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The study explores the power of Structural Equation Model (SEM) to determine the
relationship between managers’ emotional intelligence and employee satisfaction and
commitment in the workplace. This investigation of managerial behavior utilizes SEM
to provide a visual portrayal of the relationship and impact on employee attitudes.
The study provides suggestions which may help managers and supervisors to
influence employees toward higher levels of satisfaction, commitment and
performance in the workforce.
Introduction
Organizations face many obstacles in sustaining worker performance. These challenges
include employee turnover, social loafing, poor performance, worker absenteeism and
worker malaise in general. Is the problem that the organization simply hires poor workers
or there might be some other factors in the work environment influencing workers toward
these negative outcomes? If there are other factors in play, how might the organization
determine their level of influence?
This line of inquiry leads inevitably to more questions, some of which concern the
impact of the manager. This study seeks to better understand to what degree a manager
or supervisor might influence workers toward higher levels of satisfaction and commitment
in the workplace. Specifically, the study seeks to discover what leader behaviors are most
beneficial toward achieving a more positive and productive work environment?
The list of antecedents to worker engagement include, in no particular order: (1) an
organizational environment where positive emotions such as pride and personal
involvement are encouraged (Robinson et al., 2004); (2) highly engaged managers (Soltis,
and Lanphear, 2004); (3) a supportive work environment that models concern for
employees’ needs and feelings, provides positive feedback, encourages employees to
communicate concerns, provides opportunities to develop new skills, and strives to solve
* Associate Professor, Texas Woman's University, School of Management, Denton, Texas, USA.
E-mail: kwebb@twu.edu
How Managers’
© 2014 Emotional
IUP. All Rights Intelligence Impacts Employees’ Satisfaction and Commitment:
Reserved. 7
A Structural Equation Model
work-related problems to enhance productivity (Deci and Ryan, 1987); (4) empowerment—
the ability of employees to make decisions that are important to their performance (Purcel
et al., 2003; and Lawler and Worley, 2006); and (5) organizations that nurture employee
perceptions of involvement and personal value, which leads to the types of discretionary
effort that produce higher performance (Konrad, 2006),
Some managers interact and engage with employees in ways that result in more
positive outcomes than what other managers are able to achieve. For some reason,
workers who are supervised by certain managers seem to display more positive attitudes
and put forth efforts that are better than average. What factors might we credit for these
results?
Two key elements which appear to correlate with increasing and sustaining employee
performance are the factors of worker satisfaction and commitment (Cammann et al.,
1979; Glisson and Durick, 1988; Montana and Charnov, 1993; and Koys, 2001).
In the study, the Structural Equation Model (SEM) is utilized to understand the
correlation between leader behaviors and worker outcomes of satisfaction and
commitment. It is important for managers to better understand the role of emotional
intelligence in the workplace.
There are certain behaviors and attitudes on the part of the leader that appear to be
critical factors in creating high levels of employee satisfaction and commitment. Likewise,
when these factors are absent, the opposite outcomes tend to occur. Managers and
supervisors can significantly influence the outcomes from their workers by utilizing four
subsets of behaviors from the field of emotional intelligence.
In order to achieve positive levels of employee satisfaction and commitment, managers
and supervisors must understand the powerful link between certain emotional intelligence
attributes and workplace outcomes. By focusing on particular behaviors, it appears that
leaders can be more effective in helping strengthen worker satisfaction and commitment.
By implementing the right behaviors, it seems that supervisors and managers may
significantly increase their odds of creating a work environment, in which employees are
more engaged, put forth their best efforts and achieve improved results. Smart leaders
realize the tremendous benefit that a committed, productive workplace of satisfied co-
workers provides toward the organizational goal of sustained profitability and/or viability
(Buckingham and Coffman, 1999).
Objectives
This study builds on prior research in the field of emotional intelligence by exploring the
correlation between four categories of emotional intelligence factors and the independent
outcomes of co-worker satisfaction and commitment. Prior studies indicate that emotional
intelligent behaviors demonstrate a positive correlation with socially desirable behavior
and a negative correlation with undesirable behavior (Petrides and Furnham, 2006). If this
Sample
Over 600 surveys were distributed. A total of 284 surveys were completed and tabulated
and 35 surveys were determined to be unusable because of incomplete responses for
all fields. The 249 remaining surveys were initially analyzed using linear regression
modeling to identify significant correlation between leaders’ emotional intelligence and
the levels of worker satisfaction and commitment. Then SEM was applied to better
understand the relationship between the various factors.
20-29 15%
30-39 38%
40-49 27%
50 years+ 19%
The racial and ethnic composition of the study group was diverse (Figure 2) and
consists of 49% Caucasians (n = 121), 30% African Americans (n = 74), 9% Hispanics
(n = 21), 9% Asians (n = 21) and 3% others (n = 7).
Research question #1: To what degree are the emotional intelligence attributes
utilized by leaders in various industries?
Mean scores were calculated for the frequency with which leaders demonstrate the various
behaviors that correlate with the independent variables for emotional intelligence (Figure 3).
The results show that the construct of wellbeing (5.44 on a 7-point scale) was the most
frequently represented by leaders in the various industries represented in this study.
African
30%
Americans
Hispanics 9%
Asians 9%
Others 3%
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Wellbeing Sociability Emotionality Self-Control
The constructs of emotionality (mean = 4.57) and self-control (mean = 4.50) were
demonstrated to a lesser degree than leader behaviors related to wellbeing or sociability.
The reported leader behaviors related with the constructs of emotionality and self-
control were observed to be relatively equal in degree of frequency, as observed by
workers. Both constructs of emotional intelligence were practiced considerably less often
by leaders than the constructs of wellbeing or sociability.
The results of ANOVA and linear regression analysis demonstrate that a combined
four-factor regression model, including sociability, self-control, wellbeing and emotionality,
was about as predictive of followers’ commitment to the leader (adjusted R2 = 0.705) as
a five-factor model which also included global emotional intelligence (adjusted R2 = 0.717).
The four-factor model was selected for use in this study since global emotional intelligence
appears to be highly correlated with each of the four other constructs of emotional
intelligence.
The two variables in the four-factor model which demonstrated a positive significant
correlation with worker satisfaction with the leader (p < 0.001) were emotionality
(B = 0.758) and sociability (B = 0.361) (Table 2 and Figure 4). Emotionality displayed
the strongest correlation with worker satisfaction with the leader, although sociability
displayed a moderate correlation.
Sociability*
Emotionality*
Self-Control
Wellbeing
Sociability*
Emotionality*
Self-Control
Wellbeing
and sociability (B = 0.212) had significant positive correlations with commitment to the
leader, neither of these factors was close to the degree of correlation as emotionality.
Emotionality displayed a moderate positive correlation with worker commitment to the
leader as a single variable. However, the combined effect of the three variables of
emotionality, self-control and sociability produced a very strong positive correlation,
accounting for more than 70% of the total level of worker commitment to the leader
(adjusted R2 = 0.705).
The variable of wellbeing was not a significant factor as a predictor of worker commitment
to the leader. Although the construct of emotionality was by far the strongest predictor of
employee commitment to the leader, the behaviors and attitudes represented by
emotionality were among the least utilized behaviors by managers represented in this study.
Research question #5: What emotional intelligence attributes are significant
predictors of worker commitment to the organization?
Sociability*
Emotionality
Self-Control
Wellbeing
Two variables in the four-factor model demonstrated positive and significant correlations
with worker commitment to the organization: self-control (B = 0.155), and sociability
(B = 0.166). Both factors demonstrated a moderate-to-low positive correlation with worker
commitment to the organization (Table 5 and Figure 7).
The combined effect of both variables (self-control and sociability) account for almost
20% of the total level of worker commitment to the organization (adjusted R2 = 0.193).
The factors of emotionality and wellbeing were shown not to be significant predictors
of worker commitment to the organization. However, the leader trait of emotionality
demonstrated a negative relationship with commitment to the organization.
The results of the linear regression indicate that the leader’s emotional intelligence
has more influence on worker commitment to the leader than on worker commitment to
the organization.
Sociability*
Emotio-
nality
Self-Control
Wellbeing
It is likely that many factors influence worker commitment to the organization, and
the leader’s emotional intelligence is merely one of these factors. The data show that
leaders may be using the wrong behaviors to create and sustain worker commitment to
the leader and to the organization.
While these results are interesting to note, they fail to provide an adequate
understanding of how the four emotional intelligence factors influence the outcomes of
worker satisfaction with the leader and organization and worker commitment to the leader
and organization.
Research question #6: In what way do emotional intelligence attributes that are
significant predictors of worker satisfaction with and commitment to the leader and
to the organization interact to influence the desired outcomes?
SEM was then utilized to better understand this relationship. Sun (2005) recommended
that when a CFA is being used to validate the factor structure of a measurement model,
the following fit indices should be interpreted: Standardized Root Mean Square Residual
(SRMR), Tucker-Lewis Index (TLI), which is the equivalent to the Non-Normed Fit Index
(NNFI), Root Mean Square Error of Approximation (RMSEA) and Comparative Fit Index
(CFI). All these suggested fit indices are produced by the LISREL 8.8 software. These
fit indices are also recommended to be used, because they have agreed upon cut-off
values (Sun, 2005).
According to Hu and Bentler (1999), the maximum cut-off values for the SRMR and
RMSEA are 0.08 and 0.06 respectively, and that the minimum cut off value for the NNFI
and the CFI are 0.95 in order to conclude a good fit between the model and the data.
Commitment
Wellbeing to Organization
–0.11
0.08 0.49*
Self-Control
–0.11
Leader 0.90* Commitment
Satisfaction to Leader
0.62*
Emotionality
0.25
0.54* 0.43*
Sociability Organization
Satisfaction
Overall, these findings indicate that worker satisfaction with the leader appears to be
accounting for positive increase in both organization satisfaction and (through commitment
to the leader) commitment to the organization.
Additionally, there was a positive association between organization satisfaction and
commitment to organization (0.75). While emotionality was positively related to worker
Commitment
Wellbeing to Organization
–0.11
0.49*
Self-Control
–0.11 0.75
Leader 0.90* Commitment
Satisfaction to Leader
0.62*
Emotionality 0.51*
0.25
0.54*
Sociability Organization
Satisfaction
Commitment
Wellbeing to Organization
–0.11
0.08 0.49*
Self-Control
–0.11 0.75
Leader 0.90* Commitment
Satisfaction to Leader
0.62*
Emotionality 0.51*
0.25
0.54* 0.43*
Sociability Organization
Satisfaction
Studies of companies with higher engagement levels report lower employee turnover,
higher productivity and better financial performance (Baumruk, 2006). In a global workforce
study, Towers (2007) found that businesses with the highest levels of employee
engagement increased their operating income by as much as 19% and their earnings
per share by 28% year to year.
Finally, the paths from perceived wellbeing and self-control did not significantly relate
to worker satisfaction with the leader or worker commitment to the leader. The complete
SEM model is illustrated in Figure 10. The model provides a simplified view of the
correlations between the emotional intelligence factors of the leader (dependent variables)
and the outcomes of worker satisfaction and commitment (independent variables), as well
as the interactions between the independent variables.
Conclusion
According to worker perceptions, managers utilize behaviors related to sociability and
wellbeing with a high degree of frequency in the workplace. Unfortunately, wellbeing does
not correlate with worker satisfaction or commitment to the leader or to the organization.
This indicates that while managers’ behaviors may be self-serving, in the long run, they
do not support the managers’ goal of achieving higher worker performance.
The behaviors that were most strongly related to worker satisfaction with the leader,
according to the linear regression, were emotionality (B = 0.758) and sociability
(B = 0.361). The SEM confirmed this correlation and provided additional insight related
to the manner in which the various factors interrelate to impact worker satisfaction with
the organization and commitment to the leader and commitment to the organization.
One of the most interesting findings from the SEM was the strong correlation between
worker satisfaction (0.90) with the leader and commitment to the leader. To a moderate
degree, satisfaction with the leader appears to correlate to satisfaction with the
organization (0.43), but not commitment to the organization (0.08). However, commitment
to the leader more strongly influences commitment to the organization (0.49) than
satisfaction with the organization (0.25). Upon contemplation, some of these findings
seem to fit well with a colloquial saying that goes like this: “Most employees do not leave
their organization, most employees leave their manager.” This simplistic view of employee
satisfaction and commitment may be more true than not.
One of the benefits of the SEM is that it helps us understand these relationships more
clearly. The lack of satisfaction or commitment to an organization appears to relate
moderately to a lack of commitment to the leader. However, the lack of satisfaction with
an organization relates very strongly to a lack of satisfaction with the leader (0.90).
Implications
Due to the large sample size, the findings of this study are generalizable to managers
and leaders across many fields of industry. In addition, the sample included a wide array
of participants in the age group of 20s to 60s. Representation from all major ethic groups
is another factor of the sample which strengthens the case for wide generalizability. One
of the limitations of the study is the disproportionate number of female participants in
the sample. It would strengthen the findings if the study were expanded to include more
males.
It appears that leaders may be utilizing behaviors that are counterproductive to achieving
their organizational goals. Hiring managers who practice self-control and self-confidence
is inadequate as an approach to creating worker satisfaction and commitment. Due to their
failure to influence worker satisfaction and commitment, the performance of their
organization is likely to fall below expectations and workplace challenges are likely to
expand.
However, if leaders are willing to practice more emotional intelligent behaviors that
relate to emotionality and sociability, they may increase the likelihood of creating a
workforce of satisfied and more committed workers. SEM seems to indicate the
importance of training managers in how to relate to workers as well as how to organize
and plan the work. By promoting and creating positive emotional bonds with co-workers,
managers and leaders have less probability of negative outcomes on the part of their
workforce. By utilizing emotionality and sociability, leaders and managers may find that
they can accelerate the process of attaining company goals and thus enhance their own
career advancement at the same time.
Suggestions for Future Research: This paper has implications for future research. It
is suggested that it would be beneficial to expand the study to include more male
participants. A replication study is also suggested to create even more robust results
and greater confidence in these findings.
Further, the study might include the perceptions of managers regarding their own
behaviors and the behaviors of their colleagues. In addition, it may be helpful to identify
additional behavioral factors which correlate with organizational satisfaction.
This study indicates that increasing the satisfaction with the leader and the
organization is one of the most powerful ways for increasing commitment to the leader
and the organization. Therefore, the more one understands the factors which increase
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Reference # 06J-2014-04-01-01