The effect of emotional intelligence and trust on the performance of employees in the insurance industry

Number of pages: 169 File Format: word File Code: 30505
Year: 2014 University Degree: Master's degree Category: Management
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  • Summary of The effect of emotional intelligence and trust on the performance of employees in the insurance industry

    Dissertation to receive the master's degree "M.A"

    Tension: Insurance Management

    Abstract

    The most important factor in achieving the goals of any organization is human resources, and undoubtedly the success and progress of any organization depends on its human resources. Several factors affect the efficiency of people in the organization. According to the theoretical foundations, one of the factors that can strongly affect the organizational behavior of each person is the emotional intelligence and organizational trust of employees. Therefore, the aim of this research is to study the effect of emotional intelligence and organizational trust on the performance of employees in the insurance industry of Gilan province. Therefore, the research is "applied" in terms of its purpose and "descriptive" in terms of execution technique.  A standard questionnaire was used to collect information to test the hypotheses. The statistical population of this research is all employees of the insurance industry in Gilan province and the sample size has been determined using the limited population statistical method. Based on the sampling formula in this research, we have selected a random sample of n=179 people from the statistical population whose size is N=521 and analyzed the data based on spss software; Finally, the research hypotheses were tested using the collected data, and it was found that emotional intelligence and organizational trust have an impact on the performance of employees in the insurance industry of Gilan province. This means that there is a positive and significant relationship between all components of emotional intelligence (intrapersonal component, interpersonal component, adaptability component, stress management component, general mood component) and organizational trust (ability component, credit component, benevolence component) with employee performance. Also, a relationship was observed between emotional intelligence and organizational trust.

    Key words: emotional intelligence, organizational trust, performance, insurance industry.

    In order to improve performance, since the first days of the formation of the field of management, it has been considered as an inviolable principle, which enters into new topics every day and includes more areas. One of the factors influencing the improvement of organizational performance is the existence of trust in the work environment. Research shows that organizations with high levels of trust have better visibility and performance, adapt better and are more successful than organizations with low levels of trust. Also, numerous researches have confirmed and emphasized the great role of emotional intelligence in improving the performance of organizations and in general in individual and group success. On the other hand, the insurance and banking sectors around the world have adopted a competitive trend, and the core of these flows are the customers of these companies, who are considered as real consumers of the products and services provided. Based on this, the need to pay attention to these categories became the basis for the formation of this study. With this short introduction, in this chapter, after the statement of the problem, the necessity and importance of the research is studied and then the goals, framework of the research and other topics are discussed. Several factors affect the efficiency of people in the organization. Among the factors that strongly affect the organizational behavior of each person are emotional intelligence[1] (Karamti et al., 2011; Nasralehpour, 2016; Mayer and Salovey, 1997) and trust[2] (Heffernan et al., 2012). Emotional intelligence is not only a positive characteristic, but a set of distinct reasoning and emotional abilities, and compared to social intelligence, it pays more attention to basic emotional issues and suppressing people's personal and social problems. People with high emotional intelligence are different from others in having more satisfaction with life, benefiting from the family environment and sharing the feelings of others around them, and they are usually regular, warm, successful, motivated and optimistic people (Salaski and Gartwright, 2003). Emotional intelligence is a factor that determines a person's capacity to recognize their own and other people's feelings and helps them to motivate themselves and control their emotions and build their relationships with others on this basis. Emotional intelligence includes the capacity to understand emotions, associate feelings related to emotions, understand the information of these emotions and manage them (Ciarrochi, J.; Forgas, 2001).

    On the other hand, trust is essential for human life and relationships. Trust is the foundation on which people can build meaningful and satisfying lives and collaborations and their ever-increasing growth. The greater the interdependence in these relationships, the more critical the importance of trust for them (Korinrk, 2001). Therefore, it can be said that trust plays an important role in the formation and maintenance of social relations (Legzian et al., 2017) because when trust increases, speed increases and costs decrease, and when trust decreases, speed decreases and costs increase (Rawlins, 2007). In the given definition of trust, it is generally considered to be the expectations or beliefs that people like to show to others in a predictable way and not just for their own benefit. Trust is the most important motivation that encourages people to have two-way or multi-way relationships. Even many social thinkers consider trust as a feeling that leads to cooperation and cooperation, and it is only in this state that people will be able to solve problems despite their differences (Rezae Keyldbari et al., 2018). The idea that trust in workplaces is a potential main factor that leads to improved performance and can be one of the sources of competitive advantage in the long run is also gaining attention. Creating an environment that has organizational trust has many positive effects on organizations; On the contrary, the costs of mistrust can be heavy due to the unwillingness of employees to cooperate and participate, risk-taking due to inappropriate behaviors, low quality of work and the need for control (Pucetaite and Lamsa, 2008). Therefore, what has been said, emotional intelligence and trust can be important in establishing optimal performance for all people, but this is of great importance for people who are responsible for providing services because these people in all their working hours. They are in regular contact with clients and others. Now, if the issue is looked at carefully, what comes to mind is that, among the service organizations, the insurance industry plays an undeniable role in the economic success or failure of a country, as well as economic interactions with other societies, because the world is moving towards a global village, in which, in addition to cultures, economy is also considered very important, and insurance, as one of the main economic arteries of societies, must function in a special way. Make yourself desirable and be considered in a special way. For this purpose, one of the ways forward for this industry is to develop long-term relationships with key customers.

    In the insurance industry, developing relationships with key customers and maintaining these relationships is considered a key activity (Madillet et al., 2002) because it brings many benefits, including increasing profits through risk reduction, improving performance, and improving communication (Hawke and Heffernan, 2006), increasing customer satisfaction and turning customers into loyal customers (Ennew and Binks, 1999; Tyler and Stanley, 1999). Several studies conducted in this field indicate that the emotional intelligence of employees and the development of effective relationships with customers have led to increased customer satisfaction (Armstrong and Seng, 2000; Jamal and Naser, 2002), commitment (Abratt and Russell, 1999) and optimal performance (Heffernan et al., 2012).  The insurance industry was chosen as the study sample of this research due to its participation in large national projects and the large volume of services it provides in the country. Therefore, if the emotional intelligence and trust of the employees are reflected in their work life, the insurance industry can collect more liquidity, and the higher the amount of liquidity collected, the insurance industry will be able to contribute more to participate in large national projects and provide better services. Considering this, the purpose of this study is to investigate emotional intelligence and trust in the insurance industry of Gilan province and its possible impact on the performance of insurance industry employees. As a result, the question is whether emotional intelligence and trust have an effect on the performance of insurance industry employees in Gilan province?

    The necessity and importance of research

    The role of the insurance industry in the development of the national economy and the fate of the society is undeniable. The presence of dynamic industries such as insurance in societies can increase the path of growth in organizations.

  • Contents & References of The effect of emotional intelligence and trust on the performance of employees in the insurance industry

    List:

     

     

    Table of Contents

     

    Abstract 1

     

    Chapter One: Research Overview

    1-1) Introduction. 3

    1-2) statement of the problem. 3

    1-3) Necessity and importance of research. 5

    1-4) The theoretical framework of the research. 6

    1-5) research objectives. 7

    1-6) research hypotheses. 7

    1-7) conceptual and operational definition of variables 8

    1-8) scope of research. 9

    Chapter Two: Theoretical Foundations of Research

    Part One: Emotional Intelligence

    1-2-1) Introduction 12

    2-1-2) The Concept of Intelligence and Its Definitions 13

    2-1-3) Types of Intelligence 15

    2-1-3-1) Social Intelligence. .17

    2-1-3-2) practical intelligence. 18

    2-1-3-3) cultural intelligence. 18

    2-1-3-4) organizational intelligence. 19

    2-1-3-5) spiritual intelligence. 19. 2-1-4) Emotional intelligence and cognitive intelligence. 20 2-1-5) Emotion. 21 2-1-6) Emotional intelligence. 23 2-1-7) The importance of emotional intelligence.

    2-1-8-1) emotional competence network model.27

    2-1-8-2) Bar-an emotional intelligence model (multifactorial model).31

    2-1-8-3) emotional intelligence ability model.32

    2-1-9) components of emotional intelligence.33

    10-2-2) intelligence growth process Emotional. 35

    2-1-11) Characteristics of employees and people with high emotional intelligence. 37

    2-1-12) Emotional intelligence in management and its applications. 37

    Part Two: Organizational Trust

    2-2-1) Introduction. .41

    2-2-2) Trust. 42. 2-2-3) Importance and necessity of trust. 43

    2-2-4) dimensions of trust. 44

    2-2-4-1) Dimensions of trust from the perspective of Thomas and Schindler.45

    2-2-4-2) Dimensions of trust from the perspective of Mayer et al.45

    2-2-5) Types of trust..47

    2-2-5-1) Credit trust.47

    2-2-5-2) Mutual trust.47

    2-2-5-3) Social trust. 48

    2-2-6) Individual and group benefits of trust. .49

     

     

    Third part: Employee performance

    2-3-1) Introduction. .52

    2-3-2) Performance. 52

    2-3-3) job performance. 54

    2-3-4) Performance improvement. 55

    2-3-5) Factors affecting the performance of employees. 56

    2-3-6) performance management. 58

    2-3-7) The importance of performance management. 60

    2-3-8) The objectives of performance management. 63

    9-2-3) Components of performance management. 64

    2-3-10) The process and stages of performance management in organizations. 66

    2-3-11) Challenges of performance management. 69

    2-3-12) Advantages and disadvantages of performance management. .72

    2-3-13) performance evaluation. 73

    2-3-14) Objectives of performance evaluation. 75

    2-3-15) dimensions of performance evaluation. 77

    2-3-16) sources of performance evaluation. 78

    2-3-17) Obstacles and errors in employee performance evaluation. 79.

     

    Section four: Research background

    Emotional intelligence, trust and employee performance. 82.

    Chapter 3: Research implementation method

    3-1) Introduction. 86

    3-2) research method. 86

    3-3) statistical population. 87

    3-4) statistical sample. 87

    3-5) Data collection methods and tools. 87

    3-5-1) Questionnaire. 88

    3-6) Validity and reliability of information gathering tools. .90

    3-6-1) Narrative. 90

    3-6-2) Reliability. 91. 3-7) Data analysis method. 92. Chapter 4: Research findings 1-4) Introduction. 94

    4-2) Description of demographic variables. .95

    4-2-1) Gender of the respondents. .95

    4-2-2) Age of the respondents. 96

    4-2-3) Respondents' education. 97

    4-2-4) Marital status of respondents. 98

    4-2-5) The income of the respondents. 99

    4-3) Description of research variables. 100

    4-3-1) Description of emotional intelligence variable. 100

    4-3-2) Description of the dimensions of emotional intelligence. 101

    4-3-3) Description of trust variable. 102

    4-3-4) Description of the dimensions of trust. 103

    4-3-5) description of performance variable. 104

    4-4) Examining the research model. 105

    4-4-1) Examining the research model in standard mode. 105

    4-4-2) Examining the research model in the case of significant numbers. 106.

    4-4-3) Examining the significance indicators and the fit of the overall research model. .107

    4-5) test107

    4-5) Test of hypotheses. 107

    4-5-1) Test of the main hypothesis. 108

    4-5-2) Test of the first sub-hypothesis. 108

    4-5-3) Test of the second sub-hypothesis. 109

    4-5-4) Test of the third sub-hypothesis. 110

    4-5-5) Test of the fourth sub-hypothesis. 110

    4-5-6) Test of the fifth sub-hypothesis. 111

    4-5-7) Test of the sixth sub-hypothesis. 112

    4-5-8) test of the seventh sub-hypothesis. 113

    4-5-9) Test of the eighth sub-hypothesis. 114

    4-5-10) Test of the ninth sub-hypothesis. 115

    Chapter Five: Conclusions and Suggestions

    5-1) Introduction. 117

    5-2) Descriptive statistics results. 117

    5-2-1) Description of emotional intelligence variable. 117

    5-2-2) Description of the intra-individual component variable. 117

    5-2-3) description of the extra-individual component variable. 118

    5-2-4) Description of compatibility variable. 118

    5-2-5) Description of stress management variable. 118

    5-2-6) Description of the general mood variable. 119

    5-2-7) Description of trust variable. .119

    5-2-8) description of performance variable. 119

    5-3) Results of inferential statistics. 120

    5-3-1) The results of the main hypothesis test. 120

    5-3-2) The results of the first sub-hypothesis test. 120

    5-3-3) The results of the second sub-hypothesis test. 120

    5-3-4) The results of the third sub-hypothesis test. 120

    5-3-4) The results of the fourth sub-hypothesis test. 121

    5-3-4) The results of the fifth sub-hypothesis test. 121

    5-3-4) Test results of the sixth sub-hypothesis. 121

    5-3-4) The results of the seventh sub-hypothesis test. 121

    5-3-4) The results of the eighth sub-hypothesis test. 122

    5-3-4) The results of the ninth sub-hypothesis test. 122

    5-4) Conclusion in the field of correspondence between the findings of the current research and previous research. 122

    5-5) Suggestions based on research questions. 124

    5-6) Limitations and suggestions for continuing research in this field. 126. Sources and sources. .128

    Appendix. 137

     

     

     

     

     

     

    List of tables

    Table 2-1) Emergence and concept of emotional intelligence. 23

    Table 2-2) Objectives of performance evaluation. 76

    Table 3-2) Performance evaluation dimensions and examples of their quantifiable indicators. 77

    Table 1-3) Variables, dimensions and number of questionnaire questions. 89.

    Table 2-3) Calculation of Cronbach's alpha. 91

    Table 4-1) Description of respondents' gender. .95

    Table 4-2) Description of the age of the respondents. 96

    Table 4-3) Description of respondents' education. 97

    Table 4-4) Description of respondents' marital status. 98

    Table 5-4) Description of respondents' income. 99.

    Table 6-4) emotional intelligence variable score. 100

    Table 7-4) Emotional intelligence dimensions score. 101

    Table 4-8) trust variable score. 102

    Table 9-4) the score of trust dimensions. .103

    Table 10-4) performance variable score. 104.

    Table 11-4) significant indices and model fit. 107.

    Table 12-4) Explanation of the effect of the intra-individual component on performance. 108

    Table 13-4) Explanation of the impact of the external component on performance. 109.

    Table 14-4) Explanation of the impact of the compatibility component on performance. 110

    Table 15-4) Explanation of the impact of the stress management component on performance. 111.

    Table 16-4) Explanation of the effect of the general mood component on performance. 112.

    Table 17-4) Explanation of the effect of the ability component on performance. 113.

    Table 18-4) Explanation of the effect of the credit component on performance. 113

    Table 19-4) Explanation of the effect of the benevolence component on performance. 114

    Table 5-1) Summary of statistical results. 122.

    List of forms

    Figure 1-1) research model. 6.

    Figure 1-2) Gelman and Boyatzis emotional competencies network model. 31

    Figure 2-2) Bar-an emotional intelligence model. 32. Figure 3-2) The process of forming and maintaining trust. 44

    Figure 4-2) Concepts of organizational trust. 47.

    Figure 5-2) Performance cycle. 56. Figure 6-2) Performance management through individual, unit and organizational evaluation. 60

    Figure 7-2) The importance of performance management. 61

    Figure 8-2) The four dimensions of performance management. 64

    Figure 9-2) Performance management challenges. 69.

    Source:

    Azer, Adel - Daneshvar, Maryam (1386) Review of insurance branch performance evaluation methods, Sanat Insurance Quarterly, Year 22, Number 2, pp. 43-59

The effect of emotional intelligence and trust on the performance of employees in the insurance industry