The effects of Emotional Intelligence in Employees Performance

Abstract
The research aim is to identify the effect of Emotional Intelligence employee‘s
performance in their working place. With this research we would like to prove that the success in
working and in overall working performance is not depending only on professional knowledge
and the level of IQ of employees and managers, but also very important impact is having the
level of Emotional Intelligence.
Based on research result from 265 respondent divided on 215 non-managers position and
51 respondent with managers/director position from different private and public institutions we
concluded that also in Macedonia the success of managing changes is depending from the level
of Emotional Intelligence. There is significant correlation between the level of EQ and the Index
of Managing Changes.
Key words: Emotional intelligence, employee performance, change management,
performance

1. Introduction

For the first time the term Emotional Intelligence – EI was used in 1985 from Payne and
the same was considered to indicates person‘s ability to ―relate to fear, pain and desire‖ (Payne
on Kambiz and Majid, 2013). But as separate concept of EI form general intelligence for the first
time was introduced from Salovey and Mayer in 1990 as type of social intelligence which cover
the ability to monitor one‘s own and other‘s emotions, discriminate among them and to use
the information to guide one‘s thinking and actions (Salovey and Mayer 1990). Maria and
Ioanniss in their paper for emotional intelligence argued that Sakovey and Mayer have expanded
their model and defined the EI as ability of an individual to perceive accurately, appraise and
express emotion, the ability to access and generate feelings when they facilitate thought, the
ability to understand emotion and emotional knowledge and the ability to regulate emotional to
promote emotional and intellectual growth (Mayer and Salovey 1997 on M. Vakola, I. Tsaousis
and I. Nikolaou).
To find the way to describe the Emotional Intelligence we need to ask our self: How well
do we connect with our self and with others? The ability to appropriately identify, recognize and
manage our emotions for your own well-being as well as the wellbeing of people around us is
what is described as emotional intelligence. Our emotional sensitivity, maturity and competency
is what ultimately decides our destiny (Dalip, 2006). The person which is well known for
promotion the concept of Emotional Intelligence is Goleman (1998, p.317) and according to him
Emotional intelligence is define as:
―The capacity for recognizing our own fillings and those of others, for motivating
ourselves and for managing emotions well in ourselves and in our relationship”.
Based on Bar-On the EI is a part of personality theory. He defined EI as an umbrella
concept of non-cognitive capabilities competencies and skills which helps an individual to
become more efficient in coping with environmental demand and pressures. His model of non-
cognitive intelligence includes five broad area of skills and competencies that appear to
contribute in the success. These skills are intra-personal skills, inter-personal skills, adaptability,
stress management and general mood (Bar-on 1997 on Vakola, Tsaousis and Nikolaou 2003).
Cooper (1997) argues that persons which have high level of emotional intelligence are more
successful and can make stronger relationships than those with low emotional intelligence.
Emotional intelligence is defined as the ability to adaptively perceive, understand and regulate
emotions in oneself and others person (e.g., Salovey & Mayer, 1990; Schutte, Malouff, Hall,
Haggerty, Cooper, Golden, & Dornheim, 1998). Most of the researchers suggest that people
having high emotional intelligence ―get more success, make better interpersonal relation, work
more effectively and spend healthy life than those people having low emotional intelligence
(Hassan, 2013).
Recent researches has pointed out that emotional intelligence contributes to eighty
percent of success in life and career while only twenty percent is attributed to cognitive
intelligence quotient. Emotional intelligence largely shapes the behavior of the leader and
determines his or her leadership effectiveness (Goleman on Shatali, 2011). McPheat (2011, p.9)
in his book for Emotional Intelligence gives the definition by which the EI is:
“involves a combination of competences which allows a person to be aware of, to understand
and to be in control of their own emotions, to recognize and understand the emotion of others,
and to use this knowledge to foster their success and the success of others”.
Abraham defined the emotional Intelligence as the ability to: (Abraham on Shatali, 2011, p. 11)
 Understand your feeling and the feelings of others
  Ability to deal with others
 The ability to form Relationships
 The ability to express different emotions
 Independence and the ability to make decisions
 Perseverance and hard work
Dalip Singh (2003) in his book ―Emotional Intelligence in work place‖ argues that the Emotional
Intelligence gives a person competitive advantages. And according to him even in renowned
business establishment, where everyone is trained to be smart the most valued and productive
managers are those who have strong rates of emotional intelligence and also he argues that Being
endowed with great intellectual abilities, you may become a brilliant fiscal analyst or a legal
scholar, but a highly developed emotional intelligence is what will make you a candidate for a
CEO, a brilliant trial lawyer, a successful politician or a powerful bureaucrat. Emotional
intelligence is the ability of an individual to appropriately and successfully respond to a vast
variety of emotional stimuli being elicited from the inner self and immediate environment.
Emotional intelligence constitutes three psychological dimensions: emotional sensitivity,
emotional maturity and emotional competency, which motivate an individual to recognize
truthfully, interpret honestly and handle tactfully the dynamics of human behavior.
Also we will provide additional definition for EI which is offered by Sparrow and Knight
in Applied EI 2006 and according to him the Emotional Intelligence is habitual practice of:
 Using emotional information from ourselves and other people;
 Integrating this with our thinking;
 Using these to inform our decision making to help us get what we want
 From the immediate situation and from life in general. (S. Neal, L. Spencer, 2009)

We have different definition for emotional intelligence in different papers and literature.
But all of them have one thing in common in definition, the ability to recognize our own
emotions and those of others and the capacity to manage with them in ourselves and in
relationship in personal and professional life.

2. Emotional Intelligence and Performance

According to Dulewicz and Higgs (1998) research people with high level of Emotional
Intelligence experiences more career success. The same suggestions are given from research of
Weisinger which is done also on 1998. Another research showed that those employees which
have high level of EQ are able to feel less job insecurity (Jordan et al, 2002). Cooper and Sawaf
concludes that those people with high level of EQ are able to lead more effectively where Rice in
1999 also argues that people with high level of EQ are more adaptable in team leadership and
team performance.
Ashforth and Humphery argue that emotions are an integral and inseparable part of
organizational life and that kind of attention should be given to the employees emotional
experience and emotional intelligence that has been cited as crucial contributor to organization
success and many organizational behaviorists to the growing significance of emotional
intelligence by attempting to identify factors which influence employees performance at work.
(Goleman, 1998, Solvey and Mayor, 1990, Weinberger, 2002; on Priti S. and Das M. 2010, p.
55). Priti S. and Das M. have conducted a research with topic Relevance of Emotional
Intelligence for effective Job Performance. The idea of their research was to explore the
relationship between emotional intelligence score and score from performance assessment check
list. Relationship was explored using the analysis of correlation. The analyses found statistical
significant positive correlation between score on the emotional intelligence scale and score on
the performance scale (Priti S. and Das M. 2010). According to this research we can conclude
that hiring people with high level of Emotional Intelligence may bring financial gain, because the
emotional intelligence plays very important role in learning and training plans.
Jayan in his research explored the role of variance of emotional competencies,
personality variables in job performance, the sample consisted 204 middle level managers and
the regression analysis showed that the variables such as adaptability, organizational awareness,
goal direction, developing others, trustworthiness are significant with job performance (Jayan
2006, on J.S. Gunavathy and R. Ayswarya 2011). Law Wong in his study regarding effect of
Emotional Intelligence on job performance, found that emotional intelligence was a significant
predictor of Job performance (Wong, 2007). Sy Tram and O‘Hara in 2006 also examined the
relationships among employees emotional intelligence, their managers emotional intelligence
and employee satisfaction and their job performance from 187 food service employee in different
location. Their conclusion was that those employees with higher level of Emotional Intelligence
at the same time were with higher level of job performance and they also were more satisfied
with their job (Sy Tram, O‘Hara, 2006; on on J.S. Gunavathy and R. Ayswarya 2011).
Gunavathy and Ayswarya in their study regarding Emotional Intelligence and Job
Performance with sample of 150 respondents concluded that is clear; there is a positive
relationship between emotional intelligence, job performance and job satisfaction. Their
suggestions are that organization could focused on employee engagement and also in leader-
member exchange to benefit from interactive effects of emotional intelligence and job
satisfaction on job performance. According to them the good thing is that emotional intelligence
can be increased and the same can be done from different several of inputs (J.S. Gunavathy and
R. Ayswarya 2011). Yu-Chi Wu researcher from Taiwan has also explored the relation of job
stress and job performance with Emotional Intelligence. The target was employees from finance
sector in Taiwan and the sample was conducted from 583 respondents. According to their result
there was also found the positive relation between emotional intelligence and job performance
corroborates findings in previous studies with Western research from Higgs on 2004. His
suggestion is to recruit highly emotionally intelligence employees and this will have positive
impact for an organizational success. But, as Salovey and Mayer mentioned on 1990 that
Emotional Intelligence is not fixed and the same can be improved with different trainings (Wu,
2011). Cormeli argues that most employees with high level of emotional intelligence can utilize
and regulate their own emotions and they have also the social competence to manage others and
maintain interpersonal relationship. Those with high level of EQ are generally aware of, and
manage their emotions in terms of retaining a positive mental state, a situation that leads to
improved job performance (Cormeli, 2003; on Yu-Chi Wu, 2011, p. 23)

3. Emotional intelligence at workplace

Emotional intelligence plays an important role in the workplace. According to Hassan

Jorfi research studies during the past 25 years, regarding the factors that contribute to success in
workplace have resulted in identifying factors that are related to workplace intelligence. These
studies used quantified data on performance from myriad organizations and industries and have
contributed to the knowledge base in EQ (Lynn on Jorfi et al, 2010). Emotions contain vital
information that help managers and employees ―to be better at what we do‖ (Wolfe & Caruso,
2004, p. 3, on Jorfi 2010). Jorfi in his research mention the analyses of studies of about 500
organizations worldwide, reviewed by Goleman (1998) hi suggests to point to the paramount
place of emotional intelligence in excellence on the job—in virtually any job. He points out that
those with the highest EQ measure rise to the top in the organizations and become leaders.
Another important finding from these studies is about star employees. Star employees possess
more EQ than other employees. Interestingly, EQ mattered twice as much as technical and
analytic skill for them (Goleman, on Jorfi 2010). Different jobs call for different types of EQ.
For example, success in sales requires the empathic ability to identify the mood of the customer
and the interpersonal skill to decide when to pitch a product and when to keep quiet. By
comparison, success in painting or professional tennis requires more individual form of self-
discipline and motivation. Thus EQ affects are just about everything you do at work. ―Even
when you work in a solitary setting, how well you work has a lot to do with how well you
discipline and motivate yourself‖ (Goleman, as cited in Murray, 1998, p. 3). Studies of gender
differences in acquiring EQ have found interesting results. Goleman (1998) says that ―men and
women seem equally able to increase their emotional intelligence‖. In a study by Stein (as cited
in Murray, 1998), 4,500 men and 3,200 women were assessed for their EQ. He found that
women scored higher than men on empathy and social responsibility while men outdid women
on stress tolerance and self-confidence. He concluded that women and men are equally
intelligent emotionally, but they are strong in different areas (Jorfi, Jorfi and Karahi, 2010).

4. The role of Emotions and Emotional Intelligence

According to Oatley emotions really serve as the language for human social life; they are the
infrastructure of social life (Oatley and Jenkins 1996 on Esa Saarinen et al, 2007). The reason,
why humans are in the leading position, is social skills and cooperation. For this purpose
emotions provide outline patterns that connect people to each other. Two great examples of
emotions are happiness and anger. Happiness is an emotion of cooperation whereas anger
reflects a conflict situation between people.
Dalip Singh in his book before defining ‗emotional intelligence‘, he also define the term
‗emotion‘. He mentioned ―Interestingly, we all intuitively understand what the word ‗emotion‘
means, but there is no generally accepted theory of emotions among psychologists though there
are areas of agreement. Feelings are what one experiences as the result of having emotions.
Psychologists have described and explained ‗emotion‘ differently, but all agree that it is a
complex state of the human mind involving a wide range of bodily changes such as breathing,
pounding heart, flushed face, sweaty palms, high pulse rate and glandular secretions. Mentally, it
is a state of excitement or perturbation marked by strong feelings. Emotions originate from
exposure to specific situations. Emotions, when combined with the thinking process, result in the
experience of feelings; they are human beings‘ warning systems that alert them to what is really
going on around them. Emotions are also like an internal gyroscope that helps keep us on the
right track by ensuring that we are guided more by EQ and less by IQ‖ (Singh, 2006, p. 20).
Damasio (1999) has studied the importance of emotions in our decision making processes. He
investigated people who had had a brain injury in the frontal lobe and because of that had lost the
capacity for feeling some emotions. These subjects were still capable of acting logically, but
their decision making skills and strategic planning were poor. Especially situations with risk and
controversy caused problems (Damasio 1999, on Esa Saarinen et al, 2007). According to Oatley
emotions really serve as the language for human social life; they are the infrastructure of social
life (Oatley and Jenkins 1996 on Esa Saarinen et al, 2007). The reason, why humans are in the
leading position, is social skills and cooperation. For this purpose emotions provide outline
patterns that connect people to each other. Two great examples of emotions are happiness and
anger. Happiness is an emotion of cooperation whereas anger reflects a conflict situation
between people. King-Casas et al. (2005) have also studied the emotional centers in the brain
related to decision making. In short, measurements of brain signaling have shown that emotions
are crucial for the decision making process. Thus our knowing and decision making is strongly
based on feelings. Esa Sarinen in his book mentioned that ―the difference between our
emotionally intelligent behavior and logical thinking is consciousness. We cannot reason our
emotions or evoke them. Emotions just happen and the intelligence is there no matter what. It
does not mean that even if we cannot reason something, there would not be hard core logic
behind it. The nature has just evolved in such a way that we do not have to keep every single
connection and event in our minds in order to make it work in a reasonable way. Our emotions
work without our need to think and they work well‖ (Esa Serinen, et al, 2007, p. 147).
According to the study that is done from Travis BradBerry and Jean Greaves (2009, p.29)
in 33 different workplace and the point of study was to test the role of EQ in job performance.
The results shows that EQ is critical to success and is critical skills which affect everything we
say or we do during the day and indicate 58 % of performances in all types of jobs. We can say
that it is the strongest and the biggest predictor of leadership and personal excellence. Also
Bradberry and Greaves proof the link between EQ and earnings is so direct that every point
increase in EQ adds $1,300 to an annual salary. These findings hold true for people in all
industries, at all levels, in every region of the world. We haven‘t yet been able to find a job in
which performance and pay aren‘t tied closely to EQ (T. Bradberry and J. Greaves, 2009). The
study of Howard Garner done in 1983 an titled as Frames of Mind: The Theory of Multiple
Intelligence, argued that people have more than one type of intelligence and that these types of
intelligence were also actually cognitive in nature, yet could not fully be defined by current
models such as standard Intelligence Quotient IQ. His model for multiple intelligence focused
mainly on:
 Intrapersonal Intelligence: the ability to understand one‘s own feelings,
motivations and fears
 Interpersonal Intelligence: the ability to understand others and their desires,
motivations and intentions (Howard Garner, on Sean McPheat, 2010).
According to (2009) emotionally intelligent individuals are able to identify what they feel
and intentionally generate other mood states to help them achieve their goals. In other words,
they know how to motivate themselves. And motivation is often the biggest difference between
success and failure, between being a winner and an also-ran.

5. Methodology

Primary source of data was collected with distribution of questionnaire to private and public
organization in the Republic of Macedonia. We have used two method for distribution of
questionnaire, direct distribution respectively hard copy of questionnaire were sent to private and
public organization and we have asked to fill the question with email distribution. So we have
sent questionnaire in three different languages English, Albanian and Macedonian via email to
most known companies in Macedonia.
With direct distribution we have sent approximately 550 questionnaires in three different
languages and we have received respond from 250 respondent. We have asked 15 organizations
to participate in our research via email from which we received responds from only 3.
 Finally our research is realized with totally 265 numbers of questionnaires, which are
divided in 214 Employee Questionnaire and 51 Managers Questionnaire. Also based on gender
we have 108 female responds and 157 male responds, based on organization we have 134 private
organizations.

6. Research Result

6.1 Emotional Intelligence Result

According to the questionnaire the first part was dedicated to measure the level of
Emotional Intelligence of respondent. This part includes 15 questions; the point gained from
each question is in range from 1 to 4 point based on the answer. The minimum level of
Emotional Intelligence if the respondent answered all the questions with 1 point is 15 and the
maximum level of Emotional intelligence if the respondent answered all the question with 4
point is 60.
Figure 1. Level of EI of respondents

EMOTIONAL INTELLIGENCE RESUT RANGE

1%
4% 4%

23%
< 30
26%
30 - 36

37 - 43

44 - 50

51 - 57

58+

42%

The research result for emotional intelligence index we have grouped in 6 groups (Figure
1). The first group covers the respondent which level of Emotional Intelligence is from 15 point
to 30 point which is the lowest level. From below graphs we see that in this group belong 1 % of
respondent, respectively 2 out of 264 respondent. The second group those with EI from 30 to 36,
includes 10 respondents respectively 4 %. The next groups cover the results from 37 to 43, and
here we have 62 respondents respectively 23 %. The range group 44 – 50 includes 112
respondent or 42 % of all. The next group with EI level from 51 to 57, includes 68 respondents
respectively 26 %. And the last group which incorporates respondents with EI level from 58 – 60
includes 10 respondents or 4 %.

6.2 Employee Performance

To measure the performance of employees we have asked 22 questions, and despite the answers
we have formulated the index depending on the value of each question. The minimum index is
22 if in all questions the respondents will take the minimum results, and the maximum index is
89 if respondents will take the maximum results. The results we have grouped into 5 groups
where we have this overview (Figure 2):

Figure 2. Performance Index

PERFORMANCE INDEX

12% 1% 6%

< 50
50 - 58
59 - 66
43% 67 - 75
38%
76+

This part of questionnaire is dedicated only to employee‘s questionnaire, not to

manager‘s questionnaire. As we can see the first group includes the index above 50 point and in
this group we have only 3 employees. The second group includes points between 50 and 58, here
we have 12 employees or 6 % from total 214 respondents. The third group includes between 59 -
66 points and here we have 91 respondents or 43 % from total. The fourth group includes points
between 67 and 75 and here belong 82 respondents or 38 %. Finally, in the last group we have
the respondents with the highest points in working performance, where the results are 26 or 12 %
from total 214.

6.3 Hypothesis Testing

The research hypothesis of this research paper and variable description is:
H0: Employees with high level of Emotional Intelligence, achieves highest level of performance
The regression variables are: Employee Performance, Emotional Intelligence and Dummy Age
Variable Description
- (Dependent) Employee Working Performance, range value 1 to 4.
- (Independent) EQ Index, range value 1 to 4.
- (Independent) Dummy Age, 0 for employees younger than 39 years and 1 for
employees older than 40 years.
Regression analysis of Third Hypothesis
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .496a .246 .239 .27110
a. Predictors: (Constant), DUMMYAGE, EQ1

R2 of regression is 0.246 shows that independent variables represents the dependent variable for 24.6 %
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 5.006 2 2.503 34.054 .000b
1 Residual 15.361 209 .073
Total 20.367 211
a. Dependent Variable: PERF1
b. Predictors: (Constant), DUMMYAGE, EQ1

The multi regression model is significant in p value 0.001. The model form is:
Working Performance = ß0 + ß1EQ + ß2 Dummy Age
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.876 .144 13.000 .000
EQ1 .385 .047 .503 8.241 .000
1
DUMMYA -.084 .045 -.116 -1.896 .059
GE
a. Dependent Variable: PERF1
Regression Model
 ß0 = 1.876
 ß1 = 0.385
 ß2 = - 0.084
Working Performance = 1.876 + 0.385 EQ – 0.084 Dummy Age

Comments:
Emotional Intelligence has an impact on working performance of employees. Based on
the result from multiple regression analysis coefficient ß1 = 0.385 shows that for 1 value
increase in Emotional Intelligence index, the working performance index will be increased for
0.385. The coefficient ß2 = - 0.084 from dummy age variable, shows that employees older than
40 years have shown less working performance than employees younger than 40 for coefficient -
0.084.
R2 of regression is 0.246 shows that independent variables represent the dependent
variable for 24.6 %
We have positive correlation with positive coefficient of 0.481 which means that the
Level of Emotional Intelligence of employees has positive impact and correlated with Working
Performance of employees, coefficient is significant at level 0.01.

Figure 3. Scatter Plot of EQ Index and Working Performance Index

 Scatter plot of EQ Index and Working Performance
Index
90
80
Working Performance Index

70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70
EQ Index

Ho Employees with high level of Emotional Intelligence, achieves highest level of performance is
accepted and rejected the Ha. The acceptance is done based on the correlation coefficient and
regression coefficient.
Conclusion

Third hypothesis ―The performance of employees depends from the level of Emotional
Intelligence‖ is supported with positive correlation coefficient between working performance
index and the level of Emotional Intelligence of employees. According to the results we can
conclude that employees which have higher level of Emotional Intelligence are more successful
on their work and have higher working performance index. The correlation coefficient between
EQ index and working performance index is 0.481 and the effect of EQ over Working
Performance declared with coefficient ß1 = 0.385 shows that for 1 value increase in Emotional
Intelligence index, the working performance index will be increased for 0.385 the coefficient is
significant on 0.001 level.

Recommendation
 The purpose of the research was to identify the effect of Emotional Intelligence level of
employees and managers from Macedonia over working performance and change initiative.
Based on the results we would like to give below suggestion to all private and public
organization:
 The organization need to increase awareness of Emotional Intelligence as an important
factor which impacts the working performance. It is not important only educational
degree, there is also educational grade or the level of IQ to ensure that the employee
will have great working performance, and in order to have smarter employee it is also
important the level of Emotional Intelligence as a psychological factor.
 The most important fact is that the Level of Emotional Intelligence can be improved,
and the company need to organize training and need to provide training materials from
different literature regarding Emotional Intelligence and the importance of changes for
any success in business
 The company need to build system for recruitment of future potential employee, with
ensuring from the beginning that are going to hire the right person for the right position
together with the right level of EQ where specific position may require.

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