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Jurnal UMP Social Sciences and Technology Management Vol. 3, Issue. 2,2015

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Analyzing the impact of Emotional Intelligence EI on the employees' Quality of Work Life QWL

Case Study Central bureaus of Agricultural Bank in Tehran

Ozhan Karimi, Assistant Proffesor, Department of Management, Payame Noor University, Tehran, Iran

Mohammad Reza Daraei, Assistant Professor, Department of Management, Payame Noor University, Postal Code: 3697-19395 Tehran, Iran

Fereshteh Farajzadeh MBA candidate, Payame Noor University, Damavand Campus, Tehran, Iran

*Corresponding Author

Abstract It is inevitable for organizations to have employees with more capabilities and skills in today’s world with hastily changes and competitive environment. Undoubtedly, in this world of uncertainty, only the organizations which attempt to focus on their personnel's needs will attain their goals. One of the most important goals of organizations especially the profit organizations like banks and financial institutions is how to obtain profit; and this will not happen unless the employees respect their organization and make their best to attain the organizational goals. This study aims to analyze the impact of Emotional Intelligence (EI) on Quality of Work Life (QWL) as a case study at the headquarter of Agricultural Bank in Tehran. The statistical population of the research contains 263 people with the degrees of diploma, higher-diploma, bachelor, master, and doctoral. The research data has been gathered by questionnaire as a survey methodology and the research hypotheses have been tested via SPSS and Lisrel softwares. The research finding revealed that there was no total impact from the Emotional Intelligence (EI) on the Quality of Work Life (QWL), but there was only a partial association between the EI and one of the components of the QWL named "Social relevance of the work in the life". Therefroe, based upon the research findings, it seems that if the senior executives of organizations attempt to execute the traininig programs for promoting the capability of the EI among their employees, they will attain the optimal productivity, efficiency and effectiveness and ultimately they will reach the expected goals of their organizations via reinforcing the personnel's quality of work life. Key words: Emotional Intelligence (EI), Quality of Work Life (QWL), Work condition, Agricultural Bank

Introduction

We live in a situation that environmental changes are fast and organizations must focus on their human capitals as the most important factor in attaining organizational goals. Undoubtedly, human capitals will assist in success or failures of most organizations and if the managers do not consider this strategic capital, they will experience the failure sooner or later. One of the measures which plays a key roel in motivating the employees toward the organizational loyalty is their quality of work life (QWL). If the employees are satisfied with their work situation and environment, they will carry out efficient and sustainable actions in the organization and will promote the competitive ability against the competitors. Another variable this study has focused on is emotional intelligence (EI) which acts much mre effective than the intelligence quotient (IQ). It seems that if the organizations hire the employees with high EI, their QWL will be probably enhanced. This study aims to answer the following

Analyzing the impact of Emotional Intelligence … www.jsstm-ump.org

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questions:Does the Emotional Intelligence have any impact on the Quality of Work Life among the employees working at the headquarter of Agricultural Bank in Tehran? Emotional Intellignce (EI) Emotional Intelligence is an important issue which is both considered in psychology and management so that many managerial problems can be solved by it. If the employees utilize their EI in attaining organizational goals, they will provide a pleasant environment for them and their colleagues. On the other hand, the active organizations in the present century are faced with many challenges and uncertainty and if the personnel benefits high EI, they will be able to manage the challenges and other internal and external issues. According to Ebrahimi-Koohbanani (2011), intelligence is a set of an individual abilities that he/she understand something, thinks about it and behaves logically. Emotional intelligence is the person’s ability to manage and control his or her emotions and to understand the emotions of others and it also help to take personal and organizational decisions. People having high emotional intelligence can cope with the organizational problems more effectively than those having low emotional intelligence (Siddiqui & Hassan, 2013). Emotional Intelligence is the ability to perceive, understand and reflectively manage one's own emotions and those of others (Slaski & Cartwright, 2002).Emotional Intelligence is a strong predictor of the service performance of employees in the work place. It is generally observed that the employees who perform well in their organization usually stayed for a longer duration of time in their organization (Prentice & King, 2011). Organizations require employees to be emotionally intelligent to serve customers in a better way and to create and maintain a lively work environment. Employers can also opt to reduce employees’ occupational stress by enhancing their EI (Chaudhry & Usman, 2011). According to Kalantari et al. (2012), the significant increase in emotional intelligence will lead to a reduction in stress caused by the laboratory. Different models have been presented for the emotional intelligence. Some of the models are those which have been offered by Mayer & Salovey, Jordan & Hartel, Bar-On, Goleman, and Schutte. In this study, the Schutte model with the following components have been used: Perception

Manage own emotions

Utilization

Quality of Work Life (QWL) The investigation on Quality of Work Life (QWL), the development and the application of programs that intend to improve the work environment can bring benefits to the company in the relationship with its workers and in the quality of its products, making them more competitive (da Silva Timossi, 2008). According to Ziauddini & Naroei (2013), Quality of Work Life means having correct control, good work conditions, proper payment and fringe benefits and more important creating challenged, participating and satisfying work space. Many researches have studied on the Quality of Work Life and presented the related theories. Dessler, Cost, Meals, Verter, and Walton are among the researchers who are expert in the filed of QWL. This study has utilized the 8-component model of Walton incorporating the following variables: Fair and appropriate compensation

Work conditions

Chance of growth and security

Constitutionalism

Social relevance of the work in the life

Work and the total space of life

Social integration in the organization

Use and development of capacities

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Research Background The definitions of EI and QWL expressed I the above paragraph. In this section, 10 national and 10 international researches (totally 20 researches) on the subjects EI and QWL have been tabulated. Table 1 shows a summary of the studies about the aforesaid variables.

Table 1 – Summaries of some researches on EI and QWL

Result(s) Variables Year Researcher (s) No. Positive relation between EI and

some factors such as work life satisfaction, empathy, mental

health, and social relations

EI and Quality of Social Relations

2007 Besharat 1

Significant relation between EI and QWL

EI and QWL 2012 Kalantari et al. 2

Positive relation between EI and QWL

EI, QWL, and self-efficacy 2013 Eghtesadi 3

Positive and significant relation between EI and QWL

EI, QWL, university employees

2012 Karimi 4

No significant relation between QWL and EI

QWL, EI, organizational commitment

2011 Massah and Samavatian 5

Significant relation between EI and QWL

EI, QWL, job compliance, teachers

2012 Ahmadnejad et al. 6


EI, QWL, organizational commitment

2011 Kazemi 7


Physical Readiness, QWL, and EI

2013 Ramazani and Nazarian-Madvani

8


EI, QWL, Employees of the university

2013 Abdollahi & Pour-Moazzen

9


EI, QWL, Mental Health, Social Relations, Students

2009 Yousefi & Safari 10

High relation between EI with QWL and Job Satisfaction

EI, QWL, and Job Satisfaction

2013 Manhas 11

Strong relation between EI and Work Life Balance

EI and Work Life Balance 2014 Sharma 12


EI and QWL 2013 Ziauddini & Naroei 13


EI, Work Life, Family Conflict, IT

2011 Dasgupta & Mukherjee 14

Positive relation between EI and Work Life Balance

EI, Work Life Balance, and Stress

2014 Srividhya & Sharmila 15

Positive impact of EI on Work Life Balance

EI, Work Life Balance, and Profession

2013 Rakholiya 16

Significant relation between EI, QWL, and Management

Performance

EI, Internal Stress, Depression, Public Health,

QWL

2002 Slaski & Cartwright 17


EI and QWL 2006 Takšić & Mohorić 18

Positive impact of EI on QWL Job Satisfaction; employee’s turnover rate;

EI

2013 Siddiqui & Hassan 19


EI, QWL, School Principals

2012 Farahbakhsh 20

Research Hypotheses The main hypothesis of the research is as follows: "The Emotional Intelligence has an impact on the Quality of Work Life among the employees working at the headquarter of Agricultural Bank in Tehran".


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Other sub-hypotheses of the research are listed as below: 1. The Emotional Intelligence may have an impact on the "Fair and appropriate compensation". 2. The Emotional Intelligence may have an impact on the "Work conditions". 3. The Emotional Intelligence may have an impact on the "Chance of growth and security". 4. The Emotional Intelligence may have an impact on the "Constitutionalism". 5. The Emotional Intelligence may have an impact on the "Social relevance of work in the life". 6. The Emotional Intelligence may have an impact on the "Work and the total space of life". 7. The Emotional Intelligence may have an impact on the "Social integration in the organization". 8. The Emotional Intelligence may have an impact on the "Use and development of capacities".

Conceptual Model Based on the above-mentioned literature, the conceptual model of the research may be depicted as follows:

Diagram 1 – Conceptual Model of the research Research Method This research is done as a survey study and the necessary data is gathered via questionnaire. The statistical population of the research includes 263 person, out of 1261 employees of the bank, holding high school diplomas to PhD certificate all of whom are employees of central bureaus of Agricultural Bank of Tehran. Respondents job positios varied from president, vice-president to ordinary staff. Hypotheses of the research are tested by SPSS 17 and standard questionnaires were used meanwhile their validity and reliability were verified. Data analysis is started by descriptive statistics by calculating measures of central tendency like mean and measures of dispersion like standard deviation. It continues with Kolmogorov-Smirnov test to examine the normality of data distribution. Afterwards, according to the normal distribution of data, we have used regression and correlation analysis to study their relationship. The inference is made according to the Significant Level or P-Value. When the Significant Level or P-Value is less than 0/05, the hypotheses are rejected in the level of 95% confidence and if less than 0/10 our hypotheses are rejected in the level of 90% confidence.

Perception

Manage Own Emotions

Utilization

Emotional Intelligence

Constitutionalism

Social Relevance of the Work in Life

Work and Total Space of Life

Quality of Work Life

Chance of Growth and Security

Social Integration in the Organization

Work Place Conditions

Fair and Appropriate Compensation

Use and Development of Capacities



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Descriptive Statistics of Variables In table 2, measures of central tendency like mean and median and also measures of dispersion like standard deviation, kurtosis and skewness are measured. When the mean is larger than median it shows large points in our data, because mean is influenced by these amounts. In these cases, skewness is positive otherwise negative.

Table 2: Descriptive Statistics for Variables

Max Min Kurtosis Skewness Standard

Deviation

Median Mean No. Variables

4/91 2/81 0/16 -0/20 0/38 3/88 3/879 263 Emotional

Intelligence

4/47 1/32 -0/24 -0/07 0/57 2/96 2/933 263 Quality of work

Life

5/00 1/00 0/10 -0/38 0/75 3/33 3/101 263 Fair and

appropriate

compensation

5/00 1/00 0/33 -0/14 0/76 3/33 3/193 263 Work place

conditions

5/00 1/00 -0/61 -0/16 0/94 3/00 2/895 263 Chance of growth

and Security

5/00 1/00 -0/68 0/01 0/87 2/75 2/702 263 Constitutionalism

4/33 1/00 -0/12 -0/19 0/70 3/00 2/929 263 Social relevance

of the work in the

life

4/67 1/00 -0/10 -0/10 0/77 3/00 2/842 263 Work and the

total space of life

4/75 1/00 -0/39 -0/23 0/79 3/00 2/868 263 Social integration

in the

organization

4/75 1/00 -0/61 -0/29 0/85 3/00 2/936 263 Use and

development of

capacities

In the measured data the amounts of mean and median are close to each other which indicate distribution symmetry of variables. This feature is very important because symmetry is one of normal distribution characteristics. (In this case Skewness and kurtosis of normal distribution is zero). Data distribution kurtosis is similar to normal distribution. 1- Survey of normality of dependent variables distribution Normality of regression model residues is one of presumptions of regression model which indicates the validity of regression tests. In coming part we have studied the normality of dependent variables distribution by Kolmogorov-Smirnov test, because normality of dependent variables results in normality of model residues. So it is necessary to control the normality of dependent variable before measuring the parameters. In the case that this clause does not apply, a suitable solution (like conversion) should be taken to normalize the variables. Null and alternative hypothesis in this test are written as below:

:

:

1

0

Dependent variable data are normally distributed

Dependent variable data are not normally distributed

H

H


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Level of significant or P-Value for emotional intelligence, quality of work life and its 8 dimensions are more than 0/05. Therefore null hypothesis (normality of data) is not rejected. So distributions of these variables are normal according to our previous prediction.

Table 3: Normality test for dependent variables

Level of

Signific

ant

Z-

amount

Kolmog

orov-

Smirnov

Most extreme difference Normal parameters No. Variables

Negative Level

of

signific

ant

Absolute

value

Standard

Deviatio

n

Mean

0/979 0/47 -0/03 0/02 0/03 0/38 3/88 263 Emotional

Intelligence

0/876 0/59 -0/04 0/03 0/04 0/57 2/93 263 Quality of

work Life

0/151 1/14 -0/14 0/09 0/14 0/75 3/10 263 Fair and

appropriate

compensation

0/104 1/22 -0/10 0/11 0/11 0/76 3/19 263 Work place

conditions

0/384 0/91 -0/09 0/07 0/09 0/94 2/89 263 Chance of

growth and

Security

0/649 0/74 -0/09 0/08 0/09 0/87 2/70 263 Constitutionali

sm

0/185 1/09 -0/09 0/09 0/09 0/70 2/93 263 Social

relevance of

the work in the

life

0/258 1/01 -0/10 0/08 0/10 0/77 2/84 263 Work and

the total

space of life

0/189 1/09 -0/10 0/06 0/10 0/79 2/87 263 Social

integration in

the

organization

0/556 0/79 -0/11 0/06 0/11 0/85 2/94 263 Use and

development of

capacities

2- Measuring the Correlation Coefficient between variables In order to prove that the relation is linear we use Correlation test (Pearson Correlation Coefficient). Because it measures linear correlation between two variables. The amount of Pearson correlation has been calculated in the below matrix. The correlation between variables has been written as null and alternative hypothesis.

0:

0:

1

0

XY

XY

Pearson correlation coefficient has been measured and shown in table 4.

H

H



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Table 4: Pearson Correlation Coefficient Test for the relation between variables

Result No. Level of

significant

Pearson

correlation

Variables

Non significant 263 0/560 0/04 Fair and

appropriate

compensation

Non significant 263 0/742 0/02 Work place

conditions

Non significant 263 0/958 0/00 Chance of growth

and Security

Non significant 263 0/689 0/02 Constitutionalism

Significant and

positive

263 0/000 0/38 Social relevance

of the work in

the life

Non significant 263 0/374 0/06 Work and the

total space of life

Non significant 263 0/575 0/03 Social integration

in the

organization

Non significant 263 0/887 -0/01 Use and

development of

capacities

Non significant 263 0/168 0/09 Quality of work

Life

As it is shown in the table, Pearson correlation coefficient is significant and direct only between social relevance of the work in life and emotional intelligence. Because its level of significant is 0/000, but for the other dimensions is more than 0/05 which means that is not significant. 3- Assessment of the model using Simple Linear Regression The most suitable way to study the relation between two variables is regression model. In this method, in addition to survey the existence of relation it is possible to measure or predict the amount of dependent variable per specific amount of independent variable. The relation between quality of work life and emotional intelligence is written as the model below.

iiiEQ

10

Our aim is to assess 10,

parameters using (OLS) 1 method which shows the amount of y-intercept and slope. The amount of slope (direction and amount of relation) specifies the kind of relation. Null and alternative hypothesis for significance of the model are as follows:

0:

0:

11

10

H

H

:

:

1

0

H

H

The results of analysis are shown in table 5. The level of significance (F) is equal to 0/168. This is not less than 0/05 so our null hypothesis is not rejected in 95 percent significance which means there is no significant model in this level.

1 - Ordinary Least Squares


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Coefficient of determination is 0/000 which indicates that 0 percent of change in dependent variable is stated by independent variable. Durbin Watson statistic equals 1/96. The amounts near 2 indicate non auto correlation of residuals which is one of presumptions of regression. Therefore there is no auto correlation between residuals.

Table 5: Significance test for correlation coefficient and coefficient of determination

and Durbin Watson for main model

P-Value F Durbin

Watson

Adjusted

coefficient of

determination

Coefficient of

determination

correlation Model

0/168 1/91 1/96 0/00 0/01 0/09 Main model

Distribution of the amount for large normal samples is standard and its accept and reject area is as below.

Figure 1: Accept and reject area of the test The results are inferred as if the t amount comes in the rejection area our null hypothesis is rejected.

Table 6: estimation and assessment of main model parameters

Sig. -t Standard Deviation

Beta Parameters Hypotheses

0/000 6/77 0/36 2/438 Constant value

Main

0/168 1/38 0/09 0/128 Emotional Intelligence

Amount of -t for emotional intelligence equals 1/38. This amount comes in the area of non reject area for null hypothesis, so emotional intelligence does not influence quality of work life. Also amount of -t for Y-intercept is 6/77 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant. Based on the relation between emotional intelligence and quality of work life mentioned above, we have studied the relation between each dimensions of quality of work life and emotional intelligence and the results has been stated in tables 7 to 14.

1/96

Non

Reject H0

Reject

H0

-1/96

Reject

H0



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Table 7: estimation and assessment of first model parameters



0/000 5/98 0/47 2/827 Constant value

Fair and appropriate compensation 0/560 0/58 0/12 0/071 Emotional

Intelligence

Amount of -t for emotional intelligence equals 0/58. This amount comes in the area of non reject area for null hypothesis, so emotional intelligence does not influence fair and appropriate compensation. Also amount of -t for Y-intercept is 5/98 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant.

Table 8: estimation and assessment of 2nd

model parameters



0/000 6/32 0/48 3/035 Constant value

Work conditions


Amount of -t for emotional intelligence equals 0/33. This amount comes in the area of non reject area for null hypothesis, so emotional intelligence does not influence work conditions. Also amount of -t for Y-intercept is 6/32 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant.

Table 9: estimation and assessment of 3rd

model parameters



0/000 4/92 0/59 2/926 Constant value

Chance of growth and

security 0/958 -0/05 0/15 -0/008 Emotional Intelligence

Amount of -t for emotional intelligence equals -0/05. This amount comes in the area of non reject area for null hypothesis, so emotional intelligence does not influence chance of growth and security. Also amount of -t for Y-intercept is 4/92 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant.

Table 10: estimation and assessment of 4

th model parameters



0/000 4/50 0/55 2/483 Constant value

Constitutionalism


Amount of -t for emotional intelligence equals 0/40 (less than critical value of 1/96). This amount comes in the area of non reject area for null hypothesis, so emotional intelligence does not influence constitutionalism. Also amount of -t for Y-intercept is 4/50 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant.


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th model parameters



0/599 0/53 0/41 0/214 Constant value

Social relevance

of the work in the life


Amount of -t for emotional intelligence equals 6/69. (more than critical value of 1/96). This amount comes in the area of reject area for null hypothesis, so emotional intelligence has influence on social relevance of the work in life. The relation is positive and significant. Also amount of -t for Y-intercept is 0/53 which comes in the level of 95 percent non significant level and non rejection area of null hypothesis that indicates Y-intercept is not significant.


th model parameters



0/000 5/00 0/48 2/414 Constant value

Work and total space of life 0/374 0/89 0/12 0/110 Emotional

Intelligence

Amount of -t for emotional intelligence equals 0/89. This amount comes in the area of non reject area for null hypothesis, so emotional intelligence does not influence work and total space of life. Also amount of -t for Y-intercept is 5/00 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant.

Table 13: estimation and assessment of 7th

model parameters



0/000 5/23 0/50 2/591 Constant value Social integration in

the organization 0/575 0/56 0/13 0/071 Emotional

Intelligence

Amount of -t for emotional intelligence equals 0/56. This amount is less than 1/96 and more than -1/96. So emotional intelligence does not have influence on social integration in the organization. Also amount of -t for Y-intercept is 5/23 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant.

Table 14: estimation and assessment of 8th

model parameters



0/000 5/65 0/53 3/012 Constant value Use and development of

capacities

0/887 -0/14 0/14 -0/020 Emotional Intelligence



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Amount of -t for emotional intelligence equals -0/14. This amount is less than 1/96 and more than -1/96. So emotional intelligence does not have influence on use and development of capacities. Also amount of -t for Y-intercept is 5/65 which comes in the level of 95 percent significant level and rejection area of null hypothesis that indicates Y-intercept is significant. For testing the research hypotheses, Structural Equation Modeling (SEM) or Lisrel software has also been used. Structural model of the amounts related to the standard coefficient for general (main) relation between Emotional Intelligence and Quality of Work Life indicated that the mode had fitness. Structural Model for the amount of significance of general (main) model between Emotional Intelligence and Quality of Work Life was also measured and it indicated that the amount of significance for the model is less than 2. Therefore it is not significant. In this model it is shown that significance of emotional intelligence on variable of quality of work life in all dimensions are less than 2. Therefore from the statistics point of view are not accepted. In table 15 amounts for relations between emotional intelligence and quality of work life are shown. Table 15:Amounts for relations between emotional intelligence and quality of work life

Result Significance Standard Coefficient

Relations Studied Research Hypothes

es

Reject -0/21 -0/01 Quality of work Life (QWL) EI 1 Reject - 0/33 Fair and appropriate

compensation (QWL1) 2

Reject 0/51 0/04 Work Conditions (QWL2) 3 Reject 0/10 0/01 Chance of Growth and

Security(QWL3) 4

Reject 0/39 0/03 Constitutionalism(QWL4) 5 Reject 1/02 0/09 Social relevance of work in

Life(QWL5) 6

Reject -1/23 -0/11 Work and total Space of Life(QWL6)

7

Reject 0/06 0/00 Social Integration in Organization(QWL7)

8

Reject -0/30 -0/02 Use and Development of Capacities(QWL8)

9

Research findings Based on the results of research tests it is inferred that there is no positive and significant relation between emotional intelligence and quality of work life. Only we found relation between emotional intelligence and one of the dimensions of quality of work life which is social relevance of the work in the life. Conditions of personal and work life of each person are built by his choices, relations and sociability. Any choice and decision made with his authority is related directly to his skills and capabilities. It is shown in this research that most of the respondents who are from various spectrum of the organization, do not take advantage those skills related to emotional intelligence in their work environment or in other words they cannot use them because of some intervening variable. This variable could be not having useful role in some of the dimensions of quality of work life and non-intervention in quality and quantity of the dimensions. Work conditions which are imposed by higher ranking managers and policy makers of the organization.


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Research proposals According to the variety of organizations and employees, other researches could be done in other banks

and other cities and the results compared to each other.

A research could be done to find the ways of increasing emotional intelligence.

This research is concentrated on the dimensions of quality of work life based on Walton model; other researches could be done based on the dimensions of emotional intelligence and other models and dimensions.

Applied proposals Prepare and hold training courses and workshops for employees to promote and improve emotional

intelligence and its dimensions

Assessment of emotional intelligence of applicants when they are first getting employed

Having similar payment systems for similar organizations and positions

Having the same conditions of growth and security, fair behavior and constitutionalism for all

Create and promote team work spirit and let the employees to have suitable role in the decisions

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