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JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY EXECUTIVE MASTERS IN BUSINESS ADMINISTRATION ORGANIZATIONAL BEHAVIOUR CONTINUOUS ASSESSMENT TEST

ANSWER ANY ALL QUESTIONS. GIVE EXAMPLES FROM THE WORKPLACE AS YOU DISCUSS THE QUESTIONS.

May 2012

Table of Contents Table of Contents ............................................................................................................................................2 1.1 Introduction ..............................................................................................................................................3 1.2 Organizational Commitment Overview....................................................................................................3 1.3 Definition of Terms...............................................................................................................................4 1.4 Categories of Organizational Commitment..........................................................................................4 1.5 Organizational Commitment Strengths and Weaknesses.....................................................................5 1.6 Enhancing organizational commitment ..................................................................................................7 1.7 Enhancing Employee Commitment .....................................................................................................8 1.7.1 Induction and Training...................................................................................................................8 1.7.2 Relationships with Managers.........................................................................................................8 1.7.3 Relationships with Colleagues.......................................................................................................9 1.8Psychological Contract.........................................................................................................................11 1.9 Effects of Psychological Contract in Developing Employee Commitment...........................................12 1.11 Commitment Strategy...................................................................................................................13 1.12 Developing ownership..................................................................................................................14 1.13 Communication programmes........................................................................................................14 1.14 Leadership development...............................................................................................................14 1.15 Developing a sense of excitement................................................................................................14 1.16 Use of career development program.............................................................................................14 1.17 Recommendations.............................................................................................................................14 1.18 Summary ..........................................................................................................................................16 1.19 Conclusion.........................................................................................................................................17 2.1 Introduction ............................................................................................................................................18 2.1.1 Self-Awareness.............................................................................................................................18 2.1.2 Self-Regulation............................................................................................................................19 2.1.3 Motivation ...................................................................................................................................19 2.1.4 Empathy.......................................................................................................................................19 2.1.5 Social Skill...................................................................................................................................19 2.2 Leadership and Emotional intelligence .............................................................................................20 2.3 Conclusion...........................................................................................................................................21 3.1 Introduction ............................................................................................................................................22 3.2 Legal case............................................................................................................................................23 3.3 Conclusions ........................................................................................................................................24 References ....................................................................................................................................................25

QUESTION ONE Jimcy Enterprises has been having a problem with employee commitment and they called in a specialist who advised on the need to improve on continuance commitment, affective commitment and normative commitment. Discuss the strategies on improving on each of these commitment variables. (20 marks) 1.1 Introduction Due to the fact that the theory of work commitment is highly interrelated to organizational performance it is the second most commonly studied job attitude in I/O psychology (The Pennsylvania State University, 2011). It affects all organizations at some level and enables companies to evaluate issues like turnover during times of varying economic stability. Work commitment has been defined as the relative importance between work and ones self (Loscoco, 1989). Its concept encompasses a broad range of job related attitudes that consist of work ethic, organizational commitment, job involvement, and commitment to an individuals career/profession (The Pennsylvania State University, 2011). All of these attitudes interact to shape the conceptual framework of each individual's work commitment. The following page analyzes these attitudes as well as other organizational concepts, research, and real world applications. There are also case studies that can be viewed by clicking on the links on the bottom of the page. 1.2 Organizational Commitment Overview Commitment is a central concept in psychology (Cooper-Hakim, & Viswesvaran, 2005) and is the second most studied work attitude in Industrial Organizational Psychology (The Pennsylvania State University, 2011). This concept has been applied to various aspects of psychology, such as work ethic, level of involvement in the job, commitment to their career/profession, and commitment to work or organization. Work place commitment is thought of as a very important topic to consider and is also vital for understanding the psychology of human behavior (Cooper-Hakim, 2005). Morrow (1983, 1993) identified work itself, career, job, organization, and union as five forms of work commitment. Lee, Carswell, and Allen (2000) feel that the understanding of the construct of occupational commitment is very important for several reasons: (a) peoples jobs are major focus of their lives, (b) the possible link to keeping ones job or relationship with the organization, (c) possible relationships to work performance, and (d) the understanding of how people develop, make sense of, and integrate their work related commitments".

1.3 Definition of Terms Organizational commitment is defined as the degree of an individuals relations and experiences as a sense of loyalty toward ones organization. In addition to loyalty, organizational commitment encompasses an individuals willingness to extend effort in order to further an organizations goals and the degree of alignment the organization has with the goals and values of the individual (Mowday, Et. Al.1979). Organizational commitment refers to the extent to which an employee develops an attachment and feels a sense of allegiance to his or her employer (The Pennsylvania State University, 2011). Allen and Meyer (1996) have defined organizational commitment as a psychological link between an employee and his or her organization that makes it less likely that the employee will voluntarily leave the organization. Organizational commitment is related to job satisfaction in that both deal with the nature of workers' emotional reactions to work. However, commitment can be applied to the entire organization, whereas satisfaction is applied to the specific job an employee has. According to Professor Redmond's lesson commentary (The Pennsylvania State University, 2011), organizational commitment is viewed as more stable than satisfaction. Commitment is also related to job involvement and the level of job involvement that an individual has. Within this theory, the concepts that are applied to commitment to an organization are the work ethics of individual and the intensity of participation by said individual. These concepts can determine the level of commitment to an organization. However, the application of these concepts can be directed by several variables such as age, culture, emotions, personality traits, desires, and individual differences among other factors and can be present to a certain degree in many situations. These theories are not strict categories of commitment. Often times there are overlap among them. 1.4 Categories of Organizational Commitment Given that the nature of organizational commitment is layered in terms of ones possible commitment level, three specific commitment types have been identified: Affective Commitment Refers to ones feelings of loyalty to a company or organization because he or she believes in the organization. This is the most common type studied and refers to "an employee's emotional attachment to and identification with the organization" (The Pennsylvania State University, 2010). Due to this loyalty, one is fully willing to accept the companys goals and values as his/her own. An employee with high levels of affective commitment would find it difficult to walk out on his/her employer. Affective commitment can enhance job satisfaction because employees agree with the organizations ob4

jectives and principles, because employees feel they are treated fairly in terms of equity, and because employees receive organizational care, concern, and support (Hawkins, W.D. 1998). Continuance Commitment- Refers to an employee feeling that he/she has to stay with the company because the costs of leaving are too great. This is manifested by an individual who maintains commitment to the organization because he/she is unable to match salary and/or benefits at another employer. For many, the vested time and effort put into their work has developed what could be considered nontransferable investments such as a retirement plan, relationships with other employees, and other special interests that may have accumulated over time. For example, in todays turbulent economy it is likely to see an increase in the amount of employees who have a continuance commitment to the organization, as it is not only hard to find a job to match salary and/or benefits of another, but it is hard to find a job at all. Normative Commitment Of the three types of commitment, normative is the least researched of all of them and refers to the employee that feels that he/she owes it to the employer to stay out of a perceived obligation. These feelings of obligation may come because the employer took a chance on the employee when nobody else would. In turn, the employee feels indebted to the employer. Therefore, by a show of loyalty and duty, it would be difficult to leave. It should be pointed out that organizational commitment is different from company loyalty. Organizational commitment involves an employee actively defending their company. It also entails the employee giving of themselves for the organization. Although an employee may be involved in these activities because they are satisfied with their jobs, job satisfaction is not a determinant of the actions. An employee may be dissatisfied with their jobs and still possess high organizational commitment. Organizational commitment builds with time (Africa News, 2008). The causality of the relationship between job satisfaction and organizational commitment is difficult to determine. Nevertheless, it has been shown that these commitment levels do correlate with job satisfaction. Someone who has a high level of job satisfaction is also likely to have a high level of job involvement and organizational commitment (The Pennsylvania State University, 2011). 1.5 Organizational Commitment Strengths and Weaknesses Strength within organizational commitment comes from the fact that two of the three components have been researched extensively. All three commitment components have been negatively correlated to turnover within organizations. This entails that the increased level of commitment decreases the possibili5

ty of turnover. Not surprisingly, affective commitment has been more strongly related to job satisfaction than continuance commitment (Mathieu & Zajac, 1990). Affective commitment can enhance job satisfaction because employees agree with the organizations objectives and principles and because employees feel they are treated fairly in terms of equity, and receive organizational care, concern and support (Hawkins, W.D. 1998). The affectively committed employee remains within the organization because it appeals to the individual. This occurs because the employee feels devoted to the organization. Also, people who progress in a career with a particular organization usually acquire more organizational commitment than those who join along the way (Africa News, 2008). On the other hand, continuance commitment within an organization only exists because of circumstances. Employees who are continuously committed only stay within the organization because they have to. The individual is not devoted to the organization in a satisfying way. Thus, when an opportunity presents itself the commitment will discontinue. According to Redmond (The Pennsylvania State University, 2011), employees who have an elevated continuance of commitment possibly will not participate at work as required by the organization. Continuance commitment is usually studied looking at the amount of time an employee has been with a company, for example how much time or tenure may be involved. It is also studied looking at the alternatives the employee has. Studies examining different types of work sector have found that government employees have a higher level of continuance of commitment then other sectors. This is thought to be the case because of the relative job security most government employees feel they possess (Mowday, Et. al.1979). The importance of organizational commitment cannot be overstated because it correlates with a variety of factors benefiting both the individual and the organization. From an individual perspective, organizational commitment has been linked to intrinsic motivation and job satisfaction. Likewise, from an organizational perspective, organizational commitment has positively contributed to organizational attachment (Joo & Lim, 2009). In the aggregate, organizational commitment can increase performance, reduce absenteeism, [and] reduce turnover, thus provide positive outcomes for both the individual and the organization (Cohen & Golan, 2007, p. 421). Organizational commitment is important in the eyes of a company. It is important for organizations to keep talented individuals who are engaged in their jobs and are productive workers. Organizational commitment involves the loyalty that a worker feels towards the company he works for. Organizational commitment involves more then just company loyalty. It entails employee's intrinsically wanting to defend against criticism both internal and external (Business Daily Review, 2008). 6

What happens when an economic crisis or insecurity forces the organization to reevaluate its commitment towards the employees? Layoffs and downsizing force organizations to restructure in order to control costs. Effective means of downsizing and alternatives to downsizing can be more beneficial to ensure that employees do not have lowered or negative expectations of organizational commitment. Scholars have found out that some moderate amount of job insecurity leads to improved work performance, yet some have found that job insecurities lead to decreased work performances (Africa News, 2008). It is therefore assumed that any organization that is downsizing or laying off employees will notice a significant decrease of trust between management and employees. As a result, those employees who remain on the job after downsizing and corporate restructure often experience sharp drops in organizational commitment (Africa News, 2008). Therefore, it is important that organizational commitment be regarded by both employees and employers.

It becomes clear that affective commitment equals an attitude toward a target, while continuance and normative commitment are representing different concepts referring to anticipated behavioral outcomes, specifically staying or leaving. This observation backs up their conclusion that organizational commitment is perceived by TCM as combining different target attitudes and behavioral attitudes, which they believe to be both confusing and logically incorrect. The attitude-behavioral model can demonstrate explanations for something that would seem contradictory in the TCM. That is that affective commitment has stronger associations with relevant behavior and a wider range of behaviors, compared to normative and continuance commitment. Attitude toward a target (the organization) is obviously applicable to a wider range of behaviors than an attitude toward a specific behavior (staying).

1.6 Enhancing organizational commitment i. Commit to people-first values-Put it in writing, hire the right-kind managers, and walk the talk. ii. iii. iv. Clarify and communicate your mission-Clarify the mission and ideology; make it charismatic; use value-based hiring practices; stress values-based orientation and training; build tradition. Guarantee organizational justice-Have a comprehensive grievance procedure; provide for extensive two-way communications. Community of practice-Build value-based homogeneity; share and share alike; emphasize barn raising, cross-utilization, and teamwork; getting people to work together.

v.

Support employee development-Commit to actualizing; provide first-year job challenge; enrich and empower; promote from within; provide developmental activities; provide employee security without guarantees.

Fig. 1 A Three-Component Model of Organizational Commitment 1.7 Enhancing Employee Commitment Organizations can use various strategies to increase employee commitment. These strategies include: 1.7.1 Induction and Training The induction programme should be the final step of the recruitment and selection process. A good induction programme will make new employees more familiar with and more at ease within the organization. Employees enter the organization with an assumption of compatibility and should be welcomed. 1.7.2 Relationships with Managers This refers to how the quality of the relationship between managers and their employees relates to the development of commitment. 8

Employees commitment reflects their day to day contacts with their line managers about their job, and the way in which objective targets are set. Effective communication on job-related issues is a key ingredient in securing individual performance. To a great extent, individual line managers are responsible for ensuring that these maintenance behaviors occur. With poor management, the most well developed organizational programme can break down at the point of transmission. 1.7.3 Relationships with Colleagues Emotional attachment to colleagues in the workplace is an important element of commitment, though It is not enough on its own. Unless there is occasion for frequent and rewarding interaction, stronger feelings of belonging that can bind employees to the organization are unlikely to emerge. Organizations that want to build high levels of commitment should look for ways to build this through group activities both in and out of work Group Membership To build commitment, being a member of a particular organization must not only satisfy employees social need to affiliate and belong, but must also create a sense of collective identity that differentiates the group from other organizations. There are many situational features that contribute to a sense of group membership. The more exposure that employees have to these features, the more likely they will be to feel like a part of the group and to incorporate that membership into their concept of who they are. Organizational Justice and Trust It is also argued that employees evaluate their experiences at work in terms of whether they are fair and reflect a concern on the part of the organization for the well-being of the employees (Meyer, 1997). Treating employees fairly, communicates the message that management is commitment to the employees. This suggests that organizations wanting to foster greater commitment from their employees must first provide evidence of their commitment to their employees. When there is trust, employees are willing to suspend judgment and defer to the authority of others. In addition, trust permits organizational flexibility because a payback need be neither immediate nor of

equivalent value. OMalley (2000) identifies four areas in which employees sense of trust in the employer can be increased: i. Growth: As most employees want to be more proficient in their job, a good way to instill trust is to attend to employees development needs. ii. Work-Life balance: Most employees would like organizations to allow greater personal time when needed. iii. iv. Individual accommodation: Acts of organizational flexibility or benevolence toward employees. Health and Safety: Organizations that are committed to protecting employees health and safety are more likely to be trusted. Promotion Policies and practices concerning promotion can also affect commitment. . Among those who are considered for promotion, the outcome of the decision is likely to have an effect on commitment. But, for some, the perception of fairness in the decision-making process might be even more important. This suggests that organizations should communicate clearly how their decisions were made and why those who did not succeed were not suitable. Work-Life Balance A key issue emphasized by research, especially in recent years, is the extent to which employees perceive they are able to achieve the right balance between home and work. Organizations are beginning to recognize this, and are making more concerted efforts to introduce a host of programmes intended to ease employees burdens. These include initiative such as: flexible work arrangements; child care; time off policies; elderly care; healthcare; information and counseling; and convenience services to name but a few. Job Satisfaction How happy an employee is in a job has profound effects on behaviour and commitment. In relation to commitment, job satisfaction and work-life satisfaction are very important. Job satisfaction is an enormous area; however, to be concise a satisfying job typically has three properties:

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i.

It has intrinsically enjoyable features: Mathieu & Zajac (1990) found that the strongest correlation with commitment was obtained for job characteristics, particularly job scope (enrichment).

ii. iii.

It provides an opportunity for growth and development. It makes employees feel effective in their roles (that they can positively influence organizational outcomes).

Pay and Reward As mentioned previously, employees may remain with an organization because there are constraints against leaving and incentives for staying. It is important for organizations to structure the economics of the relationship in a way that will not obstruct commitment. One of the reasons to stay in a relationship is because it makes sense economically. Pay makes continuation of the employment relationship worthwhile because there is mutual dependence.

1.8Psychological Contract Schein cited by (Armstrong 2005) defines commitment as attachment and loyalty Psychological contract is the degree people are committed to the organization (Schein 1965). It depends on the following; a. The degree to which their own expectations of what the organization will provide to them and what they owe the organization in return matches what the organization expectations are of what it will give and get in return. b. The nature of what is actually to be exchanged e.g. money in exchange for time at work, social need satisfaction and security in exchange for hard work and loyalty Armstrong (2004) defines psychological contract as a system of beliefs which encompasses on one hand the actions employees belief are expected of them and what response they expect in return from their employer and on the other hand the behavior employers expect from their employees. It is implicit and dynamic

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1.9 Effects of Psychological Contract in Developing Employee Commitment 1. During recruitment interviews present the unfavorable as well as the favorable aspects of a job in a realistic job preview.- This will enable the candidate have a clear and achievable expectation of the organization and thus avoid setting very high expectations that the organization is unable to meet, leading to low / decreased commitment 2. In induction programmes communicate to new starters the organizations personnel policies and procedures and its core values indicating to them the standards of performance expected this enables them to remain committed in achieving the expected performance 3. 4. 5. 6. Issue and update employee hand books and intranet entries which reinforce the message delivered in induction programmes. Develop performance management process plans which spell out how continued improvement of performance can be achieved mainly by self managed learning Use training and management development programmes to underpin values that define performance expectations. Ensure thorough manager and team leader training that managers and team leaders understand their role in managing the employment relationship through such processes as performance management and team leadership managers should be very committed so as to pass the same message of commitment to employees. 7.Encourage a maximum amount of contact between managers and team leaders and their team members to achieve mutual understanding. 8.Adopt a general policy of transparency ensuring that on all matters which affect them employees know what is happening and the impact it will make on their employment 9.Develop personal procedures covering grievance handling, discipline , promotion and redundancy. Ensure they are implemented fairly and consistently. 10. Develop and communicate personnel policies covering the major areas of employment, development, reward and employee relations. 1.10 Developing HR Practices that Enhance Commitment According to Armstrong 2005 the following ten (10) practices contribute to increase of employee commitment. 12

1. Advise in methods of communicating the values and aims of management and achievements of the organization, so that employees are more likely to identify with it as one they are proud to work for. 2. Emphasize to management that commitment is a two way process employees cannot be expected to be committed to the organization unless management demonstrates that it is committed to them. 1. Impress on the management the need to develop a climate of trust by being honest with people, treating them fairly justly and consistently, keeping its word and showing willingness to listen to the comments and suggestions made by employees 2. Develop a positive psychological contract by treating people as stakeholders rely on consensus and cooperation rather than control and coercion and provision of opportunities for learning and career progression. 3. Advise on and assist in the establishment of partnership agreements with trade unions which emphasize unity of purpose, common approaches to working together and the importance of giving employees a voice. 4. Recommend and take part in the achievement of single status for all employees so that there is no an us and them culture. 5. Encourage management to develop a policy of employment security and ensure steps are taken to avoid involuntary redundancies 6. Develop performance management process that provide for the alignment of organizational and individual objectives. 7. Advice on means of increasing employee identification with the company through rewards related to organizational performance (profit sharing or gain sharing). 8. Develop job engagement: identification of employees with the job they are doing through job design process that aim to create higher levels of job satisfaction.

1.11 Commitment Strategy A commitment strategy is based on the high commitment model described in figure 1It aims to develop 13

commitment using the following approaches.

1.12 Developing ownership I t involves involving employees in those decisions that affect them so that they feel they own, i.e. Create a feeling of ownership among employees, listening to their ideas. Employees should feel they are genuinely accepted by the management.

1.13 Communication programmes Commitment can only be gained if people understand what they are expected to commit to. Thus in sufficient attention should be paid when delivering messages so that right information is passed. Proper use of newsletters, briefing groups videos and notice boards should be emphasized.

1.14 Leadership development Commitment is enhanced if managers can gain the confidence and respect of their teams. Management training should therefore be used to increase the competence of managers thus making them efficient enough to cultivate a sense of commitment in their teams.

1.15 Developing a sense of excitement Concentrating on the intrinsic motivating factors e.g. achievement, responsibility and recognition creates job excitement, which leads to commitment. Management should thus give their staff the scope to use their skills and abilities and design jobs which encourage creativity and innovativeness, avoid monotony

1.16 Use of career development program They help employee develop caters related skills and recognize the developmental need they posses. If used effectively if creates commitments it send the signal that the employer cares about the employee career success and thus deserves employee commitment.

1.17 Recommendations Having examined the concept of employee commitment our group gave the following recommendations that would enhance the commitment of employee in the workplace. 14

Fair profit sharing based on an established policy that seeks to make employees feel that the management is committed to them, regular team building activities and designing jobs so that there is flexi time for those employees who may not be in a position to work between 8am 5pm. Providing such incentives e.g. Medical scheme, housing scheme, car loans, furniture loans, pension scheme and increasing the number of years employees can work in an organization even after reaching the retirement age sends the message that the organization is committed to its employees and so the employees in turn will seek to be committed to the organization. Another way of enhancing employee commitment is by conducting exit interviews; since the interviewee will be leaving the organization it is believed that they will reveal loopholes in the management or job design that contribute to low morale among employees. The management can then use the information to put necessary measures in place to enable employees develop commitment in their work. Management should also ensure that confidentially is practiced especially where there is sensitive information concerning employees. Such information may include health status, marital issues, and financial position of employees among many others. The following values should also be practiced. Fairness-It implies the elimination of ones feelings, prejudices and desires to achieve a proper balance between conflicting interests Trust-To nurture commitment employers must create an environment of trust. If employers wish to develop and maintain trust they should do what they say will do, be consistent ,maintain confidence ,be a role model of behaviour, encourage employee involvement, allow people to make we decisions that affect their work, allow people to make mistakes without fear or ridicule, learn from mistakes. Concern for employees-Employees should be regarded as people not factors of production. Employers should provide job security train and develop employees, be flexible to accommodate employee issues, be open and honest and allow employees to have a life outside work. Todays employees have a strong sense of self worth- they recognize their value and want their employers to as well

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1.18 Summary This paper has presented a review of the current thinking about defining and creating employee commitment, which is an evolving topic currently receiving considerable attention. It has been identified as a multi-dimensional concept which has important impacts on an organization through its effects on employee performance, turnover and absence, and via its influence on customer attitudes to the bottom line. Commitment can be divided into five components, each of which are created by different factors. These are defined as follows: Affiliative: The compatibility of the employees and the organizations interests and values. Associative: The employees perception of belonging to the organization. Moral: The sense of mutual obligation between the employee and the organization. Affective: The feeling of job satisfaction experienced by the employee. Structural: The belief that the employee is engaged in a fair economic exchange. Job satisfaction is an important component of commitment, but should not be perceived as equivalent to it. Commitment has more positive outcomes for the organization in terms of employee performance. Job satisfaction can be promoted by making work as enjoyable as possible, providing growth and development opportunities and making provisions for staff to assist them in balancing their work and personal lives. Once established, commitment has to be maintained by ensuring staff have clear roles and responsibilities, and an understanding of what is required of them in their jobs. Good communication and openness throughout the organization is vital, especially in times of change. The role of line managers should be recognized and positively supported, as it is a vital component in the creation and maintenance of employee commitment.

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1.19 Conclusion It is possible to conclude that employee commitment is a very significant factor contributing to the positive organizational outcomes. It may increase productivity, effectiveness of work and motivation of employees, while low commitment leads to the opposite outcomes. At the same time it is necessary to maintain high level of employee commitment through leadership, development, empowerment, and supervision. Radical organizational changes often lead to reduced commitment caused by increased job insecurity, increased stress, decreased trust and job redesign. Since organizational commitment has strong correlation with job performances it is very important to reinforce it by applying the right human resources polices.

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QUESTION 2 Recent research is showing the need for leaders to display emotional intelligence in order to succeed. Discuss the components of Emotional Intelligence and show using examples how these can be used by leaders to help them succeed. (20 marks)

2.1 Introduction Low emotional intelligence brings a plethora of negative emotions, like fear, anxiety, anger and hostility which results in using up a lot of energy, lower morale, absenteeism, apathy, and are an effective block to collaborative effort at the workplace. Negative emotions create negative energy anger, resentment, and revenge or at least discomfort to the one we perceive as opposing us.

On the contrary, positive emotions create positive energy as can be seen in the excitement of conceiving a vision, designing an ambitious new product, or winning a football match. When we open the doors to emotional reactions, the emergence of hunches, guesses, and intuition enhances the expansion of existing knowledge.

One costly consequence of the relentless demands on leaders' time is their propensity to turn away from emotional issues and to stick as closely as possible to the realm of facts and intellect to value only things that can be ordered, analyzed, defined, dealt with, rationalized, controlled, and contained. However, research shows that emotions, if properly managed, can instill trust, loyalty and commitment and drive many of the greatest productivity gains, innovations, and accomplishments of individuals, teams and organizations. Emotion can be harnessed to increase work motivation, enhance customer service and work performance. 2.1.1 Self-Awareness The ability to recognize and understand your moods, emotions, and drives, as well as their effect on others Organizational benefit of emotional intelligence

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2.1.2 Self-Regulation The ability to control or redirect disruptive impulses and moods the propensity to suspend judgment to think before acting 2.1.3 Motivation A passion to work for reasons that go beyond money or status and a propensity to pursue goals with energy and persistence 2.1.4 Empathy The ability to understand the emotional makeup of other people and skill in treating people according to their emotional reactions 2.1.5 Social Skill Proficiency in managing relationships and building networks and ability to find common ground and build rapport Managers can have strong impact on the employees. In fact, research has shown that managers with high emotional intelligence can encourage employees to produce results exceeding the expectations. To improve their relationships, managers and employees must address the five components of emotional intelligence: i. Self-awareness, wherein the person recognizes and names his/her own emotions, know their causes, and recognize the difference between feelings and actions; ii. Self-regulation, wherein she/he develops the ability to tolerate frustration, manage anger and to suspend judgment before taking action; iii. Motivations, wherein she/he has passion for the work beyond money or status and has the propensity to pursue goals with persistence; iv. Empathy, wherein she/he has the ability to understand the emotional make up of other people and has the skill to treat people according to their emotional reactions; and Social skills, wherein she/he has proficiency in developing and managing relationships and has the ability to find common ground and build rapport. v. When both managers and employees has developed their emotional intelligence, managers will have a workforce willing to engage with passion and employees will have managers who are receptive and open to their ideas and needs. 19

Study from Rahim & Minors (2003) tested the relationships of the three dimensions of emotional intelligence (self-awareness, self-regulation, and empathy) to managers' concern for the quality of products and services, and problem-solving behavior of subordinates during conflict. The results of the study show that self-awareness and self-regulation are positively associated with problem solving, and self-regulation was positively associated with concern for quality. There was a significant effect of empathy on quality and interaction effect of self-regulation and empathy on concern for quality. The study implies that supervisors, who are deficient in EI, may be provided appropriate training in it that will improve their concern for quality and problem solving.

2.2 Leadership and Emotional intelligence Todays business climate demand high flexible and quick responsiveness. It is inevitable for organizations to have effective leaders at all hierarchical level. There has been major shift in leadership skills required for todays business managers. Leadership is the ability to influence, motivate and enable others to contribute to the effectiveness and success of the organizations of which they are members. Leadership competencies depend on many factors such as emotional intelligence, integrity, drive, selfconfidence, intelligence, and knowledge of the selective discipline. Geothals, Sorenson., and Burns., (2004), summarize the evolution of leadership theories in four phases: trait, behavioral, situational / contingency, and transformational leadership. Burns (1978) was credited with developing the first transformational leadership model, envisioning the transformational and transactional leadership at opposite ends of the continuum. Bass (1985) expanded on Burns idea by depicting transformational and transactional leadership as complementary, thus augmenting active transactional leadership behavior. Kouzes & Posner (1987; 1997; 2002), popularized the notion of transformational leadership with a best selling book and a survey instrument. Transactional leadership style was found to be the most frequently used leadership style (Hasan & Grace, 2006). The focus of the leaders ability to manage complex social and personal dynamics, centered in the concept of emotional intelligence has made the role of emotions in organizations prominent in the leadership literature (Cann, 2004; Mayer., DiPaolo., & Salovey., 1990; Weisinger, 1998). The transformational leadership model is particularly appealing in this changing busi20

ness environment because it focuses leaders concerns about transforming the present conditions of the organization and followers requirements.

2.3 Conclusion It if found in this study that the emotional intelligence significantly related to the leadership practices of executives. Leaders high on emotional intelligence also are likely to have knowledge about the fact that their positive moods may cause them to be overly optimistic (Geroge, 2000). Further, he stated that emotional intelligence may contribute to leaders developing a compelling vision for their groups or organization in a number of ways. This gives an idea about the relevance of emotional intelligence and leadership practices in the organizations. Training unit in the human resource department of the organizations should think about the different training methods to enhance emotional intelligence levels whereby they can improve leadership qualities. Training should be provided at right time to ensure its effectiveness. Emotional intelligence contributes to the magnetic and engaging qualities of the managers who possess exceptional abilities of the leaders. This will enable them to analyze, organize and utilize informations in an effective manner. Enhancing the levels of emotional intelligence will help the executives to lead their team effectively and efficiently.

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QUESTION 3

The workplace is a place that accommodates various forms of diversity. Discuss using examples, the strategies that should be adopted by managers in managing a diverse workforce. (20 marks)

3.1 Introduction Programs or corporate environments that value multiculturalism must answer hard questions about managing diversity. For example, can diversity be best promoted by equal treatment or differential treatment, Antidiscrimination laws prohibit employers from treating applicants differently, yet some argue that this premise seems to ignore those fundamental differences between individuals that form the basis of diversity. On the other hand, treating people differently often creates resentment and erodes morale with perceptions of preferential treatment.

Companies and organizations have a moral and social responsibility to embrace diversity. There is also a strong business case for the employment of a diverse workforce that reflects the diversity of the community it shares and serves. Adopting and practicing diversity policies effectively in the workplace benefits the image projected by the organization. People obviously have a greater attraction to work for companies with a caring and friendly attitude; reduced employment costs through improved retention in the workplace are also a major consideration.

Employers are becoming increasingly interested in the concept of diversity management, and the establishment of a workforce that reflects the local community. Many regard it both as an ethical and an economic issue. It is clearly only fair that the various and diverse groups within the community are able to access jobs on an equal basis. However, adopting policies and procedures to achieve this is also expected to lead to an increase in customer loyalty, and, subsequently to higher income and profits.

As one employer put it Successful companies are those that are able to monitor and meet shifts in societal expectations, to control risks and to anticipate market opportunities. Disability is part of this equation and an integral part of the strategy. Businesses that have the vision and the will to create an enabling environment for diverse parts of the community (including disabled people) will prosper. 22

Abilities not disabilities: People with disabilities have the skills, knowledge and experience to perform many different types of jobs; and are able to demonstrate this. In addition they are problem solvers by necessity; and their own experience of difficulties as users of services can be invaluable in the design and delivery of services for others. Older workers have a wealth of experience to offer companies. They tend to be very reliable and can often support less experienced staff.

Additional source of talent: Many people immigrating into Britain have the skills and qualifications needed by companies operating within a tight labour market. These can be easily validated by contacting the National Recognition Centre for the UK. For many employers, young people and other underrepresented groups offer a pool of untapped talent that can be a particularly useful additional resource at a time when unemployment is falling.

Reliable workers: People with disabilities and older workers are more reliable than others in terms of attendance, punctuality and remaining with the same employer. This can mean lower costs for employers.

Improved corporate image: A positive approach to employing a diverse workforce signals an ethical stand, and provides a positive corporate image. A stronger partnership will be developed with existing customers; and the customer base may be broadened and strengthened.

Improved staff relations and productivity: Adopting good practice in employing and managing a diverse workforce demonstrates that an employer is concerned for the development and welfare of all staff. This positive spin-off can lead to a more productive workforce overall. 3.2 Legal case There is also a legal case for adopting diversity management. Serious consideration should be given to compliance with current and future employment law. There are examples of some organizations facing huge legal costs and damage to their reputations through poor employment practice and procedures. We believe that companies have much to gain from not only complying with legislation but embracing the opportunities it offers. Companies are producing real evidence of improved performance and enhanced 23

profits with the development of services and products that have been influenced by employing a diverse workforce. A good example would be a South East branch of Lloyds TSB that have changed from having mainly white counter staff to a mixture of races have seen volume sales of financial products rise by 30%

Diversity in the workplace is not a personnel or human resource issue; however managers in these roles are often seen as the key staff to influence the ethos of a company or organization and effect change within their environments towards valuing diversity. We believe that diversity management is an issue for everyone in the workplace and should be led from the top.

3.3 Conclusions A leader has to have emotional intelligence to align personal and subordinate goals to accomplish company goals. James A. Belasco and Ralph C Stayer (1993) suggest four responsibilities a leader must implement at all levels of an organization. First, transfer ownership for work to the people who do the work. Second, create the environment where the transfer of ownership can take place, where each person wants to be responsible for his or her own performance. This entails painting a clear picture of what the company believes great performance is, for the company and each person; focusing individuals on the few great performance factors; developing in each person the desire to be responsible for his or her performance; aligning organization systems and structures to send a clear message as to what is necessary for great performance; engaging each individuals heart, mind and hands in the business of the business; and energizing people around the business focus. Third, develop individual capability and competence. Fourth, create conditions in the organization that challenge every person to continually learn, including him or her self. These four principals align personal and company goals through emotional intelligence.

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