated towards their work,
demonstrate moderately high efficiency and are more proactive in offering help.
Organization commitment is commonly defined as employees’ interest and connection to an
organization. Organizational commitment can be characterized as: a strong belief and
acceptance of the organization’s goals and values, willingness to put forth considerable effort
for the sake of organization, and a strong desire to remain as a member of the organization
Organizational commitment is related with an increased in performance, satisfaction, and
organizational adaptability, and negatively affect absenteeism and employee turnover.
Employee’s commitment is important to organization because committed employees are likely
to be more willing to make personal sacrifices for the sake of organization.
Organization’s ethical values may also increase employees’ commitment to the organization
as employees might experience a stronger attachment to companies that adopt ethical values
found that marketing professionals’ commitment was positively related to corporate concern
for ethics. Organizations could augment individual commitment through ethical compliance
and rewards. Moreover found that employees will feel more committed as they perceive his or
her peers engaged in ethical behaviors. In contrast, employee’s level of commitment will
reduce if they belief that his or her peers engage in unethical behaviors’. Various studies have
illustrated that Organizational commitment has a direct impact on employee attrition. The more
committed an employee is towards his/her organization, the lower are the chances of that
employee leaving the organization.
Organizational commitment among employees is necessary to make them experience a “sense
of oneness” with the organization. We can say that it is an employee’s emotional attachment
to the business he is working for. Organizational Commitment has been reported to have a
direct impact on the employees’ turnover rates in the organization, job satisfaction among
employees and their job behavior. A three-component model of commitment was created by
Meyer and Allen in 1991, which has three different modules of commitment that correspond
with different psychological states:
Affective Commitment: refers to the employee’s emotional behaviour, identification,
attachment and involvement with their organization.
Continuance Commitment: It occurs when the employee weighs the pros and cons of
leaving the organisation. He is committed to the current organisation because he feels that he
may suffer some loss on leaving.
Normative Commitment: refers to the employee’s responsibility for the job and thus makes
them stay with the same organization.
It is believed that the growth of an organisation is directly related to the commitment level of
employees. It is only when the employee has high level of commitments, will he be willing to
go above and beyond the required job duties. (Nehmeh, 2009) states, “If human resources are
said to be an organisation’s greatest assets, then committed human resources should be
regarded as an organisation’s competitive advantage.”
Kanter (1972) distinguishes three dimensions of commitment in terms of their action, that is,
Instrumental Commitment, Affective Commitment, and Moral Commitment. The Instrumental
dimension of commitment is related to the advantages and benefits of the financial conditions
of membership in a social group. The Affective dimension includes the feeling of attachment
and bonds and the satisfaction of interacting with others that attach the individuals to the group.
In its Moral dimension, commitment implies those conditions that help the employees to enjoy
a sense of self-esteem, self-confidence, social proud, and belief in the values and goals of the
organization of which they are a member.
(2) Steers’ model (1977)
This model states that organizational commitment can be simultaneously an independent and
a dependent variable. As an independent variable, organizational commitment can influence
other dependent variables such as the employees’ presence, turnover, tendency to turnover, and
their job performance while as a dependent variable it can be affected by other independent
variables such as personal characteristics, professional characteristics, and professional
experiences
(3) Angle and Perry’s model (1981)
Angle and Perry’s model of organizational commitment includes two dimensions of Value
Commitment and Continuous Commitment. Value commitment shows a positive tendency
toward the organization. This type of commitment alludes to the psychological and affective
commitment. The continuance commitment, the commitment to stay with the organization,
indicates the importance of interactions, rewards, and the inseparable interactions in an
economic exchange
2. Literature Review
3.5 HYPOTHESIS
H1: There is a positive and significant relationship between emotional self awareness and
organizational commitment.
H2: There is a positive and significant relationship between interpersonal relationships and
organizational commitment.
H3: There is a positive and significant relationship between self actualization and
organizational commitment.
H4: There is a positive and significant relationship between social responsibility and
organizational commitment.
H5: There is a positive and significant relationship between emotional intelligence and
organizational commitment.
3.6 VARIABLES
DEPENDENT VARIABLE
Organizational Commitment
INDEPENDENT VARIABLE
Emotional Intelligence
OBSERVED VARIABLES FOR EMOTIONAL INTELLIGENCE
Interpersonal relationships
Self actualization
Social responsibility
3.7 SAMPLING PROCEDURE:
Unit of Population : Individuals
Sampling Unit : Employees of Private Insurance Companies.
Sample Size : 90
Extent : Chandigarh
Sampling Technique : Simple Random Sampling
Data Collection Method : Questionnaire
INSTRUMENTS:
Emotional Intelligence:
The Emotional Intelligence Questionnaire developed by Mohan, Malhotra and Mangla
(2003) was used for the purpose of measuring the variable of Emotional Intelligence. EI
questionnaire consists of statements giving an opportunity to explore and describe yourself. It
indicates the degree to which each statement is true of the way you feel, think or act most of
the time and in most of the situations. The questionnaire consisted of 95 statements, which
were sub classified into 29 emotional competencies. The four competencies that we choose out
of the questionnaire were as follows:
2. Interpersonal Relationships:
It is the ability to build and maintain long term relationships with other people. It involves
connecting with people at deeper level and building of strong social network.
3. Self Actualization:
It is the ability of an individual to realize his talent to the fullest possible extent and making the
most of one’s abilities by doing what one can do.
4. Social Responsibility:
It is the ability of an individual to think and feel about others. It means being responsible for
one’s action and its impact on social surroundings.
Organizational Commitment:
For the purpose of measuring Organizational Commitment, the Organizational Commitment
Questionnaire (OCQ) which was developed by Mowday, Steers, and Porter (1979) was used.
It uses 15 items to describe global organizational commitment. This widely used measure has
been modified to examine professional commitment by replacing the word organization with
profession. It has also been used to assess job commitment by changing the wording from
organization to job. The 15 statements represent possible feelings that individuals might have
about the company or organization for which they work
SCALES:
Likert scale will be used to get the questionnaires filled. It is a psychometric scale. When
responding to a Likert questionnaire item, respondents specify their level of agreement or
disagreement on a symmetric agree/disagree scale for a series of statement.
The reliability Testing is done by calculating the Cronbach’s Alpha which is the best measure
to evaluate consistency of data. The value of Cronbach’s alpha for independent as well as
dependent variables should be greater than 0.60 to ensure reliability of the data.
Since the value of Cronbach alpha is more than 0.6, the data is reliable.
The test is hence successful.
4.2 NORMALITY TEST:
The data normality testing is done on the data with the help of Shapiro-Wilk’s test for
Normality and the data is found to be not normal.
The p Value between dependent and independent variable of less than .05 shows that data is
not normal and hence non-parametric tests are chosen i.e. spearman correlation
4.3 CORRELATIONS:
Correlation analysis is carried out further to test the defined hypothesis. Therefore in this
section the analysis was done in multiple segments to test each of the hypothesis defined for
the study. The correlation coefficient may range from –1 to 1, where –1 or 1 indicates a
“perfect” relationship. The further the coefficient is from 0, regardless of whether it is positive
or negative, the stronger the relationship between the two variables. Positive coefficients tell
us there is a direct relationship: when one variable increases, the other increases. Negative
coefficients tell us that there is an inverse relationship: when one variable increases, the other
one decreases.
If the probability value is .000 (remember that the value is rounded to three digits), which is
well below the conventional threshold of p < .05, our hypothesis will be supported. There is a
relationship (the coefficient is not 0), it is in the predicted direction (positive), and we can
generalize the results to the population (p < .05).
H1: There is a positive and significant relationship between emotional self awareness and
organizational commitment
The significant coefficient is indicated to be 0.003. Hence, the relationship is significant at 0.01
level.
The correlation coefficient is positive.
Thus it can be said that there is a positive and significant relationship between Self-
actualization and Organizational commitment.
Hence, H3 is accepted.
H4: There is a significant relationship between social responsibility and organizational
commitment.
The significant coefficient is indicated to be 0.000. Hence, the relationship is significant at 0.01
level.
The correlation coefficient is positive.
Thus it can be said that there is a positive and significant relationship between social
responsibility and Organizational commitment.
Hence, H4 is accepted.
H5: There is a positive and significant relationship between emotional intelligence and
organizational commitment.
The significant coefficient is indicated to be 0.000. Hence, the relationship is significant at 0.01
level.
The correlation coefficient is positive.
Thus it can be said that there is a positive and significant relationship between emotional
intelligence and Organizational commitment.
Hence, H5 is accepted.
5. RESULTS OF THE STUDY
HYPOTHESIS ACCEPTED/REJECTED
H1 REJECTED
H2 REJECTED
H3 ACCEPTED
H4 ACCEPTED
H5 ACCEPTED
6. Conclusion
According to research findings, it can be concluded that there exists a significant relation
between organizational commitment and emotional intelligence. The study on Emotional
Intelligence revealed that two factors of EI that are Self Awareness and Interpersonal
relationships do not have any relationship with organizational commitment whereas the other
two factors that are self actualization and social responsibility have a relationship with
organizational commitment.
Emotional intelligence plays an important role for employees in the organization. This study
has made a better understanding about the various reasons for emotion and better control over
the emotion. Handling emotions is an important requirement for a HR for himself and among
the employees as well. This will help to increase organizational commitment, improve
productivity, efficiency, retain best talent and motivate the employees to give their best. This
study confirms that both emotional intelligence and work life balance together create
organizational success and develop competitive advantage for organizations. Understanding
the potential and the talent that the employees and ensure the difference that employees bring
to the work place and value them to make it a part of the organizational success. The work
place should be better so that the employees can have a better team work, find solutions for
problem, enhanced job responsibility, group mission, challenges, routine work, self confidence
among workers. Emotional intelligence will bring in better adaptability, empathy towards
employee, leadership qualities, group rapport, participative management, decision making, and
understanding among colleagues. Most of the organizations are nowadays taking those
employees who are emotionally intelligent, so that they can face the workplace problems easily
and they can become more productive for the organization. Emotionally intelligent
organization can be made through organizational strategies, leadership skills, development
programmes, self awareness and self management tools. The researcher from the study
concludes that emotional intelligence is linked at every point of workplace performance and it
is of utmost importance nowadays. Hence, to be successful in life Emotional intelligence plays
a vital role.