linking transformational leadership and emotional

1 Journal of International Business and Management (JIBM)

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JIBM Journal of International Business and Management

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Linking Transformational Leadership and Emotional Intelligence in Banking Sector of Pakistan

Almaas Pervez1 Sara Sabir*2

TMUC, Islamabad, Pakistan University of Education, Multan, Pakistan

Abstract

This study aims to explain the extent of relationship between emotional intelligence and transformational leadership in the banking sector of Pakistan. Scholars and researchers assume that transformational leadership must have some grounds in higher levels of Emotional Intelligence. In this research, the four recognized gears of Transformational Leadership i.e. idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration have been put together with Emotional Intelligence scores of managers, keeping the role of gender and age as moderating variables which has been neglected in the previous researches. Using primary data collected from survey research method with convenience sampling, this study is a quantitative study with a sample size of 200 participants from public sector banks in Pakistan. The results showed that the two constructs of transformational leadership and emotional intelligence are positively linked to each other. Moreover, age and gender were found to be insignificant in this relationship. Keywords: Transformational leadership, emotional intelligence, age, gender, banking.

Introduction Search for quality enhancement in performance has highlighted the unambiguous role of intangible confounders like leadership and strategic employment of emotional intelligence in transforming the shape and direction of any organization. Researchers attribute transformational leadership to be firmly grounded in exploring higher levels of emotional intelligence from all avenues (Matjie, 2018).

In Pakistan, very little attention is paid to the importance of development of leadership skills in managers (Khan et al., 2014; Ryan & Tipu, 2012) especially in the public sector; public sector banks seem to be the most orthodox in the recruitment and selection procedures of its human resource (Ahmad & Qureshi, 2013). Due to the absence of right tools and techniques to be used for the recruitment and training of managers, the human resource department in these banks has failed to provide a good quality human resource to the organization (Ahmad & Qureshi, 2013). And eventually, lack of essential skills by the managers leads to an incompetent team.

State bank of Pakistan is one public sector organization which took this problem seriously and went through an entire organizational transformation process focusing primarily on the human

RPA Journals

Journal of International Business and Management 2(1): 1-16 (2019) Print ISSN: 2616-5163 Online ISSN: 2616-4655

*Corresponding author: Sara Sabir Email: [email protected] Submission Date: 12 January 2019 Acceptance Date: 20 February 2019



resource. The new policies regarding the selection, recruitment and training criteria of the managerial level leadership resulted in a massive positive change in the overall working atmosphere and motivation of the employees. The example of employing this attitude for managerial capacity building at the State Bank of Pakistan creates a need to extend this research to other public sector banks of Pakistan (Ahmad & Qureshi, 2013).

This study explains the relationship between emotional intelligence and transformational leadership in the banking sector of Pakistan. In this research, the four recognized gears of transformational leadership i.e. idealized influence; inspirational motivation, intellectual stimulation, and individualized consideration have been put together with the self-reported indicators of emotional intelligence (i.e. self-confidence, self-awareness, self-motivation and empathy). Gender and age are the two confounding bias factors in the transformation of any organization which have been identified as pivotal in this respect. The banking sector has been specifically chosen as study population as it is typically identified as a high-pressure environment employing both genders and various ages categorized into levels of seniority where the major indicator of performance is a financial number i.e. the financial targets of deposits given by the top management. It can easily be assumed that human emotions are likely to be ignored in an environment like this and Leadership of the organization has an important part to play in it.

Chan et al., (2018) and Matjie (2018) state that the domains of transformational leadership and emotional intelligence need to be explored. There is an ongoing debate regarding the relationship between emotional intelligence and transformational leadership (Kim, 2018). Sayeed & Shanker (2009), argue that research in emotional intelligence is at a relatively early stage. Researchers have not been able to reach a consensus regarding the conceptualization of emotional intelligence constructs (Zeidner, Roberts, & Matthews, 2008). Weinberger (2004) calls for a wider range of empirical research in this field.

This study aims to be a step towards the research advancements in the field of emotional intelligence, which is currently at the primordial stage all over the world and is rarely addressed in Pakistan. First, it will be providing support to the existing theories regarding the relationship between emotional intelligence and transformational leadership. Second, it shall also emphasize the importance of certain personality traits that may lead to the capability formation in a good leader/manager. It will also help in the extension of the reviewed literature in many ways for future researchers. The theoretical implication of the present study has been derived from the work of previous researchers on emotional intelligence and transformational leadership (Gostling, 2006; Webb, 2004; Burkham 2010; Whitman, 2009).

Several researchers have carried out empirical work in the field of leadership but emotional intelligence still remains overlooked and underexplored in Pakistan (Ryan and Tipu, 2012). Majority of the researches conducted in Pakistan e.g. (Rabia & Anis-ul-haq,2011) and (Fatima et al,2011) revolve around the private sector due to easy availability of data but this research aims to highlight the relationship between transformational leadership and emotional intelligence in public sector banking organizations as a fundamental for provision of quality human resource. Also, the moderating variable picked in this research has been rarely considered by the past researchers leaving a void in their conclusions. This type of research has almost never been carried out before in the above-mentioned context. Therefore, it can prove to be a genuine contribution to the literature available on the subject of emotional intelligence and transformational leadership in the context of Pakistan.

The practical implication of this research is to highlight the importance of this relationship for the management of an organization in daily routine matters. The respondents of this study were directly involved in the banking industry and were either the managers themselves or the subordinates. This study shows the actual picture of what actually the scenario is in the banking industry of Pakistan. The relationship between emotional intelligence and transformational leadership could help the organizations in the development of selection and training criteria for the managerial positions. This study provides new directions for HR directors to realize the significant importance of Emotional Intelligence, transformational leadership and its contingent role on



organizational development and better human resource allocation. As the identification of a transformational leader and an emotionally intelligent person will open new avenues for the development of several selections and hiring techniques for different organizations.

The main objectives of this study are to identify the relationship between emotional intelligence and transformational leadership and to identify the effect of gender as a moderating variable on the relationship between emotional intelligence and transformational leadership. In light of the stated research objectives, the following research questions have been identified.

1. To what extent emotional intelligence is related to transformational leadership in public sector banks of Pakistan?

2. Does gender and age play an important role in the relationship of Emotional Intelligence and transformational leadership?

In the following section, the conceptual model, literature review and hypotheses development are presented. Subsequently, research methods, model assessment and test hypotheses are laid down, followed by the discussion of the findings. Finally, conclusion and policy implications are noted at the end.

Literature Review

Emotional Intelligence Emotional intelligence is considered to be one of the most important personality traits in a

leader for a smooth relationship with his/her subordinates, which resultantly creates a better working environment and superior organizational performance. The evolution of emotional intelligence concept can be drawn back to Thorndike’s (1920) discovery of social intelligence. Thorndike’s explains the idea of social intelligence as the capability to know and manage people. Salovey and Mayer (2007) categorize emotional intelligence as a part of social intelligence which entails the “ability to monitor one’s own and others’ feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions” (Salovey and Mayer, 2007. p. 5). Till now, three recognized models of emotional intelligence have evolved from the researches. These are Goleman’s competency model presented in 1995, Salovey and Mayer’s (2000) ability model and Bar-On’s trait or mixed model in 2000. These models have now been divided into only two groups, coupling the competency model and the mixed model.

Salovey and Mayer (2000) describe the idea of emotional intelligence as a form of social intelligence, distinguishable from common intelligence. According to them, emotional intelligence is the capacity to scrutinize emotions within one’s self and in others, to differentiate between them and to make use of the information to conduct one’s thought process and actions (Salovey & Mayer, 1990).

Later in year 1997 this model was extended and defines emotional intelligence as an individual’s ability to perceive correctly, evaluate, and convey emotions; the talent to access and create feelings when they assist thought formation; the ability to comprehend emotions and emotional knowledge; and the capability to control emotions for promotion of emotional and intellectual growth.

Goleman (1995) has gained popularity due to his overstatement of the argument that emotional intelligence is more important than intelligence quotient in calculation of an individual’s success. Mayer et al, (2004) explain that Goleman’s arguments formed a base for a series of admired articles in magazines and newspapers further perpetuating the popularity of an unproven claim. Although emotional intelligence has established to be an important predictor of good performance, Goleman’s basic claim is still considered as unconfirmed, overstated and misread. Goleman later himself, clarified the misunderstanding that 80% of intelligence could be accredited to emotional intelligence. Goleman’s competency model of emotional intelligence consists of four main aspects: self-awareness, self-management, social awareness, and social skills.



Bar-On’s trait model (2000), of emotional intelligence is comparatively similar to Goleman’s model than the ability model. McEnroe & Groves (2006) explain that this model discusses attitudes, related with intrapersonal adaptation, and stress management, and other mood associated behaviors. Goleman’s and Bar-On’s models depend on self-report measures or 360 degree surveys as a means of assessment of emotional intelligence.

Bar On (1997), Malouff, Schutte, Haggerty, Hall, Cooper, Golden and Dornheim (1998), Goleman (Boyatzis et al. 2000), Mayer et al. (2000), Dulewicz & Higgs (2000), Palmer & Stough (2001), Palmer (2003),and several others have developed tests for measuring emotional intelligence. There are five instruments which are commonly used for measuring emotional intelligence MSCEIT – Mayer-Salovey-Caruso Emotional Intelligence Test (2002), Bar-On EQ-i – Emotional Quotient Inventory, (2000), ECI - Emotional Competence Inventory (2003), SREIT – Self Report Emotional Intelligence Test (1998) and Genos EI Assessment Scale (2005). Researchers argue that both the models have their own significance and limitations in the field of emotional intelligence. However, the dimensions of emotional intelligence and the self reported measures adopted for estimation of emotional intelligence in this study have been taken from mixed models of emotional intelligence.

The emotional intelligence has been reported to be positively correlated with many positive employee outcomes. For instance, Seyal and Afzaal (2013) researched organizational commitment and emotional intelligence of the academic staff of universities and found strong predictability. Also, Xiao-Yu Liu and Jun Liu (2013) investigated the cross-level effect of emotional intelligence with emotional climate on job satisfaction of teams it was proved that leader emotional intelligence had strong effect on member job satisfaction as team emotional climate is controlled for or becomes negative. Veronika Koubova, Aaron A. Buchko, (2013) drew a conceptual link between life-work balance and emotional intelligence (EI). The results of this study viewed EI as significant for developing an individual's life-work balance. Galit Meisler, (2014) and Shamsuddin & Rahman (2014) studied the effect of EI on job satisfaction, performance and commitment in Iran and the results showed that these variables are positively correlated with each other. A similar kind of study was conducted by Khan et al., (2013) showed that the four elements of EI: self awareness, self management, social awareness and relationship management are positive linked to employee performance. Galdona et al., (2018) found positive links between emotional intelligence and well being of an employee. Biswas and Rehman (2017) and Hunitie (2016) found positive correlations between emotional intelligence and all dimensions of transformative leadership.

Transformational Leadership Managers or leaders who can maintain good relations with their peers and subordinates with the help of creating a common vision and inspiring followers to transcend their own interest to pursue higher order goals are identified as transformational leaders. García et al, (2011) portray transformational leadership as “the style of leadership that heightens consciousness of collective interest among the organization's members and helps them to achieve their collective goals” (García et al., 2011; Islam, Jantan, Rahman, Hamind, & Hoque, 2018). Yukl (1999) describes that the theories related to transformational leadership mainly focus on the value of emotions, contrasting other leadership theories. Almost all the theories of transformational leadership emphasize on emotions, values, and the importance of leadership oriented to encouraging creativity in employees (García et al., 2008). Transformational leadership is considered to be capable of creating emotional ties with its followers and inspires higher values. Bass (1999) explain that such leadership conveys the significance of having a shared mission and infusing a sense of purpose, direction and meaning into the followers’ labor. Transformational leadership has also been linked with better organizational output over and again by the researchers. Shin et al. (2003) finds that transformational leadership positively relates to follower creativity, followers’ conservation, and intrinsic motivation. Transformational leadership boosts intrinsic motivation and provides intellectual stimulation; the followers are encouraged to challenge the status quo and the old ways of doing things. Moreover, when the employees are motivated, they



like to share their knowledge with each other (Islam, Jantan, Khan, Rahman, & Monshi, 2018) and intellectual ability is improved (Tse, To, & Chiu, 2018). Quite a few models of transformational leadership have been given, but three main models have been vastly accepted in the leadership field and that is of transformational leadership (Avolio & Bass, 1993). Transformational leadership may not be a representative of all types of leadership but it offers a model with lucid theoretical relationships with emotional intelligence. Therefore, this seems to be the best choice for consideration in the present context. Bass and Avolio’s (1993) transformational model at the moment is the most extensively used model for transformational leadership and is well supported in literature. The first dimension of Bass and Avolio’s transformational leadership model is idealized influence. Most models of transformational leadership lay charisma into this factor. Bass (2000) exclusively labels idealized influence as ‘Charismatic Leadership’. Whatever the word maybe, the factor indicates the followers trust and emotionally relate to the leader as an outcome of the leader’s behavior (Sosik & Megerian, 1999). The second factor is inspirational motivation. Shin, Shung, Zhou, and Jing (2003) relate inspirational motivation to the leader providing his/her followers with emotional or other tangible resources that can lead to the achievement of the leader’s ideals. Intellectual stimulation is the third component of transformational leadership and it explains the extent to which the leader motivates his supporters to critically analyze their current knowledge, beliefs and actions. Finally, the last component of this model is individualized consideration. This component explains the leader’s ability to assign tasks to his/her followers that are appropriate for their skill level Emotional Intelligence and Transformational Leadership Many studies show that these transformational leaders have many traits in common, among which emotional intelligence forms an important quotient. Leadership is a construct that has often been found being discussed in concurrence with emotional intelligence (Ashkanasy & Tse, 2000). Management of emotions in one’s self and in others is a vital constituent of leadership. Many researchers have laid importance on the proper use of emotions in order to be a successful leader. Pescosolido, (2000) argues that leaders use emotions for securing cooperation within groups, to motivate groups and to improve communication. Additionally, Caruso, Mayer and Salovey (2000) point out that a leader must be conscious of the emotional reactions expected from their followers. Without such awareness, the leader is likely to face difficulty knowing when or whether his orders are followed. Hence, one particular field of leadership that seems to hold promise for associations with emotional intelligence is transformational leadership.

Analysis by Sivanathan and Fekken (2002) suggest that the subordinates perceived managers with high emotional intelligence as more efficient and transformational. They found that emotional intelligence was definitely linked to transformational leadership behaviors. Hence, they conclude that transformational leadership behaviors are directly proportional to emotional intelligence. Barling et al. (2000) suggest that emotional intelligence is linked with the three sub factors of transformational leadership (i.e., idealized influence, inspirational motivation, and individualized consideration) and the contingent reward.

Researches based on competency and mixed model of emotional intelligence (Barling, Slater & Keloway, 2000; Cartwright & Pappas, 2008; Gardner & Stough, 2002; Palmer, Walls, Burgess, & Stough, 2001; Sosik & Megerian, 1999) have given in mixed outcomes. Similarly, diverse results and explanations have documented in studies based on the relationship between transformational leadership and the ability model of emotional intelligence (Brown & Moshavi, 2005; Cartwright & Pappas, 2008; Hayashi &Ewert, 2006; Jin, Seo, & Shapiro 2008; Leban & Zulauf, 2004; Mandell & Pherwani, 2003; Weinberger, 2004). This strengthens the need for future research in this field. Leban, Zulauf (2004) and Jin et al., 2008 have found a linkage between transformational leadership and emotional intelligence. However, few studies like Weinberger’s (2004), the relation between emotional intelligence and transformational leadership could not be recognized.



Brown (2005), Mayer et al. (2004a), Garner & Stough (2001), Cavallo (2004) ,Hay Group (1999a), Dearlove (2003), Power (2004), Cooper and Sawaf (1997), Chastukhina, (2002), Barling, Slater and Kelloway (2000), Dearborn (2002), Elias, Arnold and Hussey (2003), Dyer (2001), Mandell and Pherwani (2003), Webb (2004),Srivastva and Bharamanaikar (2004), Punia (2005), Rosete and Ciarrochi (2005), Alon and Higgins (2005), Rego, Sousa, Cunha, Correia, and Saur (2007), Singh (2007), Bal Subramanian, Ghatala and Nair (2008), Boyatzis and Ratti (2009), Bohannon Burkham (2010), Walter et al, (2011),Tsai Ten et al, (2011), Foster & Roche (2014), Mathew & Gupta (2015), Alexander et al., (2016), Alston, Dastoor & Loy (2016), Kim (2018), Chan et al., (2018) and Matjie (2018) have conducted research on the relationship of transformational leadership ability and emotional intelligence and have found positive link between them.

Role of Gender Swanepoel et al (2003) define gender as a “demographic factor that may influence human resources management in organizations and which can lead to similar problems of discrimination in the workplace”. A few studies have investigated the role gender plays in emotional intelligence, with findings that women typically outscore men on the MSCEIT (Mayer, Caruso, &Salovey, 1999).

In a study investigating the relationship between transformational leadership and emotional intelligence, while Mandell and Pherwani (2003) find a significant difference between male and female emotional intelligence scores, they did not find significant differences in male and female transformational leadership scores.

The study, carried out by Harrod and Scheer (2005) on 200 individuals of age 16-19, showed a noteworthy differentiation in the scores of both the genders on emotional intelligence with females showing higher EI level. The research of Katyal and Awasthi (2005) on adults of Chandighar, found the females to have higher EI scores, but, the difference was not large ernough to be conclusive but only an indicative of the trend. Adeyemo (2008) shows an extensively higher emotional intelligence in female workers in various organizations than their male equivalent. Other studies exposed gender differences in a few characteristics of emotional intelligence (Reiff, et. al., 2001; Petrides and Furnham, 2000; Sutarso, et. al., 1996; etc.). It might be anticipated that men and women may be at variance in the extent to which they reveal various gears of Emotional Intelligence. A few studies have investigated the role played by gender in emotional intelligence, with findings that women typically outscore men on the MSCEIT (Mayer, Caruso, & Salovey, 1999; Mayer & Geher, 1996). In a research, regarding the relationship between transformational leadership and emotional intelligence, Shamsuddin & Rahman (2014) and Mandell and Pherwani (2003) shows an important relationship between the two constructs. While, they did find a major difference between male and female emotional intelligence scores, they did not find a notable difference in male and female transformational leadership scores. Eagley, Johannesen-Schmidt, & Engen (2003) demonstrated that women showed more transformational leadership behavior than men. Also, Carless (1998), studied the opinions of leaders as evaluated by their mangers and their subordinates. The superior evaluation showed that females were more transformational, on the other hand the subordinate evaluations showed no difference between males and females.

The research work of Shamsuddin & Rahman (2014) to examine the relationship between EI and employee outcomes proved that a significant correlation existed between the two. Further, this study revealed that gender of the employee did not affect this relationship and that there are significant differences in the EI scores of men and women in some of E.I factors. For example, women scored higher than men in the Interpersonal and relationship domain of Emotional Intelligence. Role of Age Goleman (1995) suggests that the level of emotional intelligence is not inherited genetically; neither has it developed in early childhood. Unlike regular intelligence that can change a little in



teens, emotional intelligence is largely learned and continues to increase with time as we learn with our experiences. Mayer, Caruso, and Salovey (1999) assert that for considering emotional intelligence as a standard intelligence, it is supposed to increase with age. But so far, no literature support authoritatively says that emotional intelligence and age are inter related. A study carried out by Day and Carroll (2004), experience, has been positively linked with three out of four emotional intelligence dimensions, as calculated by the Mayer-Salovey-Caruso Emotional Intelligence Test. Van Rooy, Alonso, and Viswesvaran (2005) examines the connection existing between emotional intelligence and age with the help of 33-item Emotional Intelligence Scale. There has been found a significant correlation between emotional intelligence and age. Rode, Mooney, Arthaud-Day, Near, Baldwin, Rubin, R, Bommer, W. (2007) argue that individuals having a higher level of emotional intelligence have a direct positive relation with emotions to sustain the vigor required for a good performance over different periods of time and to readdress harmful emotions in fruitful behavior. In spite of this prediction, emotional intelligence scores of managers is not considerably related to age, but they have found an interface of emotional intelligence with meticulousness a unique variance in management traits.

Many studies show that age or experience plays an important role in this relationship. Mayer, Caruso, and Salovey (1999) e Day and Carroll (2004), age, was positively correlated with three of the four emotional intelligence scales, as calculated by the Mayer-Salovey-Caruso Emotional Intelligence Test. Van Rooy, Alonso, and Viswesvaran (2005) studied the correlation between emotional intelligence and age through 33-item Emotional intelligence Scale. Also, Galdona et al., (2018)’s study indicated that age has a significant impact on emotional intelligence, older people possessed high levels of EI. Ashraf et al., (2014) also conducted a study to examine the influence of age and experience of employee with EI and association between EI and positive employee outcomes. The findings of this study proved that both age and experience considerably influenced their Emotional Intelligence.

This study uses the most common dimensions of transformational leadership from the model of Bass and Avolio (1998) and is also inspired by the work of other researchers like Goleman, D. (1995) Bar On (2000) and various other researchers such as Gosling,(2006),Webb,(2006) and Hebert,(2011). It suggests that an emotionally intelligent individual will also prove to be a transformational leader, whereas this relationship is moderated by gender and age. The theoretical framework proposed emotional intelligence as independent variable, transformational leadership as dependent variable and age & gender as the moderating variable in the context of banking sector of Pakistan. Based on the above literature, the following hypotheses have been formulated.

H1: Emotional intelligence is positively related to idealized influence in the banking sector of Pakistan H2: Emotional intelligence is positively related to inspirational motivation in the banking sector of Pakistan H3: Emotional intelligence is positively related to intellectual stimulation in the banking sector of Pakistan H4: Emotional intelligence is positively related to individualized consideration in the banking sector of Pakistan H5: Gender will have a moderating effect on the relationship between emotional intelligence and transformational leadership in the banking sector of Pakistan. H6: Age will have a moderating effect on the relationship between emotional intelligence and transformational leadership in the banking sector of Pakistan.



Figure 1.1: The Schematic Diagram of the Developed Theoretical Framework

Adopted and Modified from Gostling (2006)

Research Methodology

The present study is a descriptive research attempting to investigate the relationship between emotional intelligence and transformational leadership, keeping gender and age as the moderator in the banking sector of Pakistan. It employed quantitative method to emphasize on careful empirical observations for deduction of hypothesis and further testing it for theoretical validation. The target population is the managers of public sector banking officials in different cities of Pakistan The study is conducted mainly in Karachi, Islamabad and Abbotabad by convenience sampling. In line with the formula of sample size selection suggested by Emroy (1980), the sample size was 200 participants from different branches of state bank of Pakistan as it is the largest public sector bank in Pakistan absorbing human resources from several other banks and also some other public sector banks.

A structured questionnaire was used in a survey to collect data on emotional Intelligence and transformational leadership. The information regarding the moderating variables i.e. gender and age was also acquired from the target population. Although the sample size considered is 200, therefore, a total of 232 research instruments were distributed to the respondent 116 to the Managers and 116 to the respondents, in order to keep the margin of rejection of invalid questionnaires. The distribution was carried out through emails, by hand and through personal contacts. It was made sure that emotional intelligence questionnaire was circulated among the management of the banks whereas the MLQ (questionnaire for measurement of transformational leadership) was given to their subordinates. This cross sectional study was completed within a time frame of one year and four months



Instruments The following Instruments are used for measurement of the variables. Emotional intelligence In order to measure emotional intelligence, all participants completed the 33 item Schutte Self-Report Inventory of emotional intelligence (Schutte et al., 1998). This instrument measures overall emotional intelligence, and the components of perception of emotions in the self and others, regulation of emotions in the self and others, and utilization of emotions to facilitate thought. This uses a five point Likert response scale. Several studies have reported Cronbach’s alpha to be 0.90 for the scale. Transformational leadership In order to approximate transformational leadership ability, one subordinate of each leader is required to complete a revised version of the Multifactor Leadership Questionnaire (MLQ-5X) (Bass, 1988). The MLQ 5X measures transformational leadership. Each component of transformational leadership is assessed with the help of four questions using Likert-style five point scale. Validation studies on the scale have reported Cronbach’s alpha to be as follows for each of the subscales: idealized influence (α = 0.75), inspirational motivation (α= 0.72), intellectual stimulation (α = 0.72) and individualized consideration (α = 0.64) (Sosik & Godshalk, 2000). Unit of analysis The unit of analysis is the managers of different public sector banks for evaluation of emotional intelligence and their subordinates for the evaluation of the manager’s transformational leadership capability.

Results and Analysis Before initiating the data collection process, the research instrument was carefully selected and subjected to review by two senior and experienced researchers. The instrument was examined for non responses, any variations in the responses, correction in application of scales and seriousness in attitude of the respondents in filling of the questionnaires. Resultantly, among the total of 232 respondents, 10 were discarded due to lack of serious approach and 22 respondents did not respond properly. Therefore, the sample size of 200 respondents was considered eventually. Descriptive Statistics Table 1 shown below presents the descriptive statistics of the main variables of interest across the sample specification.

Table 1

N Mean Std. Deviation Intellectual Stimulation 200 3.4583 .99941 Idealized Influence 200 3.0167 .84655 Emotional Intelligence 200 3.0830 .73945 Inspirational Motivation 200 3.5533 .73929 Individualized Consideration 200 3.1500 .82110 Valid N (list wise) 200 The analysis of the descriptive statistics presented in Table 1 reveals that the number of valid observations for all the variables is 200 with no missing values. The mean across the observations is 1.59 for age, which suggests that the average age of the respondents was more than 35 years. The mean value of 1.32 across the Gender suggests that the sample was dominated by the male



respondents. Moreover, the arithmetic mean across the variables intellectual stimulation, idealized influence, inspirational motivation, and individualized consideration remained more than 3 on average. This indicates that the respondents on average either agreed or remained somewhat neutral on the perceptual questions related to the different items of transformational leadership. Similarly, the mean statistic of 3.08 across the Emotional Intelligence also suggest that the average respondents agreed or remained neutral on the perceptual questions related to the various items of independent variable. Finally, it is evident from the statistics presented in the last column that the dispersion across the data sets around the center of distribution remained higher for the items on transformational leadership compared to the emotional intelligence.

In the sample, 68 percent of the respondents were male compared to the 32 percent female respondents. 49 percent of the respondents were between the age of 28 to 35 years. Similarly, 43.5 percent of the sample consisted of the respondents who were between the age of 36 to 45 years on average. It is logical to deduce that majority of the respondents of the present study were at the initial positions of their banking profession. Inferential Statistics Four multiple regressions models, linear in nature, were estimated to determine the influence of the average assessment of emotional intelligence on the transformational leadership. The four approximations of the transformational leadership i.e., idealized influence; inspirational motivation, intellectual stimulation, and individualized consideration are respectively employed as the dependent variables. Idealized Influence as DV (First hypothesis) Table 2 given below presents the results of the first regression model in which idealized influence is incorporated as the dependent variable. The coefficient of determination given in the model summary show that age, gender, and emotional intelligence explain about 31% (30.5) of the total variation in the dependent variable i.e. idealized influence. The high values of F statistic suggest the overall significance of the model which is also confirmed by the highly significant value of F statistic in the last column.

The positive value of the coefficient ssuggests that the slope of the regression line is positive in the first estimated model. The values of standard co efficient in beta column show that emotional intelligence and gender are statistically significant but age is not statistically significant at 5% level of significance. The results are also confirmed by standard errors and corresponding “t” values of the unstanderdized coefficient. This means hypothesis 1 is sustained.

Table 2 Coefficients

Dependent Variable: Idealized Influence

Model Unstandardized Coefficients

Standardized Coefficients

T Sig. B Std. Error Beta (Constant) 1.158 .241 4.795 .000

Emotional Intelligence .661 .075 .577 8.788 .000

Gender -.301 .119 -.166 -2.530 .012

Age .139 .082 .103 1.695 .092

R square .305

F- value 28.732 .000

Inspirational Motivation as DV (Second hypothesis) Table 3 shows that age, gender, and emotional intelligence explain about 46% (45.5) of the total variation in the dependent variable i.e. inspirational motivation. The high values of F statistic in table suggest the overall significance of the model which is also confirmed by the significant value



of F-statistic (0.000) in the last column. It is also evident that the specification of the model is robust to explain variation in idealized influence.

The values of standardized coefficients in Table 3 show that emotional intelligence and gender are statistically significant but age is not statistically significant at 5% level of significance. This is also confirmed by standard errors and corresponding “t” values of the unstanderdized coefficient. This means that Hypothesis 2 is sustained.


Inspirational Motivation as Dependent Variable

Model

Unstandardized Coefficients Standardized Coefficients

t Sig. B Std. Error Beta

(Constant) 1.414 .187 7.572 .000

Emotional Intelligence .589 .058 .589 10.123 .000 Gender .271 .092 .171 2.943 .004

Age -.021 .063 -.018 -.332 .740

R square .455

F- value 54.543 .000

Intellectual Stimulation as DV (Third hypothesis) The coefficient of determination in the model summary below show that age, gender, and emotional intelligence explain about 56% (56.2) of the total variation in the dependent variable i.e. intellectual stimulation. Table 4 presents the findings of the analysis of variance with respect to the third regression model. The high values of F statistic suggest the overall significance of the model which is also confirmed by the significance of F-statistic (0.000) in the last column. It is also evident that the model is robust to explain variation in intellectual stimulation.

The values of standardized coefficient show that emotional intelligence is statistically significant but age and gender are not statistically significant at 5% level of significance. These results are also confirmed by standard errors and corresponding “t” values of unstanderdized coefficient. This means that hypothesis 3 is partially sustained as gender and age seem to have no influence on the dependent variable i.e intellectual stimulation.


Intellectual Stimulation as Dependent Variable



t Sig. B Std. Error Beta (Constant) .320 .226 1.412 .159

Emotional Intelligence 1.030 .070 .762 14.610 .000 Gender -.120 .112 -.056 -1.077 .283 Age .077 .077 .048 1.005 .316

R square .562 F- value 83.732 .000

Individualized Consideration as DV (Fourth hypothesis)



The coefficient of determination in the model summary show that age, gender, and emotional intelligence explain about 26% of the total variation in the dependent variable i.e. inspirational motivation. The high values of F statistic in table suggest the overall significance of the model which is also confirmed by the significant value of F-statistic (0.000) in the last column. It is, therefore, obvious that the estimated model is robust to explain variation in dependent variable. The values of standard co efficient in Table show that emotional intelligence is statistically significant at 5% level of significance. The results are also confirmed by standard errors and corresponding “t” values of unstandardized co efficient. This means hypothesis 4 is sustained as Gender like age seems to have no or very little influence on dependent variable.


Individualized Consideration as Dependent Variable



t Sig. B Std. Error Beta (Constant) 1.686 .250 6.733 .000

Emotional Intelligence .498 .078 .448 6.387 .000 Gender .049 .123 .028 .394 .694 Age -.085 .085 -.065 -1.001 .318

R square .206 F- value 16.982 .000 Fifth and sixth hypothesis H5, which was related to the moderating effect of gender on the relationship between emotional intelligence and transformational leadership, has not been fully supported. Similarly, H6 has also been rejected due to the fact that the moderating variable of age bears no significant impact on the relationship between emotional intelligence and transformational leadership. Hence it can be safely concluded that the role of gender and age as moderators is insignificant on the relationship between emotional intelligence and transformational leadership

Research Limitation and Future Direction

Like all studies, this research also suffered from a few limitations. The first limitation of the study was concerning the respondents’ biases. The respondents were given assured that the information shared will not be leaked out in any way. But keeping the idealistic approach aside, there could be a possibility of personal insecurities when it comes to giving an opinion about the boss.

Another limitation is the personal bias that can cause an unreliable response by the managers themselves in the form of over estimation of their own emotional ability. The final limitation is the financial and the time constraints due to which the research could not b conducted on a larger scale. Karachi being the hub of banking head offices and other industry was a good choice for the research and same stands for Islamabad as it is the capital of the country.

The present study offers some promising avenues for future researchers and serves as a strong base for all those scholars and researchers who are interested in the field of emotional intelligence and transformational leadership. Utilization of the database of emotional intelligence and transformational leadership score of managers in this sample in the banking sector of Pakistan can easily be made by future researchers in several ways. Future researchers can evaluate the degree to which an increase in emotional intelligence enables behavioural change with the help of testing before and after conduction of training programs. Use of MSCEIT for measurement of emotional intelligence score can also open up new avenues and results. Examination of the relationship between leader behaviour and emotional intelligence for identification of characteristics that encourage emotional leadership for improved organization effectiveness and firm performance, can also be a new direction for future researchers



Future research can be carried out by establishing and enhancing psychometric emotional intelligence testing and classification and interpretation of scores using different techniques, it is likely to lead to enhanced individual emotional intelligence testing, its development and identification of behaviour that can predict imperative outcomes in the organizational workplace.

Conclusion All the analysis of the findings given above shows that there exists a strong relationship between transformational leadership and emotional intelligence. Pakistan is one of those countries, where there still exists a huge room for improvement with regards to significance of emotional intelligence. A sincere effort is needed to enhance and incorporate new and improved human resource practices. Giving due attention to the new field of emotional intelligence is likely to produce better outcomes regarding the productivity of the organizational level and better development on the individual level.

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