Marketing james l burrow answers

ABSTRACT

BROOKS, JONI KING. Emotional competencies of leaders: A comparison of managers in a financial organization by performance level. (Under the direction of James Burrow)

As companies increasingly are required to do more with less, seemingly “soft”

skills, based on emotions, are associated with leadership effectiveness and organizational

success. Research suggests that emotional “competencies,” such as those related to

empathy, adaptability, self-control, emotional self-awareness, ability to develop others, and

so forth, contribute significantly to leader effectiveness.

The purpose of this study is to determine if differences in EI levels exist among high

performers in one organization. Specifically, the study assesses whether managers in this

financial organization who are deemed most effective according to their performance

ratings exhibit higher emotional intelligence competencies than managers with lower

performance ratings. The researcher also compared EI levels and various demographic

characteristics of the sample.

The data were gathered from a sample of 57 from the study population—79 members

of the management team of a large regional financial organization selected to participate in

an internal study on emotional intelligence. The participating managers completed self-

report versions of the Emotional Competence Inventory 2.0 (ECI 2.0) (Hay/McBer, 2002).

They, in turn, asked others with whom they work closely to complete 360-degree versions

of the instrument, providing feedback on the participants. Participants also completed an

instrument that gathered demographic data, including title, position, area, management

tenure, gender, educational level, and type of degree, and their most recent performance

ratings (three, four, or five on a five-point scale).

The researcher analyzed the ECI scores provided by the Hay Group, performance

ratings, and demographic data via a statistical analysis computing system, SAS 8. She

employed the general linear model (GLM) version of analysis of variance (ANOVA), T-

test, and union-intersection test methods.

Findings indicated that high ratings and high emotional intelligence were not

significantly related at a 95 percent confidence level. They were significantly related on

three competencies—Achievement, Adaptability, and Optimism—at a 90 percent

confidence level. The EI average scores of the sample differed significantly from the

average scores of other groups in the ECI North American Database on three competencies:

Achievement, Accurate Self-assessment, and Emotional Self-control. Statistically

significant differences between Sales and Support functions were evident in three

competencies: Empathy, Emotional Self-awareness, and Transparency. For all three,

Support EI levels were greater than Sales EI levels. Position, title, gender, and management

tenure did not significantly impact the emotional intelligence of the sample.

While educational level did not significantly impact the emotional intelligence of

the sample, statistically significant differences existed between those with a Bachelor of

Science degree and those with a Bachelor of Arts degree on four competencies: Conflict

Management, Emotional Self-awareness, Initiative, and Organizational Awareness. EI

levels of those with BS degrees were greater than EI levels of those with BA degrees in

Conflict Management, Initiative, and Organizational Awareness while EI levels of those

with BA degrees were greater than EI levels of those with BS degrees on one competency:

Emotional Self-awareness.

Results of the self versus total others ratings indicated that statistically significant

differences exist in four competencies: Emotional Self-control, Influence, Inspirational

Leadership, and Self-confidence. For each of the four competencies, EI levels of total

others were greater than self-reported EI levels.

Emotional Competencies of Leaders: A Comparison of Managers in a Financial Organization by

Performance Level

By

Joni King Brooks

A dissertation submitted to the Graduate Faculty of North Carolina State University in partial fulfillment of the requirements for the Degree of Doctor of Education

Adult and Community College Education

Raleigh

2002

Approved by:

____________________________ _____________________________ Dr. James L. Burrow Dr. Paula Berardinelli Chair of Advisory Committee

____________________________ _____________________________ Dr. John Pettitt Dr. Michael Vasu

UMI Number: 3073312

________________________________________________________ UMI Microform 3073312

Copyright 2003 by ProQuest Information and Learning Company.

All rights reserved. This microform edition is protected against

unauthorized copying under Title 17, United States Code.

____________________________________________________________

ProQuest Information and Learning Company 300 North Zeeb Road

PO Box 1346 Ann Arbor, MI 48106-1346

ii

Biography

Joni King Brooks earned a bachelor’s degree in journalism, with a double major in

speech communications, at the University of North Carolina at Chapel Hill (1981). She holds a

master’s degree in public administration from North Carolina State University (1992). Her

research interests include leadership and workplace performance.

Ms. Brooks works as a manager of public relations and marketing communications with

a telecommunications solutions provider. She has 20 years of experience in communications,

marketing, and public relations. Her career, which began in the news media, has encompassed

roles in a number of organizations, including those focused in non-profit, health-care, education,

research, banking, and high tech.

Ms. Brooks is the daughter of Carolyn Riggs King and the late William E. (Eddie)

King. She resides in Raleigh, N.C., with her husband, Ricky, and son, Austin.

iii

Acknowledgements

Along the long and curving road that I have traveled to complete this degree, I have

been very fortunate to have the support of numerous family members, friends, and

acquaintances. I sincerely appreciate all who have encouraged and assisted me.

In particular, I am indebted to the members of my advisory committee. Each has

offered support and guidance, helping me attain this ultimate academic goal. Dr. Michael Vasu

has been a part of my entire post-graduate academic life. He taught my very first graduate class

and served as my advisor during my master’s program. I sincerely appreciate his guidance and

support. Dr. Paula Berardinelli kindly stepped in to fill the void left by a committee member

who retired before I completed the degree. She has offered much encouragement when I was

discouraged and assistance, even trying to help me find a company to participate in my study

after one backed out far into the process. Dr. John Pettitt has served as a helpful advisor both as

an instructor and committee member.

Dr. James Burrow, the chair the advisory committee, has provided constant guidance

and aid. Dr. Burrow steered me through the doctoral requirements, helping me succeed along

the way. He gave willingly of his time and expertise, and his efforts are most appreciated.

My friends and family have provided support to enable me to achieve this goal. First, I

want to thank my parents, Carolyn Riggs King and the late William E. (Eddie) King, who

provided me with the foundation to achieve and instilled in me the value of education and

success. My parents taught me perseverance and to roll with the punches, reminding me that life

is not always fair. My mother is a source of continuous encouragement, support, and love. I

know my late father and late brother, Edwin, would be proud of this accomplishment.

I sincerely appreciate all who helped me identify a company to participate—which

proved to be an arduous task. I am very grateful to those in the participating organization who

contributed greatly to the completion of the research study.

iv

Finally, to my husband, Ricky, and son, Austin, thank you for loving, supporting, and

inspiring me. Ricky, you have given unselfishly and are always there to pick up the pieces,

enabling me to achieve this dream.

v

TABLE OF CONTENTS

LIST OF TABLES .............................................................................................................................. IX

CHAPTER I............................................................................................................................................1

INTRODUCTION AND PROBLEM STATEMENT.........................................................................................1

Emotional Intelligence....................................................................................................................4

EI and IQ ........................................................................................................................................6

EI and Leadership ..........................................................................................................................7

PURPOSE OF THE STUDY .......................................................................................................................8

ANALYSIS ............................................................................................................................................9

Research Questions and Hypotheses ..............................................................................................9

Applicability .................................................................................................................................15

TERMS DEFINED.................................................................................................................................16

RESEARCH DESIGN .............................................................................................................................16

DELIMITATIONS OF THE STUDY..........................................................................................................17

Population ....................................................................................................................................18

Sample Selection and Identification of Managers ........................................................................18

Gathering of Survey Information..................................................................................................18

SUMMARY..........................................................................................................................................19

CHAPTER II REVIEW OF THE LITERATURE ...........................................................................20

ORGANIZATION OF THE LITERATURE .................................................................................................20

LEADERSHIP.......................................................................................................................................21

Leadership Behavior Theory ........................................................................................................22

Leadership versus Management ...................................................................................................23

EMOTIONS..........................................................................................................................................27

EMOTIONAL INTELLIGENCE................................................................................................................29

vi

EI competencies............................................................................................................................32

EI and EQ.....................................................................................................................................34

Moving Ahead...............................................................................................................................35

EI History .....................................................................................................................................36

EMOTIONAL INTELLIGENCE AND LEADERSHIP ...................................................................................38

Johnson & Johnson Emotional Competencies and Leadership Study ..........................................39

EI Training ...................................................................................................................................41

EI AND DEMOGRAPHIC CHARACTERISTICS ........................................................................................43

EI and Functional and Position Differences ................................................................................43

EI and Gender ..............................................................................................................................43

EI AND PERFORMANCE IN THE FINANCE SECTOR ...............................................................................45

MEASURING EI...................................................................................................................................45

COMPARING SELF AND OTHERS’ RATINGS.........................................................................................47

PERFORMANCE APPRAISAL AS A MEASURE OF EFFECTIVENESS .........................................................48

SUMMARY..........................................................................................................................................49

CHAPTER III METHODOLOGY.....................................................................................................51

METHODS AND PROCESSES ................................................................................................................53

Research Design ...........................................................................................................................53

Data Needs and Collection Steps..................................................................................................53

Instrumentation.............................................................................................................................54

Reliability .....................................................................................................................................56

Validity .........................................................................................................................................58

Scale Design .................................................................................................................................60

PERFORMANCE APPRAISAL SYSTEM OF PARTICIPATING COMPANY ...................................................60

Sales Performance Analysis .........................................................................................................61

Support Performance Analysis .....................................................................................................62

Demographic Form ......................................................................................................................63

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Population and Sample.................................................................................................................64

Sample Selection and Identification of Managers ........................................................................65

Gathering of Survey Information..................................................................................................65

2002 Performance Summary ........................................................................................................67

Data collection procedures...........................................................................................................67

RESEARCH QUESTIONS, HYPOTHESES, AND DATA ANALYSIS............................................................69

Analysis of Research Question One..............................................................................................69

Analysis of Research Question Two..............................................................................................71

Analysis of Research Question Three ...........................................................................................73

CHAPTER IV FINDINGS ..................................................................................................................78

PURPOSE OF THE STUDY.....................................................................................................................78

RESEARCH QUESTIONS, NULL HYPOTHESES, AND ALTERNATIVE HYPOTHESES ...................................78

Research Question One ................................................................................................................79

Research Question Two ................................................................................................................81

ANALYSIS ..........................................................................................................................................85

Detailed Research Questions and Null and Alternative Hypotheses Review................................87

2002 Performance Summary ........................................................................................................88

ADDITIONAL FINDINGS: SELF VERSUS OTHERS RATINGS...................................................................106

SUMMARY........................................................................................................................................108

CHAPTER V SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS...........................113

SUMMARY........................................................................................................................................113

RESEARCH QUESTIONS AND HYPOTHESES .......................................................................................114

KEY FINDINGS..................................................................................................................................120

DISCUSSION OF KEY FINDINGS.........................................................................................................122

LIMITATIONS....................................................................................................................................128

RECOMMENDATIONS ........................................................................................................................129

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RECOMMENDATIONS FOR FUTURE RESEARCH .................................................................................131

FINAL COMMENTS............................................................................................................................133

REFERENCE LIST...........................................................................................................................135

APPENDIX A EMOTIONAL INTELLIGENCE LEADERSHIP COMPETENCIES. ..............143

APPENDIX B ECI .............................................................................................................................147

APPENDIX C CHRONBACH’S ALPHA COEFFICIENTS.........................................................157

APPENDIX D TEST-RETEST STABILITY ..................................................................................158

APPENDIX E SALES APPRAISAL FORM...................................................................................159

APPENDIX F SUPPORT APPRAISAL CHECKLIST..................................................................168

APPENDIX G DEMOGRAPHICS...................................................................................................173

APPENDIX H STATISTICAL ANALYSIS ....................................................................................174

APPENDIX I CONSENT FORMS...................................................................................................190

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LIST OF TABLES

TABLE 2.1 EMOTIONS: CONVENTIONAL VS. HIGH-PERFORMANCE ........................................................................28

TABLE 2.2 ADDITIONAL CONVENTIONAL VS. HIGH-PERFORMANCE EMOTIONS .....................................................28

TABLE 4.1 MEAN SCORES FOR EACH COMPETENCY BY RATING.............................................................................89

TABLE 4.2 RELATIONSHIP OF HIGH RATINGS TO HIGH EI SCORES..........................................................................91

TABLE 4.3 RELATIONSHIP OF EI COMPETENCIES AND PERFORMANCE RATINGS AT 95 PERCENT CONFIDENCE ......92

TABLE 4.4 EI COMPARISONS OF BANK SAMPLE WITH OTHER SAMPLES..................................................................94

TABLE 4.5 RELATIONSHIP OF EI COMPETENCIES AND POSITIONS AT 95 PERCENT CONFIDENCE LEVEL .................95

TABLE 4.6 RELATIONSHIP OF EI COMPETENCIES AND TITLES AT 95-PERCENT CONFIDENCE LEVEL.......................96

TABLE 4.7 RELATIONSHIP OF GENDER AND EI A 95 PERCENT CONFIDENCE LEVEL ...............................................98

TABLE 4.8 MEANS SCORES BY GENDER IN DESCENDING ORDER ............................................................................99

TABLE 4.9 SIGNIFICANT RELATIONSHIPS BETWEEN EI AND AREA.......................................................................100

TABLE 4.10 SUPPORT MANAGERS’ HIGHEST- AND LOWEST-RATED COMPETENCIES ............................................101

TABLE 4.11 SALES MANAGERS’ HIGHEST- AND LOWEST-RATED COMPETENCIES ................................................101

TABLE 4.12 COMPARISONS OF EI MEANS FOR SALES AND SUPPORT FUNCTIONS ................................................102

TABLE 4.13 RELATIONSHIP OF EI AND TENURE A 95-PERCENT CONFIDENCE LEVEL ...........................................103

TABLE 4.14 RELATIONSHIP OF EI AND EDUCATIONAL LEVEL AT 95 PERCENT CONFIDENCE LEVEL.....................104

TABLE 4.15 EI SCORES SIGNIFICANTLY RELATED TO BA VERSUS BS DEGREES ..................................................106

TABLE 4.16 STATISTICALLY SIGNIFICANT DIFFERENCES .....................................................................................107

TABLE 4.17 EI COMPETENCY SCORES FOR SELF AND TOTAL OTHERS’ RATINGS FROM HIGHEST TO LOWEST .......107

TABLE 4.18 SUMMARY OF NULL AND ALTERNATIVE HYPOTHESIS TESTING.........................................................109

TABLE A1 SELF-AWARENESS COMPETENCIES .....................................................................................................143

TABLE A2 SELF-MANAGEMENT COMPETENCIES..................................................................................................144

TABLE A3 SOCIAL AWARENESS COMPETENCIES .................................................................................................145

TABLE A4 RELATIONSHIP MANAGEMENT COMPETENCIES...................................................................................146

TABLE C CHRONBACH’S ALPHA COEFFICIENTS...................................................................................................157

TABLE D TEST-RETEST STABILITY COEFFICIENTS ...............................................................................................158

x

TABLE H1 ANOVA FOR RATINGS......................................................................................................................174

TABLE H2 ANOVA FOR POSITION .....................................................................................................................176

TABLE H3 ANOVA FOR TITLES .........................................................................................................................178

TABLE H4 ANOVA FOR GENDER.......................................................................................................................180

TABLE H5 ANOVA FOR AREA ...........................................................................................................................182

TABLE H6ANOVA FOR TENURE ........................................................................................................................184

TABLE H7 T-TEST FOR EDUCATIONAL LEVEL ....................................................................................................186

TABLE H8 T-TEST FOR BA AND BS....................................................................................................................188

TABLE H9 T-TEST FOR SELF AND TOTAL OTHERS ................................................................................................189

1

Chapter I

Introduction and Problem Statement

The times, they are still “a changing.” Companies today are very different from

those of the past. Globalization, increased competition, and technology advances are

requiring organizations, management teams, and employees to do more with less—while

retaining the flexibility to address changes.

According to Cherniss and Adler (2000), factors contributing to the turbulence

resulting from changes in the marketplace include technical innovation, global

competition, and pressures from institutional investors. Among technical innovations,

they cite organizational downsizing. “As organizations shrink, people who remain are

more accountable and more visible. They must interact with more peers, more

subordinates, and more customers” (p. 4).

The highly competitive environment driving today’s organizations has negative

effects. Cooper and Sawaf (1997) stated that the intellect required to make companies

competitive has resulted in dramatic costs to employees. The costs include “crumbling

trust, jarring uncertainty, greater distance between managers and those they manage,

stifled creativity, festering cynicism, increasingly volatile anger, and vanishing loyalty

and commitment” (pp. xi-xii).

Motivation, initiative, and cooperation also may be lacking among today’s employees

and may be resulting in less-than-effective organizations. Cherniss and Adler referred to

a 1991 study of American employers by Harris Education Research. Their findings

indicated that more than half of employees in the surveyed organizations “lacked the

2

motivation to continue learning and improving on the job. Four of 10 were not able to

work cooperatively with fellow employees, and just 19 percent of those applying for

entry-level jobs had enough discipline in their work habits” (p. 7).

Kouzes and Posner (1997) explained that both employees’ loyalties to institutions

and institutions’ loyalties to employees are diminishing. They added that the power

within organizations has shifted from the top brass to the people and to those with

technology and the skills to use it. Nearly half the population is cynical, and cynics don't

participate in improving things. In such a climate, how can a leader possibly mobilize a

seemingly unwilling constituency (p. xviii)? They added, “With movement away from

the powerful bosses to the empowered people, organizational structures are flattening.

Everyone is connected, and knowledge has become synonymous with currency. Kouzes

and Posner contended that organizational success and the ability to compete are

"dependent upon the mental fitness of the workforce" (p. xviii).

Further, they explained, because there are far more products and services today

than were available a decade ago, the marketplace is fragmented. Organizations are

reducing staffs and, what was once a permanent workforce is changing to include

contingent and self-employed workers. "Loyalty and job security, we're told, have gone

the way of the dodo bird" (p. xix).

However, the situation is not hopeless. "There's a new search for meaning. With

today's cynicism, fragmentation, and shifting relationships has come a yearning for a

greater purpose in our lives. … In the race of these new realities, there are countless

opportunities to make a difference. …More than ever, there's a need for people to seize

these opportunities to lead us to greatness" (Kouzes and Posner, pp. xix-xx).

3

What separates the successful companies from others? According to Rodriguez,

Patel, Bright, Gregory, and Gowing (2002), a distinguishing element is superior

employees. “High-performing people are critical to high-performing organizations” (p.

309). Gordon (1998) added, “Enlightened companies now look for managers of

independent spirit, people with the courage of their convictions. Enlightened companies

want up-and-coming leaders who will speak their minds, boldly and openly” (p. 54).

Other sources, including Cherniss and Adler (2000), George (2000), and Goleman

(1998b), pointed to social and emotional competencies, such as feelings, emotions,

moods, and so forth—as differentiators in today’s competitive and continually changing

work environment. As a manager of a telecommunications company explained, “You

don't compete with products alone anymore, but how well you use your people”

(Goleman, p. 7). Cherniss and Adler added that because of changes in the domestic and

global marketplace, “Personal qualities, such as resilience, optimism, and initiative, have

become more important in recent years” (pp. 2-3).

Goleman (1998b) contended that in today’s organizations, high performers are not

necessarily the most intelligent or most highly skilled employees. He wrote, “We’re

being judged by a new yardstick; not just by how smart we are, or by our training and

expertise, but also by how well we handle ourselves and each other. This yardstick is

increasingly applied in choosing who will be hired and who will not, who will be let go

and who retained, who passed over and who promoted” (p. 3).

Cherniss and Adler (2000) contended that because of a growing body of research

in competencies as well as personal experiences, employers are modifying their ideas

about what qualifications of an employee are most important. They cited results of a

4

survey conducted by the Department of Labor and American Society for Training and

Development. The survey sought to determine characteristics employers required for

entry-level positions. Results showed that the most important qualities were personal

management (self-esteem, goal setting and motivation, and personal and career

development); interpersonal skills (negotiation and teamwork); and organizational

effectiveness and leadership. The authors referenced a study by Dowd and Liedtka that

found that employers value the same competencies in entry-level managers. Results

indicated that qualities most desired in candidates with Master of Business

Administration degrees were communications skills, interpersonal skills, and initiative.

Identifying personnel possessing such specific qualities as these is not easy. It is

becoming increasingly challenging for organizations to recruit, select, and retain high-

performing employees (Rodriguez et al., 2002). The authors suggested that human

resources personnel consider competency-based programs: “Competencies provide the

foundation through which human resource professionals can contribute to the success of

their organizations” (p. 309).

While the concept of competencies has increased in popularity recently, the

concept is not new. In the 1970s, David McClelland’s research suggested that “academic

aptitude and knowledge content tests alone did not predict high job performance or

success in life, and that individual characteristics or competencies can identify high

performers” (Rodriguez, et al., 2002, p. 309).

Emotional Intelligence

Many have attempted to define the term emotional intelligence or to add their

descriptions to its definition. Some definitions focus on the skills or competencies of an

5

emotionally intelligent person, some have focused on behaviors, and some have focused

on intelligence.

Goleman has worked extensively in the competency area. He is well known for

his research on emotional intelligence. Since his best-selling book on emotional

intelligence in 1995, the term has come into increasingly popular use. Goleman (1998b)

introduced the concept of emotional intelligence and the role of emotions: “The new

measure takes for granted having enough intellectual ability and technical know-how to

do our jobs; it focuses instead on personal qualities, such as initiative and empathy,

adaptability, and persuasiveness” (p. 3). These “personal qualities” are included in the

emotional intelligence framework as EI competencies (See Tables A1-A4, Appendix A).

Goleman (1998b) described emotional intelligence as “the capacity for

recognizing our own feelings and those of others, for motivating ourselves, for managing

emotions well in ourselves and in our relationships” (p. 317). He continued, “Emotional

intelligence determines our potential for learning the practical skills that are based on its

five elements: self-awareness, motivation, self-regulation, empathy, and adeptness in

relationships” (p. 24). Goleman distinguished between emotional intelligence and

emotional competence. Emotional competence is a “learned capability based on

emotional intelligence that results in outstanding performance at work” (p. 24).

“Emotional competence shows how much of that potential we have translated into on-

the-job capabilities” (p. 25). For example, being effective at customer service is an

emotional competency based on empathy.

According to Mayer, Salovey, and Caruso (1998), with emotional intelligence

(EI), one is able to process emotional information, specifically as it involves the

6

perception, assimilation, understanding, and management of emotion. EI consists of four

branches of mental ability:

1. Emotional identification, perception and expression

2. Emotional facilitation of thought

3. Emotional understanding

4. Emotional management

Cooper and Sawaf (1997) defined emotional intelligence in terms of energy,

relationships, and influence. It is “the ability to sense, understand, and effectively apply

the power and acumen of emotions as a source of human energy, connection, and

influence” (p.xiii). They contended that every business leader wants or needs emotional

intelligence. Subordinates want these qualities in a manager, and people hope for them in

a parent, partner, and sibling. They reported that emotional intelligence contributes to

employee and organizational success, citing examples in the following areas (p. xii):

Decision making

Leadership

Strategic and technical breakthroughs

Open honest communication

Trusting relationships and teamwork

Customer loyalty

Creativity and innovation

EI and IQ

Cacioppo and Gardner (1999) contended that emotion contributes not only to

intelligence but also to a fulfilling life. “The heightened ability to monitor one’s own and

7

others’ emotions, to discriminate among them, and to use the information to guide one’s

thinking and action has proven to be as important a determinant of life success as

traditional measures of intelligence such as IQ” (p.194).

Other theorists (Cooper and Sawaf, 1997; Cherniss and Adler, 2000; Cherniss,

2000; and Druskat, 2001) also proposed that EQ is an important as IQ to ensuring

effective performance of workers and success in organizations.

However, as Cherniss (2000) stated, it is absurd to suggest that cognitive ability is

not related to success in various disciplines and organizations. “We also should keep in

mind that cognitive and non-cognitive abilities are very much related. In fact, there is

research suggesting that emotional and social skills actually help improve cognitive

functioning” (p. 8). Cherniss and Adler (2000) added, “Emotional intelligence and

cognitive ability actually work together for effective action in organizations. Therefore, it

is not surprising that numerous studies point to EI as critical for success at work” (p. 5).

EI and Leadership

Researchers (including Goleman, 1998b; George, 2002; Cavallo and Brienza,

2002; George and Bettenhausen, 1990; and George, 1995) have linked emotions and

competencies with performance and leadership.

Is high emotional intelligence synonymous with high performance? This was the

contention of Goleman (1998b), who has stated that with the recent emphasis on

flexibility, teams, and a strong customer focus in the workplace, “this crucial set of

emotional competencies is becoming increasingly essential for excellence in every job

and in every part of the world” (p. 29). The studies cited suggest that emotional

8