The relationship between emotional intelligence of managers and financial performance of bank branches in Gilan province

Number of pages: 149 File Format: word File Code: 30652
Year: 2014 University Degree: Master's degree Category: Management
  • Part of the Content
  • Contents & Resources
  • Summary of The relationship between emotional intelligence of managers and financial performance of bank branches in Gilan province

    Academic Thesis for Master's Degree

    Field: Business Management, Trend: Transformation

    Abstract:

    The purpose of this research is to investigate the effect of the relationship between the emotional intelligence of managers and the financial performance of bank branches. The statistical population of the research is the branch managers of banks (Saman, Sepe, Tejarat) in Gilan province, which were selected by simple random sampling. Collecting information about the variable of emotional intelligence using a standard questionnaire and in the field, and about the variable of performance by collecting the financial information of banks in the three-year period of 1990-1992 was received from the branches. For data analysis, statistical techniques of multiple regression and Pearson's correlation were used with SPSS software to test research hypotheses. Examining research hypotheses shows that there is a positive and significant relationship between emotional intelligence, in which the components of self-awareness, self-management, social awareness, and relationship management are considered, and the financial performance of bank managers, regardless of the managers' work history, which is rejected by entering work history as a moderating variable of all hypotheses.

    Key words:

    Emotional intelligence, self-awareness, self-management, social awareness , relationship management, performance.

    Introduction

    Technological, economic, political changes, customer needs and expectations have greatly affected the performance of organizations, and organizations have to adapt to these changes in order to survive. Now, all organizations, including banks, have started to rethink what and how to serve informed and expected customers (Babaei and Shafaei, 2013, p. 171). Meanwhile, banks are financial institutions that collect assets from various sources and provide them to departments that need funds. Therefore, banks are considered the vital artery of every country.  Along with the entry of private banks in the financial markets, the demand for various banking services has also increased significantly.  In order to compete with each other in order to increase the market share[1] and profitability, banks seek to use various performance improvement methods[2] in attracting customers, this process has caused the performance of banks to be of particular importance and has become one of the most important concerns of bank managers (Mutmani et al., 2019, p. 142), because bank managers are among the beneficiaries for whom the information obtained from financial performance analysis is important. In this regard, they evaluate the bank's position by considering valuable financial information and make the appropriate decision based on it. Commercial banks are financial institutions that collect people's stagnant funds and provide facilities to businessmen, industrial owners, and other applicants. In fact, with its operations, the bank provides the means to transfer resources from people who do not want or cannot participate in economic activities due to various reasons, such as lack of knowledge and expertise, lack of capital and fear of investment risk, to people who need financial resources for investment, and since the goal of a commercial bank is to make a profit, it is natural that the bank should attract resources as cheaply as possible and provide facilities to applicants with the maximum interest rate. Therefore, the primary and basic goal of the bank, like other for-profit organizations, is to maximize the wealth of its owners. In increasing the shareholders' wealth, the bank's management should decide whether to acquire assets with lower quality and more income or assets with higher quality and less risk, or whether the bank should invest and grant facilities with long maturities and reduce liquidity, or choose assets with shorter maturities and provide a high degree of liquidity? These are questions that bank managers are always involved with (Rostami et al., 2013, p. 20).

    It should be noted that managers, as human capital, are the most vital strategic element and the most basic way to increase the effectiveness and efficiency of the organization[3]. In the meantime, emotional intelligence [4] is considered as a new and appropriate tool for bank managers to guide people within the organization and external customers and to ensure the satisfaction of these people. Golman [5] believes that emotional intelligence is widely used in all organizational levels, but it is of vital importance in managerial levels. Because the conditions that arise at the top of the organizational hierarchy spread faster, because people look up to the manager and the person above them.Because the conditions that arise at the top of the organizational hierarchy spread faster, because people look at the manager and the person above them (Vadadi et al., 2018, p. 3). Therefore, the emotional intelligence of managers can be a support for them to be able to spontaneously move employees towards a specific goal (Nazem and Lajurdi, 2010, p. 129). Managers with emotional intelligence are effective leaders who achieve goals with maximum productivity [6], satisfaction and commitment [7] of employees (Kiwan Lu et al., 2019, p. 48).

    Researchers believe that job performance [8] can also be predicted from emotional intelligence (Day and Carroll, 2004, P.1443). Golman (1998), believes that emotional intelligence is another type of intelligence that includes recognizing one's feelings and using them to make appropriate decisions in life (Sanchez-Ruiz et. al., 2013, p. 658). In other words, emotional intelligence expresses the ability to manage one's mood, mental state, and control stress[9], and in fact, it is a factor that creates motivation and hope in a person when he fails to achieve a goal (Rezaian and Solugar, 2017, p. 30).  

    Research results show that a higher level of emotional intelligence leads to a higher level of performance in people (Lyons&Schneider, 2005, p. 693) and with increasing work experience, emotional intelligence in people is formed and evolves more (Rad et al., 2019, p. 174). With these explanations, the present research tries to examine the relationship between the emotional intelligence of managers and the financial performance of bank branches in Gilan province. 1-2 Statement of the problem Currently, due to the significant number of banks and financial and credit institutions in the country, and also due to the fact that many state-owned banks and the conversion of credit cooperatives and credit financial institutions into banks, the evaluation of their financial performance has become particularly important (Motmani et al., 1389, p. 141). In general, the performance of bank branches means increasing the volume of deposits (deposit absorption, the process of collecting and absorbing liquidity in the form of all kinds of deposits, including visual, non-visual, short-term and long-term), which is considered as a performance indicator. Robbins [10] believes that performance means calculating or measuring results. In general, organizational performance is an indicator that measures the extent to which an organization achieves its goals. al, 2012, P.3). Measurement is a process of quantification. One of the needs of any performance evaluation system is the existence of a clear context between the performance indicators at different levels of the organization. Effective implementation of programs and performance evaluation is essential in any organization. In general, the performance evaluation system can be measured and compared and how to achieve the desired situation (Efti Dariani et al., 2016, p. 5). One of the factors that affects the performance of employees is emotional intelligence [12] (Serafrazi and Memarzadeh, 2016, p. 64), meanwhile, emotional intelligence is considered as a new and worthy tool at the disposal of bank managers to guide people within the organization and external customers and ensure the satisfaction of these people.

    Emotional intelligence is a skill that has It can control one's own moods through self-awareness, improve them through self-management, understand their impact through empathy, and behave in a way that lifts one's own and others' morale through relationship management. Emotional intelligence refers to behaviors related to people's feelings and self-perceived abilities, and in fact, it is related to understanding, expressing, absorbing and regulating people's feelings, which leads to emotional and intellectual growth (Day & Carroll, 2004, P.

  • Contents & References of The relationship between emotional intelligence of managers and financial performance of bank branches in Gilan province

    List:

    Table of Contents

    Abstract:.. 1

    Chapter One: General. 2

    1-1 Introduction.. 3

    1-2 Statement of the problem.. 5

    1-3 Importance and necessity of research. 7

    1-4 research objectives. 8

    1-5 theoretical framework of the research. 9

    1-6 research hypotheses. 10

    1-7 conceptual and operational definitions of research variables. 10

    1-8 research area. 12

    Chapter Two: Review of research literature. 13

    The first part: performance. 14

    2-1-1 Introduction. 14

    2-1-2 Description of the concept of performance. 15

    2-1-3 Performance evaluation and measurement. 16

    2-1-4 Performance evaluation process. 18

    2-1-5 performance measurement location. 19

    2-1-6 Objectives of performance evaluation. 20

    2-1-7 Performance measurement and evaluation models. 21

    2-1-7-1 Analytical Hierarchy Model (AHP) method. 22

    2-1-7-2 Balanced evaluation method (BSC). 23

    2-1-7-3 data envelopment analysis (DEA). 27

    2-1-7-4 benchmarking process. 28

    2-1-7-5 AMBITE advanced business implementation tool method)). 30

    2-1-7-6 Baldrich model. 32

    2-1-8 The concept of performance from different perspectives. 32

    2-1-9 The concept of performance in the bank. 39

    The second part: emotional intelligence. 44

    2-2-1 Introduction. 44

    2-2-2 Background of emotional intelligence. 45

    2-2-3 definitions of emotional intelligence. 49

    2-2-4 dimensions of emotional intelligence. 51

    2-2-5 Difference between emotional intelligence and IQ. 54

    2-2-6 Models and theories of emotional intelligence. 54

    2-2-6-1 theories of emotional intelligence. 54

    2-2-6-2 theories of ability. 55

    2-2-6-3 Combined theories. 55

    2-2-7 emotional intelligence models. 55

    2-2-7-1 Mayer and Salovey's ability model (1997). 55

    2-2-7-2 combined model of Golman (1995). 58

    2-2-7-3 Bar-An hybrid model (1997). 59

    2-2-8 emotional intelligence model of Dulvix and Higgs. 63

    2-2-9 Emotional intelligence in organization and management. 64

    2-2-10 Applications of emotional intelligence in the environment. 66

    2-2-11 terms related to emotional intelligence. 67

    2-2-11-1 Multiple intelligences. 67

    2-2-11-2 organizational intelligence. 67

    2-2-11-3 Social intelligence. 68

    2-2-11-4 Moral intelligence. 68

    2-2-11-5 Spiritual intelligence. 69

    2-2-11-6 Cultural intelligence. 69

    2-2-12 Competitive intelligence. 70

    2-2-13 Strengthening emotional intelligence. 70

    2-2-14 Summary of theories of emotional intelligence. 71

    2-2-15 Characteristics of a manager with emotional intelligence. 72

    2-2-16 Relationship between emotional intelligence and performance. 74

    The third part: Research background. 76

    2-3-1 Researches done. 76

    Chapter three: The method of conducting research. 80

    3-1 Introduction.. 81

    3-2 Method of conducting research. 81

    3-3 statistical population. 82

    3-4 sampling method and estimation of sample size. 83

    3-5 methods and tools of information collection. 84

    3-6 Validity and reliability of measurement tools. 86

    3-6-1 Validity of the questionnaire. 86

    3-6-2 Questionnaire reliability. 86

    3-7 statistical methods of data and information analysis. 88

    Chapter Four: Analysis of data and information. 89

    4-1 Introduction.. 90

    4-2 Description of demographic variables of the respondents. 91

    4-2-1 Description of the respondents' age variable. 91

    4-2-2 Description of respondents' gender variable. 92

    4-2-3 variable description of respondents' education level. 93

    4-2-4 variable description of respondents' management history. 94

    4-3 Description of research variables. 95

    4-3-1 Description of emotional intelligence. 95

    4-3-2 Description of self-awareness. 96

    4-3-3 description of self-management. 97

    4-3-4 description of social awareness. 98

    4-3-5 description of relationship management. 99

    4-3-6 Description of performance variable. 100

    4-3-7 Description of performance dimensions. 101

    4-4 Checking the normality of the main research variables. 102

    4-5 test of research hypotheses. 103

    Chapter Five: Conclusion and suggestion. 110

    5-1 Introduction.. 111

    5-2 Descriptive statistics results. 111

    5-2-1 Results of descriptive data analysis. 111

    5-3 Hypothesis test results. 112

    5-4 research proposals. 115

    5-5 suggestions for future research. 117

    5-6 research limitations. 117

    Resources.. 118

    Appendixes..128

     

     

    List of tables

    Table 2-1 Comparison of strategies with and without using modeling. 29

    Table 2-2 Performance evaluation of foreign banks and introduction of operational indicators. 42

    Table 2-3 Emotional intelligence model Daniel Gelman et al. 52

    Table 2-4 of Mayer and Salovey's emotional intelligence model (1997). 57

    Table 5-2 Golman's suggested components for emotional intelligence. 59

    Table 6-2 Bar-An emotional intelligence hybrid model. 60

    Table 3-1 Questionnaire table distributed among bank branches. 84

    Table 2-3 Quantitative attributes and numerical values ??of questionnaire options. 85

    Table 3-3 Contribution of each component and substructure. 85

    Table 3-4 Cronbach's alpha coefficient of research variables. 87

    Table 4-1 Description of the respondents' age variable. 91

    Table 4-2 description of respondents' gender variables. 92

    Table 4-3 variable description of respondents' education level. 93

    Table 4-4 variable description of the management experience of the respondents. 94

    Table 4-5 description of emotional intelligence variable. 95

    Table 4-6 description of self-awareness variable. 96

    Table 4-7 description of self-management variable. 97

    Table 4-8 description of social awareness variable. 98

    Table 4-9 description of relationship management variable. 99

    Table 4-10 description of performance variable. 100

    Table 4-11 description of performance dimensions in 90, 91 and 92. 101

    Table 4-12 Kolmogorov-Smirnov test for research variables. 102

    Table 13-4 Summary of the status of the regression model between emotional intelligence and bank financial performance according to work experience. 103

    Table 4-14 Coefficients of regression models between emotional intelligence and bank financial performance according to work experience. 103

    Table 15-4 Correlation between self-awareness and bank financial performance according to work experience. 104

    Table 4-16 coefficients of regression models between self-awareness and bank financial performance according to work experience. 105

    Table 17-4 Correlation between self-management and bank financial performance according to work history. 105

    Table 4-18 coefficients of regression models between self-management and bank financial performance according to work history. 106

    Table 19-4 Correlation between social awareness and financial performance of the bank according to work history. 106

    Table 4-20 coefficients of regression models between social awareness and financial performance of the bank according to work history. 107

    Table 21-4 Correlation between relationship management and bank financial performance according to work experience. 108

    Table 4-22 Coefficients of regression models between relationship management and bank financial performance according to work history. 108

    . Source:

    Persian sources

    1- Abzari, Mehdi. Ranjbarian, Bahram. Fathi, Saeed. Ghorbani, Hassan, 1388, "The effect of internal marketing on market orientation and organizational performance in the hotel industry", Management Perspective, No. 31, pp. 25-42.

    2- Abunouri, Ismail. Spanalo, Hadi, 1384, "Analysis of the effects of internal organizational factors on the attraction of bank deposits", Daneshvar, No. 14, pp. 1-15.                                                                         

    3- Akhwan, Peyman, 1383, Modeling, Tadbir Monthly, Farvardin, No. 143

    4- Armstrong, Michael, 1385, "Key strategic performance management and a practical guide", translated by: Saeed Safari, Jihad University Press.

    5- Azar, Adel and Motamani, Alireza, 1383, measuring productivity in companies Production by DEA model, bi-monthly scientific-research journal of Shahid University, December, year 11, number 8, page 44.

    6-Azer, Adel. Momeni, Mansour. 1384, statistics and its application in management, Semat Publications, Tehran, 8th edition, volume 2.

    7- Astvar, Soghara and Amirzadeh Khatouni, Mandana, 1387, "Investigating the relationship between emotional intelligence, job satisfaction and organizational commitment among employees of private sector factories in Shiraz city", New Approaches in Educational Management Quarterly, Year 1, Number 2.

    8- Aghayar and Sharif Avaradi, Parviz, 2015, "Emotional intelligence, application of emotional intelligence in the field of emotion", Sepahan Isfahan Publications.

    9- Akbarzadeh, Nasreen. (1383), emotional intelligence (perspective of Salvi et al.), first edition, Farabi Publications.

    10-Alwani, Mehdi, Dede Beigi, Mina, 1386, "Effect of emotional intelligence training on service quality of Bank Mellat branches", Iran Management Sciences Quarterly, second year, number 7, p.29-1.

    11. Babaei, Mohammad Ali., "Effect of emotional intelligence on effectiveness Managers", 1384, Tadbir, No. 166, pp. 36-39.

    12- Babaei, Mohammad Ali

The relationship between emotional intelligence of managers and financial performance of bank branches in Gilan province