Relationships among emotional intelligence, leadership scores, and human value added metrics

Abstract

It is widely believed that good leader leads an organization for success. Emotional intelligence is deemed as one of key components of a good leader. Leader with higher emotional intelligence level tends to outperform leader with lower emotional intelligence. Relationship between good leader with high emotional intelligence and firm or organization performance was documented to be positively correlated. However, result from this study exhibits that emotional intelligence and organizational performance have significantly negative correlation. This implies that organization led by higher emotional Intelligence leader underperforms organization led by lower emotional intelligence. Contradictions with previous studies may stem from different types of leaders are focused in this studies. Previous studies explored effects of transformation leaders on firm performance. This study explores samples which are bankers who possess transactional leadership style. Transactional leader styles of bankers emphasize on job performances than transformational leader as documented in previous studies. While emotional Intelligence questionnaire is designed to measure emotional intelligence of transformation leader, contradict results should be expected.