SELAMAWIT Final Edited
SELAMAWIT Final Edited
SELAMAWIT Final Edited
SCHOOL OF COMMERCE
BY
SELAMAWIT AMHA
JUNE, 2023
BY
SELAMAWIT AMHA
ADVISOR
JUNE, 2023
I, Selamawit Amha, the under signed, declare that this thesis entitled: “The Effect of Leader’s
Emotional Intelligence on Employees Motivation in the Case of Bank of Abyssinia.” is my
original work. I have undertaken the thesis work independently with the guidance and support of
the research supervisor. This thesis has not been submitted for any degree or diploma program in
this or any other institutions and that all sources of materials used for the thesis has been duly
acknowledged.
This is to certify that the thesisentitled: The Effect of Leader’s Emotional Intelligence on
Employees Motivation in the Case of Bank of Abyssinia.Submitted in partial fulfillment of the
requirements for the degree of Masters of business leadership, Addis Ababa University and is a
record of original thesis carried out by [Selamawit Amha], under my supervision, and no part of
the thesishas been submitted for any other degree or diploma. The assistance and help received
during the course of this investigation have been duly acknowledged. Therefore, I recommend it
to be accepted as fulfilling the thesis requirements.
This is to certify that the thesis prepared by Selamawit Amha, entitled “The Effect of Leader’s
Emotional Intelligence on Employees Motivation in the Case of Bank of Abyssinia.” and
submitted in partial fulfillment of the requirements for the Degree of Masters of Arts in Business
Leadership complies with the regulations of the University and meets the accepted standards
with respect to originality and quality.
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Contents
Declaration........................................................................................................................................i
Certificate of Approval.....................................................................................................................i
CHAPTER ONE..............................................................................................................................1
1. INTRODUCTION....................................................................................................................1
1.1. Background of the study...................................................................................................1
1.2. Statement of problem........................................................................................................2
1.3. Research Objectives..........................................................................................................4
1.3.1. General Objective......................................................................................................4
1.3.2. Specific Objectives....................................................................................................4
1.4. Hypothesis of the Study....................................................................................................5
1.5. Significance of the study...................................................................................................5
1.6. Scope of the study.............................................................................................................5
1.6.1. Geographical Scope...................................................................................................5
1.6.2. Theoretical Scope......................................................................................................6
1.6.3. Methodological Scope...............................................................................................6
1.7. Definition of Terms...........................................................................................................6
1.8. Organization of the Study.................................................................................................7
CHAPTER TWO.............................................................................................................................8
2. LITERATURE REVIEW.........................................................................................................8
2.1. Conceptual and Theoretical Review.................................................................................8
2.1.1. The Concept of Emotional Intelligence.....................................................................8
2.1.2. Theoretical Models of Emotional Intelligence (EI)...................................................9
2.2. Empirical Review............................................................................................................14
2.3. Research gap...................................................................................................................16
2.4. Conceptual Framework...................................................................................................16
CHAPTER THREE.......................................................................................................................17
3. RESEARCH METHODOLOGY...........................................................................................17
3.1. Research Design..............................................................................................................17
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3.2. Research Approach.........................................................................................................17
3.3. Data Type and Data Source............................................................................................18
3.3.1. Primary Sources.......................................................................................................18
3.3.2. Secondary sources...................................................................................................18
3.4. Population and Sample size............................................................................................18
3.4.1. Target population.....................................................................................................18
3.4.2. Sample Size.............................................................................................................19
3.5. Sampling Technique.......................................................................................................19
3.6. Data Collection Procedure and Tools.............................................................................19
3.6.1. Data Collection Procedure.......................................................................................19
3.6.2. Data Collection Tools..............................................................................................20
3.7. Data management and Analysis......................................................................................20
3.8. Validity and Reliability...................................................................................................21
3.8.1. Validity....................................................................................................................21
3.8.2. Reliability................................................................................................................21
3.9. Ethical considerations.....................................................................................................21
References......................................................................................................................................22
APPENDIX....................................................................................................................................28
SURVEY QUESTIONNAIRE......................................................................................................28
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LIST OF FIGURES
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LIST OF TABLES
Table 4.3 1 Descriptive Analysis of Emotional Intelligence factors and Employee Motivation 25
Table 4.7 1 Multiple linear regression model of the emotional intelligence Variables 31
v
LIST OF ACRONYMS
EIEmotional Intelligence
EM Employee Motivation
RM Relationship Management
SA Self-Awareness
SMSelf-Management
SOASocial Awareness
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ABSTRACT
The major objective of this study was studying the effect of leader’s emotional inetligence on
the motivation of employees of Bank of Abyssinia. The researcher collected data from
employees and managers of the bank by distributing questionnaires which was used to
measure their agreement and disagreement on factors identified by researcher. The study
employed both descriptive and explanatory research design. On the other hand, the study
employed quantitative research approach. The total population for this study was2361 staff
employees and managers. Accordingly, the study allowed 400 employees and maanegrs from
the central district to take part in the study as sample size drawn from the total population.
Overall 400 questionnaires were distributed to respondents and 384(96%) of them properly
filled and returned.The result from descriptive analysis shows that leader’s in the bank acquire
good level of self-awareness and self-management competencies while their social awareness
and relationship management competencies labeled as average. The findings also show that the
level of motivation of employees in the bank is not satisfactory. Regression analysis of the study
yielded that self-awareness competencies and social awareness competencies have positive and
significant effect on employee’s motivation while self-management and relationship
management competences found to have negative and significant effect on the motivation
employees in the bank. The study recommended that Bank of Abyssinia should add an EI
training program in boosting and leaders’ and employees’ emotional competencies.
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CHAPTER ONE
1. INTRODUCTION
Accordingly, earlier research has shown that effective leadership is crucial to an organization's
success. Despite this, only a small number of research addressed the varied importance of
leadership and concentrated on the issues that have an impact on leadership practices. Leaders
who supervise staff from diverse racial and ethnic backgrounds must be aware of any cultural
differences that can affect how they behave (Mumford et al., 2007).Previous studies have shown
that perceptions of the leader are greatly influenced by feelings, sentiments, and emotions
(Pescosolido, 2002). Emotionally competent leaders persuade their workforce to meet
organizational standards of performance (Kulkarni et al., 2009).
Emotional intelligence is a relatively new phenomena, and academics have been researching it
over the past few decades. Researchers from several schools of thought have found that
emotional intelligence contributes. Possible results, such as mental and physical health,
wellbeing, and social support, are explained by emotional intelligence. The functions,
expression, and influence of emotional intelligence on employee behavior and work attitudes in
the workplace have received very little study (Law, K. S., et al., 2008). Understanding emotions
and how they influence behavior and thought is a component of emotional intelligence (Mayer, J.
D. et al., 2008).
The majority of researchers have come to the conclusion that positive attitude behavior and
outcomes are also influenced by emotional intelligence. In a wide variety of studies, the
relationship between motivation and emotions has been established (Zurbriggen, E.; Land
Sturman, T. S., 2002). According to Daniel Goleman, who developed the idea of emotional
1
intelligence in 1998, motivation is a fundamental component of behavior.Since the turn of the
century, many professionals and academics have developed an interest in motivation. The
motivation has been split into two components in earlier literature. Employees can be motivated
by management using either coercive power or reward power. Management has followed two
aspects since 1900: the first is to be harsh, and the second is to be good. These strategies are very
important to management and help to inspire the workforce.
Since emotions play a role in every encounter between leaders and employees, research has
shown that a leader's emotional intelligence is one of the most essential factors affecting how
they express their emotions and impact employees (Kulkarni et al., 2009). According to many
studies, the potential benefit of emotionally intelligent leaders varies greatly depending on
organizational commitment (Nikolaou & Tsaousis, 2002), staff retention (Nowack & Learning,
2008), and employee growth (Langley, 2000).
As a result, Ethiopia, a developing nation, serves as the basis for this research. One of the most
competitive industries in Ethiopia is banking, which has been working to overcome obstacles.
Administrators in Ethiopia's banking industry have been working to boost and solidify the bank's
position as an emerging market in the area.The number of studies done on the topic in Ethiopia is
insufficient, given the significance of emotional intelligence of leaders in the success of
organisation. The goal of this study is to analyze relevant emotional intelligence and how it
affects employee motivation, notably in the banking industry. In order to understand how
emotional intelligence competencies affect employees' motivation at Bank of Abyssinia in the
core region of central district in Addis Ababa.
The success of these research and reports has drawn a lot of attention to emotional intelligence in
the workplace over the past 10 years (Tofighi et al. 2015). A further recommendation made by
Zeidner, et al. (2004) was that "over three decades of psychological assessment research have
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vindicated the importance of taking social and emotional traits into consideration when
attempting to predict occupational effectiveness."
This important finding led to the realization that emotional intelligence in leaders may explain
aspects of job-related performance as well as the financial and operational success of
organizations that cannot be fully explained by other concepts (Jafri, Dem, & Choden, 2016;
Mayer, 2001; Peterson et al., 2003; Watkin, 2002). In the study of leadership and organizational
effectiveness, academics have recently started to take emotional intelligence into account (Jordan
& Troth, 2011).
There have been some studies done on emotional intelligence, to the researcher's knowledge. For
instance, a study by Asrat in 2012 examined the connection between emotional intelligence and
leadership effectiveness at Bahir Dar University; a study by Konjit in 2014 examined the link
between leadership philosophies, emotional intelligence, and worker performance using data
from the Ethiopian Road Authority (ERA); and a study by Mahlet in 2018 examined the
connection between emotional intelligence and leadership effectiveness in primary schools in the
Yeka Sub-city.
Numerous studies have already been conducted that examined the relationship between
organizational performance and emotional intelligence in a variety of corporate settings, most
frequently in Western nations (Boyatzis, R.E. 2006; Supramaniam, S.; Singaravelloo, K. 2021).
Furthermore, according to scholars like Gondal and Husain (2013), developing nations have the
potential to do in-depth study on this subject. These remarks inspired the researcher to carry out
this investigation to examine Ethiopia's business environment, particularly in the banking sector.
Research like this will have important practical ramifications for Ethiopian banks and other
businesses because prior studies on the topic highlighted that emotional intelligence
competencies might be increased through coaching and training.
The study fills the gap related to exploring emotional intelligence of managers in Ethiopia as a
developing country especially, in the banking sector,where this type of empirical analysis has not
been performed. Taking evidence from previous studies on the subject matter, management
assumptions and their current capacity in the field of emotional intelligence, are less studied in
developing countries such as Ethiopia.
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The second area for improvement relates to understanding how leaders' emotional intelligence
affects employee motivation. Some researchers focused on the development of managerial
competencies and its impact on unit-level considerations or organizational performance rather
than individual level considerations like employee satisfaction, employee motivation, and
employee performance, which led to conflicting results on the topic.
The COVID-19 pandemic was also characterized by a higher level of emotional intelligence,
according to scholars like Baba, M.M. (2020), who mentioned this in his paper. In addition,
Daryanani (2021) said that the COVID-19 epidemic prompted adjustments, starting with the
requirement for emotion management at work. The importance of this study is thus pertinent to
the present, in the post-COVID crisis period, when high inflation and the challenging financial
operations of the majority of Ethiopian business companies are anticipated, along with the
challenge of achieving a higher level of performance (Huy, Q.N., 2009).
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2. To determine how motivated Bank of Abyssinia staff members are
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1.5.3. Methodological Scope
Methodologically, the study employed descriptivetype of research design to assess the level
leader’s emotional intelligence and employee’s motivation in the bank. In addition to this,
quantitative approach was used to analyze gathered data. Additionally, questionnaire was used to
gather data from target managers and employees of the bank in the selected district. Aiming to
identify the effect of emotional intelligence of leaders on the motivation of employees the study
make use of inferential analysis in the form of correlation and regression analysis.
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other pertinent introductory topics. A survey of the literature on this research issue is covered in
the second chapter. The research methodology is mostly focused on data collection methods,
variables definition & measurement, and method of analysis in Chapter 3. The fourth chapter is
entirely devoted to the presentation of data, analyses, interpretations, and discussions of
outcomes, while the fifth chapter is entirely devoted to a summary, conclusion, and suggestion.
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CHAPTER TWO
2. LITERATURE REVIEW
This chapter explores theoretical literature that covers ideas like employee motivation and
emotional intelligence. This study also addressed the notions of emotional intelligence
competency, emotional intelligence models, employee motivation, and the relationship between
emotional intelligence and employee motivation. The chapter also discusses empirical research
on leaders' emotional intelligence that has been done in Ethiopia and elsewhere. The study's
conceptual framework was then constructed.
Charles Darwin studied emotions to support his theory of evolution in the 19th century, which is
when the other component of emotional intelligence, emotion, first emerged (Darwin, 2007).
Simple definition: An instinctual or intuitive state of mind, an emotion is a sensation or an
element of affect that exists in a person's subconscious. Anger, Sadness, Grief, Fear, Joy, and
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Happiness are six emotions that have been identified as being universally recognized in all
cultures as a result of the development of psychology (White, 2005).
Emotions "cause rational and irrational thinking, are interrelated, and are necessary for personal
and professional decision making," according to Donaldson-Feilder and Bond's (2004) research.
Moreover, according to Caruso, Salovey, and Mayer (2004), "Emotions have the functional
purpose of signaling relationships and changes in relationships, real or imagined, primarily
between people and their environment (including other people)"."Leaders make a lot of decisions
every day, some of which are important. Leaders must take emotions into account for this reason
alone since these decisions entail emotions. The ability to recognize and comprehend one's
feelings is referred to by a term that is created by fusing the words intellect and emotion.
Emotional intelligence (EI) can be defined as a person's capacity to identify and comprehend
their own emotions as well as those of others.
Applying the idea of emotional intelligence is a requirement for good leadership since, according
to Goleman (1998), emotional intelligence competencies account for 90% of successful
leadership in organizations. Higher performance motivation may result from these leaders'
stronger organizational commitment, more organizational identification, and improved
organizational task performance (Supramaniam, S.; Singaravelloo, K. 2021). They make the best
business decisions by self-monitoring their emotions and controlling the emotions of others
(Diggins, C. 2004). They provide a fantastic example for their team members, who will look up
to them as role models now that they have a mutual feeling of trust and cooperation. The
majority of employees would succeed in their professional and personal development as a result
of such a domino effect in an organization, which would improve their contentment, motivation,
devotion to their jobs, and productivity. Organizational performance would improve if emotional
intelligence had a favorable effect on personnel performance.
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hampered by these opportunistic businesspeople who have become specialists in EI. Another set
of researchers (Bar-On, 1997; Boyatzis, Goleman, & Rhee, 2000; Mayer & Salovey, 1997) have
made an effort to restore the construct's legitimacy by creating models based on a study of the
literature and outlining valid empirical experiments to validate them.
The three theories of EI by Bar-On (2000), Mayer and Salovey (1997), and Goleman (1998)
have piqued the interest of many among the many contemporary theories of EI. All three theories
seek to comprehend how people identify, comprehend, use, and manage emotions in order to
forecast and enhance personal effectiveness (Goleman, 2003). Current research on emotional
intelligence has been led by these three theoretical perspectives, and all three approaches look at
the emotional aspects of emotionally intelligent people. The emotional-social intelligence (ESI)
model created by Bar-On (1997; Bar-On, 2006), the emotional competencies model created by
Goleman (1998; 2001; see also Boyatzis, 2006), which focuses on the workplace, and the
emotional intelligence (EI) skills-based model created by Mayer and Salovey (1997; Brackett &
Salovey, 2006) are among these three theoretical approaches..
Five areas of emotional and social intelligence were identified by Bar-On (2005). These areas
are: (a) intrapersonal - self-awareness and self-expression; (b) interpersonal - social awareness
and interpersonal relationships; (c) stress management - emotion management and regulation; (d)
adaptability — change management; and (e) general mood - self-motivation. Emotional-social
intelligence is, in Bar-On's words, "a cross-section of interrelated emotional and social
competencies, skills, and tools that determine how effectively we understand and express
ourselves, understand and relate to others, and cope with daily demands" (Bar-On, 2006). Bar-
On's goal in creating the model was to take into account the aspects of social and emotional
functioning that allow people to achieve psychological well-being (Bar-On, 2000, 2004, 2006).
According to Bar-On's (2006) model, emotional and social intelligence is broken down into five
domains, each of which is further broken down into intrapersonal skills. These intrapersonal
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skills include the capacity to recognize and comprehend one's own emotions, feelings, and ideas;
interpersonal skills are the capacity to recognize and understand the emotions, feelings, and ideas
of others; adaptability is the capacity to be open to changes in one's feelings depending on the
situation; and stress management.
The majority of academics and researchers concur that Bar-On's (1997; 2000) theoretical
approach to EI is more extensive and well-rounded than Mayer and Salovey's (1997) model.
However, because of this broad approach, which takes into account emotional and social
competencies, many detractors have argued that Bar-On's model lacks empirical support.
Additionally, this concept lacks psychometric support due to the nature of self-report measures
(Feather, 2009).
The fact that this model has a solid theoretical foundation is what has sparked the scientific
community's intense interest in it. Another factor in its acceptability and success is the novel
measurement techniques it provides in comparison to existing EI methodologies. Finally,
because the EI capability-based model is founded on methodical evaluation and research,
empirical evidence may be used to support it (Fernandez-Berrocal & Extremera, 2006). Some
opponents of the EI notion are starting to give the idea more credence since they see Mayer and
Salovey's model as a legitimate method for examining intelligence that could further the study of
emotional individual differences (Matthews et al., 2002).
The ability-based model's proposal that sees emotional intelligence (EI) as a mental capacity,
including the "ability to perceive, accurately appraise, and express emotions; the ability to access
and/or generate emotions when they support thinking; the ability to understand emotions and
emotional knowledge; and the ability to regulate emotions to promote emotional and intellectual
growth" (Mayer & Salovey, 1997), is the one that has received the most support.
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Perception (the most fundamental level), Assimilation, Comprehension, and Regulation (the
highest and most sophisticated level) of emotions are the four abilities that make up the hierarchy
of the EI skills model. According to Mayer and Salovey (1997), since EI is based on the
acquisition of skills that advance along their hierarchy's four levels, it can be assessed using
techniques akin to those used to measure more conventional emotions and should be regarded as
a crucial component of intelligence..
1) The emotional self-awareness cluster, which entails identifying one's own advantages
and disadvantages, as well as those of others, through comprehending how they are
experiencing. People who have mastered skills from this cluster, such as accurate self-
evaluation, emotional self-awareness, and self-confidence, are better able to evaluate
their own and others' capabilities and limitations, learn from their own and others'
mistakes, and continually strive for improvement. "Star performers" are identified by
these skills in personnel. In their article published in 2019, the authors Vani, Sankaran,
and Kumar stated that "leaders with this quality are receptive, deal constructively with
criticism, and are learning-oriented.”
2) The ability to control one's anxiety, rage, and emotional impulsivity is referred to as
emotional self-management. On the other hand, the promotion of one's creative and
innovative potential as well as the growth of one's strong aspiration is referred to as
emotional self-management. The following competencies make up this group: self-
control, dependability, diligence, adaptability, readiness to work, and initiative.
Employees view managers as reasonable decision-makers who they can trust because of
these qualities (Pinos, V. et al. 2013).
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3) The third cluster, known as social awareness, is concerned with a person's capacity to
identify nonverbal cues like voice inflection, facial expressions, and gestures that hide
emotions, needs, and wants. Empathy, service orientation, and organizational
awareness are among its core qualities. The manager can change their own behavior to
have a good impact on employees by using the feedback they receive from the
aforementioned competences to understand how employees react to their actions and
decisions (Pinos, V. et al. 2013). According to Vani, Sankaran, and Kumar (2019),
people who possess the competences in this cluster become good team players who
value trust.
4) The relationship management cluster is a subset of social competence that deals with
interpersonal relations and the capacity to forge effective connections and exert
influence. As a result, it stands out as a crucial skill for visionary leaders in high
positions who should serve as role models for workers and consequently have an
impact on how the vision is implemented collectively. The competences that make up
this skill set are as follows (Boyatzis et al., 2000): Developing Others, Influencing,
Communicating, Managing Conflict, Leading, Catalyzing Change, Building
Relationships, and Teamwork and Collaboration.
The abilities from the emotional self-awareness cluster, which serve as the foundation for further
development of the emotional competences from the following clusters, should be possessed by a
person before they can fully fulfill the potential of their emotional intelligence. Self-confidence
is the core ability that has the biggest influence on performance within the emotional self-
awareness cluster (Boyatzis, R., 1982). Given the environment's uncertainty, the innovations the
bank must implement, and the potential detrimental effects of external market trends on the
workplace, such as the loss of jobs during the COVID-19 pandemic, the emotional self-
management competencies from the second cluster are crucial for managing the stressful
situations that are occurring more and more frequently. These competencies will enable the
employee to avoid demotivation and to develop.
From a performance perspective, the most important competencies in this cluster are
conscientiousness Barrick, M.R.; Mount, M.K. (1991), performance orientation, and initiative, as
they describe individuals as proactive and persistent employees who continuously influence to
achieve better performance (Goleman, 2001). Looking at the third cluster, that of social
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awareness, an important competency for promoting higher performance is empathy, especially
when performing work tasks in multidisciplinary teams and with a larger number of participants
who are different from each other, as well as for employees who are constantly in contact with
end customers. Good leaders should be committed to developing “empathy skills” to avoid
leaving their employees disgruntled and demoralized (Singh, P., 2013). In addition, in order for
leaders to develop as many long-term and successful external partnerships as possible, they
should have developed the aforementioned competencies.
In terms of the fourth cluster, relationship management, the competency of being a change
catalyst and the competency of teamwork and collaboration are critical in influencing employee
performance (Goleman, 2001; Totterdell, P. et al., 1998). These competencies motivate greater
commitment and work performance by fostering a positive work environment and a sense of
importance among employees. According to Goleman (2001) and Boyatzis (2003), having
competences from all of the clusters in the right proportions results in a synergistic effect rather
than just having abilities from one cluster to have a higher beneficial impact on organizational
performance.
Conclusion: It can be said that all of the aforementioned competences require a person to be
aware of themselves and their emotions, to know how to manage and deal with them effectively,
and to be aware of their peers and how to manage their interactions with them. In order to
effectively communicate with their staff, emotionally intelligent leaders need to be both
emotionally stable and expressive (Lee, Q., 2005). The supervisor will then understand how to
interact with his staff in various professional settings to provide the best results for both parties..
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Roy et al. (2013) looked into the relationship between emotional intelligence and motivation in
university students. They found that there are emotional differences in the respondents'
motivation levels and that there are significant positive relationships between motivation and
emotional intelligence in the study. Employees' job motivation and emotional intelligence were
examined by Hassanzadeh and Kafaki (2014). They discovered a substantial linear link between
the two variables as well as between the emotional intelligence dimensions and the motivational
variables in the study. The added emphasis on the dimensions and the motivational elements
makes this research intriguing.
Ateş & Buluc (2015) looked at the connection between job motivation and emotional
intelligence and discovered a strong feedback between the two variables. In other words, both
job motivation and emotional intelligence are caused by each other. Their analysis is causal
rather than merely descriptive, which makes their research fascinating. In an effort to further this
discussion, Atiq et al. (2015) looked into the connection between motivation at work and
emotional intelligence. Their study's findings indicated a significant link between work
motivation and emotional intelligence.
In a related study, Yang et al. (2015) investigated the connection between emotional intelligence
and job motivation and produced findings that showed a strong positive relationship between the
two. Both intrinsic and extrinsic work motivation were investigated in the study. In a survey,
Levitats and Vigoda-Gadot (2017) investigated the impact of emotional intelligence on
motivation. They found a strong positive association between emotional intelligence and
motivation. The relationship is linear, they said. In contrast to other earlier research, their study
looked at both direct and indirect links in the predicted models.
When Gorji et al. (2017) looked at the relationship between emotional intelligence and work
motivation, they discovered that general emotional intelligence had a strong beneficial impact on
both general work motivation and the work motivation variables they looked at in their study.
Their analysis is additionally intriguing because it accounts for both the factors and higher-level
job motivation. In a study, Phillips (2018) demonstrated how emotional intelligence affects work
motivation. The results of her empirical investigation into the link between emotional
intelligence and workplace motivation showed a sizable impact of emotional intelligence on
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motivation. According to the study, participants were more driven when they were highly
attuned to the emotions of others.
A recent study by Bimayu et al. (2020) that looked at the relationship between emotional
intelligence and motivation found a strong positive relationship between the two. Similar to this,
Mukokoma (2020) explored the relationship between emotional intelligence and job motivation
in a comparable study and discovered a strong feedback between the two. Because it analyzes
both inner and extrinsic motivation, this study is noteworthy.
Strong emotional intelligence can assist a leader be effective in the organization and motivate the
staff to get the desired results, claims a Goleman study from 2002. As a result, the findings also
demonstrated how dramatically better employee attitudes and behavior may be affected by a
leader's emotional intelligence.
The empirical review above shows that practically all of the studies listed above were not carried
out locally. Therefore, the gap in regional research on emotional intelligence and employee
motivation can be found. The majority of local studies concentrated on how emotional
intelligence affects an organization's effectiveness. In addition, the educational sector received
more attention in earlier writing on the topic than the financial sector. By investigating the
impact of emotional intelligence on employee motivation using data from Bank off Abyssinia in
the downtown Addis district, this study fills a gap in the prior literature. Conceptual
Framework
Figure 2.1 1Conceptual Framework
H1(+) Self-awareness
H2(+) Self-management
Employee Motivation
H3 (+)
Social awareness
H4 (+)
Relationship management
Source: Goleman, (2001)
Based on the literatures reviewed the study came up with the following hypotheses
H1: Self-awareness emotion has a significant & positive effect on motivation of employees.
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H2: Self-management emotion has a significant & positive effect on motivation of employees.
H3: Social awareness emotion has a significant & positive on motivation of employees.
H4: Relationship management emotion has a significant & positive effect on motivation of
employees.
CHAPTER THREE
3. RESEARCH METHODOLOGY
17
sort of data (Creswell, 2013). To obtain data from a diverse range, the survey questionnaire was
distributed at random to various groups of individuals in the bank from marketing managers to
employees to management from various levels of hierarchy. These individuals were contacted
through the human resources division of the bank under study.This study employed primary
sources to gather in-depth information about how culture affects marketing while also bolstering
critical critique of the topic. The primary source of data for the study in this regard is a
questionnaire.
N
n= 2
1+ N e
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3.5. Sampling Technique
By taking into consideration the nature of the study and organizational structure, the study
employed stratified sampling technique so as to get a representative sample for each stratum in
the organization. Simple random sampling technique was used to decide study participants from
each stratum by giving equal chance of participation in the study.
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3.7. Data management and Analysis
Respondent’s attitude towards the area under study was gathered through questionnaire as it has
been depicted above. After collecting data from respondents the next task ahead was editing and
checking the responses to see if they are fit to be coded and analyzed. Afterwards the data from
the questionnaire was coded to the Statistical Process for Social Science (SPSS). The results
from the SPSS wa displayed in tabular (table) form to give a clear image on the information
about the respondent’s response to each variable. The data from SPSS analyzed using descriptive
statistical tools such as frequency, minimum, maximum, mean and SD (standard deviation). The
relationship between emotional intelligence competencies and employee motivationwas analyzed
with the help of inferential statistic through correlation and regression.
3.8.2. Reliability
Reliability concerns the extent to which an experiment, test or any measuring procedure yields
the same results on repeated trials (Carmines and Richard, 1979). Reliability of a study is a pre-
requirement for the result to be interpretable and help for generalization (Ghiselli, 1981).
Cronbach’s alpha was used to measure internal consistency (reliability). Cronbach’s alpha was
used to check the reliability of the main tool of data collection for this study, which is
questionnaire. Cronbach’s alpha regarding each variable was taken as reliable the overall
reliability is well above 0.7.
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Cronbach's Alpha N of Items
.887 5
Source: Own Surevy, 2023
21
CHAPTER FOUR
22
Qualification Diploma - -
First Degree 320 83.3
Masters 64 16.7
Total 384 100.0
Top manager 32 8.3
Customer service 32 8.3
Working Position manager
IT technical 64 16.7
Front-line Employee 256 66.7
Total 384 100.0
Source: Own Surevy, 2023
The table above essentially portrays a part of 66.7:33.3between male and female respondents
separately. This study result appears that most of the respondents of the study are males and
typically it is possible to say that majority of employees in thebank are males.
Regarding the age category of respondents, the lion's share (41.7%) of the respondents are
between the age of 28 and 35. The table over appears that most of the representatives are
youthful within Bank of Abyssinia. Respondents with in the age range of 20 – 27 and 36 -45
registred a similar repose rate of 25%. This still appears that the bank is built with essentially
high number of youthful employees as only 8.3% of them are in between 46 and 55.
Because it can be seen from the above table, lion's share of respondents has long life span as
employee of the organization. Particularly, 50.0% of the respondents have an involvement
between 6-10years, while 33.3% of the respondents have been employed for 1 - 5 years, and
16.7% of the respondents have been working within the bank from 11 -15 years. This shows that
the current employees in the bank are capable of reflecting on the emotional intelligence of
leaders and on the motivation of employees taking consideration from their bank’s perspective.
Agreeing to the study result the respondent’s education levels is either first degree or master’s
degree each having ratio of 83.3% and 16.7% respectively. Taking from this result majority of
the employee in this bank are first degree holders. Overall, the educational level of employees of
Bank of Abyssinia is an indicator that the bank has sufficient amount of literate employees.
23
According to te table above, out of 384 employees who returned eligible questionnaire, most of
or 66.7% of the respondents wereFront-line Employees, 16.7% of respondents IT technical,
andan equal response rate of 8.3% is registered for particpants who are customer service
manafger and top managers. Thus, as the result suggests employees from different working
positions of the bank took part in this study which enable the researcher to have comprehensive
view of emotional intelligence of leaders and its association with employee motivation.
Table 4.3 1Descriptive Analysis of Emotional Intelligence factors and Employee Motivation
Descriptive Statistics
N Mean Std. Dev.
Self-Awareness 384 3.93 .52
Self-Management 384 3.53 .55
Social Awareness 384 3.48 .47
Relationship Management 384 3.48 .89
24
Employee Motivation 384 3.44 .47
Source: Own Surevy, 2023
Though the main objective of this study is identifying the effect of leader’s emotional
intelligence on the motivation of employees the study also conducted descriptive analysis aiming
to assses the level of emotional intelligence and employee motivation in the bank. Taking the
results displayed in the table above, one could conclude the self-awareness of leaders of the bank
at a good level. This result is supported by the average mean value of 3.93.This shows that
leaders of the bank are well aware of their capabilities, emotions, and behaviors which may have
a good influence in their decision making abilities and adequate consideration of the impact of
their decsions on the employees of the bank. Taking the parameters used to represent self-
awareness by this study, it is possible to say the bank under study is hugely beneficial as self-
awareness of leaders can lead to higher motivation, less stress, and interested employees as depicted by
various studies before.
The grand mean for self-managementwith respect to the bank understudy registered to be 3.53.
This is an indication for leaders of the bank acquiring the capability of self-management.
Considering the importance of banking sector and the intensity of competition in the sector for
Bank of Abyssinia having leaders with self-management skills puts the bank in a better
competitive position as decisions made from well-organized assessment, navigation, and careful
consideration of difficulties. The bank would benefit from leaders with self-management skills as
they are focused and composed during though sitiuatuions and providing enthusiasm and
optimism when needed most.
According to the response from employee particiapnts social awareness and relationship
management practices of emotional intelligence of leaders are at the moderate level in the bank
as indicated by average mean value of 3.48 for both dimensions of emotional intelligence.
Finally, employee motivation practices of the bank has been analyzed descriptively and the
response from employees the level of motivation of employees in the bank is at the moderate
level. It is justified by the average respose mean of 3.44. Individual personnel working for a
company can improve their working performance or complete tasks far better than they typically
do with the help of motivation. Considering the limitation of emotional inteloligence of leaders
25
in terms of social awarenesss and relationship management it is possible to deduce it could be a
reason why employees seem to be less motivated.
The results from the collinearity analysis in the model above shows all variables with VIF factor
below 10; Self-Awareness (VIF = 1.994), Self-Management (VIF = 2.649), Social Awareness
(VIF = 2.262), and Relationship Management (VIF = 1.488). Accordingly, collinearity
26
assumptions has met by the study. Since no issue of collinearity is observed, it possible to run the
regression analysis.
As it can be seen from the Normal Probability plot it is possible to say the data is obtained from
normally distributed population as all the points on the plot are close to the diagonal or normality
line.
27
Figure 4.2 1Normality Plot
\
Source: Own Computation, 2023
The most obvious way to tell if a distribution is approximately normal is to look at the histogram
itself. As it can be seen from the graph above the graph is approximately bell-shaped and
symmetric about the mean, it is usually assumed normality. So, the distribution can be
considered normal.
28
Correlations
SA SM SA RM EM
SA Pearson Correlation 1
Sig. (2-tailed)
SM Pearson Correlation .657** 1
Sig. (2-tailed) .000
SA Pearson Correlation .561** .608** 1
Sig. (2-tailed) .000 .000
RM Pearson Correlation .181** -.092 .369** 1
Sig. (2-tailed) .000 .070 .000
EM Pearson Correlation -.027 -.326** .443** .274** 1
Sig. (2-tailed) .002 .000 .000 .000
N 384 384 384 384 384
**. Correlation is significant at the 0.01 level (2-tailed).
Key: SA – Self-Awareness, SM – Self-Management, SOA – Social Awareness, RM –
Relationship Management, EM – Employee Motivation
Source: Own Surevy, 2023
The findings above show that there is significant and negativecorrelation in between the two
independent variables such as self-awareness and self-management and employee motivation
with the value of r = -.027and-.326**and p = .000 < 0.05.Social awareness found to have
significant and positive association with employee motivation. The correlation is justified by r
value of .443**and p = 0.000. Finally, the correlation between relationship management and
employee motivation found to be significant and positive as indicated by the r-value of .274 **and
p = 0.000.
29
Model R R Square Adjusted R Square Std. Error of the
Estimate
a
1 .902 .813 .811 .20536
a. Predictors: (Constant), RelationshipManagement, Self-Management, Self-Awareness,
Social Awareness
b. Dependent Variable: Employee Motivation
Table above uncovers the result of multiple regression analysis between dependent variable
(employee motivation) and Self-Awareness, Self-Management, Social Awareness, and
Relationship Management).
Starting with self-awarenesscompetencies, the regression result shows that self-awareness has
positive and significant effect onemployee motivation. This is justified by (β = .104, p = 0.000).
30
This can be explained as change in one SDof self-awareness result in increment in the
employeemotivation by .104SDkeeping other variables constant. This result is congruent with
the result from Bipath (2009)confirmed that EI competencies such as adaptability, emotional
self-awareness, and achievement orientation have a statistically significant correlation with
employee motivation and organizational performance.
Positive and significant relationship is registered for social awareness competencies and
employee motivation with (β = 1.179, p = 0.000). As a result, change in SDof social awareness
result in an increase in the employee motivation by1.179SDkeeping other variables
constant.Similarly, a study conducted by Nishad (2015) said that social awareness competence is
enhancing employee’s motivation at workplace and even means scores also expressed the
same.The study strongly accepted that the emotional intelligence reflects on personal
competence and social awareness competence and it leads to success in motivating employees at
workplace.
31
4.5. Model Specification
The researcher employed the following model to measure the effect leader's emotional
inetllligence competencies on employee motivation.
As it can be seen from the regression model, social awareness competency of leadersfound to be
the most significant factor that affects the employee motivation on Bank of Abyssinia.
32
CHAPTER FIVE
As per the results from the descriptive analysis the study was able to identify the level of leader’s
emotional intelligence and employee motivation. Accordingly, the study revealed that self-
awareness and self-management competencies of leaders of the bank is at good level each
registering an average mean value of 3.93 and 3.53 respectievly.
On the other hand, social awareness and relationship management competencies of leaders in the
bank found in medium level. The average mean value of 3.48 is registered for each of these
competencies. This shows that social awareness and brelationship management competencies of
leaders in the bank is not sartisfactory.
Descriptive analysis has also been made to analyze the level of employee motivation and an
average mean value of 3.44 is registered which shows that employees of the bank are not highly
motivated. This in turn would have an impact on the performance of the bank in general.
Additionally, aiming to identify the relationship between the independent variabl;es (leader’s
emotional intelligence competencies) and employee motivation in te bank the study conducted
inferential analysis in terms of correlation and regression analysis. The findings from correlation
analysis shows that self-awareness and self-management have negative and weak correlation
with the dependentvariable employee motivation while social awareness found to have positive
and medium correlation with employee motivation. Weak and positive association is identified
between relationship management and employee motivation in the bank under stsudy.
Regression analysis is conductedto identify the magnitude of the relationship among independent
variables and dependent variable. Accordingly, the study was able to identify that self-awareness
33
competencies and social awarenesscompetencies have positive and significant effect on
employee’s motivation in Bank of Abyssinia. Self-management and relationship management
competences on the other end, found to have negative and significant effect on the motivation
employees in the bank.
5.2. Conclusions
The study aimed to examine the effect of leader’s emotional intelligence on the motivation of
employees taking evidence fron Bank of Abyssinia. Accordingly, the study collected data from
both managers and employees of the bank at the selected district.
5.3. Recommendations
The study was able to show that the self-awareness and social awareness competencies
of managers have a significant impact on the motivation of employees in the bank.
Therefore, the bank should pay more attention to these two competencies of emotional
intelligence.
The evaluation of the descriptive analysis shows that the self-awareness and self-
management competencies of managers are still limited. Therefore, the study
recommends that Bank of Abyssinia should implement an EI training program to
enhance the emotional competencies of managers and employees. They should first
recognize the importance of emotional intelligence in enhancing human competence
34
The study also revealed that employee of the bank are not well motivated as aresult of
deficiencies form their leaders incompetent to acquire emotional intelligent
competencies. Thus, the top management of the bank should work towards improvement
of the motivation of employees by working closely with their employees.
Furthermore, understanding the effect of emotional intelligence and employee motivation
have a number of implication for human resource development in banking industry. The
findings of this study delivered considerable evidence for the relationship among
emotional intelligence and employee motivation in banking sector. Therefore, the
researcher recommends that the knowledge obtained from this study should be used by
the study sectors and the remaining banks to produce powerful tools for the selection,
training and development of leaders.
The findings of this study shows that self-management and relationship management have
significant and negative effect on the motivation of employees. This finding is in contradiction to
previous studies on the subject matter and this study suggests further studies to be conducted on
the emotional intelligence competencies of leaders and it seffect on employee motivation to add
furher findings to existing literatures. Additionally, the study suggests additional studies should
be conducted taking evidneces from different sectors in the country.
35
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42
APPENDICES
SCHOOL OF COMMERCE
Dear Respondents,
The validity of your response has great contribution for the success of my thesis. Thus, I would
like to ask with due respect to give me the right response. All responses that you provide are
strictly confidential and will be used only for academic purpose.
Instruction
In filling the questionnaire you are not expected to write your name,
put √ or × marks in the box provided
Write your brief answers in the space provided.
iii. Experience: 0 –5 6 – 10
11-15 16 and above
iv. Qualification: Diploma First degree
Masters PHD
Rating Scale
No. Emotional Intelligence Competencies 1 2 3 4 5
SELF AWARENESS
1 I am confident in my abilities
2 Iadmit my short comings
3 Iunderstand my emotions as they happen
4 Irecognize the impact my behavior has upon others
5 I realize when others influence my emotional state
6 I play part in creating the difficult circumstances my encounter.
SELF MANAGEMENT
1 I can handle stress well
2 I embrace change early on
3 I can tolerate frustration without getting upset
44
4 I consider many options before making decision
5 I strive to make the most out of situations, whether good or bad.
6 I resist the desire to act or speak when it will not help the situation
7 I do things I regret when upset
8 I brush people of when something is bothering you.
SOCIAL AWARENESS
1 I am open to feedback
2 I recognize other people’s feelings.
3 I accurately pick up on the room
4 I hear what the other person is “really” saying
5 I am withdrawn in social situations
RELATIONSHIP MANAGEMENT
1 I directly address people difficult situations
2 I get along with others
3 I communicate clearly and effectively
4 I show others you care what they are going through
5 I can handle conflict effectively
6 I use sensitivity to another person’s feelings to manage interactions
effectively.
7 I learn about others in order to get along better with them
8 I explain yourself toothers
Using the scale below, please indicate to what extent each of the following items corresponds to
the reasons why employees are presently involved in their work
Rating Scale
No. EMPLOYEE MOTIVATION 1 2 3 4 5
Items
1 Because this is the type of work they chose to do to attain a certain
lifestyle.
2 For the income it provides them.
45
3 Due to the fact that they don’t seem to be able to manage the
important tasks related to this work.
4 Because they derive much pleasure from learning new things.
5 Because it has become a fundamental part of who they are.
6 Because they want to succeed at this job, if not I would be very
ashamed of myself.
7 Because they chose this type of work to attain their career goals.
8 For the satisfaction they experience from taking on interesting
challenges
9 Because it allows them to earn money.
10 Because it is part of the way in which they have chosen to live their
life.
11 Because they want to be very good at this work, otherwise they
would be very disappointed
12 They don’t know why, they are provided with unrealistic working
conditions.
13 Because they want to be “winners” in life.
14 Because it is the type of work they have chosen to attain certain
important objectives.
15 For the satisfaction they experience when theyare successful at doing
difficult tasks.
16 Because this type of work provides them with security.
17 They don’t know, too much is expected of them.
18 Because this job is a part of their life.
46
SECTION III: A questionnaire too be filled by employees on emotional intelligence of their
leaders and their own motivation.
Where 1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, and 5 = Strongly Agree
Rating Scale
No. Emotional Intelligence Competencies 1 2 3 4 5
Self-awareness
1 Leaders are confident in their abilities
2 Leaders admit theirshort comings
3 Leaders understand my emotions as they happen
4 Leaders recognize the impact my behavior has upon others
5 Leadersrealize when others influence theiremotional state
6 Leadersplay part in creating the difficult circumstances their
encounter.
Self-management
1 Leaders can handle stress well
2 Leadersembrace change early on
3 Leaders can tolerate frustration without getting upset
4 Leadersconsider many options before making decision
5 Leadersstrive to make the most out of situations, whether good or
bad.
6 Leadersresist the desire to act or speak when it will not help the
situation
7 Leadersdo things they regret when upset
8 Leadersbrush people of when something is bothering them.
Social Awareness
1 Leadersare open to feedback
2 Leadersrecognize other people’s feelings.
3 Leaders accurately pick up on the room
4 Leaders hear what the other person is “really” saying
5 Leaders are withdrawn in social situations
47
Relationship Management
1 Leaders directly address people difficult situations
2 Leaders get along with others
3 Leaders communicate clearly and effectively
4 Leaders show others they care what they are going through
5 Leaders can handle conflict effectively
6 Leaders use sensitivity to another person’s feelings to manage
interactions effectively.
7 Leaders learn about others in order to get along better with them
8 Leaders explain themselves to others
Using the scale below, please indicate to what extent each of the following items
corresponds to the reasons why you are presently involved in your work
Where 1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, and 5 = Strongly Agree
Rating Scale
No. Employee Motivation 1 2 3 4 5
Items
1 Because this is the type of work I chose to do to attain a certain
lifestyle.
2 For the income it provides me.
3 I ask myself this question, I don’t seem to be able to manage the
important tasks related to this work.
4 Because I derive much pleasure from learning new things.
5 Because it has become a fundamental part of who I am.
6 Because I want to succeed at this job, if not I would be very ashamed
of myself.
7 Because I chose this type of work to attain my career goals.
8 For the satisfaction I experience from taking on interesting
challenges
9 Because it allows me to earn money.
48
10 Because it is part of the way in which I have chosen to live my life.
11 Because I want to be very good at this work, otherwise I would be
very disappointed
12 I don’t know why, we are provided with unrealistic working
conditions.
13 Because I want to be a “winner” in life.
14 Because it is the type of work I have chosen to attain certain
important objectives.
15 For the satisfaction I experience when I am successful at doing
difficult tasks.
16 Because this type of work provides me with security.
17 I don’t know, too much is expected of us.
18 Because this job is a part of my life.
49
APPENDIX II: SPSS OUTPUTS
Descriptive Statistics
Std.
N Minimum Maximum Mean Deviation Skewness Kurtosis
Std. Std.
Statistic Statistic Statistic Statistic Statistic Statistic Error Statistic Error
Self_Awareness 384 3.00 4.67 3.9306 .52535 -.111 .125 -1.095 .248
Self_Management 384 2.38 4.88 3.5313 .55063 .386 .125 1.724 .248
Social_Awareness 384 2.60 4.40 3.4833 .47290 .257 .125 -.212 .248
Relationship_Managemen 384 1.50 4.38 3.4896 .89159 -1.061 .125 .000 .248
t
Employee_Motivation 384 2.67 4.11 3.4491 .47282 -.024 .125 -1.152 .248
Valid N (listwise) 384
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 69.637 4 17.409 412.795 .000b
Residual 15.984 379 .042
Total 85.621 383
a. Dependent Variable: Employee_Motivation
b. Predictors: (Constant), Relationship_Management, Self_Management, Self_Awareness,
Social_Awareness
Coefficientsa
Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) 2.937 .091 32.183 .000
Self_Awareness .104 .028 .116 3.701 .000 .501 1.994
Self_Management -.984 .031 -1.145 -31.709 .000 .378 2.649
Social_Awareness 1.179 .033 1.179 35.330 .000 .442 2.262
Relationship_Management -.152 .014 -.288 -10.622 .000 .672 1.488
a. Dependent Variable: Employee_Motivation
50
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