EMOTIONAL INTELLIGENCE AND ORGANIZATIONAL PRODUCTIVITY (A STUDY OF INDORAMA PETROCHEMICALS, ELEME, PORT HARCOURT)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Productivity is critical for the long-term competitiveness and profitability of organizations. Studies have shown that emotional intelligence is positively related to organizational productivity and organizational performance as well (Parkes et al.,  2008). More specifically, emotional intelligence has been shown to  have  positive  outcomes, such as low turnover intention, improvement of performance, and job satisfaction (Garrard-Leiva et al., 2012). One of the ways an organization can enhance productivity is through emotional intelligence. The dynamics of an assemblage of interacting human beings with a central coordination unit, and coupled with the furious pace of change in business today, that poses difficulty to manage relationships that sabotages business more than anything else. It is not a question of strategy that gets us into trouble, but a question of emotions. Researchers and professionals of management and human behaviour0L ignored this importance of emotions and the ability (intelligence) handling the emotions in life situations till such a concept of emotional intelligence were highlighted by Daniel Coleman in 1995. It is believed that learning difficulties as well as various problems of maladjustment at the workplace is due to the poorly developed emotional awareness, which when developed help people to respond to a variety of environmental situations. Emotional intelligence provides the ability to take optimal advantage of one’s innate capabilities by regulating and making use of one’s own emotions. It allows individuals to create human environments in which they can fully apply their abilities and accumulated experience (Alderman, 2001; Rippon, 2001; Sovie & Jawad, 2001; and Hagenow 2001). The term emotional intelligence (E.I) was popularized by Coleman (1995) who claimed that emotional intelligence “can be as powerful, and at times more powerful than intelligent quotient (IQ)”. Emotional intelligence was first referred to in academic literature in 1990 and defined as “the ability to monitor one’s own and others’ feelings to discriminate among then and to use. This information to guide one’s thinking and actions” (Robbins 2003). An empirical study of emotional intelligence demonstrated in the same year by Mayer, DiPaolo and Salovey (1990) posit that “aspects of emotional intelligence appear to be abilities, in the traditional sense, which can be measured”. Mayer, Salovey, Caruso and Sitarenios (2001) later refined their definition to state that emotion intelligence is “an ability to recognize the meanings emotions and their relationships, and to reason and problem-solve on the basis of them”. Penrose, Perry and Ball (2007) opined that the definition of the concept given above differs from those used by some others. Nevertheless, Ciarrochi, Chan and Caputi (2000) claimed that while definitions vary, “they nevertheless tend to be complementary rather than contradictory”.

Kulkarni, Janakiram and Kumar (2009) maintained that on organization which is a complex scenario, be it public or private sector have to manage change in an effective way. And emotional intelligence plays an important role in helping the managers and employees to cope with this dynamic change in the business environment. Dalip (2001) mentioned that application of emotional intelligence supports the managers and employers to recognize and understand emotions and used emotional intelligence to manage oneself and relationship with others. According to Brackett and Mayer (2003) studies have demonstrated that people who report higher levels of emotional intelligence also report higher levels of attending to health and appearance and more positive interactions with friends and family. During the past decade management texts claim that emotional intelligence influence on performance and productivity. Also his emotional intelligence affect in all aspects of management (Jordan, Ashkanasy, Hartel & Hooper, 2002). Today, new findings show more attention to emotional intelligence on the job functions (Langhorn, 2004), this result has led managers more attention to emotional intelligence for selection and hiring for jobs that require social interaction (Robbins 2003).

The emotional competences play a role to create the abilities in an individual’s to better control the stress in the workplace. Emotional intelligence competencies generate the skill in individual to choose various courses of action to deal with stress without collapsing, to be positive to solve a problem and feel that one can control the situation (Slaski & Cartwright, 2002).

Emotional intelligent individuals appear to properly handle the negative feelings in way to express it positively allowing people to interact and work together without friction to meet their targets. This ability facilitates the individual to notice timely and redirect their unconstructive stressful relations, emotions and impulses. It is the ability to deter and to think about their reactions to events before starting work. An emotional intelligent individual is a consistent and dedicated employees; often to everything new, even in the most uncertain prospects and sodden changes such as people tend to perceive as a new opportunities rather than as a threat to personal safety and intelligent individual can keep the strike in the worst circumstances, never surrender and don’t fall into panic but react carefully (Goleman, 1998). These competencies may give assistance to construction employees to deal with effectively.

The employees having emotional competencies manage their negative emotions in the workplace and report fewer psychological problems with high levels of job satisfaction and organizational commitment (Gardner, 2005)., bar-on (2003) posit from the investigation carried out by Brown, Kirkealdy and Thome, on the impact of emotional intelligence on police officers and health-care professionals, that police officers have high emotional intelligence respond to stress with better coping strategies and report less depression comparatively than health-care professionals having low emotional intelligence.

In another study of American and Australia college students show that students with high emotional intelligence level, report fewer physical symptoms, less social anxieties and depression. They have self-steem and interpersonal satisfaction and use active coping strategies to deal with their psychological problems (Salovey, Stroud, Woolery & Epel 2002, Ciarrochi, Deane & Anderson, 2002). Emotional intelligence is conceptually relevant for predicting employees’ work performance because organizations require interpersonal interactions to accomplish goals, and because most jobs require the ability to manage emotions. Thus, it is perhaps not surprising that studies research has established a relationship between emotional intelligence and work performance (Cote & Miners, 2006; Goleman, 1995; Lain & Kirby, 2002; Semader, Robins & Ferris, 2006). Therefore, the study seeks to examine the relationship between emotional intelligence and organizational productivity with reference to Indorama Petrochemical Eleme, Port Harcourt.

1.2 Statement of Problem

The manufacturing sector is one of the most competitive sectors in the world (Radha& Prasad, 2013). Service delivery offers a medium for manufacturing firms to ensure quality of services to meet customer preferences and expectations in view of the high level of competition in the manufacturing sector (Radha& Prasad, 2013); a reason for which most managements of the industry give utmost attention to service quality. Moreover, service delivery is structured to become competitive in the manufacturing sector (Manisha, 2012), where the emotional intelligence of employees provides added advantage in overcoming the influences of competitors towards maximum growth. Manufacturing industries, therefore, would need to value emotional intelligence in becoming competitive for growth.

In ensuring maximum growth in the manufacturing sector, manufacturing firms must be able to leverage on emotional intelligence in improving or sustaining desired customer patronage (Manisha, 2012; Pahuja&Sahi, 2012). The adoption of practices of emotional intelligence by manufacturing firms can be carried out with confidence, success and ease when research has established ample evidence about the impact of emotional intelligence on organizational productivity. Unfortunately, the number of researches available, possibly due to the fact that it is relatively new. There is a generally low level of public knowledge about the role of emotional intelligence in the productive management of manufacturing firms in Rivers State. From the foregoing therefore, the study seeks to examine the relationship between emotional intelligence and organizational productivity in Indorama Petrochemicals, Eleme, Port Harcourt.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between emotional intelligence and organizational productivity in Indorama Petrochemicals, Eleme, Port Harcourt. The specific objectives are as follows:

1.       To examine the relationship between self-awareness and organizational productivity.

2.       To examine the relationship between self-management and organizational productivity.

3.       To examine the relationship between social awareness and organizational productivity.

1.4 Research Questions

1.       Does self awareness influences organizational productivity.

2.       Does self management influences organizational productivity?

3. Does social awareness influences organizational productivity?

1.5 Significance of the Study

Productivity is the bedrock for organizational goals achievement. Then catalytic dimension of organizational productivity in attaining organizational goals cannot be overemphasized. Many factors are believed to have influenced organizational productivity but the emotion of the employee seems to be the major factor. Hence the study of impact of emotional intelligence on organizational productivity has itself expressed significance, as it seeks to establish whether any significant relationship exists between the dependent variable (organizational productivity) and the independent variables (components of emotional intelligence).

It is imperative that this study will provide very useful information for academies, human resource managers, industrial psychologists public/private organizations.

One outstanding role of any academic/educational research is to extend the frontiers of knowledge. It is the researchers’ conviction that the findings, results, discussions and recommendations will help enhance the available knowledge of emotional intelligence on organizational productivity. It will even lead to further investigations by other scholars on other dimension of this variable, therefore forming a basis for reference in the future.

1.6 Scope of the Study

This study is on the impact of emotional intelligence on Organizational productivity.

Content Scope: The study focuses on the influence of the components of emotional intelligence (self-awareness, self-management and social awareness) and organizational productivity measured by profitability, effectiveness and efficiency.

Geographical Scope: This study is delimited in Port Harcourt Metropolis with reference to Indorama Petrochemicals, Eleme, Port Harcourt.

Unit of Analysis: The unit of analysis in this research involves the employee of Indorama Petrochemicals, Eleme, Port Harcourt at the time of carrying out the study.

1.7 Limitation of the Study

          The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.

Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and compilation of data for the project.

1.8 Definition of Terms

Conscientiousness: This is taking responsibility for personal performance. People with this competence: meets commitments and keep promises; hold them accountable for meeting their objectives; and are organized and careful in their work.

Emotional Stability: This is the psychological consultancy of mood.

Employee: This is a person, company or organization that is paid to work for some body.

Organization: A group of people or other legal entities with an explicit purpose and written rules.

Productivity: The oxford advance learner dictionary defines productivity as efficiency, especially in industry, measured by comparing the amount of goods or services produced with the time or resources used to produce. It can always be seen as the ratio to measure how well an organization (or individual, industry, country) convents input resources (labour, materials, machines, etc) into goods and services.

Self Confidence: This is the sureness about one’s self-work and capabilities. People with self-confidence and decisiveness are able to make sound decisions despite uncertainties and pressure. They can voice views that are unpopular and go out on a limb for what is right.

Self Control: This is one’s ability to manage descriptive emotions and impulses people with self-control managers their impulses, feelings and distressing emotion well. They stay composed, positive, and unflappable even in trying moments. They think clearly and stay focused under pressure.