The Relationship between Emotional Intelligence, Transformational Leadership and Organizational Culture Jocelyn Lee Ker Sin 1 Center

of Southern New Hampshire University (SNHU) Of Help College of Arts and Technology, Kuala Lumpur, Malaysia Email: jobozxx@yahoo.com Rashad Yazdanifard 2 Center of Southern New Hampshire University (SNHU) Of Help College of Arts and Technology, Kuala Lumpur, Malaysia Email: rashadyazdanifard@yahoo.com

Abstract The importance of emotional intelligence in the organizations has emerged in recent years. The effectiveness of an organization has been brought into another level whenever emotional intelligence was considered as an important factor. As leaders are the main figure in organizations, the leadership styles and the level of emotional intelligence will surely influence the organizations, especially in the area of culture. Since transformational leadership is viewed as an effective and positive leadership behavior in encouraging and motivating the followers towards a common pursuit of an organizations goals, transformational leaders with emotional intelligence would be an added advantage for the organizations to pave the way for the development of organizational culture that stresses on the importance of emotional intelligence and transformational qualities. Hence, this paper addresses this issue and presents a comprehensive literature review in order to solidify and explain the relationship between emotional intelligence and transformational leadership and their effect on organizational culture.

Keywords : Emotional Intelligence, Transformational Leadership and Organizational Culture 1. Introduction In the business world, many organizations view their people as the greatest asset. Organizations recognize that technology or tools alone will not enable them to progress, but it is the employees ability and performance that can make a large impact (Butler & Chinowsky, 2006). In recent years, many workplaces have stressed on the importance of emotional intelligence (Lindebaum & Cartwright, 2010). Many authors indicate that emotional skills are needed for the utility of organizations, for

instance, sensitivity towards others, empathy, and emotional regulation (Goleman, 1998; Gabriel and Griffiths, 2002). Leaders emotional skills are important due to the fact that leaders are the main pillars in the organizations that play the role in communicating the companys vision to their subordinates and make sure that the vision is being fulfilled (Alon & Higgins, 2005). This means that the characteristics of the leaders are important in order to shape a culture that promotes realization of a companys goals and objectives. Although there are many leadership theories available, the transformational leadership theory was chosen in this study because many researches on the topic have been conducted in the past 20 years (Bass, 1985). Besides that, extensive research has also shown that transformational leaders who exhibit positive leadership behaviours accomplish better employee performance, effort, satisfaction, and organizational effectiveness (Lowe, Kroek, &

Sivasubramaniam, 1996). Transformational leaders help the subordinates to grow and develop by responding to their individual needs, empowering them and aligning the objectives and goals of the individual, the leader, the group and the larger organization (Bass & Riggio, 2006). Both emotional intelligence and

transformational leadership are emotion-laden constructs (George, 2000), and emotional intelligence has been suggested as the foundational theory for transformational leadership (Brown and Moshavi, 2005). Emotional intelligence has been considered to contribute to certain extend to effective leadership on specific competencies, namely generating and maintaining positive moods in subordinates and establishing and maintaining a meaningful identity for an organization (George, 2000). Many suggest that emotional Intelligence could be one of the factors that influence a leaders behavior and impact the rest of the organization, including the organizational culture (Harrison & Clough, 2006). Thus, this article explores the

relationship between emotional intelligence and transformational leadership and their effect on organizational culture. 2. Methodology In this study, the relationship between emotional intelligence and transformational leadership and their effect on organizational culture is described and studied. The method used to conduct this research is descriptive-analytic method. The research strategy is literature review by using secondary data. To collect the literature of this research, library and databases was utilized. International journals were collected through well-recognized international databases such as the Emerald, Science Direct, Proquest, Ebsco, Springerlink and JSTOR. Besides that, books that were related to the topic were reviewed. Papers were collected over a two week period and the topic was discussed with the supervisor in charge in order to determine the theoretical framework of the research. 3. Emotional Intelligence In 1990, emotional intelligence was conceptualized as a division of social intelligence that related to the ability to assess emotions of inner self and others, in order to differentiate between them, and use the knowledge to direct ones thinking and actions (Salovey and Mayer, 1990; Mayer and Salovey, 1993). Since then, there were three alternative models were proposed such as the ability model ( Mayer and Salovey 1997), the non-cognitive model (Bar-On,1997), and the competency-based model (Goleman,2000). The ability model consisted of four branches of interrelated cognitive abilities associated with the processing of emotional information. The four branches are: the ability to perceive accurately, appraise, and express emotion; the ability to access and/or generate feelings when they facilitate thought; the ability to understand

emotion and emotional knowledge; and the ability to regulate emotions to promote emotional and intellectual growth ( Mayer and Salovey 1997, p. 10). The non-cognitive model defined emotional intelligence as an array of non-cognitive capabilities, competencies and skills that influence ones ability to succeed in coping with environmental demands and pressures (Bar-On,1997, p. 14). This model was generally known as an emotional and social intelligence model (Bar-On, 2006). Bar-On (2006) proposed the five specific dimensional of emotional and social intelligence: 1. Intrapersonal emotional intelligence refers to the abilities, capabilities, competencies and skills that concern to the inner self. 2. Interpersonal emotional intelligence-refers to the ability to interact with others or involves relations between individuals. 3. Adaptability emotional intelligence refers to the ability to deal with environmental demands by evaluate and cope with problematic situations effectively. 4. Stress management emotional intelligence refers to the skills of handling and dealing with stress effectively. 5. General mood emotional intelligence-refers to the skills of enjoying life and sustaining a positive temperament. The components of this model develop overtime, transform all the way through life, can be enhanced through training and development programs, and it relates to the underlying potential of the performance rather than the performance itself (Gardner, & Stough, 2002).

The competency based model is a theory of performance that based on emotional intelligence that has been designed specifically for workplace applications (Goleman, 2000). Goleman (2000) proposed four general competencies that function differentiate an individuals performance in the workplace: 1. Self-awareness- refers to the competency of understanding own feelings and evaluate self accurately. 2. Self- management- refers to the competency of managing inner state, desires and resources. 3. Social awareness- refers to the competency of understanding people and groups accurately. 4. Relationship management- refers to the competency of stimulating peoples desirable responses. Basically, Goleman (2000) characterized emotional intelligence as the competency to identify and regulate the feelings, both in ones inner self and others as well, and this could be cultivated through learning.

4. Transformational Leadership Bums (1978) found distinctive differences between transformational and transactional leadership styles when he studied political leaders. In 1985, Bass then extended this work and conceptualized transformational leadership as a type of leadership that has feature behaviors such as encouraging and inspiring followers

central to head for shared organizational goals. Bass & Riggio (2006) proposed that transformational leadership includes five elements (Harms & Cred2010):

1. Idealized influence (attributed) - represents the socialized charisma, confidence and high order ideals of the leader. 2. Idealized influence (behavioural)-refers to charismatic actions that based on values, beliefs, or ideals by the leader 3. Inspirational motivation- refers to the extent to which leaders encourage and motivate the followers by setting challenging goals and conveying optimism that related to goal accomplishment. 4. Intellectual stimulation - refers to the degree to which leaders challenge followers assumptions, stimulate them to think creatively, take risks, and participate intellectually. 5. Individualized consideration refers to the degree to which the leader attends to each follower's needs and concerns, acts as a mentor or coach to the follower and listens to the follower's concerns and needs by providing socioemotional support which includes guiding and advising the followers, keeping a regular contact, motivating them to self-actualize, and empowering them.

5. Relationship Between Emotional Intelligence And Transformational Leadership The positive relationship of emotional intelligence and transformational leadership is supported by many leadership literatures. A study which aimed to

examine the leadership styles and emotional intelligence of 49 managers by using the Bar-Ons Emotional Quotient Inventory in order to measure emotional intelligence, found that there was a positive relationship between emotional intelligence and the three components of transformational leadership. Emotional intelligence and inspirational motivation had the highest correlation in this study (Barling, Slater & Kelloway, 2000). Palmer, Walls, Burgess and Stough (2001) found a number of significant correlations between transformational leadership and emotional intelligence by using a customized edition of the Trait Meta Mood Scale to measure emotional intelligence. The correlations found in this study defined two effective leadership competencies: the capability to assess emotions of inner self and others, and the capability to handle emotions. The third study reviewed was conducted to examine the relationship between leadership and emotional intelligence in 110 senior level managers by using the Swinburne University Emotional Intelligence Test to measure emotional intelligence. A strong correlation between transformational leadership and overall emotional intelligence was found in this study (Gardner, & Stough, 2002). The fourth study reviewed was conducted to examine the relationship between emotional intelligence and transformational leadership using 103 participants from a national Hispanic American business organization. There was a significant positive correlation between emotional intelligence and transformational leadership in this study (Corona, 2010). The fifth study reviewed was conducted to examine the relationships between emotional intelligence and transformational leadership by recruited 80 elected community leaders and 388 staffers as participants in the Midwest of the United

States. The study showed several correlations that strengthen the function of emotional intelligence in leadership. Results show that emotional intelligence had positive relationships with each components of transformational leadership (Barbuto & Burbach, 2006). Overall, the studies indicate that leaders with emotional intelligence are able to recognize follower expectations and therefore are better in responding to follower requirements (Barling et al. 2000; Gardner, & Stough, 2002). In addition to that, researchers have discovered that emotional management and empathy are correlated to idealized influence, and self-management is related to inspirational motivation and individualized consideration which are elements of transformational leadership (Barling et al. 2000; Barbuto & Burbach, 2006). 6. Organizational Culture In 1997, Schein defined organizational culture as a pattern of basic assumptions which is learned by a group after going through the external adaptation and internal integration of a problem, where the technique is considered valid and worked good enough to be taught to new comers in order to perceive, think, and feel the same way when they encounter those problems (Tolmats and Reino, 2006). Organizational culture provides basic values, beliefs and principles which function as the foundation for an organisations management system, as well as to the management practices and behaviours that both demonstrate and strengthen those fundamental principles which determine both individual and group actions, perceptions, thinking and values (Martins & Coetzee, 2007; Aydogdu & Asikgil, 2011). An organisations culture generally includes the following four major dimensions (Eskildsen & Dahlgaard, 2000; Martins & Martins, 2002):

1. Policy and strategy refers to the policies that determine staffs understanding of the vision, mission and values of the organisation and the methods of transforming them into assessable goals of the groups. 2. Management processes The management processes in an organization which take account of human resources, administrative, goal setting, managing and organizing changes, innovations and communication. 3. People - The integration of the employees requests and needs with those of the organisation such as the balancing of work and life, good physical work environment and interpersonal interaction between managers and employees, especially in managing the conflict, diversity and interdepartmental relations. 4. Leadership - The perception of employees on strengthening the leadership on specific areas.

Since the people and leadership aspects are considered as the foundations of an informal organization that put forth a considerable influence on employee behaviour, thus the way which an employee prefers to be managed and their experiences of the main leadership style also leads to the way a culture develops (McMurray, 2003; Martins & Coetzee, 2007).

7. Relationship Between Transformational Leadership And Organizational Culture Leader plays an important role on the development of a culture when an organization has just formed. At that time, leaders are definers and givers of culture as they construct and instil the principles, values, and attitudes that they consider as essential and important for the organization (Jaskyte, 2004). Bass and

Avolio (1993) have argued that an organizational culture can be characterized with transformational qualities, as leadership and culture are so well-connected. Transformational leaders have a high responsibility on forming the organizational culture as the values that transformational leader adopted will easily be adopted by the employees (Aydogdu & Asikgil, 2011). Transformational leaders are usually portrayed as individuals who motivate their followers to take on objectives and beliefs that are in line with the leaders mission and to encourage their followers to give a higher priority for group and the larger organization than their own interest (Xenikou & Simosi, 2006). According to Bass (1985), a transformational leader promotes a working environment or an organizational culture which is characterized by the accomplishment of high goals, self-actualisation, and personal growth. Bass and Avolio (1993) also proposed that transformational leaders move their organizations towards organizations that adopt more transformational qualities such as accomplishment, intellectual stimulation, and individual consideration in their cultures. In addition to that, Block (2003) found in the situations that that employees view their organizational culture as culture which possess adaptive, involving, incorporating, and with a comprehensible mission are usually rated their direct manager as high in transformational leadership.

8. Relationship Between Emotional Intelligence And Organizational Culture Organizational culture is a social phenomenon which is structured consequently by the interaction between individual and an organization and cannot be present without individuals and characteristics such as subjectivity, irrationality and emotionality which could be used to explain it (Tolmats and Reino, 2006). At such, the importance of emotional intelligence brought forward to enable the

organization to shape the organizational culture and the activities of all level in the organization (Langhorn, 2004). Though the studies on the topic of emotional

intelligence in the work-related setting are inadequate, it is agreed that emotional intelligence has a crucial importance in occupational settings (Matthews, Zeidner, & Roberts, 2004). One such study was conducted by Tolmats and Reino to find the interconnections of emotional intelligence competences and types of organizational culture which taken from The Competing Values Framework which conceptualized by Quinn and Rohrbaugh (1983) in two business sectors in Estonia (Tolmats and Reino, 2006). The results of the investigation show that participants with a higher emotional intelligence level gave higher estimates to organizational culture than participants with lower emotional intelligence. According to the results of the study, emotional intelligence is usually positively related to Human Relations, Open System and Rational Goal types of organizational culture, thus forming the hypothesis that by increasing employees emotional intelligence it is possible to develop the organizational culture of the company (Tolmats and Reino, 2006). In The Human Relations type of organizational culture, leadership and morale are in the focus whereas Open System type of organizational culture promotes innovation, growth, dynamics, imagination, and willingness to transform and the Rational Goal type of organizational culture concentrates on achieving productivity, efficiency, and high performance(Parker & Bradley, 2000; Dastmalchian, Lee & Ng, 2000). Another study conducted by Danaeefard, Salehi, Hasiri and Noruzi (2012) to which aimed to examine the relationship between emotional intelligence, organizational culture and organizational learning in the service providing organizations of Kermanshah, results obtained indicated that emotional intelligence

has a direct impacts on organizational culture. This study shows a direct relation between of the relationship between the factors of emotional intelligence and organizational culture where the relationship between self-stimulation and organizational culture show the strongest value. At such the creation of emotional intelligence could pave the way for the development of organizational culture in the organization (Danaeefard, Salehi, Hasiri, & Noruzi, 2012). 9. Discussion Given the widespread interest surrounding the importance of emotional intelligence in the workplace and leadership in particular, the relationship between emotional intelligence and transformational leadership, along with their effect on organizational culture was examined. As both the emotional intelligence and transformational leadership are emotion-laden constructs (George, 2000), there are many leadership literature that supported the positive relationship between emotional intelligence and transformational leadership (Barling et al. 2000; Gardner, & Stough, 2002; Barbuto & Burbach, 2006; Butler & Chinowsky, 2006; Corona, 2010). As transformational leaders need to encourage and motivate the followers in heading to a shared organizational goal, their emotional skills are extremely important. Transformational leaders need to have the ability to monitor their own emotions, cope with the demands of the environmental and problematic situations and deal with daily stress effectively before they could help their subordinates to grow and develop. Transformational leaders also need to have good interpersonal emotional skills so as to communicate and interact with the followers to further attend to the needs and concerns of the followers and provide socio-emotional support. The social awareness of the transformational leaders is also important in order to be able to read the followers and the groups accurately and to inspire them to achieve the goals of

the organizations and to provide accurate guidance to let them think creatively about the situation. Transformational leaders with a high emotional intelligence will surely encourage and motivate their followers to achieve a high emotional intelligence as dominant leadership style in an organization will influence the employee behaviour and the way the organizational culture develops (McMurray, 2003, Martins & Coetzee, 2007). As leaders have a major impact on an organizational cultures, transformation leaders with emotional intelligence will promote a working environment or organizational culture which characterised by the accomplishment of high goals, self actualisation, personal growth and organization development on emotional intelligence. Transformational leaders have a high responsibility on creating an emotional intelligent organizational culture as the values accepted by a leader will be easily accepted by the followers. Summed up, organizational culture which is formed by a transformational leader with emotional intelligence will surely bring the organization to the next level by using the competencies and skills they acquire in order to encourage and motivate the followers to achieve the visions, objectives and goals of the organizations. 10. Conclusion This paper is a conceptual research that utilizes literature survey and descriptive-analysis approach to review and interpret the relationship between emotional intelligence and transformational leadership and their effect on organizational culture. Given the positive relationship between emotional intelligence and transformational leadership and their effect on organizational culture, this will eventually boost the organization capability to change and thus improve the prospects for the organization to remain competitive. Current leaders should evaluate their personal leadership behaviors to find out if transformational leadership

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