IMPACT OF LEADERS’ EMOTIONAL INTELLIGENCE ON EMPLOYEE ENGAGEMENT: EXPERIENCES FROM BANKING COMPANIES IN INDIA

Abstract

In this context issues i.e. Emotional Intelligence and Employee Engagement have their own significance for organizational performance and effectiveness. In the present research paper an attempt is made to examine the relationship between Leader’s Emotional Intelligence and Employee Engagement in Indian Banking Industry. For the collection of primary data proportionate stratified random sampling approach has been followed. Nonstandard unstructured questionnaire was used to measure the Emotional Intelligence and Employee Engagement of banking employees. Based on total population of 1800 employees, 200 were selected as sample including 100 managers and 100 clerical employees. The method of Principle Component Analysis and Varimax Rotation was employed to discover the structure and convergence of variables in the model. On the basis of results of Factor Analysis, Employee Engagement have been grouped into three 3 strata named Job Autonomy (JA), Job Achievement (JAch) and Job Involvement (JI) having the Cronbach’s Alpha of .775, .706, .645 and for Emotional Intelligence 4 groups were made named as Application of Emotion (AOE), Instruction to Emotion (ITE), Self Emotion Appraisal (SEA), and Others’ Emotion Appraisal (OEA) having the Cronbach’s Alpha of .757, .759,.693, .505 respectively. The result of Correlation Analysis shows a significantly low positive correlation between Instruction to Emotion and Employee Engagement (r=.283, p=.000), Others Emotion Appraisal and Employee Engagement (r=.146, p=.040), Self Emotion Appraisal and Employee Engagement (r=.065, p=.001) and application of Emotion and Employee Engagement (r=.065, p=.359). Lastly (Cox and Snell) 64.3%, (Nagelkerke) 74.0% and (McFadden) 50.8% indicates highly influence of Emotional Intelligence on Employee Engagement.