malo final hr

7/31/2019 Malo Final Hr

1/26

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

EXECUTIVE MASTERS IN BUSINESS ADMINISTRATION

ORGANIZATIONAL BEHAVIOUR

CONTINUOUS ASSESSMENT TEST

ANSWER ANY ALL QUESTIONS. GIVE EXAMPLES FROM THE WORKPLACE AS YOU

DISCUSS THE QUESTIONS.

May 2012


2/26

Table of Contents

Table of Contents ............................................................................................................................................21.1 Introduction ..............................................................................................................................................3

1.2 Organizational Commitment Overview....................................................................................................3

1.3 Definition of Terms ...............................................................................................................................4

1.4 Categories of Organizational Commitment ..........................................................................................41.5 Organizational Commitment Strengths and Weaknesses .....................................................................5

1.6 Enhancing organizational commitment ..................................................................................................7

1.7 Enhancing Employee Commitment .....................................................................................................81.7.1 Induction and Training...................................................................................................................8

1.7.2 Relationships with Managers.........................................................................................................8

1.7.3 Relationships with Colleagues.......................................................................................................91.8Psychological Contract .........................................................................................................................11

1.9 Effects of Psychological Contract in Developing Employee Commitment...........................................12

1.11 Commitment Strategy...................................................................................................................131.12 Developing ownership..................................................................................................................14

1.13 Communication programmes........................................................................................................141.14 Leadership development...............................................................................................................141.15 Developing a sense of excitement................................................................................................14

1.16 Use of career development program.............................................................................................14

1.17 Recommendations .............................................................................................................................14

1.18 Summary ..........................................................................................................................................161.19 Conclusion .........................................................................................................................................17

2.1 Introduction ............................................................................................................................................18

2.1.1 Self-Awareness.............................................................................................................................182.1.2 Self-Regulation............................................................................................................................19

2.1.3 Motivation ...................................................................................................................................19

2.1.4 Empathy.......................................................................................................................................192.1.5 Social Skill...................................................................................................................................19

2.2 Leadership and Emotional intelligence .............................................................................................20

2.3 Conclusion ...........................................................................................................................................21

3.1 Introduction ............................................................................................................................................223.2 Legal case ............................................................................................................................................23

3.3 Conclusions ........................................................................................................................................24

References ....................................................................................................................................................25

2


3/26

QUESTION ONE

Jimcy Enterprises has been having a problem with employee commitment and they called in a

specialist who advised on the need to improve on continuance commitment, affective commitment

and normative commitment. Discuss the strategies on improving on each of these commitment

variables.(20 marks)

1.1 Introduction

Due to the fact that the theory of work commitment is highly interrelated to organizational performance it

is the second most commonly studied job attitude in I/O psychology (The Pennsylvania State University,

2011). It affects all organizations at some level and enables companies to evaluate issues like turnover

during times of varying economic stability. Work commitment has been defined as the relative impor-

tance between work and ones self (Loscoco, 1989). Its concept encompasses a broad range of job related

attitudes that consist of work ethic, organizational commitment, job involvement, and commitment to an

individuals career/profession (The Pennsylvania State University, 2011). All of these attitudes interact to

shape the conceptual framework of each individual's work commitment. The following page analyzes

these attitudes as well as other organizational concepts, research, and real world applications. There are

also case studies that can be viewed by clicking on the links on the bottom of the page.

1.2 Organizational Commitment Overview

Commitment is a central concept in psychology (Cooper-Hakim, & Viswesvaran, 2005) and is the sec-ond most studied work attitude in Industrial Organizational Psychology (The Pennsylvania State Univer-

sity, 2011). This concept has been applied to various aspects of psychology, such as work ethic, level of

involvement in the job, commitment to their career/profession, and commitment to work or organization.

Work place commitment is thought of as a very important topic to consider and is also vital for under-

standing the psychology of human behavior (Cooper-Hakim, 2005).

Morrow (1983, 1993) identified work itself, career, job, organization, and union as five forms of work

commitment. Lee, Carswell, and Allen (2000) feel that the understanding of the construct of occupationalcommitment is very important for several reasons: (a) peoples jobs are major focus of their lives, (b) the

possible link to keeping ones job or relationship with the organization, (c) possible relationships to work

performance, and (d) the understanding of how people develop, make sense of, and integrate their work

related commitments".

3


4/26

1.3 Definition of Terms

Organizational commitment is defined as the degree of an individuals relations and experiences as a

sense of loyalty toward ones organization. In addition to loyalty, organizational commitment encompass-

es an individuals willingness to extend effort in order to further an organizations goals and the degree of

alignment the organization has with the goals and values of the individual (Mowday, Et. Al.1979). Orga-

nizational commitment refers to the extent to which an employee develops an attachment and feels a

sense of allegiance to his or her employer (The Pennsylvania State University, 2011). Allen and Meyer

(1996) have defined organizational commitment as a psychological link between an employee and his or

her organization that makes it less likely that the employee will voluntarily leave the organization. Orga-

nizational commitment is related to job satisfaction in that both deal with the nature of workers' emotion-

al reactions to work. However, commitment can be applied to the entire organization, whereas satisfac-

tion is applied to the specific job an employee has. According to Professor Redmond's lesson commen-

tary (The Pennsylvania State University, 2011), organizational commitment is viewed as more stable than

satisfaction. Commitment is also related to job involvement and the level of job involvement that an in-

dividual has.

Within this theory, the concepts that are applied to commitment to an organization are the work ethics of

individual and the intensity of participation by said individual. These concepts can determine the level of

commitment to an organization. However, the application of these concepts can be directed by several

variables such as age, culture, emotions, personality traits, desires, and individual differences among oth-

er factors and can be present to a certain degree in many situations. These theories are not strict cate-

gories of commitment. Often times there are overlap among them.

1.4 Categories of Organizational Commitment

Given that the nature of organizational commitment is layered in terms of ones possible commitment

level, three specific commitment types have been identified:

Affective Commitment Refers to ones feelings of loyalty to a company or organization because he orshe believes in the organization. This is the most common type studied and refers to "an employee's emo-

tional attachment to and identification with the organization" (The Pennsylvania State University, 2010).

Due to this loyalty, one is fully willing to accept the companys goals and values as his/her own. An em-

ployee with high levels of affective commitment would find it difficult to walk out on his/her employer.

Affective commitment can enhance job satisfaction because employees agree with the organizations ob-

4


5/26

jectives and principles, because employees feel they are treated fairly in terms of equity, and because em-

ployees receive organizational care, concern, and support (Hawkins, W.D. 1998).

Continuance Commitment- Refers to an employee feeling that he/she has to stay with the company be-

cause the costs of leaving are too great. This is manifested by an individual who maintains commitment

to the organization because he/she is unable to match salary and/or benefits at another employer. For

many, the vested time and effort put into their work has developed what could be considered nontransfer-

able investments such as a retirement plan, relationships with other employees, and other special interests

that may have accumulated over time. For example, in todays turbulent economy it is likely to see an in-

crease in the amount of employees who have a continuance commitment to the organization, as it is not

only hard to find a job to match salary and/or benefits of another, but it is hard to find a job at all.

Normative Commitment Of the three types of commitment, normative is the least researched of all of

them and refers to the employee that feels that he/she owes it to the employer to stay out of a perceived

obligation. These feelings of obligation may come because the employer took a chance on the employee

when nobody else would. In turn, the employee feels indebted to the employer. Therefore, by a show of

loyalty and duty, it would be difficult to leave.

It should be pointed out that organizational commitment is different from company loyalty. Organization-

al commitment involves an employee actively defending their company. It also entails the employee giv-

ing of themselves for the organization. Although an employee may be involved in these activities because

they are satisfied with their jobs, job satisfaction is not a determinant of the actions. An employee may be

dissatisfied with their jobs and still possess high organizational commitment. Organizational commitment

builds with time (Africa News, 2008).

The causality of the relationship between job satisfaction and organizational commitment is difficult to

determine. Nevertheless, it has been shown that these commitment levels do correlate with job satisfac-

tion. Someone who has a high level of job satisfaction is also likely to have a high level of job involve-

ment and organizational commitment (The Pennsylvania State University, 2011).

1.5 Organizational Commitment Strengths and Weaknesses

Strength within organizational commitment comes from the fact that two of the three components have

been researched extensively. All three commitment components have been negatively correlated to

turnover within organizations. This entails that the increased level of commitment decreases the possibili-

5


6/26

ty of turnover. Not surprisingly, affective commitment has been more strongly related to job satisfaction

than continuance commitment (Mathieu & Zajac, 1990). Affective commitment can enhance job satis-

faction because employees agree with the organizations objectives and principles and because employees

feel they are treated fairly in terms of equity, and receive organizational care, concern and support

(Hawkins, W.D. 1998). The affectively committed employee remains within the organization because itappeals to the individual. This occurs because the employee feels devoted to the organization. Also, peo-

ple who progress in a career with a particular organization usually acquire more organizational commit-

ment than those who join along the way (Africa News, 2008).

On the other hand, continuance commitment within an organization only exists because of circumstances.

Employees who are continuously committed only stay within the organization because they have to. The

individual is not devoted to the organization in a satisfying way. Thus, when an opportunity presents itself

the commitment will discontinue. According to Redmond (The Pennsylvania State University, 2011), em-ployees who have an elevated continuance of commitment possibly will not participate at work as re-

quired by the organization. Continuance commitment is usually studied looking at the amount of time an

employee has been with a company, for example how much time or tenure may be involved. It is also

studied looking at the alternatives the employee has. Studies examining different types of work sector

have found that government employees have a higher level of continuance of commitment then other sec-

tors. This is thought to be the case because of the relative job security most government employees feel

they possess (Mowday, Et. al.1979).

The importance of organizational commitment cannot be overstated because it correlates with a variety of

factors benefiting both the individual and the organization. From an individual perspective, organizational

commitment has been linked to intrinsic motivation and job satisfaction. Likewise, from an organization-

al perspective, organizational commitment has positively contributed to organizational attachment (Joo &

Lim, 2009). In the aggregate, organizational commitment can increase performance, reduce absen-

teeism, [and] reduce turnover, thus provide positive outcomes for both the individual and the organiza-

tion (Cohen & Golan, 2007, p. 421). Organizational commitment is important in the eyes of a company. It

is important for organizations to keep talented individuals who are engaged in their jobs and are produc-

tive workers. Organizational commitment involves the loyalty that a worker feels towards the company

he works for. Organizational commitment involves more then just company loyalty. It entails employee's

intrinsically wanting to defend against criticism both internal and external (Business Daily Review,

2008).

6


7/26

What happens when an economic crisis or insecurity forces the organization to reevaluate its commitment

towards the employees? Layoffs and downsizing force organizations to restructure in order to control

costs. Effective means of downsizing and alternatives to downsizing can be more beneficial to ensure that

employees do not have lowered or negative expectations of organizational commitment. Scholars have

found out that some moderate amount of job insecurity leads to improved work performance, yet somehave found that job insecurities lead to decreased work performances (Africa News, 2008). It is therefore

assumed that any organization that is downsizing or laying off employees will notice a significant de-

crease of trust between management and employees. As a result, those employees who remain on the job

after downsizing and corporate restructure often experience sharp drops in organizational commitment

(Africa News, 2008). Therefore, it is important that organizational commitment be regarded by both em-

ployees and employers.

It becomes clear that affective commitment equals an attitude toward a target, while continuance and nor-

mative commitment are representing different concepts referring to anticipated behavioral outcomes,

specifically staying or leaving. This observation backs up their conclusion that organizational commit-

ment is perceived by TCM as combining different target attitudes and behavioral attitudes, which they be-

lieve to be both confusing and logically incorrect. The attitude-behavioral model can demonstrate expla-

nations for something that would seem contradictory in the TCM. That is that affective commitment has

stronger associations with relevant behavior and a wider range of behaviors, compared to normative and

continuance commitment. Attitude toward a target (the organization) is obviously applicable to a wider

range of behaviors than an attitude toward a specific behavior (staying).

1.6 Enhancing organizational commitment

i. Commit to people-first values-Put it in writing, hire the right-kind managers, and walk the talk.

ii. Clarify and communicate your mission-Clarify the mission and ideology; make it charismatic; use

value-based hiring practices; stress values-based orientation and training; build tradition.iii. Guarantee organizational justice-Have a comprehensive grievance procedure; provide for exten-

sive two-way communications.

iv. Community of practice-Build value-based homogeneity; share and share alike; emphasize barn

raising, cross-utilization, and teamwork; getting people to work together.

7


8/26

v. Support employee development-Commit to actualizing; provide first-year job challenge; enrich

and empower; promote from within; provide developmental activities; provide employee security

without guarantees.

Fig. 1 A Three-Component Model of Organizational Commitment

1.7 Enhancing Employee Commitment

Organizations can use various strategies to increase employee commitment. These strategies include:

1.7.1 Induction and Training

The induction programme should be the final step of the recruitment and selection process. A good in-

duction programme will make new employees more familiar with and more at ease within the organiza-

tion. Employees enter the organization with an assumption of compatibility and should be welcomed.

1.7.2 Relationships with Managers

This refers to how the quality of the relationship between managers and their employees relates to the de-

velopment of commitment.

8


9/26

Employees commitment reflects their day to day contacts with their line managers about their job, and

the way in which objective targets are set. Effective communication on job-related issues is a key ingredi-

ent in securing individual performance. To a great extent, individual line managers are responsible for en-

suring that these maintenance behaviors occur.

With poor management, the most well developed organizational programme can break down at the point

of transmission.

1.7.3 Relationships with Colleagues

Emotional attachment to colleagues in the workplace is an important element of commitment, though It is

not enough on its own. Unless there is occasion for frequent and rewarding interaction, stronger feelings

of belonging that can bind employees to the organization are unlikely to emerge. Organizations that want

to build high levels of commitment should look for ways to build this through group activities both in and

out of work

Group Membership

To build commitment, being a member of a particular organization must not only satisfy employees so-

cial need to affiliate and belong, but must also create a sense of collective identity that differentiates the

group from other organizations.

There are many situational features that contribute to a sense of group membership. The more exposurethat employees have to these features, the more likely they will be to feel like a part of the group and to

incorporate that membership into their concept of who they are.

Organizational Justice and Trust

It is also argued that employees evaluate their experiences at work in terms of whether they are fair and

reflect a concern on the part of the organization for the well-being of the employees (Meyer, 1997). Treat-

ing employees fairly, communicates the message that management is commitment to the employees. This

suggests that organizations wanting to foster greater commitment from their employees must first provide

evidence of their commitment to their employees.

When there is trust, employees are willing to suspend judgment and defer to the authority of others. In

addition, trust permits organizational flexibility because a payback need be neither immediate nor of

9


10/26

equivalent value. OMalley (2000) identifies four areas in which employees sense of trust in the employ-

er can be increased:

i. Growth: As most employees want to be more proficient in their job, a good way to instill trust is

to attend to employees development needs.

ii. Work-Life balance: Most employees would like organizations to allow greater personal time when

needed.

iii. Individual accommodation: Acts of organizational flexibility or benevolence toward employees.

iv. Health and Safety: Organizations that are committed to protecting employees health and safety

are more likely to be trusted.

Promotion

Policies and practices concerning promotion can also affect commitment. . Among those who are consid-

ered for promotion, the outcome of the decision is likely to have an effect on commitment.

But, for some, the perception of fairness in the decision-making process might be even more important.

This suggests that organizations should communicate clearly how their decisions were made and why

those who did not succeed were not suitable.

Work-Life Balance

A key issue emphasized by research, especially in recent years, is the extent to which employees perceive

they are able to achieve the right balance between home and work. Organizations are beginning to recog-

nize this, and are making more concerted efforts to introduce a host of programmes intended to ease em-

ployees burdens. These include initiative such as: flexible work arrangements; child care; time off poli-

cies; elderly care; healthcare; information and counseling; and convenience services to name but a few.

Job Satisfaction

How happy an employee is in a job has profound effects on behaviour and commitment. In relation to

commitment, job satisfaction and work-life satisfaction are very important. Job satisfaction is an enor-

mous area; however, to be concise a satisfying job typically has three properties:

10


11/26

i. It has intrinsically enjoyable features: Mathieu & Zajac (1990) found that the strongest correlation

with commitment was obtained for job characteristics, particularly job scope (enrichment).

ii. It provides an opportunity for growth and development.

iii. It makes employees feel effective in their roles (that they can positively influence organizational

outcomes).

Pay and Reward

As mentioned previously, employees may remain with an organization because there are constraints

against leaving and incentives for staying. It is important for organizations to structure the economics of

the relationship in a way that will not obstruct commitment. One of the reasons to stay in a relationship is

because it makes sense economically. Pay makes continuation of the employment relationship worthwhile

because there is mutual dependence.

1.8Psychological Contract

Schein cited by (Armstrong 2005) defines commitment as attachment and loyalty

Psychological contract is the degree people are committed to the organization (Schein 1965). It depends

on the following;

a. The degree to which their own expectations of what the organization will provide to them and

what they owe the organization in return matches what the organization expectations are of what

it will give and get in return.

b. The nature of what is actually to be exchanged e.g. money in exchange for time at work, social

need satisfaction and security in exchange for hard work and loyalty

Armstrong (2004) defines psychological contract as a system of beliefs which encompasses on one hand

the actions employees belief are expected of them and what response they expect in return from their

employer and on the other hand the behavior employers expect from their employees. It is implicit and

dynamic

11


12/26

1.9 Effects of Psychological Contract in Developing Employee Commitment

1. During recruitment interviews present the unfavorable as well as the favorable aspects of a

job in a realistic job preview.- This will enable the candidate have a clear and achievable

expectation of the organization and thus avoid setting very high expectations that the orga-

nization is unable to meet, leading to low / decreased commitment

2. In induction programmes communicate to new starters the organizations personnel poli-

cies and procedures and its core values indicating to them the standards of performance

expected this enables them to remain committed in achieving the expected performance

3. Issue and update employee hand books and intranet entries which reinforce the message

delivered in induction programmes.

4. Develop performance management process plans which spell out how continued improve-

ment of performance can be achieved mainly by self managed learning

5. Use training and management development programmes to underpin values that define

performance expectations.

6. Ensure thorough manager and team leader training that managers and team leaders under-

stand their role in managing the employment relationship through such processes as per-

formance management and team leadership managers should be very committed so as to

pass the same message of commitment to employees.

7.Encourage a maximum amount of contact between managers and team leaders and their teammembers to achieve mutual understanding.

8.Adopt a general policy of transparency ensuring that on all matters which affect them employees

know what is happening and the impact it will make on their employment

9.Develop personal procedures covering grievance handling, discipline , promotion and

redundancy. Ensure they are implemented fairly and consistently.

10. Develop and communicate personnel policies covering the major areas of employment,

development, reward and employee relations.

1.10 Developing HR Practices that Enhance Commitment

According to Armstrong 2005 the following ten (10) practices contribute to increase of employee

commitment.

12


13/26

1. Advise in methods of communicating the values and aims of management and achievements of

the organization, so that employees are more likely to identify with it as one they are proud to

work for.

2. Emphasize to management that commitment is a two way process employees cannot be expectedto be committed to the organization unless management demonstrates that it is committed to

them.

1. Impress on the management the need to develop a climate of trust by being honest with people,

treating them fairly justly and consistently, keeping its word and showing willingness to listen to

the comments and suggestions made by employees

2. Develop a positive psychological contract by treating people as stakeholders rely on consensus

and cooperation rather than control and coercion and provision of opportunities for learning and

career progression.

3. Advise on and assist in the establishment of partnership agreements with trade unions which em-

phasize unity of purpose, common approaches to working together and the importance of giving

employees a voice.

4. Recommend and take part in the achievement of single status for all employees so that there is no

an us and them culture.

5. Encourage management to develop a policy of employment security and ensure steps are taken to

avoid involuntary redundancies

6. Develop performance management process that provide for the alignment of organizational and

individual objectives.

7. Advice on means of increasing employee identification with the company through rewards related

to organizational performance (profit sharing or gain sharing).

8. Develop job engagement: identification of employees with the job they are doing through job de-

sign process that aim to create higher levels of job satisfaction.

1.11 Commitment Strategy

A commitment strategy is based on the high commitment model described in figure 1It aims to develop

13


14/26

commitment using the following approaches.

1.12 Developing ownership

I t involves involving employees in those decisions that affect them so that they feel they own, i.e. Create

a feeling of ownership among employees, listening to their ideas. Employees should feel they are

genuinely accepted by the management.

1.13 Communication programmes

Commitment can only be gained if people understand what they are expected to commit to. Thus in

sufficient attention should be paid when delivering messages so that right information is passed. Proper

use of newsletters, briefing groups videos and notice boards should be emphasized.

1.14 Leadership development

Commitment is enhanced if managers can gain the confidence and respect of their teams. Management

training should therefore be used to increase the competence of managers thus making them efficient

enough to cultivate a sense of commitment in their teams.

1.15 Developing a sense of excitementConcentrating on the intrinsic motivating factors e.g. achievement, responsibility and recognition creates

job excitement, which leads to commitment. Management should thus give their staff the scope to use

their skills and abilities and design jobs which encourage creativity and innovativeness, avoid monotony

1.16 Use of career development program

They help employee develop caters related skills and recognize the developmental need they posses. If

used effectively if creates commitments it send the signal that the employer cares about the employee

career success and thus deserves employee commitment.

1.17 Recommendations

Having examined the concept of employee commitment our group gave the following recommendations

that would enhance the commitment of employee in the workplace.

14


15/26

Fair profit sharing based on an established policy that seeks to make employees feel that the management

is committed to them, regular team building activities and designing jobs so that there is flexi time for

those employees who may not be in a position to work between 8am 5pm.

Providing such incentives e.g. Medical scheme, housing scheme, car loans, furniture loans, pension

scheme and increasing the number of years employees can work in an organization even after reaching

the retirement age sends the message that the organization is committed to its employees and so the

employees in turn will seek to be committed to the organization.

Another way of enhancing employee commitment is by conducting exit interviews; since the interviewee

will be leaving the organization it is believed that they will reveal loopholes in the management or job

design that contribute to low morale among employees. The management can then use the information to

put necessary measures in place to enable employees develop commitment in their work.

Management should also ensure that confidentially is practiced especially where there is sensitive

information concerning employees. Such information may include health status, marital issues, and

financial position of employees among many others.

The following values should also be practiced.

Fairness-It implies the elimination of ones feelings, prejudices and desires to achieve a proper balance

between conflicting interests

Trust-To nurture commitment employers must create an environment of trust. If employers wish to

develop and maintain trust they should do what they say will do, be consistent ,maintain confidence ,be a

role model of behaviour, encourage employee involvement, allow people to make we decisions that affect

their work, allow people to make mistakes without fear or ridicule, learn from mistakes.

Concern for employees-Employees should be regarded as people not factors of production. Employers

should provide job security train and develop employees, be flexible to accommodate employee issues,

be open and honest and allow employees to have a life outside work. Todays employees have a strong

sense of self worth- they recognize their value and want their employers to as well

15


16/26

1.18 Summary

This paper has presented a review of the current thinking about defining and creating employee

commitment, which is an evolving topic currently receiving considerable attention. It has been identified

as a multi-dimensional concept which has important impacts on an organization through its effects on

employee performance, turnover and absence, and via its influence on customer attitudes to the bottom

line.

Commitmentcan be divided into five components, each of which are created by different factors. These

are defined as follows:

Affiliative: The compatibility of the employees and the organizations interests and values.

Associative: The employees perception of belonging to the organization.

Moral: The sense of mutual obligation between the employee and the organization.

Affective: The feeling of job satisfaction experienced by the employee.

Structural: The belief that the employee is engaged in a fair economic exchange.

Job satisfaction is an important component of commitment, but should not be perceived as equivalent to

it. Commitment has more positive outcomes for the organization in terms of employee performance. Job

satisfaction can be promoted by making work as enjoyable as possible, providing growth and

development opportunities and making provisions for staff to assist them in balancing their work and

personal lives.

Once established, commitment has to be maintained by ensuring staff have clear roles and

responsibilities, and an understanding of what is required of them in their jobs. Good communication and

openness throughout the organization is vital, especially in times of change. The role of line managers

should be recognized and positively supported, as it is a vital component in the creation and maintenance

of employee commitment.

16


17/26

1.19 Conclusion

It is possible to conclude that employee commitment is a very significant factor contributing to the posi-

tive organizational outcomes. It may increase productivity, effectiveness of work and motivation of em-

ployees, while low commitment leads to the opposite outcomes. At the same time it is necessary to main-

tain high level of employee commitment through leadership, development, empowerment, and supervi-

sion.

Radical organizational changes often lead to reduced commitment caused by increased job insecurity,

increased stress, decreased trust and job redesign. Since organizational commitment has strong

correlation with job performances it is very important to reinforce it by applying the right human

resources polices.

17


18/26

QUESTION 2

Recent research is showing the need for leaders to display emotional intelligence in order to

succeed. Discuss the components of Emotional Intelligence and show using examples how these can

be used by leaders to help them succeed. (20 marks)

2.1 Introduction

Low emotional intelligence brings a plethora of negative emotions, like fear, anxiety, anger and hostility

which results in using up a lot of energy, lower morale, absenteeism, apathy, and are an effective block to

collaborative effort at the workplace. Negative emotions create negative energy anger, resentment, and

revenge or at least discomfort to the one we perceive as opposing us.

On the contrary, positive emotions create positive energy as can be seen in the excitement of conceiving a

vision, designing an ambitious new product, or winning a football match. When we open the doors to

emotional reactions, the emergence of hunches, guesses, and intuition enhances the expansion of existing

knowledge.

One costly consequence of the relentless demands on leaders' time is their propensity to turn away from

emotional issues and to stick as closely as possible to the realm of facts and intellect to value only things

that can be ordered, analyzed, defined, dealt with, rationalized, controlled, and contained. However,

research shows that emotions, if properly managed, can instill trust, loyalty and commitment and drive

many of the greatest productivity gains, innovations, and accomplishments of individuals, teams and

organizations. Emotion can be harnessed to increase work motivation, enhance customer service and

work performance.

2.1.1 Self-Awareness

The ability to recognize and understand your moods, emotions, and drives, as well as their effect on

others Organizational benefit of emotional intelligence

18


19/26

2.1.2 Self-Regulation

The ability to control or redirect disruptive impulses and moods the propensity to suspend judgment to

think before acting

2.1.3 Motivation

A passion to work for reasons that go beyond money or status and a propensity to pursue goals with

energy and persistence

2.1.4 Empathy

The ability to understand the emotional makeup of other people and skill in treating people according to

their emotional reactions

2.1.5 Social Skill

Proficiency in managing relationships and building networks and ability to find common ground and

build rapport

Managers can have strong impact on the employees. In fact, research has shown that managers with high

emotional intelligence can encourage employees to produce results exceeding the expectations. To

improve their relationships, managers and employees must address the five components of emotional

intelligence:

i. Self-awareness, wherein the person recognizes and names his/her own emotions, know their

causes, and recognize the difference between feelings and actions;

ii. Self-regulation, wherein she/he develops the ability to tolerate frustration, manage anger and to

suspend judgment before taking action;

iii. Motivations, wherein she/he has passion for the work beyond money or status and has the

propensity to pursue goals with persistence;

iv. Empathy, wherein she/he has the ability to understand the emotional make up of other people and

has the skill to treat people according to their emotional reactions; and Social skills, whereinshe/he has proficiency in developing and managing relationships and has the ability to find

common ground and build rapport.

v. When both managers and employees has developed their emotional intelligence, managers will

have a workforce willing to engage with passion and employees will have managers who are

receptive and open to their ideas and needs.

19


20/26

Study from Rahim & Minors (2003) tested the relationships of the three dimensions of emotional

intelligence (self-awareness, self-regulation, and empathy) to managers' concern for the quality of

products and services, and problem-solving behavior of subordinates during conflict. The results of the

study show that self-awareness and self-regulation are positively associated with problem solving, and

self-regulation was positively associated with concern for quality. There was a significant effect of

empathy on quality and interaction effect of self-regulation and empathy on concern for quality. The

study implies that supervisors, who are deficient in EI, may be provided appropriate training in it that will

improve their concern for quality and problem solving.

2.2 Leadership and Emotional intelligence

Todays business climate demand high flexible and quick responsiveness. It is inevitable for organiza-

tions to have effective leaders at all hierarchical level. There has been major shift in leadership skills re-

quired for todays business managers. Leadership is the ability to influence, motivate and enable others to

contribute to the effectiveness and success of the organizations of which they are members.

Leadership competencies depend on many factors such as emotional intelligence, integrity, drive, self-

confidence, intelligence, and knowledge of the selective discipline. Geothals, Sorenson., and Burns.,

(2004), summarize the evolution of leadership theories in four phases: trait, behavioral, situational / con-

tingency, and transformational leadership. Burns (1978) was credited with developing the first transfor-

mational leadership model, envisioning the transformational and transactional leadership at opposite ends

of the continuum. Bass (1985) expanded on Burns idea by depicting transformational and transactional

leadership as complementary, thus augmenting active transactional leadership behavior.

Kouzes & Posner (1987; 1997; 2002), popularized the notion of transformational leadership with a best

selling book and a survey instrument. Transactional leadership style was found to be the most frequently

used leadership style (Hasan & Grace, 2006). The focus of the leaders ability to manage complex social

and personal dynamics, centered in the concept of emotional intelligence has made the role of emotions

in organizations prominent in the leadership literature (Cann, 2004; Mayer., DiPaolo., & Salovey., 1990;

Weisinger, 1998). The transformational leadership model is particularly appealing in this changing busi-

20


21/26

ness environment because it focuses leaders concerns about transforming the present conditions of the or-

ganization and followers requirements.

2.3 Conclusion

It if found in this study that the emotional intelligence significantly related to the leadership practices of

executives. Leaders high on emotional intelligence also are likely to have knowledge about the fact that

their positive moods may cause them to be overly optimistic (Geroge, 2000). Further, he stated that emo-

tional intelligence may contribute to leaders developing a compelling vision for their groups or organiza-

tion in a number of ways. This gives an idea about the relevance of emotional intelligence and leadership

practices in the organizations. Training unit in the human resource department of the organizations should

think about the different training methods to enhance emotional intelligence levels whereby they can im-prove leadership qualities. Training should be provided at right time to ensure its effectiveness. Emotion-

al intelligence contributes to the magnetic and engaging qualities of the managers who possess exception-

al abilities of the leaders. This will enable them to analyze, organize and utilize informations in an effec-

tive manner. Enhancing the levels of emotional intelligence will help the executives to lead their team ef-

fectively and efficiently.

21


22/26

QUESTION 3

The workplace is a place that accommodates various forms of diversity. Discuss using examples, the

strategies that should be adopted by managers in managing a diverse workforce. (20 marks)

3.1 Introduction

Programs or corporate environments that value multiculturalism must answer hard questions about

managing diversity. For example, can diversity be best promoted by equal treatment or differential

treatment, Antidiscrimination laws prohibit employers from treating applicants differently, yet some

argue that this premise seems to ignore those fundamental differences between individuals that form the

basis of diversity. On the other hand, treating people differently often creates resentment and erodes

morale with perceptions of preferential treatment.

Companies and organizations have a moral and social responsibility to embrace diversity. There is also a

strong business case for the employment of a diverse workforce that reflects the diversity of the

community it shares and serves. Adopting and practicing diversity policies effectively in the workplace

benefits the image projected by the organization. People obviously have a greater attraction to work for

companies with a caring and friendly attitude; reduced employment costs through improved retention inthe workplace are also a major consideration.

Employers are becoming increasingly interested in the concept of diversity management, and the

establishment of a workforce that reflects the local community. Many regard it both as an ethical and an

economic issue. It is clearly only fair that the various and diverse groups within the community are able

to access jobs on an equal basis. However, adopting policies and procedures to achieve this is also

expected to lead to an increase in customer loyalty, and, subsequently to higher income and profits.

As one employer put it Successful companies are those that are able to monitor and meet shifts in

societal expectations, to control risks and to anticipate market opportunities. Disability is part of this

equation and an integral part of the strategy. Businesses that have the vision and the will to create an

enabling environment for diverse parts of the community (including disabled people) will prosper.

22


23/26

Abilities not disabilities: People with disabilities have the skills, knowledge and experience to perform

many different types of jobs; and are able to demonstrate this. In addition they are problem solvers by

necessity; and their own experience of difficulties as users of services can be invaluable in the design and

delivery of services for others. Older workers have a wealth of experience to offer companies. They tend

to be very reliable and can often support less experienced staff.

Additional source of talent: Many people immigrating into Britain have the skills and qualifications

needed by companies operating within a tight labour market. These can be easily validated by contacting

the National Recognition Centre for the UK. For many employers, young people and other under-

represented groups offer a pool of untapped talent that can be a particularly useful additional resource at a

time when unemployment is falling.

Reliable workers: People with disabilities and older workers are more reliable than others in terms of

attendance, punctuality and remaining with the same employer. This can mean lower costs for employers.

Improved corporate image: A positive approach to employing a diverse workforce signals an ethical

stand, and provides a positive corporate image. A stronger partnership will be developed with existing

customers; and the customer base may be broadened and strengthened.

Improved staff relations and productivity: Adopting good practice in employing and managing a diverse

workforce demonstrates that an employer is concerned for the development and welfare of all staff. This

positive spin-off can lead to a more productive workforce overall.

3.2 Legal case

There is also a legal case for adopting diversity management. Serious consideration should be given to

compliance with current and future employment law. There are examples of some organizations facing

huge legal costs and damage to their reputations through poor employment practice and procedures. We

believe that companies have much to gain from not only complying with legislation but embracing the

opportunities it offers. Companies are producing real evidence of improved performance and enhanced

23


24/26

profits with the development of services and products that have been influenced by employing a diverse

workforce. A good example would be a South East branch of Lloyds TSB that have changed from having

mainly white counter staff to a mixture of races have seen volume sales of financial products rise by 30%

Diversity in the workplace is not a personnel or human resource issue; however managers in these roles

are often seen as the key staff to influence the ethos of a company or organization and effect change

within their environments towards valuing diversity. We believe that diversity management is an issue for

everyone in the workplace and should be led from the top.

3.3 Conclusions

A leader has to have emotional intelligence to align personal and subordinate goals to accomplishcompany goals. James A. Belasco and Ralph C Stayer (1993) suggest four responsibilities a leader must

implement at all levels of an organization. First, transfer ownership for work to the people who do the

work. Second, create the environment where the transfer of ownership can take place, where each person

wants to be responsible for his or her own performance. This entails painting a clear picture of what the

company believes great performance is, for the company and each person; focusing individuals on the

few great performance factors; developing in each person the desire to be responsible for his or her

performance; aligning organization systems and structures to send a clear message as to what is necessary

for great performance; engaging each individuals heart, mind and hands in the business of the business;

and energizing people around the business focus. Third, develop individual capability and competence.

Fourth, create conditions in the organization that challenge every person to continually learn, including

him or her self. These four principals align personal and company goals through emotional intelligence.

24


25/26

References

Ackerman, Frank, and others, eds. The Changing Nature of Work. Washington: Island Press, 1998.

Allen, N.J., & Meyer, J.P. 1990. The measurement and antecedents of affective, continuance, and

normative commitment to the organization.Journal of Occupational Psychology. 63(1). 1-18.

American Institute for Managing Diversity. "American Institute for Managing Diversity." Atlanta:

American Institute for Managing Diversity, 1999. Available from www.aimd.org .

Argenti, Paul A. The Portable MBA Desk Reference.New York: John Wiley & Sons, Inc., 1994.

Caldwell, D.F. & OReilly, C.A. 1990. Measuring person-job fit within a profile comparison process.Journal of Applied Psychology. (75). 648-657.

Cohen A (1993), Age and tenure in relation to organizational commitment: A

meta-analysis, Basic and Applied Social Psychology, Vol. 14, pp. 143-159

Colvin, Geoffrey." The Best Companies for Asians, Blacks, and Hispanics." Fortune, 19 July 1999, 53-

70.

Crockett, Joan. "Diversity as a Business Strategy."Management Review, May 1999, 62.

Digh, Patricia. "Coming to Terms with Diversity."HR Magazine 43, no. 12 (November 1998): 117-20.

Dreachslin, Janice L.Diversity Leadership. Chicago: Health Administration Press, 1996.

Dunham, R.B., Grube, J.A. & Castenada, M.B. 1994. Organizational commitment: The utility of an

integrative definition.Journal of Applied Psychology. 79(3). 370-380.

Fernandez, John P. Race, Gender, and Rhetoric: The True State of Race and Gender Relations inCorporate America.New York: McGraw-Hill, 1998.

Flynn, Gillian. "Diversity Programs." Workforce 77, no. 12 (December 1998): 27-35.

Frost, Delyte." Review Worst Diversity Practices to Learn from Other's Mistakes." HR Focus, April

1999, 11-12.

Gary,d (2005) Human resource management (10th ed. Prentice hall publishers- New jersey.

Gleitman. H. 1981.Psychology. New York: Norton.

25


26/26

Hemispherelnc. "Diversity: The Bottom Line. Part 1: Building a Competitive Workforce" (special

advertising section).Forbes, 3 May 1999.

Jacobs, Eva E., ed.Handbook of U.S. Labor Statistics. Lanham, MD: Bernan Press, 1999.

Lynch, Frederick R. The Diversity Machine: The Drive to Change the "White Male Workplace."New

York: Free Press, 1997.

Mathieu J, Zajac D (1990), A review and meta-analysis of the antecedents, correlates, and consequencesof organizational commitment, Psychological Bulletin, Vol. 108, pp. 171-194

Meyer, J.P. & Allen, N.J. 1997. Commitment in the workplace: Theory, research, and application.

Thousand Oaks, CA.: Sage Publishing, Inc.

Meyer, J.P., & Allen, N.J., 1991. A three-component conceptualization of organizational commitment.

Human Resource Management Review. 1(1). 61-89.

George, J.M. (2000). Emotions and Leadership: The role of emotional intelligence. Human Relations,53(8), 1027-1055.

Bass, B.M. (1990). Bass & Stogills Handbook of Leadership Theory, Research & Management Appli-

cations, (3rd ed). London: Collier MacMillan Publishers.

Burns, J.M. (1978).Leadership (1st Ed). New York: Harper & Row.

Kouzes, J.M., & Posner, B.Z. (1987). The leadership challenge: How to keep getting extra ordinary

things done in the organizations. San Francisco: Jossey Bass.

Kouzes, J.M., & Posner, B.Z. (1997). The leadership challenge (2nd Ed). San Francisco: Jossey Bass.

Kouzes, J.M., & Posner, B.Z. (2002). The leadership challenge (3rd Ed). San Francisco: Jossey Bass.

Hasan, A.A., & Grace, C.K. (2006). Leadership styles in the Palestinian large-scale industrial enterprises.Journal of Management Development, 25 (9), 832-849.

Cann, A. (2004). Rated importance of personal qualities across four relationships. The Journal of Social

Psychology,144, 322-335.

malo final hr

Documents