Tài liệu The relationships among emotional intelligence, leadership styles and perfprmance of employees in enterprise in hanoi, vietnam

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Southern Luzon State University Thai Nguyen University Republic of Philippines Socialist Republic of Vietnam THE DISERTATION OF DBA THE RELATIONSHIPS AMONG EMOTIONAL INTELLIGENCE, LEADERSHIP STYLES AND PERFORMANCE OF EMPLOYYEES IN ENTERPRISES IN HANOI, VIETNAM Name of Student : Nguyen Thi Thu Huong English Name : Alice Date of Birth i : 13/02/1977 Course : SLSU-DBA1 2012 ABSTRACT This study aims to determine the effect of leadership styles and emotional intelligence on employee performance. The subjects of this study include 375 leaders and 730 subordinates in enterprises in Hanoi, Vietnam. The questionnaire has two parallel forms, one for the leaders to rate themselves and another in which subordinates can rate owns performance and leadership styles, emotional intelligence of their leaders. Leadership styles and emotional intelligence were identified as the independent variables and employee performance as the dependent variable. Data obtained from each of the research instruments was then statistically analysed. Through linear regression analysis it was concluded that there is a significant relationship between leadership styles and employee performance, However, only three leadership styles: the transactional leadership, the transformational leadership and the charismatic leadership was seen to have a positive effect on the significant subscales of employee performance and a visionary leadership has no significant effect on employee performance. Simple correlation analysis showed that there is a positive significant linear relationship between emotional intelligence and employee performance. Moreover, this results showed that a combination of the various leadership styles and emotional intelligence of the leader will bring more effective and enhance employee performance. However, out of four leadership styles, the visionary leadership combine leader’ emotional intelligence has negative effect on employee. Finally, although emotional intelligence and leadership styles had a significant effect on employee performance, the emotional intelligence, charismatic leadership were affected more ii than others. This research therefore adds a new dimension to employee performance, leadership styles and emotional intelligence, since no similar study has been conducted. As this research takes place in the Vietnam context, the findings of this study were expected to provide references to a corporate body in operating the human resource management strategy and developing the leadership style. iii ACKNOWLEDGEMENTS Firstly, I am deeply indebted to Dr. Adwin Bernal and sincerely grateful for your infinite patience, direction, support, wisdom, and guidance throughout the research Additionally, I would like to thank the following individuals for their contributions and cooperation throughout the research: • All the leaders and employees who took the time to complete the questionnaires. • Dr Nguyen Thanh Hai and Trinh Thi Hieu, from the International training center of Thai nguyen University, for their help and assistance with the research. • My colleagues in The University of Labour and Social Affair, for their continuous encouragement and support through the good and bad times, and also for helping with the proofreading of the document Finally, Many thanks and much appreciation to my family members and friends who both supported and encouraged me throughout this process. iv Contents ABSTRACT.................................................................................................................................... ii ACKNOWLEDGEMENTS........................................................................................................... iv LIST OF TABLES........................................................................................................................ vii CHAPTER I: INTRODUCTION................................................................................................... 1 1. Background of the study ................................................................................................... 1 2. Statement of Objectives .................................................................................................... 4 3. Statement of the Problem ................................................................................................. 4 4. Hypotheses.......................................................................................................................... 5 5. Significance of the study ................................................................................................... 5 6. Scope and Limitations of the Study ................................................................................. 6 CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES................................... 9 2.1.Leadership .......................................................................................................................... 9 2.2. Emotional intelligence ..................................................................................................... 18 2.3.Employee performance.................................................................................................... 23 2.4. Relationship between employee performance, leadership and emotional intelligent .......... 30 CHAPTER III: RESEARCH METHODOLOGY........................................................................ 36 3.1. Research design................................................................................................................ 36 3.2. Population and Sample ................................................................................................... 37 3.3. Measuring Instruments Used......................................................................................... 37 3.5. Data gathering procedure .............................................................................................. 39 v 3.6. Statistical Analysis .......................................................................................................... 40 CHAPTER IV: RESULTS AND DISCIUSSIONS...................................................................... 45 4.1. The Survey Respondents.................................................................................................. 45 4.2. Relationship Between Leadership Styles and Employee Performance...................... 46 4.3. Relationship Between Employee Performance and Leaders’ Emotional................... 49 4.4. Relationships among Emotional Intelligence, Leadership Styles and........................ 53 4.5. Most Effective Leadership Style in Vietnamese Companies ....................................... 54 CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMADATIONS .... 56 5.1. Summary of Findings ...................................................................................................... 56 5.2. Conclusion ........................................................................................................................ 58 5.3. Recommendations ............................................................................................................ 59 5.3.1.Recommendations for the leaders................................................................................ 59 5.3.2.Recommendations for the enterprises .......................................................................... 60 5.3.3.Recommendations for future researchers .................................................................... 61 APPENDIXES .............................................................................................................................. 62 Appendix G: ........................................................................................................................... 78 Appendix H: ........................................................................................................................... 79 Appendix I: ............................................................................................................................. 80 Appendix K: Covariance Matrix ...................................................................................... 87 List of References.......................................................................................................................... 90 vi LIST OF TABLES Table 4.1: Sample and Response Rates…………………………………………………45 Table 4.2. The Distribution of the Participants in Terms of Gender……………………..46 Table 4.3. Leadership Style Survey – Item Descriptions…………………………………47 Table 4.4: Means and standard deviations of leadership style……………………………48 Table 4.5. Emotional intelligence Survey – Item Descriptions……………………………50 Table 4.7: Means and standard deviations of employee performance……………………52 Table 4.12. Correlations between Emotional Intelligence and Employee performance….55 vii CHAPTER I: INTRODUCTION 1. Background of the study In the global competitive market of today, Human Resources are playing a vital role in almost all aspects of life and in organizational development. As more and more organizations are making progress, by making the use of human resources, they need some means to increase the performance in human resource by increasing the efficiency of leaders and their followers. Emotional Intelligence is playing the vital role in the performance of the leaders. T.Quang & N.T.Vuong (2002) state that management styles are profoundly influenced by the social cultures in which organisations operate. It is important to identify the most suitable style of management to the specific operating circumstances of an organisation. This research investigates the relationships among employee performance, leadership styles and emotional intelligence in enterprises in Hanoi, Vietnam. To understand clearly that relationships, there is a need to consider some features of the Vietnamese culture. Vietnam has a deep cultural heritage, which was developed over 4,000 years. However, Vietnam’s history is characterized by turbulence due to centuries of foreign invasions and occupations. The northern part of Vietnam was strongly influenced by the Chinese culture due to 1,000 years of dominance of the Chinese feudalism. In general, the Vietnamese people are hospitable and industrious. The history and geographic vicinity meant that Vietnamese people share many of the cultural and business practices of their Chinese neighbours. In the words of Hofstede (1980), the Vietnamese culture can be described as high power distance, high collectivism, moderate uncertainty avoidance, and high context (Swierczek, 1994, Quang, 1997; Ralston et al., 1999). 1 The high power distance characteristic is present in the daily life of Vietnamese as well as in business. In the family, sons and daughters have to obey parents’ orders. In organisations, there is a clear subordinate-superior relationship. Titles, status, and formality are very important in Vietnamese society. Collectivism has existed for a very long time in Vietnam. It is characterised by tight social frameworks and self-functioning communities. People expect ‘in groups’ to look after their members to protect them, and provide them with security in return for their loyalty. Vietnamese people place importance on fitting in harmoniously and avoiding losing the other’s face. In conflicts, they prefer to come out with a win-win situation. Vietnamese culture displays moderate uncertainty avoidance. People in society feel threatened by ambiguous situations and try to avoid these situations by providing greater job stability, establishing more formal rules, and rejecting deviant ideas and behaviour. One of the distinctive features in the Vietnamese society is indirect speech, resulting from the importance of saving face. In compensation, the Vietnamese have a very good sense of humour that surfaces often in every opportunity and conversation. In economy, Vietnam is a nation in transition and a country full of opportunities. It has a large, young, dynamic and highly literate population that has potential to be developed as a resource to attain high levels of sustained economic growth (Quang, 2006). Before 1986, Vietnam was a command economy dominated by large bureaucratic state-owned enterprises (SOEs), an inefficient agricultural base and small family businesses. Vietnam started a profound economic reform in 1986 that aimed to transform the country from a command economy into market oriented economy called Doi moi. As a consequence, Vietnam has substantially elevated its economy and the living standards of Vietnamese people. The country reaped average economic growth rate (GDP) of 2 over 7% during the 1990s and early 2000s, especially more than 8% in 2006, which made it one of the highest growing economies in the World (World Bank, 2006). Excessive reliance on factor accumulation to support rapid growth is bound to be unsustainable. There is a limit to how fast factors can grow to support a rapidly growing economy. Although Vietnam has a large population base, people with necessary education and skill to work in industry and services are getting increasingly scarce. This has led the SEDP to identify skills and human capital as one of the breakthroughs for the next five years. At the same time, rapid growth in credit, which is the basis for brisk growth in capital accumulation, has led to macroeconomic instability, forcing the government to pursue a tighter monetary policy in recent year. Another sign of weakness in Vietnam’s economy is its persistent macroeconomic instability. For four years in a row, Vietnam has had one of the highest inflation rates in Asia, averaging nearly 16 percent a year between 2008 and 2011. Along with high inflation, Vietnam has also been coping with persistent pressure on its currency, falling levels of foreign exchange reserves, an underperforming stock market, high sovereign spreads and domestic capital flight. It has thus become an exception to the broader trend of the rest of the emerging markets in Asia, which are dealing with appreciating currencies, rising foreign exchange reserves, and increasing capital inflow.WEF showed more pessimistic view of Vietnam's twodigit surging inflation situation currently. In addition, high state budget deficit ratio (6 per cent in 2010) and substandard infrastructure continue to be the major concerns of experts to Vietnam (road infrastructure ranked at No 123 and port at No 111). The quality of education, despite gaining significant progresses from last year, was still ranked in the low average group. 3 Global Competitiveness Report (GCR) 2011 - 2012 announced by the World Economic Forum (WEF) ranked Vietnam at the 65th position on a total of 142 countries surveyed. The country dropped six spots from last year, losing points in 10 of the 12 indicators considered by WEF. For Vietnam to improve this ranking and become more competitive in the global environment, it is necessary to find out how enterprises work more efficiently and identify how human resources are managed by looking into the level of emotional intelligence and the leadership styles that can possibly facilitate the utilization of human resources to the fullest. This is the reason why this study on the the relationships among emotional intelligence, leadership styles, and performance of employees in enterprises in Hanoi, Vietnam was undertaken. 2. Statement of Objectives This study was intended to achieve the following specific objectives: 1. To statistically test the significance of relationship between leadership styles and employee performance;To statistically test the significance of relationship between employees’ performance and leaders’ emotional intelligence; 2. To statistically test the significance of any relationships among emotional intelligence, leadership styles and employee performance; and 3. To identify the leadership style which is most effective in Vietnamese companies. 3. Statement of the Problem This study attempted to examine the relationships among leadership styles, emotional intelligence and employees’ performance. It specifically found answers to the following specific problems: 4 1. Is there any relationship between leadership styles and employee performance? 2. Is there any relationship between the employee performance and the leaders’ emotional intelligence? 3. Is there any relationship among emotional intelligence, leadership styles and employees’ performance? 4. Which leadership style is most effective in Vietnamese companies? 4. Hypotheses The following hypotheses were statistically tested: H1: There is a relationship between leadership styles and employees’ performance H2: There is a relationship between employee performance and emotional intelligence H3: There is a relationship among emotional intelligence, leadership styles and employees’ performance. 5. Significance of the study There has been no known research regarding the relative effectiveness of emotional intelligence and leadership styles with respect to employees’ performance in a Vietnam organisation. This study therefore investigated and explored the relationship between employees ’ performance, leadership s t y l e s and emotional intelligence in Vietnam organisations. This study offers empirical evidence to prove the role of leadership styles and emotional intelligence of leaders in their work. This information will help Vietnamese leaders improve their leadership skills, enhance leadership effectiveness in their work, and help Vietnamese 5 enterprises have grounds to develop strategies to improve effective use of human resources to increase competitiveness and success in business. 6. Scope and Limitations of the Study Scope and Limitations of this study were as follow: 1. One of the main limitations of the literature review was that there was too little information on the Emotional intelligence tool used in this study, especially in the context relevant to this study. Because emotional intelligence is a new topic in Vietnam, there are too little research in this topic which can provide the literature about emotional intelligence in the context relevant to this study. 2. The data generated by this research is limited to the geography, t he sample composition in this research chosed in Hanoi. Therefore, in the region the custom and habits can be affect to behavior of the leaders, maybe they have the similar action for the same situations in psychology. 3. Another shortfall of the sample, there were no differences between males and females regarding overall emotional intelligence. In fact, the demography can be affect to emotional intelligence and leadership styles. 4. Definition of Terms Emotional intelligence – Emotional intelligene is the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships. 6 Leadership –Leadership is defined as a process of social interaction where performance outcomes are strongly influenced by the leader’s ability to influence the behavior of their followers. Leadership styles - is the manner and approach of providing direction, implementing plans, and motivating people. Employee’s Performance – Employees’ performance is a relative concept defined in terms of some referent employing a complex set of time-based measurements of generating future results. Employees are performing different jobs in an organization depending upon the nature of the organization. They mainly perform tasks are inter-related to achieve the targets. These are to be performed by the employees properly so they can give their best out put at the job. This will have great impact on the total production, sales, profit, progress and market position of the company in the market. In this study, employees’ performance will be evaluation through seven factors: Quality, productivity, job knowledge, reliability, Initiative, teamwork, custormer service. Transformational leadership – Transformational leaders are described as leaders who improve followers’ accomplishments and success by influencing their values and needs. Transformational leaders change their followers’ attitudes, beliefs, and values to align them with the attitudes, beliefs, and values of the organization. Transformational leaders guide their followers towards self development and higher levels of success. Charismatic leadership: Charismatic leaders are describle as one of five types: (1) socialized charismatic which refers to a leader who is in pursuit of fulfilling the needs of the group members and providing intellectual stimulation to them; (2) personalized charismatic referring to a leader who offers consideration, help, and support to group members only 7 when it helps to achieve their own goals; (3) office holder charismatic pertaining to a leader who owns respect and recognition through the office or status he holds not because of his personal characteristics; (4) personal charismatic which refers to a leader who exerts influence on others owing to his personal traits and skills not his high status or position; and (5) divine charismatic referring to a leader who is believed to be endowed with a gift or divine grace Transactional Leadership: The transactional leadership style as being based on traditional bureaucratic authority and legitimacy. Transactional leaders are able to entice subordinates to perform and thereby achieve desired outcomes by promising them rewards and benefits for the accomplishment of tasks. Visionary leadership: Visionary leadership is the ability to create and express a realistic, attainable, and attractive vision of the future for organizations which grow continuously. Visionary for leaders should create inspiring and innovative visions their organizations rendering them credible in the eyes of the people in the organization at the same time. ECP - ECP is abbreviation of Emotional Competency Profiler, it is identified by Wolmarans to measure emotional intelligence through seven onstituent competencies: selfmotivation; self-esteem; self- management; change resilience; interpersonal relations; integration of “head and heart” and emotional literacy. 8 CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES Introduction The purpose of this study is to investigate the effects of emotional intelligence and leadership styles and employees’ performance. This chapter reviews literature related TO THE three factorS and the relationships among them. The literature review includes the following topics: (1) leadership theories, (2) research and findings on emotional intelligence, (3)employee performance, (4) Relationship between emotional intelligence, leadership and employee performance. 2.1.Leadership There are various theories of leadership, which attempt to explain the factors involved in the emergence of leadership, the nature of leadership, or the consequences of leadership (Bass, 1990). These theories attempted to identify various leadership styles, which is the general manner in which leadership is practiced (Barling, Fullagar and Bluen, 1983). 2.1.1. Traditional leadership approach Three traditional leadership approaches that have been developed over time are the trait approach, the behavioural approach and the situational/contingency approach. Each of these leadership approaches describes different dimensions of leadership, and has its own effect on the association between the leader and his followers(Senior,1997). The leadership trait model was established in the early 1900s, with its associated theories and perspectives. In essence, this was the first attempt at the theoretical understanding of the nature of leadership. Most leadership research before 1945 suggested that certain traits 9 were inherent in all leaders and were transferable from one situation to another (Hersey and Blanchard, 1988). This research led to the identification of some traits that are inherent in most leaders. The trait approach attempts to explain leadership effectiveness in terms of the personality and psychological traits of the leader (Maude, 1978). These traits included emotional intelligence; having an extrovert personality (charisma); dominance; masculinity and conservatism and being better adjusted than non-leaders (Senior, 1997). Numerous studies identified emotional intelligence as a critical element for the success of a leader and as a vital resource for any group (Senior, 1997). Alternative approaches to leadership began to develop after the decline in popularity of trait theories (Swanepoel, et al., 2000). Researchers moved away from assessing individuals in terms of traits, and focused on assessing how leaders’ behaviour contributes to the success or failure of leadership (Draft, 1999). But the move away from the trait approach ignited research where leaders were studied either by observing their behaviour in laboratory settings or by asking individuals in field settings to describe the behaviour of persons in positions of authority, then applying different criteria of leader effectiveness to these descriptions. This resulted in the development of a leadership-behaviour model which led to the establishment of the “behavioural school of leadership”. The behavioural approach to leadership suggests that characteristics, the leader’s behaviour, not the leader’s personal influence followers (Shriberg, Lloyd, Shriberg and Williamson, 1997). Extensive research has been done in the area of behavioural approaches to leadership. The main behavioural models include the Theory of Lewin, Lippit and White (1939), McGregor’s Theory (1960), the Managerial Grid Model of Blake and Mouton (1964) and the Ohio State University of Michigan Models (Bass, 1990). The restrictions of these behavioural theories 10 are their omission of situational factors on the level of leader effectiveness. One concern is whether one particular method of leading is appropriate for all situations, regardless of the development stage of the organisation, the business environment in which it operates, or the type of people employed by the organisation (Senior, 1997). The perception of leadership progressed past the view that there is one best way to lead, and the theorists began to focus on how a leader ought to behave in order to be effective (Senior, 1997). Dissatisfaction with the trait and behavioural theories gave rise to the situational/contingency approach to leadership. This approach to leadership examined how leadership changes from situation to situation. According to this model, effective leaders diagnose the situation, identify the leadership style that will be most effective, and then determine whether they can implement the required style (Mullins, 1999; Swanepoel, et al., 2000). Prominent among these theories are Fielder’s Contingency Theory of leadership, the Path-Goal Theory of leader effectiveness which embodies transactional leadership, Hersey and Blanchard’s Life-Cycle Theory, the Cognitive- Resource Theory, and the Decision-Process Theory (Bass, 1998). Situational approaches to leadership have come about as a result of attempts to build upon and improve approaches to leadership. the trait and behavioural The situational approaches emphasise the importance of the situation as the dominant feature in effective leadership, together with the leader and the followers (Mullins, 1999). Different environments require different types of leadership (Hersey and Blanchard,1988). Situational leadership does not promote an ideal leadership style, but rather considers the ability of a leader to adapt to the environment. Situational leadership studies the behaviour of leaders and their followers in varying situations (Hersey and Blanchard, 1988). Hersey and Blanchard (1988) argued that there was 11 no best leadership style, but rather that there could be best attitudes for managers. The major advance of the situational approach is the recognition that for different development levels and different types of situations, different leadership styles are more effective. Organisations and their environments have changed rapidly over the past years and as a result a new style of leadership, one that is less bureaucratic and more democratic, is needed in order to ensure the survival of organisations (Johnson, 1995). There have also been numerous criticisms regarding the traditional approaches already discussed. Consequently, a new style of leadership has emerged in order to ensure the survival of organisations and to overcome limitations of the trait, behavioural and contingency theories of the past. The new theories of leadership evolved in reaction to the increasingly sophisticated traditional models, which became difficult to implement (Bass, 1990; Carlton, 1993). 2.1.2. Recent Approaches to Leadership This new leadership approach suggests that there are four views of leadership – transactional leadership and transformational leadership, vision leadership and charismatic leadership. 2.1.2.1. Charismatic Leadership Theory Sinha (1995) defines charisma as a ‘‘magical aura’’ which only a few leader may be granted. Max Weber (cited in Sinha, 1995) maintains that there are three bases of authority which are traditions, rights and privileges and charisma which is synonymous with heroism and an exemplary character of a person. Owing to his character, strength and skill, super human qualities are attributed to a leader who saves his followers from a crisis or a catastrophic event and becomes an idol 12 providing direction and inspiration to his followers. The charismatic leader attaches utmost importance to his vision, speech, capacity to take risks and above all the emotions of his subordinates (Sinha, 1995). Robert J. House (as cited in DuBrin, 1995) identified nine effects which charismatic leaders have on their followers such as group member’s trust in the correctness of the leader’s beliefs, congruence between the leader’s and the group’s beliefs, acceptance of the leader, affection for the leader, willing obedience to the leader, identification with and admiration for the leader, emotional involvement of the group member in the mission, challenging goals of the group member and belief in the accomplishment of the mission. Later, these nine effects were statistically clustered into three dimensions: referent power refers to the ability of the leader to influence others with the help of his desirable traits and characteristics; expert power refers to the ability of the leader to influence others through his specialized knowledge and skills; job involvement refers to the ability of the leader to encourage group members toward the accomplishment of the job (DuBrin, 1995). Bass (1990) categorized charismatic leaders into five types: Socialized charismatic: a leader who is in pursuit of fulfilling the needs of the group members and providing intellectual stimulation to them Personalized charismatic: a leader who offers consideration, help, and support to group members only when it helps to achieve their own goals Office holder charismatic: a leader who owns respect and recognition through the office or status he holds not because of his personal characteristics Personal charismatic: a leader who exerts influence on others owing to his personal 13
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