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Transformational Leadership : Emotional Intelligence

Mathew, Molly; Gupta, K S. SCMS Journal of Indian Management; Kochi Vol. 12, Iss. 2, (Apr-Jun 2015): 75-89.

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Abstract

In this paper efforts are made to develop a conceptual framework of the relationship between Transformational Leadership (TL) and Emotional Intelligence (EI). It is important to know more about this relationship, because a growing body of research indicates that transformational leaders are smart with their feelings and they drive the emotions of those they lead in the right direction. Transformational leadership style is relationship centered and transformational leaders influence the team to do more than expected. People will follow a leader who inspires them. This research paper develops the relationship framework after an intensive literature search on TL and EI. This framework is used in developing a measuring instrument and the relationship between TL and EI is empirically examined among 300 leaders from different industries.

Headnote Abstract

In this paper efforts are made to develop a conceptual framework ofthe relationship between Transformational Leadership(TL) and Emotional Intelligence(EI). It is important to know more about this relationship, because a growing body of research indicates that transformational leaders are smart with their feelings and they drive the emotions of those they lead in the right direction. Transformational leadership style is relationship centered and transformational leaders influence the team to do more than expected. People will follow a leader who inspires them. This research paper develops the relationship framework after an intensive literature search on TL and EI. This framework is used in developing a measuring instrument and the relationship betweenTL and EI is empirically examined among 300 leaders from different industries.

Key Words : Emotional Intelligence, Emotions, Transformational Leadership, Leadership.

Organizations are made of people, processes and property. Current trend shows that company's people are the differentiator. Today, businesses can find meaningful advantage by focussing on the relationships with people whether it be customers, employees or leaders.

It is generally accepted that leaders with strong analytical skills perform better than leaders without these skills. But sometimes very intelligent leaders fail. Often these failures are due to problems that arise while relating to team members or bosses or clients. In today's business environment intellect alone won't make great leaders.In a study, Joseph (1998) found that while IQ scores had no predictive value (correlation of .07 with performance), EQ scores predicted 27% of job performance.

Leaders are being judged by their ability to handle themselves and the team. A leader with vision and passion can achieve great things by injecting enthusiasm and energy. Today leaders are expected to guide, motivate, inspire, listen, persuade, and create significance. Hence dealing with emotions is a crucial part of a leaders' success.

Great leadership requires excellence in many areas- strategy, execution, discipline, innovation, and analysis. However being smart with feelings has received the least attention and could be one of biggest drivers to managing many relationship challenges that leaders face at work. In reality effective leaders work through emotions (Goleman et ah, 2002).

The role of emotional intelligence in forecasting effective leaders is an area of research that is gaining energy and popularity in Industrial/Organizational psychology (Goleman, 1995,1998a,b, 2000; Sosikand Megerian, 1999; Miller, 1999; George, 2000; Barling etal, 2000; Watkin, 2000; Dulewicz, 2000; Palmer et al., 2001 ).

Transformational Leadership

Leadership is undergoing a fundamental transformation today. The transformationfrom a leader as a boss and critic to leader as a partner and coach. This transformed role requires certain skills because leadership is what you do with people, not to them.

Evidence from an array of studies has supported the positive effect of Transformational Leadership (TL) on productivity, job satisfaction, stress, and commitment (Bass, 1985; Howell and Avolio, 1993; Bass and Avolio, 1994; Avolio and Yammarino, 2002; Dionne, Yammarino, Atwater and Spangler, 2004). Therefore, it can be assumed that the skills of transformational leadership would encourage performance and innovation in this rapidly changing marketplace.

The four characteristics of TL as identified by previous researchers (Bass, 1985,1990; Bennis and Nanus, 1985; Bass and Avolio, 1989; Podsakoff et al., 1996) are as follows :

a. Idealized influence where the leader is seen as a role model,

b. Inspiration motivation where the leader inspires motivation and team spirit,

c. Intellectual stimulation where the leader stimulates creativity and innovation, and

d. Individualized consideration where the leader mentors and supports each follower.

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By giving meaning and purpose to the work they do, transformational leaders inspire and motivate followers to go beyond expectations (Shamir, 1991).

Transformational leaders use intellectual stimulation to challenge their followers' customary ways of doing things and encouraging innovative ways of working and solving problems (Bass andAvolio, 1994,1997).

Bass and Avolio (1997) suggested that transformational leaders attained greater levels of success in the workplace, were promoted more often, produced better financial results, and were rated to be more effective by their employees than transactional leaders.

Transformational leaders stimulate and inspire followers to achieve extraordinary outcomes and also develop their own leadership capacity. Transformational leaders respond to individual followers' needs by empowering them and by aligning the objectives and goals of the followers, the leader, the group, and the organization (Bass and Riggio, 2008).

Emotional Intelligence

Salovey and Mayer (1990) argued in their first article that there is another kind of intelligence called Emotional Intelligence that might help understand better who succeeds and who does not in business.

Goleman (1995) published his first book on El and popularized the concept to the whole world.Goleman ( 1995) described emotional intelligence in five domains: knowing one's emotions, managing one's emotions, motivating oneself by marshaling emotions, recognizing emotions in others, and managing emotions in others so as to handle relationships. Leaders who are self aware, who manage themselves, and associate with others are able to nurture a work climate where people feel great and do more and better work. In "working with emotional intelligence," Goleman reported that 80-90% of the competencies that differentiate top performers are in the domain of El. The many pressures on leaders today make emotional intelligence particularly important.

Emotionally intelligent leaders are thought to perform better in the workplace (Goleman, 1998a,b), be happier and more dedicated to their organization (Abraham, 2000), take advantage of emotions and use them to foresee major improvements in organizational functioning, improve decision making, solve problems, instill a sense of enthusiasm, excitement, trust and co-operation in other employees through interpersonal relationships (George, 2000).

Emotional Intelligence (El) is about undersatnding and accepting emotions as assets as they convey something. When managed intelligently, leaders gain incredible value from emotions and develop real self-efficacy. Emotional Intelligence helps leaders make better decisions and gain the full commitment and energy of those they lead (Freedman, 2007).

To show how El predicts performance, leaders in the Australian Tax office were studied by using their assessment tools, performance metrics and self-ratings.

Rosette (2005) found that cognitive ability predicted less than 2 % of the variation in performance and personality predicted nothing, while 25% of the performance variation was explained by EL

TL and El Relationship

A transformational Leader exhibits empathy, motivation, self-awareness, and self-confidence (Burns, 1978; Bass, 1985). Goleman (1995) described the above qualities to be subcomponents of emotional intelligence. Emotionally intelligent leaders use empathy to connect to the emotions of the people they lead. These leaders empathize and also express the emotions that the individual or group is experiencing. The team thus feels understood and cared for by the leader.

Charisma, a trait of a transformational leader, is a well developed social and emotional skill, (Riggio 1986, 1987, 1998). Emotional intelligence is botha core and necessary component of the personal charisma that is demonstrated by transformational leaders.

Transformational leaders use emotion to communicate their vision and to motivate followers (Conger and Kanungo, 1987, 1994, 1998; House et ah, 1991; Kanungo and Mendonca, 1996).

Bass (1990) argued that transformational leaders meet the emotional needs of each employee and establish trust, which is a major component of transformational leadership style. Cooper ( 1997) proposed that trust is important characteristic of emotional intelligence. A trusting environment offers team members with a certain amount of emotional safety and provides the basis for coordinated effort.

Bass (1990b) described that transformational leaders use motivation to communicate high expectations to their employees. Past researchers (Sosik and Megerian, 1999; Barling et ah, 2000) have proposed that internal motivation relate well to transformational subscales. Goleman (1995) argued that all effective leaders possess intrinsic or self- driven motivation. These leaders strive to achieve beyond expectations. Self Motivation, a component of El, is also a characteristic trait of transformational leaders.

Ashforth and Humphrey (1995) noted that transformational leadership appears to be dependent upon the evocation, framing and utilization of emotions. Leaders who are tuned into theirs and others emotions are better equipped to intervene in emotionally challenging situations through individualized support, empathy and role modeling.

Sosik and Mergerian ( 1999) suggested four points at which EI and TL intersect:

(a) Adherence to professional standards of behavior and interaction, which they related to idealized influence or charisma,

(b) Self-Motivation, the ability to control and influence life events, which they related to the inspirational motivation,

(c) Intellectual stimulation: the leader must be able to stimulate the intellectual and professional development of the followers. Building strong supportive member relationships and trust helps accomplish this. Bass (1990) established trust to be a major component of transformational leadership style. And Cooper ( 1997) proposed that trust is important characteristic of emotional intelligence, and

(d) Individual focus on others, which they related to, individualized attention.

Ashkanasy and Tse (2000) opined that transformational leaders are sensitive to needs of their followers, show empathy and are able to understand how others feel. A leader with high emotional management skills looks out for the needs of others over his or her personal needs.

Barling et al. (2000) concluded that emotional intelligence is positively related to three components of transformational leadership (idealized influence, inspirational motivation, and individualized consideration). They reported the highest correlations between emotional intelligence and inspirational motivation, indicating that the emotional intelligence dimension of understanding emotions is particularly important in leadership effectiveness. They suggested that emotional intelligence predisposes leaders to use transformational behaviors.

Palmer etal. (2001) observed several significant correlations between transformational leadership and emotional intelligence. The ability to monitor and the ability to manage emotions in oneself and others significantly correlated with the inspirational motivation and individualized consideration. Second, the ability to monitor emotions within oneself and others correlated significantly with the idealized influence.

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The level of emotional intelligence of leaders governs their ability to manage the feeling and emotions of the teams and motivate them to meet its goals (Lutzo, 2005). Such leaders inspire their team through positive thoughts and clear vision.

Every leader has the ability to develop the emotional competencies of the team and become a resonant leader. Leaders with high emotional intelligence are self-aware and they understand themselves. They are hopeful, compassionate and mindful. Effective leaders are familiar with their people's feelings and motivate them in a positive direction. This resonance comes naturally to emotionally intelligent leaders and this resonance boosts performance (Goleman et al., 2002).

Sixty-two CEOs and their top management teams were assessed on their energy, enthusiasm and determination levels. The study showed that the more positive the overall moods of people in the top management team, the more cooperative they were and the better the company's business results (Goleman, Boyatzis and McKee,2002).

Accurately recognizing emotions in others is critical to the capacity of leaders to inspire and build relationships (Caruso etal., 2002).

A leader's ability to stimulate, inspire and lead an individual is thought to be closely connected to the emotional intelligence of the leader (Riggio and Pirozzolo, 2002).

Sivanathan and Fekken (2002) found a significant correlation between EI and TL among 12 university residence hall staff supervisors. Gardner and Stough's (2002) study supported the existence of a strong relationship between transformational leadership and overall emotional intelligence. The outcomes of leadership (extra effort, effectiveness and satisfaction) were all found to correlate significantly with the components of emotional intelligence as well as with total emotional intelligence. Each outcome of leadership correlated the strongest with the dimension of understanding of emotion external.

Empathetic response was found to be the most consistent antecedent of transformational leadership behaviors. This finding is consistent with the findings of Kellett et al. (2002) and Wolff et al. (2002) that empathy predicts leader emergence. This shows that leaders with empathy for colleagues are more likely to be transformational in their approach.

Transformational leaders get followers to envisage an attractive future and motivate them to be committed in reaching that future. Such leaders also develop team spirit by role modeling enthusiasm, high moral standards, integrity, optimism, and provide meaning and challenge to the work followers do, and in the process they enhance the self efficacy, meaning, confidence and self determination of followers (Avolio et al., 2004)

Rubin et al. (2005) attempted to study if the tendency to be more transformational can be predicted. They narrowed the investigation to two important individual differences namely emotional intelligence and personality traits. The results showed that emotional recognition, positive affectivity and agreeableness were positively linked to TL behavior. Within emotional intelligence, perceiving emotions is specifically important for TL behavior.

Downey et al. (2005) studied the relationship between leadership style, intuition, and emotional intelligence in female managers and found that managers displaying transformational leadership behaviors were more likely to display higher levels of El and intuition. Intuition correlated significantly with emotional recognition and expression, and emotions direct cognition.

Barbuto and Burbach (2006) explored the relationship between EI and TL and found that El (including all components) shared positive relationships with each subscale of TL. Empathetic response shared significant positive relationships with transformational leadership. Leaders demonstrating empathy also exhibited greater degrees of intellectual stimulation and individualized consideration.

From the above studies it is seen that the ability to manage one's emotions and the emotions of others is the best predictor of transformational leadership behaviors.

The area of Transformational Leadership and Emotional Intelligence as a measure to improve workplace relationships and productivity, is the focus of this paper.

In this paper an attempt is made to do study the relationship between TL and El and develop a framework connecting the two concepts.

? From all of the research discussed in this literature review, we begin to see that there is emotional intelligence components in transformational leadership.

? Transformational leadership andEmotional Intelligence are based on relationships and are thus related to each other.

? The ability to manage emotions of self and others, is the best predictor of transformational leadership.

? Empathy is seen as the most consistent antecedent of transformational leadership. A leader's emotional expression does affect the team.

? Charisma, influence, intellectual stimulation and individualized attention all intersect with Emotional Intelligence.

? Transformational leadership and Emotional Intelligence encourage innovative ways of working and solving problems.

? Trust and supportive relationship with the leader is important. Trust is established to be a major component of transformational leadership style. And trust is an important characteristic of emotional intelligence.

Emotional Intelligence and Transformational Leadership -A Conceptual Framework

Based on the above discussion, a conceptual framework relating Transformational Leadership with Emotional Intelligence is developed and shown below.

The method used to study the relationship between TL and El

The following section describes the methods used to measure TL and El and to empirically examine the relationship between them. TL and El were measured by having the respondents reply to a relatively simple questionnaire having 46 questions around the 4variables of TL (Creating A Shared Vision, Inspiring To Go Beyond, Integrity Demonstration, Building Effective Relationships) and 5 variables of El (Identifying One's Emotions, Understanding Other's Emotions, Managing Emotions, Internal Motivation, Empathy). The 20 questions for Transformational leadership were framed after looking into various leadership inventories and rewording them according to the current need. The 26 questions for El were adapted from the Six Seconds International Emotional Intelligence tool.

The Population Sample Studied: The sample used in the present study to empirically examine the relationship between TL and El is 300. The results of the 300 participants, who completed the questionnaire, were examined. Based on the nature of study, it was seen necessary to use correlation in analyzing the results. The results of this study are presented below and the objective is to examine the extent to which TL and El are related.

This sample (n=300) included individuals from seven different industries such as Financial services, IT services, Educational Services, Health Services, Hospitality, NGO and Retail. The Sample comprised 60% male and 40% female.

Observations on the profiling: Although majority of the respondents are male at 60%, there is a very close percentage of women at 40%. Two thirds of the sample population are married. More than half the population falls between the age group of 26 to 35 years. Almost a third of the population is between 36 and 45 years of age. Almost three fourths of the population has an experience range of 6 to 15 years.

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Post Graduates seem to dominate this category followed by the graduates. All of the population handles a team and majority handle a team of under 10 members. Major contribution of responses was from the financial and IT sectors. 59% of responses are from the senior level and 30% from the middle level.

There are clear high points in the demographic categories such as age, education, experience and designation levels that may positively affect the perception and understanding of the various variables discussed in the questionnaire.

When observing the TL construct, the similarity in the range of values in the TL factors strengthen the validity of the data collected.

The mean in each of the El categories is on the higher score range which shows clarity in the interpretation of the variables under study. The mean and standard deviation values for all the factors are in a close range of variation, which is a positive indication for the study. The similarities in the values go on to strengthen the attributes of the population. The variation in the values between each factor is low which shows the construct is good. Also while comparing the individual standard deviation values, they are not very deviant from their respective means. All this means that the study has good levels of accuracy.

A preliminary comparison of the two constructs (TL and El) shows similarity in the patterns formed by the Mean and Standard deviation values that could translate to prove the commonality in the attributes. It is to be observed that the standard deviation is slightly higher in the TL construct but that can be attributed to the transitional quality of the factors of the two constructs. Leaders with high El exhibit transformational behaviors and this relationship exists because of the strong emotional relationship that is obvious between the leader and the follower in a transformational leadership style (Goleman, 1995; Megerian and Sosik, 1996; and Cooper, 1997).

A similarity in the values is significant enough to show that a relationship exists between the two constructs.

The Mean and Standard Deviations of EI and TL construct are similar but not the same. This could be because El may seem more controllable as it has to do with self primarily, as compared to Leadership where influencing others is critical.

Correlation Analysis Between TL and El

The next step is to examine the relationship between TL and EL The correlation coefficient is a number between -1 and 1 that indicates the strength of the linear relationship between two variables. The purpose is to measure the closeness of the linear relationship between TL and EL

The correlation between the 4 TL dimension scores and the 5 El dimension scores were compared in the sample studied (300 valid cases). The correlation between the total and individual dimension scores of TL and El indicated a relationship between the two constructs.

The value of "r" according to the theoretical interpretation guidelines is not very high. However in some fields of study e.g. Social or Behavioral Sciences, a correlation of r=0.3 or r=0.4 may be called "strong" or even "very strong." Hence the behavioral nature of this study provides a strong support to the values being low. Keeping the above interpretation in perspective, 0.35 is not weak. Higher values of El do tend to show higher values of TL, as all 'r' values are positive which shows an influencing relationship exists.

The similarity in pattern is rather a highlight compared to the actual numerical value. However the above matrix contains all possible combination of correlation among the two constructs. It is given that there is an existent correlation, which is a positive outcome to the study.

Also, interpreting the numbers, understanding emotions contributes least in creating a shared vision. El contributes the most in inspiring to go beyond. Comparatively, El has a significantly high contribution to TL, which establishes the core essence of the study. The significance is 100% in almost all cases except in three dimensions, again the lowest being 99.6%.

Row-wise Correlation Analysis

Here the row wise observations of the factorial influences are considered. It is observed that the range of the values fall under a very similar category. The variation range is a maximum of 7% when all the categories are considered. The factors are similar in values because all factors not only contribute individually to TL factors but also cumulatively to TL.

It is noteworthy to observe the cumulative influence. Cumulative consideration of the factorial influence throws more strength to the objective of the study. Cumulative influence can be considered here due to the similarity in the contributing factors. This similarity in the ranges goes a long way in understanding the objectives of this study.

Identifying Emotions (IE) produces 27% to 30% effect on the various TL dimensions. The highest contribution of IE is towards Buiding Effective Relationships and TL. The cumulative contribution to TL (144%) is observed here which leads to an average contribution of 28.8% from each factor.

The range of Correlation of Understanding Emotions (UE) with TL dimensions is 15% to 22%. Highest contribution of understanding emotions is towards'Inspiring to go beyond.' TL receives a high enough influence from this factor. The cumulative contribution to TL (91%) is observed here which leads to an average contribution of 18.2% from each factor.

The range of correlation of Managing Emotions (ME) with TL dimensions is 23% to 26%. Clearly Integrity demonstration and TL is the highest scorer. The cumulative contribution to TL ( 124%) is observed here which leads to an average contribution of 24.8% from each factor,

Here the Correlation range oflntrinsic Motivation (IM) with TL dimensions is 28% to 35%. Highest being inspiring to go beyond and a very close second highest being TL. The cumulative contribution to TL (159%) is observed here which leads to an average contribution of 31.8% from each factor.

Correlation of Empathy (EM) with TL dimensions ranges from 17% to 25%. Inspiring to go beyond getting the most contribution and also the TL getting a significantly high contribution. The cumulative contribution to TL (106%) is observed here which leads to an average contribution of 21.2% from each factor.

The Correlation analysis of the two constructs TL and El is shown here. The range here is 30% to 36%,highest being inspiring to go beyond. TL stands second highest. The cumulative contribution to TL ( 166%) is observed here which leads to an average contribution of 33.2% from each factor.

Cumulative consideration of the factorial influence considered here shows that the lowest contribution itself is above 90%, which is a good value in itself considering the factor being 'Understanding Emotions.'Also it is to be noted that the average contribution derived from the cumulative influence is very close to the individual value of TL. This confirms the objective of the study. The cumulatively highest influential factor is El, which once again goes on to prove the objective of this study.

Conclusion

In this paper we see that Emotional Intelligence does play a role in Transformational Leadership. The major findings and their implications, importance and limitations are summarized below.

First, the results from the study show that transformational leadershipand emotional intelligence are related. This confirms earlier studies mentioned in review of literature (Goleman, 1995, 2002; Sosik and Mergerian, 1999; Ashkanasy and Tse, 2000; Barling et ah, 2000; Palmer et ah, 2000; Gardner and Stough, 2002; Barbuto and Burbach,

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2006 etc.). This confluence of general findings confirms the relationship between the two constructs.

The ability to be aware of our and others emotions, manage them intelligently, be sufficiently self- motivated and empathetic contribute to a transformational leadership style.

The implications of these findings are that it is possible to create El roadmaps for guided intervention to enhance TL. Assessment could identify those specific El factors that need to be strengthened in order to influence a transformational leadership style. The construction and examination of such roadmap requires a great deal of collaborative research in this area. Hopefully, the findings presented in this paper will be applied in the workplace to increase a transformational leadership style.

Limitations of the present study

Although this study has generated interesting findings regarding the relationship between TL and El and has provided some suggestions for continued research for applying El in order to enhance transformational leadership style, the findings need to be replicated on larger and diverse population samples. The overall goal is to help people become more emotionally intelligent and be more effective in the way they lead and to feel better about themselves. To help meet this challenge, future studies should use a wider variety of instruments and methods to examine the relationship between TL and EL If we use a variety of approaches to collect and evaluate data, we will be better able to learn more about these two important constructs, the relationship between them and how best to develop them.

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Email: [email protected] Copyright School of Communication & Management Studies Apr-Jun 2015

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Details

Subject Studies; Emotional intelligence; Correlation analysis; Leadership; Employees; Emotions

Business indexing term Subject: Leadership; Employees

Classification 9130: Experiment/theoretical treatment 2200: Managerial skills

Title Transformational Leadership : Emotional Intelligence Author Mathew, Molly; Gupta, K S Publication title SCMS Journal of Indian Management; Kochi Volume 12 Issue 2 Pages 75-89 Number of pages 15 Publication year 2015 Publication date Apr-Jun 2015 Publisher School of Communication & Management Studies Place of publication Kochi Country of publication India, Kochi Publication subject Business And Economics--Management ISSN 09733167 Source type Scholarly Journal Language of publication English Document type Journal Article Document feature Tables; References; Diagrams; Graphs ProQuest document ID 1695027575 Document URL http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fscholarly-journals%2Ftransformational-leadership-

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