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ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE

THE EFFECT OF LEADERR’S EMOTIONAL INTELLIGENCE ON


MOTIVATION OF EMPLOYEES (IN THE CASE OF BANK OF
ABYSSINIA)

BY

SELAMAWIT AMHA

JUNE, 2023

ADDIS ABABA, ETHIOPIA


ADDIS ABABA UNIVERSITY
SCHOOL OF COMMERCE
THE EFFECT OFLEADERR’S EMOTIONAL INTELLIGENCE ON
MOTIVATION OF EMPLOYEES (IN THE CASE OF BANK OF
ABYSSINIA)

BY

SELAMAWIT AMHA

ADVISOR

DEREJE ABI (PHD)

A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE


REQUIREMENTS FOR THE DEGREE OF MASTERS OF BUSINESS
LEADERSHIP

JUNE, 2023

ADDIS ABABA, ETHIOPIA


Declaration

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.

--------------------- ------------------- ------------------


Name of student Signature Date

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.

------------------ ---------------- ------------------


Name of advisorSignature Date
Certificate of Approval

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.

Signature of Board of Examiner`s:

____________________________ _______________ _______________

External examiner Signature Date

________________________ _______________ _______________

Internal examiner Signature Date

________________________ _______________ _______________

Dean, SGS signature Date


AKNOWLEDGMENT
I would like to thank all individuals involved in this work. First and foremost, I would like to
forward my deepest gratitude to God and all my families. Second, I would like to thank my
advisor Dereje Abi (Ph.D.) for all his advice towards better improvements of this thesis. Third,
this thesis would never have been accomplished without the cooperation of all staff members of
Bank of Abyssinia in the branches of central district. Therefore, I am deeply thanks all of them.

i
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

iii
LIST OF FIGURES

Figure 2.1 1 Conceptual Framework.............................................................................................16

Figure 4.1 1 Normal Probability Plot 28

Figure 4.2 1 Normality Plot 29

iv
LIST OF TABLES

Table 3.1 1 Reliability analysis results..........................................................................................21

Table 4.1 1 Profile of respondents 23

Table 4.2 1 Interpretation of Mean Score 25

Table 4.3 1 Descriptive Analysis of Emotional Intelligence factors and Employee Motivation 25

Table 4.4 1 Collinearity Analysis Results 27

Table 4.5 1 Correlation Analysis Results 29

Table 4.6 1 Summary for Regression 30

Table 4.7 1 Multiple linear regression model of the emotional intelligence Variables 31

Table 4.8 1 Summary of Hypothesis Result 33

v
LIST OF ACRONYMS

EIEmotional Intelligence

ERA Ethiopian Road Authority

EM Employee Motivation

ESCIEmotional and Social Competency Inventory

ESI Emotional-Social Intelligence

RM Relationship Management

SA Self-Awareness

SDT Self Determination Thoery

SMSelf-Management

SPSSStatistical Process for Social Science

SOASocial Awareness

VIFVariation Inflation Factor)

WEIMSWork Extrinsic and Intrinsic Motivation Scale

vi
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.

Key Words: Emotional Intelligence, Self-awareness, Self-management, Social Awareness,


Relationship Management, and Employee Motivation

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CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study


Due to the fact that different business sectors are restructuring or downsizing in order to remain
competitive in the market, organizations are exposed to a variety of issues (Colombo et al.,
2012). Organizations in emerging economies in particular have shown that a company's success
or failure is determined by the leadership's reliance on strategic choices (Finkelstein et al., 2009).

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.

1.2. Statement of problem


Emotional intelligence (EI), which is the capacity that an individual has for learning about,
understanding, and attending to his or her own emotions and those of others, has become a recent
focus despite the fact that various traits and behaviors of leaders and elements of leadership have
been studied and reported.

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

2
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).

Previous research in developing nations revealed a statistically significant association between


managers' and employees' emotional intelligence and the managing changes index. G. Rexhepi
and B. Berisha (2017). As a result, this study will be added to the body of research that has
already been done on emotional intelligence. It does so by examining the subject in a new
business context—the banking industry, which is distinctive to Ethiopia—from the perspectives
of management profiles, leadership styles, and the impact these have on the motivation of
employees, particularly of those at Bank of Abyssinia. This study used Goleman's (2001) clusters
of emotional intelligence competencies, including self-awareness, self-management, social
awareness, and relationship management. Consequently, this study looked at how each emotional
intelligence sign affected motivation.

1.3. Research Objectives


1.3.1. General Objective
The study's main objective was to look into how the emotional intelligence of a leader affected
staff motivation in the context of the Bank of Abyssinia.

1.3.2. Specific Objectives


1. To evaluate the emotional quotient of Bank of Abyssinia executives

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2. To determine how motivated Bank of Abyssinia staff members are

3. To examine the impact of self-awareness, self-management, social awareness, and relationship


management emotions on the drive of Bank of Abyssinia personnel.

1.4. Significance of the study


The following key advantages of the study are anticipated:Through a closer examination of
leaders' emotional intelligence levels and the relationship between those levels and employees'
motivation, this study's design will contribute to both practice and theory by building on recent
studies that demonstrate the link between high levels of emotional intelligence in leaders and
employee motivation. This study can be used as a reference for the bank's board of directors to
develop their leaders' emotional intelligence through instruction and training. The study may also
be used by the bank's senior management to create training plans that will enhance, develop, and
improve the managers' emotional intelligence capabilities. The results of this investigation would
advance our understanding of emotional intelligence. Last but not least, those in administrative
roles outside and inside the financial industry could benefit from this study's conclusions.

1.5. Scope/Limitation of the study


1.5.1. Geographical Scope
It is clear that Bank of Abyssinia has a variety of neighborhoods and branches in various parts of
the city in an effort to assist its clients in obtaining financial services from the nearest branch
feasible. Despite the fact that this bank has many districts and branches throughout the city, the
study only includes the branches of the central area.

1.5.2. Theoretical Scope


The current study offers important information on emotional intelligence and how it affects
corporate effectiveness by motivating employees. Employee motivation, emotional intelligence
competence concepts, emotional intelligence model concepts, and the relationship between
emotional intelligence and employee motivation were also examined in this study. The four skills
that Goleman, D. (2011) developed—self-awareness, self-management, social awareness, and
relationship management—are utilized in this study.

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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.

1.6. Limitation of the Study


The research has some limitations that are reflected in the small sample size of respondents as
well as the particular business climate of the region where the research was done, in addition to
the previously mentioned theoretical and practical consequences. Additionally, the research's
data came from primary sources (questionnaires, surveys). As a result, there is restricted
coverage for the primary data collection where the interview will take place.

1.7. Definition of Terms


Emotional Intelligence:is the knowledge of emotional information necessary for effective and
outstanding work performance (Boyatzis and Sala, 2004).
Employee Motivation: is defined as the educating of employees to channel their efforts towards
organizational activities and thus increasing the performance of the said boundary spanning roles
(Ran 2009; Armstrong (2006); Eberendu & Okere 2015).
Self-awareness:is insightfully processing feedback about oneself to improve one's effectiveness.
(Dubrin, 2007)
Self-management:involves a person applying behavior change tactics to their own behavior to
produce a desired change’ (Cooper, Heron & Heward, 2007).
Social Awareness: is awareness of other people’s feelings, needs, and concerns (Goleman, D.,
2011).
Relationship management:involve getting along well with others, handling conflict, clearly
expressing ideas and using sensitivity to manage others’ feeling (Goleman, D., 2011).

1.8. Organization of the Study


The research was divided into five important chapters. The first chapter covers the introduction
of the research topic in the form of the study's history, problem statement, study objectives, and

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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.

2.1. Conceptual and Theoretical Review


2.1.1. The Concept of Emotional Intelligence
It appears that the term has multiple definitions based on many articles, books, and other
resources on the subject of emotional intelligence. This is partly because it is difficult to
understand each word in the term: intelligence and emotional. The usual definition of
intelligence is the capacity or aptitude for comprehension and learning. Cool and hot
intelligences are two categories for intelligences. According to Mayer, Panter, and Caruso
(2012), cool intelligences are those that "deal" with knowledge that is "relatively impersonal in
relation to the individual" and include verbal-comprehension intelligence and numeric
intelligence. Hot intelligences "concern the degree to which a person can reason about hot
information: Information that is particularly personally relevant and consequently can trigger a
person's mental pleasure and pain" The cold intelligences were the focus of intelligence research
in the beginning, but hot intelligences have lately been added. According to Purcell and Wilcox
(2007), there are many different types of intelligence, including EI, social intelligence,
technological intelligence, and academic intelligence.

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

8
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.

2.1.2. Theoretical Models of Emotional Intelligence (EI)


A number of models have emerged in the field of emotional intelligence (EI) over time. Many
authors have promoted the idea of emotional intelligence since Goleman's publication in 1995,
but without having the proper research methodologies to direct their promotional efforts (Cooper
& Sawaf, 1997; Elas, Tobas, & Friedlander, 1999). The work of scientific EI research has been

9
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..

2.1.2.1. The Emotional Intelligence Personality-based Model


Reuven Bar-On (2005), who created a tool to evaluate EI in wellbeing in the 1980s and coined
the term "emotional quotient," explains a widely accepted scientific viewpoint. Emotional
intelligence (EI) is a set of personal, social, and emotional abilities that affect how well a person
manages the demands and difficulties of daily life.

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).

2.1.2.2. The Emotional Intelligence Ability-based Model


The Mayer and Salovey mental ability model (Mayer & Salovey, 1997) is the theoretical
framework that has received the greatest attention and description in academic journals,
according to reviews of the literature on emotional intelligence (Matthews et al., 2002; Geher,
2004). Individual EI can be described by three interrelated domains: (a) evaluation and
expression of emotion, (b) control of emotion, and (c) utilization of emotion, according to Peter
Salovey and John Mayer (1990).

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..

2.1.2.3. The Emotional Intelligence Competency-based Mode


Goleman (1995) coined the concept and listed five key components of EI in his book Emotional
Intelligence: Why It Can Matter More Than IQ. Identifying one's emotions, managing them,
inspiring oneself, identifying others' emotions, and managing relationships are the first five skills
(Boyatzis et al., 2000; Goleman, 1998, 2001). Goleman offered a theory of performance in
companies based on a model of EI that has come to be known as a workplace-focused
competency model in his second book on emotional intelligence, which was published in 1998.
The approach is founded on a number of competences or clusters, including::

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).

12
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
13
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..

2.2. Empirical Review


In their study, Christie et al. (2007) looked into the relationship between motivation and
emotional intelligence. Despite not being one of the emotional intelligence dimensions, their
research findings indicate that motivation is substantially correlated with the emotional
intelligence of the study's respondents. The results of Saad's (2011) study, which looked at the
relationship between emotional intelligence and work motivation, showed that the two factors
are positively significant and that emotional intelligence is a key factor in explaining changes in
work motivation

14
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

15
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.

2.3. Research gap

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.

16
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

3.1. Research Design


Both descriptive and explanatory research designs were used in the study. A phenomena and its
properties can be described using the descriptive study design (Hussein, 2015). The study used a
descriptive study design to gather information about the motivational level of bank employees as
well as the emotional intelligence competencies of bank leaders. The study also evaluated how
four emotional competences of leaders affected the motivation of workers at the bank in the
chosen Addis Abeba district. When a researcher comes across an issue that is previously
recognized and has a description, but an understanding is needed to exist, explanatory research is
undertaken (Grey, 2014). Explanatory study also be used to identify the relationship between the
four independent variables and the employee motivation in the bank under study.

3.2. Research Approach


In order to determine the relationship between the dependent variable (employee motivation) and
the four independent factors, the study used a quantitative technique. Quantitative research is
described as "A research strategy that emphasizes quantification in the collection and analysis of
data" by Bryman (2012). It indicates that quantitative study implies significance. The how many,
how much, and to what extent inquiries are the starting points for this research technique
(Rasinger, 2013).

3.3. Data Type and Data Source


3.3.1. Primary Sources
This data was gathered directly from research participants or bank personnel in a few Addis
Abeba district branches, and because it is factual and direct, it is regarded as the most significant

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.

3.4. Population and Sample size


3.4.1. Target population
As it has mentioned above employees of Bank of Abyssinia at different position at the head
quarter and central district branches was total population of the study. In this regard, there are
5,244 employees of the bank in 267 branches all over Addis Ababa but, the study is delimited to
only head office and central district branches. The number of employees at the head office of the
bank counted for 1,235 while for the central district is 1,126 resulting in a total of 2361 of target
population.

3.4.2. Sample Size


The sample size is the actual member of subjects chosen as a sample to represent the population
(Sekaran and Bougie, 2010). The target population of the study is 2361 employees of the bank
and the number is too large to undertake which may present various difficulties in undertaking
the study. For this reason the researcher used Cochran’s (1977) formula to draw a sample size
which determine the exact number of selected study participants.

N
n= 2
1+ N e

Where, n= the size of the sample


N = the size of the population= 2361
e = the margin of error = 5%
N 2361
n= 2 = 2 = 400
1+ N e 1+ 2361× 0 .05

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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.

3.6. Data Collection Procedure and Tools


3.6.1. Data Collection Procedure
The sample population was based on managers and other participants currently working for the
bank in the selected district branches of Bank of Abyssinia in Addis Ababa. As much as possible,
the study tried to involve employees of the bank from every position as the nature of the study
requires that level of distribution. Hence, employees holding low, middle or senior management
positions and other non-manager participants/employees were target participants. In this regard,
the study have better representatives of population and allow researcher to use this methods
(Hair, et al., 2002). Employee participants were contacted through their human resource
department of the bank as they were assured about the confidentiality and anonymous of their
details, and it was be entirely voluntary.

3.6.2. Data Collection Tools


Questionnaire was used as the main tool in collecting data from the employee participants in the
selected branches of the bank under study. Questionnaire is a quick method of collecting data as
it consumes less time and flexible in covering whole sample with preplanned time frame. The
questionnaire was organized with scales to measure emotional intelligence of top managers in
the bank and those questions are adopted from HAY Group. Emotional and Social Competency
Inventory (ESCI) (2011).Additionally, Participants completedthe 18-item WEIMS which is
adopted from Tremblay, M. A., et al. (2009).WEIMS is divided into three-item six subscales,
which correspond to the six types of motivation postulated by SDT (i.e., intrinsic motivation,
integrated, identified, introjected and external regulations, and amotivation). Participants were
asked to indicate on a Likert-type scaleranging from 1 (Strongly Disagree) to 5 (Strongly Agree)
the extent to which the items represent the reasons they are presently involved in their work

19
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. Validity and Reliability


3.8.1. Validity
The degree to which a test or assessment measures what we actually want to measure is referred
to as its validity. (Kothari, 2004) To assess the validity, an extensive examination of the literature
was conducted first, and survey questions were adapted and tested for validity. Before data
collection, the instrument and research approach were revised and commented on by a
professional advisor. In addition, the research purpose was publicized, and sample questionnaires
was distributed to some selected employees at different positions of headquarter and central
district of the Bank of Abyssinia. Officers' feedback was gathered, and the final questionnaire
wasprepared applying corrective actions.

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.

Table 3.1 1Reliability analysis results


Reliability Statistics

20
Cronbach's Alpha N of Items
.887 5
Source: Own Surevy, 2023

3.9. Ethical considerations


The researcher followed ethical ways in undertaking this study. Participants signed prepared
informed consent. Employees or study participants was guaranteed about the confidentiality of
information and identity of individuals were not be mentioned in the study.

3.10. Model Specification


The researcher employed the following model to measure the impact of independent variables on
employee motivation.
Y = (β0+ β1x1+ β2x2+ β3 x3+ β4x4) + error term
Where: Y = the outcome variable (dependent variable)
β0 =the coefficient of the constant or y-intercept,
β1 = the coefficient of the Self-awareness (X1)
β2 =the coefficient of the Self-management (X2),
β3 =the coefficient of the Social awareness (X3),
β4 =the coefficient of the Relationship management (X4).
Error term = the difference between the predicted and observed value of Y

21
CHAPTER FOUR

4. DATA PRESENTATION, INTERPRETATION AND DISCUSSION

4.1. Response Rates


At the Central District, 400 questionnaires were given out to Bank of Abyssinia workers.
However, 45 valid and useable questionnaires for statistical analysis were discovered when the
gathered questionnaires were checked for missing data and other inconsistencies. According to
Mugenda (2003) and Cooper and Schindler (2014), a response rate of 50% is sufficient for
analysis, while a response rate of 60% is good and a response rate of 70% is outstanding. The
96% response rate is therefore excellent for moving forward with data analysis.

4.2. Demographic Information of Respondents


Here is a presentation of the respondents' general background data. We looked at the
respondents' gender, age, experience working for the bank, education, and the department they
are employed in.

Table 4.1 1Profile of respondents


Characteristics of respondents Frequency Percentage
Male 256 66.7
Gender Female 128 33.3
Total 384 100.0
20 - 27 96 25.0
Age 28 - 35 160 41.7
36 - 45 96 25.0
46 - 55 32 8.3
Total 384 100.0
1–5 128 33.3
6 – 10 192 50.0
Experience 11 - 15 64 16.7
Total 384 100.0

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.

4.3. Data Analysis related to the Study


4.3.1. Descriptive Statistics
Descriptive statistics in this study is employed to capture employee’s perception towards each
variable/factor in the study and their respective effect on their performance. Each variable is
subject to 5-scale Likert measurement aiming to measure the responses in range of 1-5. As it has
been discussed in the questionnaire, 1 represents strong disagreement, 2 is for disagree, neutral is
represented with 3, 4 stands for agree, and 5 for strong agreement level. Mean and standard
deviations have been used to reflect the perception of employee of the organization towards each
variable as it is displayed in the table below. In this regard, the mean value can be interpreted as;

Table 4.2 1Interpretation of Mean Score


Mean Score Interpretation
4.51 – 5 Very good/excellent
3.51 – 4.50 Good
2.51 – 3.50 Average/moderate
1.51 – 2.50 Poor
1 – 1.50 Very Poor
Source: Norasmah and Sabariah, (2011)

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.

4.4. Inferential Analysis


4.4.1. Linear Regression Assumption Tests
Prior to conducting inferential analysis, the study looked for to decide if the data gathered abused
any fundamental regression assumptions. Collinearity, linearity and normality tests have been
employed.

4.4.1.1. Collinearity Test


Study objectives has been kept in mind in conducting Collinearity tests and normality plot has
been made on the residuals of the regression model in testing the relationship among the
independent i.e. the four leadership styles and employee performance of the organization under
study. The motive behind conducting multicollinearity is to point out any inter-dependency
among independent variables of the study. (Saunders, Lewis, & Thornhill, 2009) The rule of
thumb is that VIF (Variation Inflation Factor) factors yielded should not exceed 10.

Table 4.4 1Collinearity Analysis Results


Model Collinearity Statistics
Tolerance VIF
1 (Constant)
Self-Awareness .501 1.994
Self-Management .378 2.649
Social Awareness .442 2.262
Relationship Management .672 1.488
a. Dependent Variable: Employee Motivation
Source: Own Surevy, 2023

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.

4.4.1.1. Linearity Test


The researcher conducted normality test to check if eth data which is being used for regression is
gathered from normally distributed population.

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.

Figure 4.1 1Normal Probability Plot

Source: Own Computation, 2023


4.4.1.1. Normality Test
To ensure that the data utilized in the regression analysis was taken from the population's
regularly distributed data, a normality test is performed. The following table displays the
outcome. The fundamental criterion is that the distribution can be regarded as normal if any of
these values for skewness or kurtosis is less than 1.0. If one of these values is greater than ± 1.0,
the distribution is termed asymmetrical. The distribution cannot be regarded as normal if the
values are greater than 1.0 because the skewness or kurtosis is outside the normalcy range
(Ababio, 2022).

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.

4.4.2. Correlation Analysis


The study conducted Pearson correlation to identify the type of association/ correlation i.e.
positive or negative among the predictor or independent variables (self-awareness, self-
management, social awareness, and relationship managment,) which are correlated with the
dependent variable (employee motivation).

Table 4.5 1Correlation Analysis Results

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.

4.4.3. Regression Analysis


The correlation analysis above showed the association among dependent and independent
variables of the study and in conducting the regression analysis the study identifies the
magnitude of relationship among emotional intelligence variables and employee motivation.

Table 4.6 1Summary for Regression


Model Summaryb

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

Source: Own Surevy, 2023


The model fitness table above shows that multiple correlation coefficients(R) of all predictors
together is .902 or 90.2%. This implies that the presence of large relationship among predictor
variables like relationship management, self-management, self-awareness, and social
awarenessand employee motivation. R Square is .813 (81.3%) and adjusted R square is .811that
is driven or predicted from employee motivation. This value suggests that the data in the
regression is a good fit.

4.4.3.1. Regression Coefficients


Table 4.7 1Multiple linear regression model of the emotional intelligence Variables
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.937 .091 32.183 .000
Self-Awareness .104 .028 .116 3.701 .000
Self-Management -.984 .031 -1.145 -31.709 .000
Social Awareness 1.179 .033 1.179 35.330 .000
Relationship Management -.152 .014 -.288 -10.622 .000
a. Dependent Variable: Employee Motivation
Source: Own Surevy, 2023

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.

Regarding self-managementcompetencies, negative and significant relationship is appeared with


employee motivationwith β = -.984, p = 0.000. Consequently, change in SDof self-
managementresult in a decrement in the employee motivationby .984units keeping other
variables constant.Again the result is found to be consistent with a study conducted by Bipath
(2009) who found that the competencies of emotional self-management and optimism in leaders
have aninverse correlation with 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.

Finally, the relationship between relationship management competencies and


employeemotivation found to be negative and significant with (β= -.152, p = .000). This meant
that a change in SDof relationship managementresult in a decrease in the employee motivation
by.152units keeping other variables constant. Taking a look at the previous studies regarding
relationship management and employee motivation, controversial results has been found. Te
finding freo this study found to be in contrary to the the literatures such as Goleman, D. (2001)
who explained that relationship management, change-catalyst competence, teamwork and
collaboration competence stand out as important for encouraging employee performance, which
motivates them to put forth more effort and work performance by creating a positive
environment and employees' sense of importance(Totterdell, et al. 1998).

31
4.5. Model Specification
The researcher employed the following model to measure the effect leader's emotional
inetllligence competencies on employee motivation.

Y = (β0+ β1x1+ β2x2+ β3 x3+ β4x4) + error term

Where: Y = the outcome variable (dependent variable)


β0 =the coefficient of the constant or y-intercept,
β1 = the coefficient of the Self-awareness (X1)
β2 =the coefficient of the Self-management (X2),
β3 =the coefficient of the Social awareness (X3),
β4 =the coefficient of the Relationship management (X4).
Error term = the difference between the predicted and observed value of Y

Y = β0+ β1x1+ β2x2+ β3 x3+ β4x4 + error term

Y = .104 * Self-Awareness -.984 Self-Management + 1.179 * Social Awareness


-.152Relationship Management

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.

4.6. Summary of Hypotheses


The study hypothesized that all variables would have significant effect on employee motivation
of Bank of Abyssinia and accordingly, the study accepted all hypotheses 1 and 3 and rejected
hypotheses 2 and 4. The result from hypothesis has been summarized as follows;

Table 4.8 1Summary of Hypothesis Result


Description Result Decision
Hypothesis1 Sig (.000) & positive (.104) Accepted
Hypothesis2 Sig (.000) &negative (- .984) Not accepted
Hypothesis 3 Sig (.000) & positive (1.179) Accepted
Hypothesis4 Sig (.000) &negative (- .152) Not accepted
Source: Own Computation, 2023

32
CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION


5.1. Summary of Findings
To quantify the impact of a leader's emotional intelligence on staff motivation, the study
established four emotional intelligence competencies of leaders. Self-awareness, self-
management, social awareness, and relationship management were thus the independent factors.
In order to learn more about emotional intelligence and employee motivation, many studies and
dissertations have been used to identify these characteristics.

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.

• A descriptive study was performed to determine the emotional intelligence of bank


leaders, and the results indicate that these leaders have high levels of self-awareness and
self-management skills.
• The survey found that Bank of Abyssinia leaders had a moderate level of social
awareness and relationship management skills.
• staff motivation has been investigated descriptively, and the results indicate that the level
of staff motivation at the bank is insufficient.
• According to the study's regression analysis, self-awareness and social awareness skills
have a positive and significant impact on employees' motivation, whereas self-
management and relationship skills have a negative and significant impact on bank
employees' motivation.

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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APPENDICES

APPENDIX I:SURVEY QUESTIONNAIRE

ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE

MASTERS OF BUSINESS LEADERSHIP PROGRAM

Dear Respondents,

I am a post graduate student of Business Leadership at Addis Ababa University, School of


Commerce and conducting a research on “The Effect of Leader’s Emotional Intelligence on
Employees Motivation in the Case of Bank of Abyssinia”. The research contributes towards
the fulfillment of the Master of Arts in Business Leadership.

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.

Thanks for your cooperation.


Sincerely,
Selamawit Amha
43
SECTION A: DEMOGRAPHIC CHARACTERISTICS

i. Gender: Male Female

ii. Age Group: 20 –27 28-35


36 –45 46-55
56 and above

iii. Experience: 0 –5 6 – 10
11-15 16 and above
iv. Qualification: Diploma First degree
Masters PHD

v. Current working position: Top manager Customer service manager


IT technical Front-line Employee
Marketing manager
SECTION B: A questionnaire to be filled by bank managers on their emotional intelligence
and employee 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 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
51

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