Genral

IMPACT OF EMOTIONAL INTELLIGENCE
ON ORGANIZATIONAL CLIMATE AND

ORGANIZATIONAL CITIZENSHIP BEHAVIOR
IN PRIVATE SECTOR BANKS.
Thesis Submitted to the

Padmashree Dr. D. Y. Patil University,
Department of Business Management
In partial fulfillment of the requirements
For the award of the Degree of
DOCTOR OF PHILOSOPHY
In
BUSINESS MANAGEMENT
Submitted by
DEEPA NAIR
(ENROLLMENT NO: DYP-Ph.D-09003)
Research Guide
Prof. Dr. R. GOPAL
DIRECTOR, DEAN& HEAD OF THE DEPARTMENT
PADMASHREE DR. D.Y. PATIL UNIVERSITY,
DEPARTMENT OF BUSINESS MANAGEMENT,
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai – 400 614
May 2012
IMPACT OF EMOTIONAL INTELLIGENCE
ON ORGANIZATIONAL CLIMATE AND
IN PRIVATE SECTOR BANKS.
I
DECLARATION
I hereby declare that the thesis entitled ‘Impact of Emotional Intelligence
on the Organizational Climate and Organizational Citizenship behavior
in Private sector Banks’ submitted for the Award of Doctor of
Philosophy in Business Management at the Padmashree Dr. D.Y. Patil
University Department of Business Management is my original work and
the thesis has not formed the basis for the award of any degree,
associateship, fellowship or any other similar titles.
Place: Navi Mumbai
Date:
Dr. R. Gopal Dr. R. Gopal Deepa Nair
(Head of the department) (Research Guide) (Research Scholar)
II
CERTIFICATE
This is to certify that the thesis entitled ‘Impact of Emotional Intelligence
on the Organizational Climate and Organizational Citizenship Behavior
in Private Sector Banks’ and submitted by Ms. Deepa Nair is a bonafide
research work for the award of the Doctor of Philosophy in Business
Management at the Padmashree Dr. D. Y. Patil University Department of
Business Management in partial fulfillment of the requirements for the
award of the Degree of Doctor of Philosophy in Business Management
and that the thesis has not formed the basis for the award previously of
any degree, diploma, associateship, fellowship or any other similar title of
any University or Institution. Also certified that the thesis represents an
independent work on the part of the candidate.
Place: Navi Mumbai
Date:
Prof. Dr. R. Gopal Prof. Dr. R. Gopal
(Head of the department) (Research Guide)
III
Acknowledgements
I am greatly indebted to the Padmashree Dr. D.Y. Patil University,

Department of Business Management which has accepted me for the
Doctoral Program and provided me with an excellent opportunity to
carry out the present research work.
I, with deep gratitude and respect, acknowledge the constant guidance

and support received from my research guide Prof Dr. R.Gopal. It was
possible for me to bring this research work to a fruitful conclusion
because of his positive demeanor and constant encouragement.
I would like to thank all the employees of the different banks who have
cooperated with me in the data collection. I also wish to extend my
heartfelt thanks to Mr. P. Ramkumar (Retd. From Catholic Syrian Bank)
and countless other well wishers, relatives, friends who have helped me in
my three year journey with their references and intellectual inputs. My
special thanks to all the Banks who are the clients of Ameya Infovision
Pvt. Ltd.
I am grateful to my parents who have always been encouraging me in all

my endeavors. I thank my husband Mr. K Devidas Nair for his unstinting
support at every stage especially during the data collection. My
appreciation for my son Shiva for his patience while I was busy
completing this research. Lastly I bow my head in reverence to all my
deities in whom I seek my strength and support.
Place:
Date: Signature of the student
IV
Contents
Chapter Title Pg.
No. No.
List of Tables x
List of Exhibits xv
List of Abbreviations xvii
Executive Summary 1
1 Introduction 9
1.1 Origin of Banking 10
1.2. Banking in the Middle Ages 11
1.3. Banking in Ancient India 11
1.4. Establishment of Modern Banks 12
1.5. Private Banks in India 14
1.6. Emotions in the work place 16
1.7. Relation between individual and Organization 16
1.8. Changes in Financial Services Sector 19
1.9. Importance of Behavioral Dimensions in Banks 20
2 Literature Review 27
3 Problem Definition, Objectives of the Study and 62
Research Methodology
3.01 Introduction to the Problem 63
3.02 Research Problem 64
3.03 Objectives of the Study 65
3.04 Hypothesis 66
3.05 Research Design 69
3.06 Sampling Design 70
3.07 Data Acquisition 71
3.08 Pilot Study 71
3.09 Tools of Data Collection 72
3.09.a. Personal Interview Method 72
3.09.b. Questionnaire 73
V
3.10 Data Analysis 73
3.11 Presentation of Findings Recommendations and 74
Conclusion
3.12 Limitations of the research 74
4 Demographic Variables and Emotional 76
Intelligence, Organizational Climate and
Organizational Citizenship Behavior.
4.01 Reliability Tests 77
4.02 Demographic variables and Emotional Intelligence 79
4.02.1 Age and Emotional Intelligence 79
4.02.2 Position and Emotional Intelligence 81
4.02.3 Educational Qualification and Emotional 84
Intelligence
4.02.4 Experience and Emotional Intelligence 86
4.02.5 Gender and Emotional Intelligence 88
4.02.6 Marital Status and Emotional Intelligence 90
4.02.7 Comparison of Emotional Intelligence between 93
States
4.03 Demographic variables and Organizational 94
Climate
4.03.1 Employee Age & Organizational Climate 94
4.03.2 Relation between gender and Organizational 96
Climate
4.03.3 Qualification and Organizational Climate 98
4.03.4 Experience and Organizational Climate 99
4.03.5 Relation between marital status and 101
Organizational Climate
4.03.6 Position and Organizational Climate 102
4.03.7 State wise difference in Organizational Climate 104
4.04 Organizational Citizenship Behavior and 106
Demographic variables
4.04.1 Age and Organizational Citizenship Behavior 106
4.04.2 Gender and Organizational Citizenship Behavior 108
VI
4.04.3 Qualification and Citizenship behavior 109
4.04.4 Experience and Organizational Citizenship 111

Behavior
4.04.5 Position and Organizational Citizenship Behavior 112
4.04.6 Marital Status and Organizational Citizenship 114
Behavior
4.05 Summary of findings of demographic variables in 116
relation to Emotional Intelligence
5 Emotional Intelligence and Organizational Climate 118
5.01 Introduction 119
5.02 Relation between Emotional Intelligence and 120
5.03 Emotional Intelligence and the sub variables of 121
5.03.1 Emotional Intelligence and Job Satisfaction 125
5.03.2 Emotional Intelligence & Customer Orientation 129
5.03.3 Emotional Intelligence and Involvement and 136
Empowerment
5.03.4 Emotional Intelligence & Teamwork Cooperation 138
5.03.5 Innovation 146
5.03.5.a Some Recent Innovations In Indian Banking 148
6 Emotional Intelligence and Organizational 152
Citizenship Behavior
6.02 Relationship between Emotional Intelligence and 154
Organizational Citizenship Behavior
6.03 Emotional Intelligence &Interpersonal Helping 161
6.04 Emotional Intelligence & Individual Initiative 165
6.05 Emotional Intelligence & Personal Industry 167
6.06 Emotional Intelligence & Loyal Boosterism 169
6.07 Organizational Citizenship Behavior as a 171
Customer Acquisition and Retention Strategy.
VII
7 Organizational Climate and Organizational 174
7.02 Impact of Organizational Climate upon 176
7.03 Correlations & Multiple regression analysis 182
7.03.1 Job Satisfaction 182
7.03.2 Customer Orientation 185
7.03.3 Involvement & Empowerment 187
7.03.4 Teamwork and Cooperation 189
7.03.5 Correlation Analysis 192
7.03.6 Multiple regression analysis 193
7.04 Employee Training and Information and 195
Knowledge Sharing
7.04.1 Employee Training 196
7.04.2 Information and Knowledge sharing 199
7.04.3 Multiple Regression 202
8 Implications and relevance of the Study 205
8.02 Talent Management 207
8.03 Employee Retention 210
8.04 Human Resource Planning - Recruitment and 215
Selection
8.05 Training and Development 218
8.06 Team Work and Cooperation 224
8.07 Relevance of Organizational Citizenship 229
Behaviour
8.08 Customer and Client Management 230
9 An Overview 233
9.1 Model Developed in the Study 238
Annexure 240
Annexure I (Bibliography) 241
VIII
Annexure II (Questionnaire) 256
Annexure III (Operational Definitions) 264
Annexure IV (List of Banks) 267
Annexure V(SPSS Tables & Exhibits) 268
IX
List Of Tables
Table List of Tables Page
No. No.
3.1 Sampling 70
4.01.a Reliability for Emotional Intelligence 77
4.01.b Split half Reliability 78
4.02.a Reliability for climate 78
4.02.b Split half reliability for Organizational Climate 78
4.03.a Reliability for OCB 79
4.03.b. Split half reliability for OCB 79
4.04 Descriptive statistics of age and EI 80
4.05 ANOVA – Relation between Age and EI 80
4.06 Position and EI (percentage analysis) 82
4.07 Chi-Square Tests- relation between position and 83
Emotional Intelligence
4.08 Symmetric Measures : Phi CramerV Tests 83
4.09 qualification level * EI Percentages 85
4.10 Chi-Square Tests Relation between Emotional 86
Intelligence and Qualification
4.11 Group Statistics – Mean and Standard 87
Deviation(EI & Experience)
4.12 T Test- EI & experience 87
4.13 Group Statistics- Gender & EI 88
4.14 T – Test for equality of means based on gender 89
4.15 Marital Status * Emotional Intelligence Level 91
4.16 Chi-Square Tests relation between Marital 92
Status and Emotional Intelligence
4.17 Symmetric Measures- Phi Cramer V Test 92
4.18 State wise Group Statistics 93
4.19 State wise Comparison with T Test 94
X
4.20 Group Statistics- Age and Organizational 95
Climate
4.21 ANOVA for Age and Organizational Climate 96
4.22 male or female * OC % Analysis 97
4.23 Chi-Square Tests-relation between gender and 97
perception of Climate
4.24 ANOVA- Qualification OC 98
4.25 experience * OC Percentage Analysis 99
4.26 Chi-Square Test Experience and OC 100
4.27 Group Statistics Marital Status and OC 101
4.28 Marital Status and OC–T Test 102
4.29 Position* OC percentage Analysis 103
4.30 Position and OC chi square test 103
4.31 Group Statistics for States 105
4.32 T- Test for State differences in OC 105
4.33 age * Organizational Citizenship Behavior 106
4.34 Chi-Square Tests Age and OCB 106
4.35 Symmetric Measures 107
4.36 Group Statistics for Gender & OCB 108
4.37 T Test to compare OCB between gender 109
4.38 Descriptives- qualifications & OCB 110
4.39 ANOVA between Qualifications for OCB 111
4.40 Group Statistics Experience and OCB 111
4.41 T Test for difference in OCB due to experience 112
4.42 Chi-Square Tests for position and OCB 113
4.44 Marital Status * OCB 114
4.45 Chi-Square Tests –relation between marital 115
status and OCB
5.01 Correlations between EI & OC 120
XI
5.02 a. Regression: Model Summary 121
5.02 b. ANOVAb of Regression 121
5.02 c. Coefficients Regression 121
a
5.02 d. Residuals Statistics 122
5.03 Correlation between EI and JS ,CO, IE and TC 125
5.04 a. Model Summary of Regression (EI & JS) 126
b
5.04 b. ANOVA of Regression (EI & JS) 126
5.04 c. Coefficients’ of Regression (EI & JS) 126
5.04 d. Residuals Statisticsa (EI & JS) 128
5.05 Emotional intelligence * customer orientation 130
5.06 Chi-Square Tests- Relation between Emotional 131
Intelligence & Customer Orientation
5.07 a. Model Summary of Regression (EI & CO) 133
5.07 b. ANOVAb of Regression Analysis(EI & CO) 133
5.07 c. Coefficients of Regression Analysis(EI & CO) 133
5.08 a Model Summary of Regression (EI & IE) 136
5.08 b. ANOVAb of Regression Analysis (EI & IE) 137
5.08 c. Coefficients of Regression Analysis(EI & IE) 137
5.09 a. Model Summary (EI & TC) 139
5.09 b. ANOVAb of Regression Analysis(EI & TC) 140
5.09 c. Coefficients of Regression Analysis(EI & TC) 140
a
5.09 d. Residuals Statistics (EI & TC) 141
5.10 Chi-Square Tests(Emotional Intelligence & 146
Innovation)
5.11 Symmetric Measures(Cramer's V test) 147
6.01 OCB level of Employees 153
6.02 EI * OCB percentage analysis 155
6.03 Correlations between Emotional Intelligence 156
,OCB, IH, II, PI and LB
6.04 a. Model Summary of Regression(EI & OCB) 157
6.04 b. ANOVAb of Regression Analysis (EI & OCB) 157
XII
6.04 c. Coefficients of Regression Analysis (EI & 157
OCB)
6.04 d. Residuals Statisticsa (EI & OCB) 158
6.05 a. Model Summary (Regression for EI and IH) 162
b
6.05 b. ANOVA of Regression Analysis (EI and IH) 162
6.05 c. Coefficients of Regression Analysis (EI and IH) 163
6.05 d. Residuals Statisticsa (EI and IH) 163
6.06 a. Model Summaryb (Regression Analysis EI&II) 166
6.06 b. ANOVAb(Regression Analysis EI&II) 166
a
6.06 c. Coefficients of Regression Analysis(Regression 167
Analysis EI&II)
6.06 d. Residuals Statisticsa(Regression Analysis 168
EI&II)
6.07 a. Model Summaryb(Regression Analysis EI&PI) 168
b
6.07 b. ANOVA (Regression Analysis EI&PI) 168
6.07 c. Coefficientsa (Regression Analysis EI&PI) 168
6.08 a. Model Summaryb (Regression Analysis 170
EI&LB)
6.08 b. ANOVAb(Regression Analysis EI&LB) 170
6.08 c. Coefficients(Regression Analysis EI&LB) 171
7.01 Organizational climate (OC)* organizational 177
citizenship behavior (OCB)
7.02 Chi-Square Tests (OC & OCB) 178
7.04 Correlations between OC & OCB 179
7.05 a. Model Summary (Regression OC & OCB) 179
7.05 b. ANOVAb(Regression OC & OCB) 180
a
7.05 c. Coefficients (Regression OC & OCB) 180
7.05 d. Residuals Statisticsa(Regression OC & OCB) 181
7.06 OCB* JS percentage analysis 184
7.08 OCB* customer orientation 186
XIII
7.09 OCB* Involvement /Empowerment 188
7.1 OCB* Teamwork/Cooperation % analysis 190
7.12 Correlation between OCB & JS, CO, IE, IK, ET 192
,TC
7.13 a. Model Summary (Multiple regression Analysis) 193
7.13 b. ANOVAb(Multiple regression Analysis) 193
7.13 c. Coefficientsa(Multiple regression Analysis) 194
7.14 OCB* ET percentage Analysis 198
7.16 OCB * IK 201
7.17 a. Model Summary(Multiple Regression ET, IK & 202
OCB)
7.17 b. ANOVAb(Multiple Regression ET, IK & OCB) 203
7.17 c. Coefficientsa(Multiple Regression ET, IK & 203
OCB)
8.1 % of Employees who desire to leave the Bank 214
XIV
LIST OF EXHIBITS
Ex.No. LIST OF EXHIBITS Pg.No.
1.1 Percentage of respondents who expected 18
‘moment of truth’ during 24 hours (From -
The McKinsey Quarterly Chart Focus
Newsletter)
2.1 MSCEIT Total (Adapted from Mayer, & 33
Caruso, 2002)
4.01 Position and Level of EI 82
4.02 Level of EI and Qualification 86
4.03 Marital Status and Emotional Intelligence 90
4.04 male or female * OC- Percentage Analysis 98
4.05 Experience and Organizational Climate 100
4.06 Position & Organizational Climate 104
4.07 Age and OCB 107
5.01 a. Histogram of standardized Residual(EI and 122
OC)
5.01b Scatter Plot (EI and OC) 123
5.01c Unstandardized residual plot(EI & OC 123
5.01d Studentized Residual Plot(EI and OC) 124
5.02a Histogram of standardized Residual(EI & JS) 127
5.02b Residual Plot(EI &JS) 129
5.02c Residual Plot(EI &JS) 129
5.03a Level of CO with Emotional Intelligence 130
5.04 Histogram of standardized Residual(EI&CO) 134
5.05. a Scatter Plot (TC&EI) 141
5.05. b Studentized Residual Plot(TC&EI) 142
5.05. c Unstandardized Residual Plot (TC & EI) 142
XV
6.01 Pie chart showing OCB level 154
6.02 a. Histogram of regression standardized 159
residual (EI &OCB)
6.02 b. Scatter Plot (EI &OCB) 159
6.02 c. Unstandardized residual Plot(EI&OCB) 160
6.02 d. Studentized residual Plot 160
6.03 .a. Residual Plot(EI &IH) 164
6.03 b. Studentized residual Plot 164
7.01 OCB Level 177
7.02 Scatter plot around the line of fit in the graph 180
of the linear equation
7.03 Histogram of Standardized residual 182
7.04 JS & OCB 185
7.05 OCB & CO 186
7.06 OCB & IE 188
7.07 OCB & TC 191
7.08 OCB & ET 198
7.09 Exhibit: OCB & IK 201
8.1 Talent Management Model 208
8.2 %of Employees who desire to leave the Bank 214
8.3 Stages of Team Formation 226
9.1 Model Developed in this Study 239
XVI
LIST OF ABBREVIATIONS
EI (ei) Emotional Intelligence
EE (ee) Expressing Emotions
UE (ue) Understanding Emotions
BE (be) Balancing Emotions
OC (oc) Organizational Climate
OCB Organizational Citizenship Behavior
(ocb)
JS (js) Job Satisfaction
TC (tc) Teamwork/Cooperation
IK (ik) Information /Knowledge Sharing
CO (oc) Customer Orientation
IE (ie) Involvement/Empowerment
ET (et) Employee Training
IH (ih) Interpersonal Helping
PI (pi) Personal Industry
II (ii) Individual Initiative
LB (lb) Loyal Boosterism
HDFC Housing Development Finance Corporation
ICICI Industrial Credit Investment Corporation of India
MSCEIT Mayer-Salovey-Caruso Emotional Intelligence Test
IQ Intelligence Quotient
SIB South Indian Bank
ATM Automated Teller Machines
XVII
EXECUTIVE SUMMARY
Introduction
In a Business Environment that is extremely volatile, banks are always
searching for answers and means to create a workforce with competencies that
will make them globally competitive. In the Indian Banking scenario a huge
expansion is taking place particularly in the private sector banks. Expansion is
taking place in multiple moves; one is there is physical expansion;
distribution, increased number of branches, automated teller machine (ATM),
network. But importantly, there is another expansion which is taking place is
that the product in the service range of the private sector banks is becoming
bigger, more complex and more relevant to the dynamic economy in which we
are today. One of the major challenges which banks face is streamlining the
HR in the face of the rapid changes in the economy, and market conditions.
There is already a crisis of talent. This study mainly focuses on the behavioral
competencies of the employees and its contributions to the growth of the bank.
Emotional Intelligence is a person‘s ability to be self aware, detect emotions in
others, and manage emotional cues and informations. Different models have
been proposed for the definition of EI and disagreement exists as to how the
term should be used. The earliest roots of emotional intelligence can be traced
to Darwin's work on the importance of emotional expression for survival and
adaptation. In the 1900s, even though traditional definitions of intelligence
emphasized cognitive aspects such as memory and problem-solving, several
1
influential researchers in the intelligence field of study had begun to recognize
the importance of the non-cognitive aspects. For instance, as early as 1920,
E.L. Thorndike used the term social intelligence to describe the skill of
understanding and managing other people.
The first use of the term "emotional intelligence" is usually attributed to
Wayne Payne's doctoral thesis, A Study of Emotion: Developing Emotional
Intelligence from 1985. However, prior to this, the term "emotional
intelligence" had appeared in Leuner (1966). Greenspan (1989) also put
forward an EI model, followed by Salovey and Mayer (1990), and Goleman
(1995). The distinction between trait emotional intelligence and ability
emotional intelligence was introduced in 2000.
Climate can be defined as the ‗incumbents perceptions of the events, practices
procedures and kinds of behavior that get rewarded supported and expected in
a setting‘ (Schneider1990; pg.384). The climate of an organization refers to
those aspects of the environment that are consciously perceived by the
organizational members (Amstrong 2003). In short it refers to how members
of the organization perceive it as they go about their daily business. Reichers
and Schneider (1990.pg.22) defined organizational climate as ‗shared
perceptions of the way things are around here‘.
Organizational citizenship behavior (OCB) has become a major construct in
the fields of the psychology and management and received a great deal of
2
attention in the literature (Bateman and Organ, 1983). Organizational
citizenship behavior ―represents individual behavior that is discretionary, not
directly or explicitly recognized by the formal reward system, and in the
aggregate promotes the efficient and effective functioning of the organization‖
(Organ, 1988, p. 4).
Most of the studies examining the structure of OCB have agreed that it is a
multidimensional concept (e.g. Graham, 1989; Moorman and Blakely, 1995;
Organ, 1988; Podsakoff et al., 1990). Graham (1989), for example, proposed a
four-dimension model of OCB consisting of: interpersonal helping, individual
initiative, personal industry, and loyal boosterism. 1995).
Research Gap
There is no study connecting the three organizational variables - Emotional
intelligence (EI), organizational Climate (OC) and Organizational citizenship
behavior (OCB) - together. There is a huge research gap in this area and
therefore this research attempts to cover that by understanding the relation
between employee Emotional Intelligence (EI) and Organizational Climate
(OC) and Organizational citizenship behavior (OCB).
The primary Objectives of the Study:
Though this study has Eleven Objectives the three primary Objectives of this
study are-
1. To explore the impact of Emotional Intelligence on Organizational
Climate.
3
2. To investigate the impact of Emotional Intelligence on Organizational
3. To scrutinize the relationship between Organizational Climate and
Employee Emotional Intelligence is the independent variable in this study and
its impact on Organizational Climate and Organizational Citizenship Behavior
is studied. Since this study is totally focused on Private Sector Banks in India,
Public Sector Banks were not considered. Sampling was done in two stages.
In order to get a representative sample, the stratified sampling technique was
first used and two strata developed based on size- one Large and the other
medium. The parameters for size were Market Capitalization of the bank and
employee strength. For the purpose of confidentiality the randomly selected
large banks were coded as L1, L2, L3 and the other strata of medium sized
banks were coded as M1, M2, M3, M4, M5. The suggested sample was 651
and the sample collected was 704.
Data Acquisition was through Primary and Secondary sources. The Primary
Sources of Data Collection are the Questionnaire and the In Depth Interviews.
The Secondary Sources of Information are from Annual Reports of Banks,
Company Manuals and brochures, Articles, Internet Sources, books,
periodicals, guides and directories, Journal and Newspaper.
Data Analysis
Data Analysis was done using the SPSS software. The chi square test, Anova
T test correlation, regression and multiple regression analysis was used to find
4
the relationship between the variables of Emotional Intelligence,
Organizational Climate and Organizational Citizenship behavior.
Findings
The correlation and regression analysis conducted revealed that there was a
high degree of positive correlation between the independent variable
Emotional Intelligence and the dependent variable Organizational Climate.
The computed value of the F statistic as well as the computed‗t‘ values
showed a significant relation between the two variables. The Regression
model was developed to show the impact of Emotional Intelligence on
Organizational Climate .
To find the impact of Organizational Climate on Organizational Citizenship
Behavior, correlation and regression analysis was conducted. The Pearson‘s
Correlation showed a high degree of positive correlation between the
independent variable Organizational Climate and the dependent variable
Organizational Citizenship Behavior. Further the regression analysis shows
the computed value of the F statistic as well as the computed t values to be
significant. The Regression equation further proves the degree of relation
between the two variables of Organizational Climate and Organizational
Citizenship Behavior.
There is a high degree of positive correlation between Emotional Intelligence
and Organizational Citizenship Behavior. Further the regression analysis
shows the computed value of the F statistic as well as the computed t values to
be significant. The Regression equation further proves the degree of relation
5
between the two variables of Emotional Intelligence and Organizational
Model Developed in the study
The brief of the entire study can be understood on the basis of the model
developed in this study
ORGANIZATIONAL
RELEVANCE
ORGANIZATIONAL
CLIMATE
TALENT
MANAGEMENT
ORGANIZATIONAL
CUSTOMER CITIZENSHIP
EMOTIONAL ORIENTATION BEHAVIOR EMPLOYEE
INDIVIDUAL INTELLIGENCE RETENTION
INVOLVEMENT / INTERPERSONAL
UNDERSTANDING EMPOWRMENT HELPING ABSENTIEEISM
EMOTIONS HUMAN (Curbing)
OUTPUT OUTPUT
INFORMATION &
INDIVIDUAL CUSTOMER &
INPUTS KNOWLEDGE
BALANCING INITIATIVE CLIENT
Organizational SHARING
EMOTIONS MANAGEMENT
System Level
EMPLOYEE PERSONAL TRAINING &

EXPRESSING TRAINING INDUSTRY DEVELOPMENT
EMOTIONS
GROUP OR
TEAM LEVEL OVERALL
SATISFACTION LOYAL RECRUITMENT
BOOSTERISM SELECTION
TEAM WORK /
COOPERATION STRESS
MANAGEMENT
MODAL DEVELOPED
Exhibit 9.1: Model Developed in the Study
Exhibit 9.1 which represents the model that has been developed in this study
sums up the entire study. Emotional Intelligence (with its three components
6
Expressing Emotions, Balancing Emotions and Understanding Emotions) is
the individual and group level inputs which affects Organizational Climate
(measured by its components Customer Orientation,
involvement/Empowerment, Information/Knowledge sharing, Employee
Training, Teamwork /Cooperation, and Job Satisfaction).The Organizational
Climate in turn affects Organizational Citizenship Behavior(with its
components being Interpersonal Helping, Personal Industry, Individual
Initiative and Loyal Boosterism). All these three variables have a positive
impact on each other as proved in the study. For the Banks an increase in the
Emotional Intelligence of the Employees results in better Organizational
Climate which in turn results in high Organizational Citizenship Behavior by
the employees. The positive outcome of the interaction between these variable
affects Talent Management, abets employee retention, curbs absenteeism,
improves customer and client Management and helps in stress management,
Recruitment and Selection and Employee Training.
Limitations of the research
Since the sample has been totally taken from the Private Indian banks cultural
variations could occur across different countries. Differences in values,
attitudes, motivations and perceptions could give different results. This study
is focused mainly on Private Banks and can be replicated across several
industries to get a more holistic picture of the influence of Emotional
Intelligence on the Organizational Climate and consequently its impact on
Organizational Citizenship Behavior. Public Sector Banks as well as Foreign
Banks too were not considered in this study.
7
Conclusion
Today‘s Banks operate in an increasingly uncertain and tumultuous global
market economy that requires employees to demonstrate complex and
multidimensional thinking, requiring traditional analytic or linear thinking
skills, as well as more nonlinear modes such as intuition, insight, emotional
assessments, creative thinking, and perceptual flexibility .This study looks into
one such nonlinear behavioral skill i.e. Emotional Intelligence, a recent
addition to Organizational Literature. An attempt has been made to understand
the impact of Emotional Intelligence on Organizational Climate and the
resulting impact it has on the final outcome Organizational Citizenship
Behavior and its relevance to Private Sector Banks.
8
Chapter 1
INTRODUCTION
Whether we like it or not, men and women are not the same in nature,
temperament, emotions and emotional responses. Doing Business is much
about using your Emotional Intelligence.
9
CHAPTER 1
INTRODUCTION
1.1. Origin of Banking
The word ―bank‖ has its origin in the French word ―Banque‖ or the Italian
word ―Banca‖, both of which mean ‗an office for monetary transactions over
the counter, benches or desks‘. Thus, in olden times, bank means a bench or
desk on which transactions took place. In many parts of the world some sort of
monetary dealings were prevalent even when barter system was popular.
Excavations are said to reveal the existence of deposit banks in Babylonian
/Assyrian civilization. The code of Babylonian's, the code of Hammurabi, the
king of Babylon dealing with the morals, ethics of a good and honest banking
also existed. Copper, silver and other metals with specified weight were used
as a standard of valuation. The discovery of coin brought a revolution in the
history of money and banking. Coinage helped banks to perform more and
more functions which were not possible under practice of granting loan was
widely prevalent. The books of Manu, also speaks of credit system, credit
instruments, interest on loans and renewal of commercial papers. In Rome, in
the 4 th century BC, the modern banking functions such as money changing,
auctioning, discounting, advancing, and investment were undertaken, People
were using cheque or draft on bank. During the ancient period, the banking
business was mostly undertaken by private individuals.
10
1.2. Banking in the Middle Ages
The middle ages saw the rise and spread of professional moneylenders doing
business all over the world. But there were no general or uniform principles
governing banking, lending and rates of interest. No code of ethics existed.
The Jews exacted very high rate of interest and Henry III fixed 43% rate of
interest for the moneylenders. The goldsmiths established a corporation of
goldsmiths in England and were charged with the safe keeping of the royal
mint and the treasure. Due to ill treatment by the Government of Charles II,
the goldsmiths vanished and it became a turning point in the history of
banking in England. The Bank of Venice, established in 1157, is supposed to
be the most ancient bank. Another bank ‗Monte‘ was established in Florence
in 1336 in Italy. A public bank was established in Barcelona in 1401. It used
to exchange money, receive deposits and discount bills of exchange. The Bank
of Genoa and the Bank of Amsterdam were established in 1457 and 1609
respectively. The bank of Amsterdam accepted all kinds of specie on deposits.
Most of the European banks were formed on the model of this bank, i.e. Bank
of Amsterdam. The bank of England was established in 1694.
1.3. Banking in Ancient India
Banking in India is older than the rest of the world. Acceptance of deposits
and granting of loans were being performed by a section of community in
Vedic period. The banker performed most of the functions of the modern
banks during Smriti period. Vaishyas practiced banking during Buddhist
period and later on Brahmins and Kshatriyas also entered into the fray. In
Kautilya‘s Arthshastra, maximum rates of interest were fixed. People who did
11
this business were called as ‗Sahukar‘ of Mahajan‘ or Sresthis‘.. During early
Muslim Rule in India, Indigenous banks performed banking functions. The
bills of exchange, known as Hundie, were most commonly used. The names of
‗Jagat Seth‘ are very well known in India. According to U.P. Banking enquiry
Committee ―Jagat Seths of the 17th and 18th Centuries, having all the power
and influence as the other private banking house in any other country and
fulfilled many of the functions of central bank‖.
1.4. Establishment of Modern Banks
Due to the advent of the East India company, the indigenous banking declined
in the 18th century. The first joint stock bank—the Hindustan Bank—was
established in 1770 by the Alexander and company at Calcutta but it was
liquidated in 1832. The Bengal Bank was established in 1785 and the General
Bank of India in 1786. Both the banks, however, failed by 1791. The first
Presidency bank was established in Calcutta in 1806 in the name of Bank of
Calcutta and was renamed as the Bank of Bengal in 1809. The other two
Banks—the Bank of Bombay and the Bank of Madras —were established in
1840 and 1843 respectively. Most of the government business was done by
these banks. In 1865, the Allahabad bank was established under European
Management. The Commercial Bank, established in 1881, was the first purely
Indian Bank. It was followed by the Punjab National Bank in 1894 and the
people‘s Bank in 1901. In addition to this, a few banks like the Bank of India
(in 1906), the Indian Bank (in 1907), the Bank of Baroda (in 1908). The
Central Bank of India (in 1911),were also established by the Indians.
12
Calcutta was the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking center. By the 1960s, the Indian
banking industry had become an important tool to facilitate the development
of the Indian Economy. At the same time, it had emerged as a large employer,
and a debate had ensued about the possibility to nationalise the banking
industry. Indira Gandhi the-then Prime Minister expressed the intention of the
GOI in the annual conference of the All India Congress Meeting in a paper
entitled "Stray thoughts on Bank Nationalization." The paper was received
with positive enthusiasm. Thereafter, her move was swift and sudden, and the
GOI issued an ordinance and nationalize the 14 largest commercial banks with
effect from the midnight of July 19, 1969.Jayaprakash Narayan, a national
leader of India, described the step as a "masterstroke of political sagacity."
Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August 1969.
In the early 1990‘s, the then Narsimha Rao government embarked on a policy
of liberalization licensing a small number of private banks. These came to be
known as New Generation tech-savvy banks, and included Global Trust Bank
(the first of such new generation banks to be set up), which later amalgamated
with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI and
HDFC. This move, along with the rapid growth in the economy of India
revitalized the banking sector in India, which has seen rapid growth with
13
strong contribution from all the three sectors of banks, namely, government
banks, private banks and foreign banks.
The banking scenario in India has already gained all the momentum, with the
domestic and international banks gathering pace. Indian banks, the dominant
financial intermediaries in India, have made good Progress over the last five
years, as is evident from several parameters, including annual credit
growth, profitability, and trend in gross nonperforming assets (NPAs). While
the annual rate of credit growth clocked 23% during the last five years,
profitability (average Return on Net Worth) was maintained at around 15%
during the same period, and gross NPAs fell from 3.3% as on March 31,
2006 to 2.3% as on March 31, 2011.Good internal capital generation,
reasonably active capital markets, and governmental support ensured good
capitalization for most banks during the period under study, with overall
capital adequacy touching 14% as on March 31, 2011. At the same time, high
levels of public deposit ensured most banks had a comfortable liquidity
profile.
1.5. Private Banks in India
It is well documented in economic literature that financial development makes
fundamental contributions to economic growth. Private Banks are one of the
main participants of the financial system in India. Past experiences also
provide ample support to this fact. In theory it goes back to Schumpeter (1911)
who argued that well functioning banks are able to identify innovative
entrepreneurs that allow funds being channeled to the most promising
investment projects. Indian banking has worked up to the competitive
14
dynamics and is addressing the relevant issues to take the multifarious
challenges of globalization. These private banks are futuristic and proactive
players who are constantly reorienting their strategies to bring about total
systemic transformation. In this context of constant transformation and quest
for excellence these banks have to have a multipronged strategy to survive in
the market. One of the most interesting areas of development would naturally
be to start from within the Banks by improving the quality of workforce. This
study tries to probe a very important dynamic aspect of human nature i.e
emotions and its management in the workplace context.
The focus of all banks in India has shifted their approach to 'cost', determined
by revenue minus profit. This means that all the resources should be used
efficiently to better the productivity and ensure a win-win situation. To survive
in the long run, it is essential to focus on cost saving. Previously, banks
focused on the 'revenue' model which is equal to cost plus profit. Post the
banking reforms, banks shifted their approach to the 'profit' model, which
meant that banks aimed at higher profit maximization. The banking industry is
slated for growth in future with a more qualitative rather than quantitative
approach. For this growth to occur it is very important to understand the
human forces acting to bring about these changes. This study looks at the
private sector banks and its workforce in the context of the relationship
between the employee Emotional Intelligence and The resulting organizational
Climate and the resulting output of the two Organizational Citizenship
Behavior.
15
1.6. Emotions in the work place
‗Most social and behavioral scientists reason either implicitly or explicitly
,that observed behavior is a function of the salience or meaning of situations
for people‘ (Schneider). Except for extreme behaviorists, behavior is
conceptualized as the outcome of a sense making process wherein stimuli are
processed by humans who then behave in , or construct (Weick, 1995), the
situations to which they respond. Response to stimuli is the result of the
emotions people experience. Given the obvious role that emotions play in
work and everyday lives, the field of Organizational Behavior has given no
importance to the topic till late. There could be two possible explanations for
this .The first is the myth of rationality. From the late nineteenth century and
the rise of Management until very recently was to keep emotions in the back
burner. The second reason was that strong emotions of any kind are disruptive
by nature. The need of the hour is to recognize emotions as an integral part of
any working climate and instead of relegating it what is important is how to
learn to manage it for increasing the productivity performance and efficiency
of the employees.
1.7. Relation between individual and Organization
Each individual working in a system (organization) should understand his
basic behavioral orientations if he has to perform effectively. The relationship
between the individual and the organization (system) is reciprocal. Any
organizations, whatever be its size, activity, its success depends upon the
employees ‗decisions and behavior. All the other factors contributing to
16
organizational success like technology are subject to rapid change but one
factor contributing to organizational outcomes which has always held a
position of primacy is the human element or the human factors that contribute
to the triumph of organizations. Employee performance is the outcome of a
number of factors both intrinsic to the employee at the individual level and at
the same time a variety of extrinsic factors which are organizational.
Banks too understand that in order to stay in the competition they have to
increase their profitability and revenue which means they have to improve
their performance .Yet many banks find it increasingly difficult to achieve the
performance goals. .As banks try to manage risks, improve branch operations,
design and execute more effective marketing campaigns, attract and retain
more customers and increase customer profitability, they have to understand
that it is only possible to achieve these performance goals with the high level
of commitment and involvement of its important stakeholder its employees.
Therefore the performance of the individual which is dependent upon his
behavioral component is possible in a conducive environment i.e
organizational climate.
This study thus aims to establish whether there exists a relation between a very
important individual behavioral components Emotional Intelligence and
whether it affects the organizational factor of climate and ultimately whether it
results in organizational citizenship behavior. Every employee expends
physical and mental labour when they put their bodies and cognitive abilities,
respectively into their job but do employees also have to put in
organizationally desired emotions into their work in order to function
17
effectively. Felt emotions and expressed emotions and organizationally
desired emotions can cause a lot of emotional dissonance which in turn could
affect the overall environment of the organizations.
(From -The McKinsey Quarterly Chart Focus Newsletter)
Exhibit 1.1:% of people who experienced their moments of truth during 24
hours.
18
Many consumer-facing businesses perform poorly on the front line. Their
employees should make use of emotional intelligence, or EQ, during
―moments of truth‖—those few interactions when the customer feels strongly
about the outcome. At banks, for example, they involve activities such as
receiving financial advice and negotiating mortgages as opposed to more
mundane matters, like buying traveler‘s checks. After a positive moment of
truth at a bank, more than 85 percent of the consumers in a survey increased
their value to it by purchasing additional products or investing additional
assets; when things turned sour, upward of 70 percent reduced their
commitment, though not all of them ended it totally.
1.8. Changes in Financial Services Sector
Financial Services sector has undergone a sea change in the past two decades.
The financial sector reforms in India like any other country are based on two
approaches. The first is focused on liberalization which seeks to reduce the
number of direct controls over banks to introduce efficiency and productivity
in the system. The second is focused on stronger regulation of the financial
sector for its stability. The major reforms introduced in the financial sector
since the past two decades include
Interest rate deregulation and liberalization on deposits and lending
Entry deregulated for private and foreign players
Reduction of reserve requirement
Recapitalization of public sector banks
19
Prudential supervision to enhance market transparency and
introduction of international best practices
Ownership of public sector is broadened through disinvestment
These reforms have unleashed severe competition where to survive calls for
innovation even in the best practices. In this new and emergent marketplace,
the occurrence of loyal and often inherited relationships between a customer
and his or her bank has become increasingly scarce (Levesque and
McDougall,1996).In the Western world ,banking is one of the many services
industries where research on customer satisfaction has been the focus. Several
strategies have been tried and adopted to retain customers. With the intention
of increasing customer loyalty many banks have introduced innovative
products and services (Median,1996).
1.9. Importance of Behavioral Dimensions in Banks
This phase of banking revolution has made it mandatory for banks to look for
ways and means to reinvent itself. Decision making, negotiation skills, conflict
management, working in teams, maintenance of relations with peer group
employees, subordinates as well as superiors, handling frustrations,
disappointments interactions with customers clients certain skills and abilities
beyond the technical are of prime importance. This is where emotional
Intelligence comes into play affecting the overall climate of the organization.
One of the most provocative ideas to emerge from recent discussions of
management concerns the possibility that a new form of intelligence
pertaining to emotions is related to the performance of organization members
20
(Goleman, 1998; Caruso and Salovey, 2004). According to this idea, some
organization members may perform effectively because they have high
emotional intelligence. Emotional intelligence is a set of abilities that includes
the abilities to perceive emotions in the self and in others, use emotions to
facilitate performance, understand emotions and emotional knowledge, and
regulate emotions in the self and in others (Mayer and Salovey, 1997). The
concept of emotional intelligence has had an unusually important impact on
managerial practice (Ashkanasy and Daus, 2002). Several organizations have
incorporated emotional intelligence into their employee development
programs (Fast Company, 2000), and some business schools have added the
training of emotional competencies to their curriculums (Boyatzis, Stubbs, and
Taylor, 2002). The appeal of emotional intelligence may reflect the idea that
success is not simply determined by well-known abilities, such as verbal and
quantitative abilities, but also by abilities pertaining to emotions. Researchers
have built the case for emotional intelligence, in part, by arguing that it
explains variance in job performance that is not explained by extant constructs
such as cognitive intelligence (Mayer and Salovey, 1997; Goleman, 1998;
Mayer, Salovey, and Caruso, 2000).
In a Business Environment that is extremely volatile, banks are always
searching for answers and means to create a workforce with competencies that
will make them globally competitive. This study mainly focuses on the
behavioral competencies of the employees and its contributions to the growth
of the bank. An often overlooked area especially in the private banks where
21
there is a great deal of focus on all the other stakeholders and not much on the
employees.
Is the study of Organizational Climate so vital to the understanding of life
within the organization? Organizational Climate is the measureable
psychological ‗life space‘ (Lewin) within organizations. Climate research
languished as an increasingly large number of dimensions were added to its
conceptualization; with new facets added each time a researcher thought that
climate might be useful to understand some interesting phenomenon. Climate
is useful when it has strategic focus (Schneider 1975). For example there is
good evidence to support the idea that the service climate experienced by
employees in organizations is shared also by the customers those employees
serve (Schneider, White & Paul, 1998).Organizations have climates that
individuals feel immediately upon entering them. ‗Climate is embedded in the
physical look of the place, the emotionality exhibited by employees, the
experiences of visitors or new employees upon entry….‘(Schein). To
understand climate fully one must understand what goes on in organizations
and why it happens the way it does.
Changes in the nature of banking clearly have a knock-on effect on employee
relations (defined broadly to include industrial relations, communications,
training, remuneration policy, etc.) as banks move towards being more market
driven organizations with a culture consistent with that, and with staff being
regarded more as a resource than a cost (Wilkinson, 1990).
22
Historically, it has been the case that employee relations have been relegated
to a ‗second order‘ strategy, purely facilitative and not fully integrated into
overall business strategy (e.g. Timperley, 1980; Purcell, 1983; Wilkinson,
1990). Hence, there was little consideration of employee relations at the top
corporate level implications unless the level of unrest was such that labour was
seen as a problem, as for instance in the car industry (e.g. Willman and Winch,
1985). Although there has been a gradual rise in the number of personnel
professionals at Board level, these are still a minority. Lack of serious
consideration of employee relations has also been said to owe something to the
dominance of financial control at this level (Batstone, 1984, pp.70-2).
Research in the 1970s discovered an ‗avoidance strategy‘ whereby industrial
relations were regarded as somehow ‗external to the enterprise (Winkler,
1974). In the corporate planning agenda the human resources occupy a
secondary position. However, there are dangers of looking at HR issues in
this way. The importance of ensuring the active co-operation of employees in
industry has been emphasized for example by Walton (1985), who examined
the shift away from emphasizing control to one of commitment, and this can
be even more significant for the service sector. In retail banking, for example
where the product differentiations between the banks are not significantly
different the consumer is influenced more by convenience and image. This is
largely created by contact with staff, and there is thus a clear strategic link
with quality of service and staff quality. Yet, in banking though traditionally
staff have not been recruited or developed for customer contact skills but for
technical and administrative ability, the scene is now changing. ‗Most banks
23
wanting to move away from being regarded merely as providers of a money
transmission service to the selling of a range of financial products and services
with ―tellers‖ becoming ―sellers‖, the organization will, need to become more
organic and less mechanistic, (Burns and Stalker, 1961) which will require far
greater commitment and co-operation rather than mere compliance from staff.
The notion of (OCB) was introduced by Bateman and Organ (1983, p.4) and
defined as ―individual behavior that is discretionary, not directly or explicitly
recognized by the formal reward system, and that in the aggregate promotes
the effective functioning of the organization‖ (Organ, 1988, p.4). Although
there is an increasing research interest in OCB, a consensus is yet to be
reached regarding what the different types of behaviors constitute OCB.
However, Organizational Citizenship Behavior is reported to have seven
common themes. These are: Helping behavior, sportsmanship, organizational
loyalty, organizational compliance, individual initiative, civic virtue and self-
development. OCB, therefore, may contribute to organizational success for the
following reasons: enhanced co-worker and managerial productivity, freeing
up resources that can be used for more productive purposes, helping to
coordinate activities within and across groups, strengthening the
organization‘s ability to attract and retain the best employees, increasing the
stability of the organizations performance and allowing the organization to
adapt more effectively to organizational changes (Podsakoff et al., 2000). It is
positively related to both the quantity and quality of product output (Podsakoff
et al., 1997), contributes to team effectiveness (MacKenzie, Podsakoff, and
Ahearne, 1996, as cited in Podsakoff and MacKenzie, 1997). OCB has also
24
been found to contribute to overall performance (Podsakoff and MacKenzie,
1994) as well as overall operating efficiency and customer satisfaction (Walz
and Niehoff, 1996 as cited in Podsakoff and MacKenzie, 1997).
The recent emphasis on human resource management, suggests that not only is
the management of labour being given more attention, but that the issues
discussed are broader and more strategic as well as tactical. Miller (borrowing
from Porter (1985)) defines strategic human resource management as ‗those
decisions and actions which concern the management of employees at all
levels in the business and which are related to the implementation of strategies
directed towards creating and sustaining competitive advantage‘. Thus, unlike
the traditional peripheral function of many personnel managers, the newer
style of human resource managers attempts to: ‗relate personnel practices to
beliefs, to link each and every process of the recruitment, induction, training,
appraisal rewarding of individuals to an overall set of articulated beliefs of
organization‘.
Every organization, therefore, strikes for greater productivity, elimination of
wastes, lower costs and higher wages, so the industry needs a stable and
energetic labor force that can boast of production by increased productivity.
To achieve these objectives a good recruitment process is essential. By which
industry strikes right number of persons and right kind of persons at the right
time and at right places through and the planning period without hampering
productivity. An organization is nothing without human resources.
25
The HR function in contemporary Indian Business settings is more integrated
with the strategic objectives of the company (Budhwar and Khatri,2001;
Budhwar and Sparrow,1997) and HR policies and procedures are derived from
the business strategy. In the current scenario the HR functions are changing
rapidly by realizing that the functions have to be integrated into the strategic
business goals . Hence the focus has shifted to the individual within the
organization with individual oriented stress being directed to areas of Job
satisfaction, employee involvement, intrinsic motivation, perceptions work
place emotions, learning and other extra role behavior. It is no longer enough
for the employee to perform well , he has to now cross the barriers of just what
his role demands from him to give something beyond that. This is where Extra
role behavior like Organizational Citizenship behavior is of such prime
importance.
All HR strategies of the future must look at every employee aspect so that they
can be both drivers and catalysts for change understanding the complexities
of the new business environment. Without any argument the most important
area that HR must look into is the behavioral aspects and Emotional
intelligence of employees is one of the most important behavioral aspects of
improving Organizational Climate and thus enhancing Organizational
26
CHAPTER 2
LITERATURE REVIEW
It is not the strongest of the species that survives, or the most intelligent, but
the one most responsive to change.
Charles Darwin
27
CHAPTER 2
LITERATURE REVIEW
Big Five and other Personality theories have considered Emotional Stability as
a very important Personality trait. Different models have been proposed for the
definition of EI and disagreement exists as to how the term should be used.
The earliest roots of emotional intelligence can be traced to Darwin's work on
the importance of emotional expression for survival and adaptation. In the
1900‘s, even though traditional definitions of intelligence emphasized
cognitive aspects such as memory and problem-solving, several influential
researchers in the intelligence field of study had begun to recognize the
importance of the non-cognitive aspects. For instance, as early as 1920, E.L.
Thorndike used the term social intelligence to describe the skill of
understanding and managing other people. The first use of the term "emotional
intelligence" is usually attributed to Wayne Payne's doctoral thesis, - A Study
of Emotion: Developing Emotional Intelligence from 1985. However, prior to
this, the term "emotional intelligence" had appeared in Leuner (1966).
Greenspan (1989) also put forward an Emotional Intelligence model, followed
by Salovey and Mayer (1990), and Goleman (1995). The distinction between
trait emotional intelligence and ability emotional intelligence was introduced
in 2000.
Similarly, in 1940 David Wechsler described the influence of non-intellective
factors on intelligent behavior, and further argued that our models of
intelligence would not be complete until we can adequately describe these
28
factors. In 1983, Howard Gardner's - Frames of Mind: The Theory of Multiple
Intelligences introduced the idea of multiple intelligences which included both
Interpersonal intelligence (the capacity to understand the intentions,
motivations and desires of other people) and Intrapersonal intelligence (the
capacity to understand oneself, to appreciate one's feelings, fears and
motivations). In Gardner's view, traditional types of intelligence, such as IQ,
fail to fully explain cognitive ability. Thus, even though the names given to
the concept varied, there was a common belief that traditional definitions of
intelligence are lacking in ability to fully explain performance outcomes.
The concept of Emotional Intelligence also overlaps with Gardner‘s notion of
Social Intelligence (1983) which he refers to as Personal Intelligence. Part of
Gardner‘s definition focuses specifically on the processing of affective
information. Interpersonal intelligence includes the ability to understand other
people and know what they feel. Intrapersonal intelligence involves access to
one's own feelings, the capacity to effect discriminations among these feelings
and draw on them as a means of guiding behavior. In attempting to locate
these "intelligences" within the traditional psychometric domain, Carroll
(1993) suggested that interpersonal intelligence is a specialized type of
acquired knowledge (i.e., crystallized ability). However, Gardner's
intrapersonal intelligence (access to one's own feelings) finds no counterpart in
Carroll's taxonomic model. Arguably, this situation has arisen because
adequate assessment of this type of ability has never appeared in the extant
factor-analytic literature.
Although various authors have proposed that emotional intelligence is a type
29
of intelligence, in the traditional sense, contemporary research and theorizing
lack any conceptual model of intelligence within which the construct might be
placed. The theory of fluid and crystallized ability proposed by Cattell (1987),
Horn (1988), and their associates (see, e.g., Horn & Noll, 1994; Horn &
Stankov, 1982) is arguably the most efficacious empirically based
psychometric model of intelligence (see Stankov, Boyle, & Cattell, 1995). It
may be speculated that, within this theory, emotional intelligence will
constitute an additional aspect of (possibly one or more primary mental
abilities underlying) crystallized ability. This assertion is based on the
assumption that the appraisal, expression, regulation, and use of emotion
develop through experience and social interaction in much the same way as do
other psychological processes constituting crystallized intelligence.
If emotional intelligence is a type of intelligence, then its distinguishability
from various personality traits found in the literature must be demonstrated
(cf. H. J. Eysenck & Eysenck, 1991). As Mayer and Salovey have pointed out,
"a trait is a behavioral preference, rather than ability". As is the case with
many measures of emotional intelligence, the typical instruments for assessing
personality rely on selfreport techniques. If emotional intelligence is to qualify
as a form of intelligence, it must be shown to be independent from the
personality traits assessed by these instruments. The inclusion of the Eysenck
Personality Questionnaire-Revised (EPQR) the Trait-Self Description
Inventory (TSDI; Christal, 1994), and the NEO Personality Inventory (Costa
& McCrae, 1985) in each of the three studies (respectively) allowed this issue
to be addressed. These instruments have been shown to provide both valid and
30
reliable assessments of several personality constructs: Extraversion,
Neuroticism, and Psychoticism (EPQ-R) and Extraversion, Neuroticism,
Conscientiousness, Agreeableness, and Openness (NEO Personality Inventory
and TSDI). A number of tests measuring aspects of emotional intelligence are
already known to have moderate to high correlations with personality
constructs. Consider, for example, the four subscales derived from the
Emotional Control Questionnaire (Roger &Najarian, 1989). Rehearsal
(specifically, dissatisfaction with interpersonal encounters and an inability to
resolve interpersonal conflict) has been found to have a significant correlation
with Neuroticism. Similarly, Emotional Inhibition has been found to have a
noteworthy negative correlation with Extraversion. Furthermore, Benign
Control, which is viewed primarily as an index of impulsivity, correlates with
the Psychoticism scale of the EPQ (Roger & Najarian, 1989). This finding is
not surprising given that the Psychoticism scale contains items assessing an
individual's tendency to act impulsively.
In 1990, Mayer and Salovey published two articles on emotional intelligence.
The first article (Salovey & Mayer, 1990) reviewed literature throughout the
disciplines of psychology and psychiatry, artificial intelligence, and other
areas, and concluded that there might exist a human ability fairly called
emotional intelligence. The idea was that some people reasoned with emotions
better than others, and also, that some people‘s reasoning was more enhanced
by emotions than others. The companion article (Mayer, DiPaolo, & Salovey,
1990) presented a first ability model of emotional intelligence — a suggestion
that emotional intelligence, measured as a true intelligence, might exist. Since
31
that time, Mayer, Salovey, and their colleagues refined their model of
emotional intelligence (see Mayer & Salovey, 1997), and expended
considerable efforts toward developing a high-quality ability measure in the
area. The newly developed Mayer-Salovey-Caruso Emotional Intelligence
Test (MSCEIT V2.0; Pronounced "Mes-keet"; Mayer, et al., 1999, 2000) is the
result of this theoretical and empirical research. The MSCEIT is an ability
model of emotional intelligence. The model consists of four classes or
branches of emotional abilities (Mayer, Caruso, & Salovey, 2000b; Mayer &
Salovey, 1997; Mayer, et al., 2000a; Salovey & Mayer, 1990). The MSCEIT
(Mayer & Salovey, 1997), measures ones potential – or set of abilities – to
reason with emotions and emotional signals, and to use emotion to enhance
thought; hence the term emotional intelligence.
The term Emotional Intelligence (EI) to refer to the mental processes involved
in the recognition, use, understanding, and management of one‘s own and
others‘ emotional states to solve problems and regulate behavior (Mayer &
Salovey, 1997; Salovey & Mayer, 1990). That is, we view EI as ability- or
competency-based (cf. Saarni, 1999), as distinguished from being rooted in
personality attributes (see Brackett & Mayer, 2003; Mayer, Salovey, &
Caruso, 2000 for theoretical and empirical distinctions). Emotional
intelligence from this tradition refers to an individual‘s capacity to reason
about emotions and to process emotional information in order to enhance
cognitive processes.
Two journal articles in 1990, formally defined EI and presented a preliminary
demonstration of how the construct could be measured as an ability (Mayer,
32
DiPaolo, & Salovey, 1990; Salovey & Mayer, 1990). Their initial definition of
EI was «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 & Mayer, 1990, ). They then refined their thinking
about Emotional Intelligence and published a four-branch model, which
defined Emotional Intelligence as the ability to (a) perceive emotion, (b) use
emotion to facilitate thought, (c) understand emotions, and (d) manage
emotion (Mayer &Salovey, 1997). Here, they describe the MSCEIT, its
psychometric properties, and recent validation studies with the instrument (see
also Mayer, Salovey, & Caruso, 2002b). Evidence supports the idea that EI
(operationalized by the MSCEIT) meets classical criteria of a standard
intelligence and predicts outcomes of social importance (Mayer, Salovey,
Caruso, & Sitarenios, 2001, 2003). To acquaint the reader with our theory of
EI, they begin with a brief review of the four-branch model. Elsewhere, the
theory is described in more detail (Salovey, Mayer, & Caruso, 2002).
Exhibit -2.1: MSCEIT Total - Adapted from Mayer, & Caruso, 2002
33
Four-Branch model of emotional intelligence their analyses of emotion-related
abilities led them to conceive of EI as comprising of four branches or abilities,
as illustrated in Exhibit 2. Whereas the perception, understanding, and
management of emotions (Branches 1, 3, and 4) involve reasoning about
emotions, Branch 2 (the use of emotions to facilitate thought) involves using
emotions to enhance reasoning.
An example of the research on the limits of IQ as a predictor is the
Sommerville study, a 40 year longitudinal investigation of 450 boys who grew
up in Sommerville, Massachusetts. Two thirds of the boys were from welfare
families, and one-third had IQ.s below 90. However, IQ had little relation to
how well they did at work or in the rest of their lives. What made the biggest
difference was childhood abilities such as being able to handle frustration,
control emotions, and get along with other people (Snarey & Vaillant,
1985).Another good example is a study of 80 Ph.D.s in science who
underwent a battery of personality tests, IQ tests, and interviews in the 1950s
when they were graduate students at Berkeley. Forty years later, when they
were in their early seventies, they were tracked down and estimates were made
of their success based on resumes, evaluations by experts in their own fields,
and sources like - American Men and Women of Science. It turned out that
social and emotional abilities were four times more important than IQ in
determining professional success and prestige (Feist & Barron, 1996)
34
In their paper ,Dr. Silva Karkoulian, Nour Al Harake, and Dr. Leila Canaan
Messarra ‘Correlates of Organizational Commitment and Knowledge Sharing
via Emotional Intelligence: An Empirical Investigation‘ ,they investigate the
relationship between organizational commitment and knowledge sharing via
emotional intelligence.. However, emotional intelligence mediated the
relationships in organizations such that the relationship between normative
commitment and knowledge sharing remained positive, but affective
commitment was not a function of knowledge sharing anymore.
In the paper ‗Emotional Intelligence: In Search of an Elusive Construct‘
Michaela Davies and Lazar Stankov, Richard D. Roberts viewed that
emotional intelligence should be included within the traditional cognitive
abilities framework was explored in 3 studies by investigating the relations
among measures of emotional intelligence, traditional human cognitive
abilities, and personality. The studies suggest that the status of the emotional
intelligence construct is limited by measurement properties of its tests.
Measures based on consensual scoring exhibited low reliability. Self-report
measures had salient loadings on well-established personality factors,
indicating a lack of divergent validity. These data provide controvertible
evidence for the existence of a separate Emotion Perception factor that
(perhaps) represents the ability to monitor another individual's emotions. This
factor is narrower than that postulated within current models of emotional
intelligence.
Sanjay Kumar Singh (2009) meta-analyzes available research findings on
Emotional Intelligence to develop a framework to be used by industry
35
practitioners in the paper ‗Leveraging Emotional Intelligence for managing
Executive‘s Job Stress: A Framework.‘ Kavita Singh(2008) discusses the link
between Emotional Intelligence and Work place Effectiveness in an article by
the same title. Mamta Mohapatra and Abhinav Gupta (2010) explore the
relationship between Emotional Intelligence , Work Values and Internal Locus
of Control among working executives taking the case of Indian public Sector
organization in their work ‗Relationship of Emotional Intelligence with Work
Values & Internal Locus of Control: A Study of Managers in a Public Sector
Organization.‘ Findings of this study suggest a high correlation between work-
values and all factors of Emotional Intelligence. The study also shows that
executives‘ internal locus of control has a significant correlation with factors
such as managing emotions in self, social skills and utilizing emotions.
In the article ‗Emotionally Intelligent Managers & Transformational
Leadership Styles‘ Omar Bin Sayeed & Meera Shanker (2009) examines
multivariate relationships between Emotional Intelligence and
Transformational Leadership dimensions. The canonical correlation between
Emotional Intelligence and Transformational leadership dimensions revealed
significant relationships. The paper ‗Emotional Intelligence & Managerial
Effectiveness: Role of Rational Emotive behavior Nivedita Srivastava &
Sreekumar K.Nair (2010) undertakes an empirical study to see the influence of
emotional Intelligence and rational emotive behavior on managerial
effectiveness. The results show that both the variables positively influence
managerial effectiveness.
‗Examining Managerial Thinking Style, EQ, and Organizational
36
Commitment‘- Kevin S. Groves ,Charles M. Vance examine the relationship
between linear and nonlinear dimensions of managerial thinking style and
emotional intelligence. Results demonstrate that linear thinking style was
positively associated with the regulation of emotions, nonlinear thinking was
related to utilizing emotions to facilitate thinking, and a balanced use of linear
and nonlinear thinking was a predictor of overall EI.
‘The relationship between emotional intelligence and work attitudes, behavior
and Outcomes An examination among senior managers‘ Abraham Carmeli.
suggests that managerial skills in general, and emotional intelligence in
particular, play a significant role in the success of senior managers in the
workplace. This argument, despite its popularity, remains elusive. This can be
attributed to the fact that although a few studies have provided evidence to
support this argument, it has not received an appropriate empirical
investigation. He attempts to narrow this gap by empirically examining the
extent to which senior managers with a high emotional intelligence employed
in public sector organizations develop positive work attitudes, behavior and
outcomes. The results indicate that emotional intelligence augments positive
work attitudes, altruistic behavior and work outcomes, and moderates the
effect of work-family conflict on career commitment but not the effect on job
satisfaction.
‗Emotional Intelligence and Negotiation: The Tension between creating and
claiming value‘ Maw Der Foo , Hillary Anger Elfenbein, Hwee Hoon Tan ,
Voon Chuan Aik .As a departure from past research on emotional intelligence
(El), which generally examines the influence of an individual's level of El on
37
that individual's consequences, they examined relationships between the
emotional intelligence (El) of both members of dyads involved in a
negotiation in order to explain objective and subjective outcomes. As
expected, individuals high in El reported a more positive experience.
However, surprisingly, such individuals also achieved significantly lower
objective scores than their counterparts. By contrast, having a partner high in
El predicted greater objective gain, and a more positive negotiating
experience. Thus, high El individuals appeared to benefit in affective terms,
but appeared to create objective value that they were less able to claim. They
discuss the tension between creating and claiming value, and implications for
emotion in organizations.
As a result of the growing acknowledgement by professionals of the
importance and relevance of emotions to work outcomes, the research on the
topic continued to gain momentum, but it wasn't until the publication of
Daniel Goleman's best seller - Emotional Intelligence: Why It Can Matter
More Than IQ that the term became widely popularized. Nancy Gibbs' 1995
‗Time‘ magazine article highlighted Goleman's book and was the first in a
string of mainstream media interest in EI.
Defining Emotional Intelligence: Substantial disagreement exists regarding
the definition of EI, with respect to both terminology and operationalizations.
There has been much confusion regarding the exact meaning of this construct.
The definitions are so varied, and the field is growing so rapidly, that
38
researchers are constantly re-evaluating even their own definitions of the
construct. At the present time, there are three main models of EI:
Ability EI models
Mixed models of EI
Trait EI model
The Ability Based Model: Salovey and Mayer's conception of EI strives to
define EI within the confines of the standard criteria for a new intelligence.
Following their continuing research, their initial definition of EI was revised to
"The ability to perceive emotion, integrate emotion to facilitate thought,
understand emotions and to regulate emotions to promote personal growth."
The ability based model views emotions as useful sources of information that
help one to make sense of and navigate the social environment. The model
proposes that individuals vary in their ability to process information of an
emotional nature and in their ability to relate emotional processing to a wider
cognition. This ability is seen to manifest itself in certain adaptive behaviors.
The model claims that EI includes four types of abilities:
1. Perceiving emotions – the ability to detect and decipher emotions in
faces, pictures, voices, and cultural artifacts—including the ability to
identify one's own emotions.
2. Using emotions – the ability to harness emotions to facilitate various
cognitive activities, such as thinking and problem solving.
39
3. Understanding emotions – the ability to comprehend emotion language
and to appreciate complicated relationships among emotions.
4. Managing emotions – the ability to regulate emotions in both ourselves
and in others.
The model introduced by Daniel Goleman focuses on EI as a wide array of
competencies and skills that drive leadership performance. Goleman's model
outlines four main EI constructs:
1. Self-awareness – the ability to read one's emotions and recognize their
impact while using gut feelings to guide decisions.
2. Self-management – involves controlling one's emotions and impulses
and adapting to changing circumstances.
3. Social awareness – the ability to sense, understand, and react to others'
emotions while comprehending social networks.
4. Relationship management – the ability to inspire, influence, and
develop others while managing conflict.
Goleman includes a set of emotional competencies within each construct of
EI. Emotional competencies are not innate talents, but rather learned
capabilities that must be worked on and can be developed to achieve
outstanding performance Goleman posits that individuals are born with a
general emotional intelligence that determines their potential for learning
emotional competencies.
40
Decades of research has emphasized on the importance of Organizational
Climate on important business outcomes (e.g. Boruci and Burke,1991; Collins
and Smith 2006; Schneider ,Enhart, Mayer, Saltz, Niles & Jolly2005;
Schneider, Parkington & Buxton,1980;Schneider,White and Paul 1998).
Reichers and Schneider (1990) provides a historical overview of Climate.
Climate research derives from a confluence of field theory and the quantitative
study of attitudes within organizations. Field theory is the label
Lewin(1948,1951) and his colleagues gave to their attempts to represent any
social processes as part of larger context or field. Their emphasis on Gestalt
psychology of perception being developed by other German immigrants to the
United States during the middle decades of the 20th century. Climate was a
way of characterizing context and it was not complex. It fell into three
categories of autocratic, democratic and laissez-faire. These styles of
leadership were not important as behaviors but as a dependable means of
producing a social situation , a climate.
When the same concept appeared in organizational studies, the meaning of
climate changed. It is not certain how the idea would have developed had it
not been for Lewin‘s premature death in 1947.Shortly thereafter ,his successor
as director of the Research center for Group Dynamics, Dorwin Cartwright,
moved the center to the University of Michigan to become part of the Survey
Research Center within the Institute for Social Research (ISR). Cartwright
followed interests at the group level rather than at the organizational or
societal level. Eventually that move brought Lewin‘s legacy into direct contact
41
with another quite different line of work at ISR, that of Rensis Likert. Likert‘s
contribution to climate study was ―System 4‖ view of effective Management
(Likert,1961). His problem was how best to capture the climate of an
organization so that he could work with the organization‘s senior Managers to
monitor and promote its comprehensive improvement. The Likert scale that he
invented for sociological and psychological research provided the starting
point to capture an organization‘s climate. Climate came to be represented by
an aggregation of individual data from attitude scales.
One conceptual framework of climate (Litwin and Stringer, 1968) emphasizes
motivational linkages. This framework seems to be quite relevant for studying
Organizational Climate. The six factors propounded are - Achievemement,
Expert Influence, Control, Extension, and Dependency. Likert (1967)
proposed six dimensions of Organizational Climate: leadership, motivation,
communication, decision, goals and control. Likert and Stringer (1968)
proposed seven dimensions: conformity, responsibility standards, rewards,
organizational clarity, warmth and support, and leadership as important
components of organizational climate. Uday Parekh after review and
discussions with managers suggested the following 12 processes- Orientation,
Interpersonal Relationships, Supervision, Problem Management, Management
of Mistakes, Conflict Management, Communication, Decision Making, Trust,
Management of rewards, Risk Taking , Innovation and Change.
Stringer' identified the six dimensions of OC as organizational clarity,
responsibility, reward, standards, conformity, and team spirit. Most recently,
42
Goleman and his associates' studied 3,871 managers and introduced a model
for OC including six variables as follows:
• Flexibility: The degree to which employees have the freedom to be creative
and
the limitations employees face in terms of regulations and procedures.
• Responsibility: perception of employee from organizational responsibility
(the degree to which employees feel responsible for accomplishing the work
of the organization).
• Standards: The intent of employees to meet high standards of performance
and employee's tolerance of constant pressure to improve productivity.
• Rewards: The belief or employees that rewards are given justly and fairly
according to the quality of work as well as the belief that rewards given do
encourage doing a great job.
• Clarity: The belief of employees that the missions and vision of organization
has been clearly communicated.
• Group Commitment: The intents of employees to accept more responsibility
and to achieve to organizational goals.
Lyman looking at the OC of for-profit companies, found that a great place to
work is a place where employees trust their managers, have pride in what they
do, and enjoy the people they work with. In comparison with other
researchers, Lyman concentrated more on the relationships between
43
employees' and managers and the important behaviors of managers that create
OC. Also, Lyman's model includes subscales that permit comparisons among
different organizations' OC. Lyman's appears to be the most-developed model
of OC and to capture the highest number of the practical features of OC. OC
was measured by assessing the following five factors adapted from Lyman's
work:
• Credibility: An indication of an employee's attitudes and perceptions about
his or her manager's abilities in the areas of communication, capability, and
honesty.
• Respect: An indication of the organization's respect for an employee's spirit
and individual needs, as shown by support, collaboration, and caring.
• Fairness: An indication of an organization's commitment to justice and
impartiality for each staff member at every level of the organization, as shown
by equity, impartiality, and justice.
• Pride: An indication of an employee's feelings of individual, group, and
organizational pride in achievements, as expressed being proud of one's
personal job, team accomplishments, and corporate image.
• Camaraderie: An indication of feelings of friendship among employees and
feelings of being a member of a family within the organization, as reflected in
feeling of intimacy, hospitability, and community.
Lyman has found that employees' feeling about their workplace is the
principal determinant of whether an organization is a great place to work,
44
topping policies, organizational programs, financial situation, and value of
stock. She also identified the following three components of employee
feelings about the place where they work:
* Feelings about management: An employee should trust the people for whom
he or she works.
* Feeling about the job: An employee should have pride in what he or she
does.
* Feelings about other employees: An employee should enjoy the people with
whom he or she works.
Climate can be defined as the ‗incumbents perceptions of the events, practices
procedures and kinds of behavior that get rewarded supported and expected in
a setting‘ (Schneider1990). The climate of an organization refers to those
aspects of the environment that are consciously perceived by the
organizational members (Amstrong2003). In short it refers to how members of
the organization perceive it as they go about their daily business. Reichers and
Schneider (1990) defined organizational climate as ‗shared perceptions of the
way things are around here‘. According to Bowen and Ostroff (2004), climate
follows from organizational policies and procedures that reinforce particular
actions and behaviors, thus leading to shared perceptions of behavioral
expectations. Koppelman, Brief and Guzzo(1990) conceptualized climate as
comprising of 5 core dimensions that apply across work environments i.e:goal
emphasis(extent that management identifies the goals that the employees are
supposed to achieve), means emphasis(procedures employees are used to
45
perform their tasks), reward orientation(the degree to which employees feel
that rewards are based on performance), task support (the degree to which
employees feel that they are supported with the resources to do the task) and
socioemotional support(the extent that management is perceived by employees
as concerned for their personal welfare). Collaborating Koppleman et al.
(2005) theory, Patterson et al. (2004) showed that climates focused upon
supervisory support, effort, innovation and flexibility, quality, performance
feedback, and formalization.
Wiley (1996) has described the relationships between how employees describe
their work environments and the relative success of those work environments.
He has termed this body of research as linkage research. He developed the
linkage research model which provides a comprehensive framework for
integrating all previously published work in the field. It suggests that the more
present certain organizational practices are in a given work environment, the
more energized and productive the workforce .In turn the more energized and
productive the workforce ,the greater the satisfaction of customers and the
stronger the long term business performance of the organizations. In the utility
industry, Thompson(1996) examined the hypothesis that those work units
perceived by employees as being more progressive in their HR practices have
superior performance.
In their study ‗Organizational climate systems and psychological climate
perceptions: A cross-level study of climate-satisfaction relationships‘ Mathis
Schulte(2006) examines the relative importance of individual and unit-level
climate on individual satisfaction. Cross-level results of hierarchical linear
46
models indicated that individuals‘ perceptions of the climate accounted for a
large percentage of variance in individuals‘ satisfaction. Further, unit level
climate systems accounted for a small but significant portion of individual
satisfaction above and beyond individuals‘ perceptions of the climate. These
results suggest that the overall climate in a work unit has some influence on
individual attitudes, after accounting for individuals‘ idiosyncratic perceptions
of the climate.
Lise M. Saari and Timothy A. Judge in their article Employee Attitudes and
Job Satisfaction(2004) identifies three major gaps between HR practice and
the scientific research in the area of employee attitudes in general and the most
focal employee attitude in particular—job satisfaction: (1) the causes of
employee attitudes, (2) the results of positive or negative job satisfaction, and
(3) how to measure and influence employee attitudes. Suggestions for
practitioners are provided on how to close the gaps in knowledge and for
evaluating implemented practices. In this study they talk about the research
gap and propose that future studies should focus on greater understanding of
personal characteristics, such as emotion, in defining job satisfaction and how
employee attitudes influence organizational performance.
‗How innovation can alleviate negative consequences of demanding work
contexts: The influence of climate for innovation on organizational outcomes‘
Eden B. King examines climate for innovation as a method by which negative
organizational consequences of demanding work may be lessened. It was
expected that a climate for innovation would enable employees to develop
coping mechanisms or improved work-related processes which counteract
47
negative consequences of work demands. Extending the job demands–
resource model (Karasek, 1979), we predicted and found that among the
sample of 22,696 respondents from 131 health care organizations,
organizational climate for innovation alleviated the negative effects of work
demands on organizational performance. Thus, this study informs climate
theories and guides practitioners‘ efforts to support the employees.
‗The Organizational Climate of Kerman Shahid Bahonar University‘ by
Hamid Reza Alavi and Ramazan Jahandari surveys the organizational climate
of Kerman Shahid Bahonar University and compares it with the desired
organizational climate from the point of view of the university staff. The
results show that organizational climate of Shahid Bahonar University is
similar to the closed System of Andrew W. Halpin and Don B.Croft. ‗A Tale
Of Two Climates: Diversity Climate from Subordinates‘ And Managers‘
Perspectives And Their Role In Store Unit Sales Performance, Patrick F.
Mckay (2009). They applied Zohar‘s (2000) multilevel model of
organizational climate, and assessed the main and interactive effects of
subordinates‘ and managers‘ diversity climate perspectives on store sales
performance. The greatest sales growth was found in stores wherein
subordinates and management perceived highly prodiversity climates (positive
consistency). In contrast, the lowest sales growth was evident for stores in
which both subordinates and managers reported less hospitable diversity
climates (negative consistency).
‗Organizational climate and company productivity: The role of employee
affect and employee level‘ Malcolm Patterson(2004) Consistent with a
48
growing number of models about affect and behavior and with a recognition
that perception alone provides no impetus for action, it was predicted that
associations between company climate and productivity would be mediated by
average level of job satisfaction. In a study of 42 manufacturing companies,
subsequent productivity was significantly correlated in controlled analyses
with eight aspects of organizational climate (e.g. skill development and
concern for employee welfare) and also with average job satisfaction. In
addition, an overall analysis showed that company productivity was more
strongly correlated with those aspects of climate that had stronger satisfaction
loadings. A second prediction, that managers‘ perceptions of climate would be
more closely linked to company productivity than would those of non-
managers, was not supported. However, managers‘ assessments of most
aspects of their company‘s climate were significantly more positive than those
of non-managers.
‗Organizational Commitment in Mexican Small and Medium-Sized Firms:
The Role of Work Status, Organizational Climate, and Entrepreneurial
Orientation‘ (2007) by Dirk De Clercq et.al. They examine the role of
individuals‘ commitment in small and medium-sized firms. More specifically,
they argue that employees will commit themselves to their firm based on their
current work status in the firm, their perception of the organizational climate,
and the firm‘s entrepreneurial orientation. They found that individuals‘
position and tenure in the firm, their perception of psychological safety and
meaningfulness, and the firm‘s entrepreneurial orientation all were positively
related to organizational commitment.
49
2.3 Organizational Citizenship Behavior
Organizational citizenship behavior (OCB) has become a major construct in
the fields of the psychology and management and received a great deal of
attention in the literature (Bateman and Organ, 1983; Bergeron, 2007; Bolino
et al., 2002; LePine et al., 2002; Niehoff and Moorman, 1993; Organ, 1988;
Organ and Ryan, 1995; Smith et al., 1983; Podsakoff et al., 2000; Tang et al.,
2008). There are almost 30 different forms of OCB. Organizational citizenship
behavior ―represents individual behavior that is discretionary, not directly or
explicitly recognized by the formal reward system, and in the aggregate
promotes the efficient and effective functioning of the organization‖ (Organ,
1988, p. 4). These behaviors ―lubricate the social machinery of the
organization‖, ―provide the flexibility needed to work through many
unforeseen contingencies‖, and help employees in an organization ―cope with
the otherwise awesome condition of interdependence on each other‖ (Smith et
al., 1983, p. 654).
More recently, the definition of OCB has been expanded to include not only
the categories of altruism (helping behaviors aimed directly at specific
persons) and generalized compliance (conscientious performance for the good
of the organization) but also the categories of courtesy, sportsmanship, and
civic virtue (Podsakoff et al., 2000). Many researchers examine five categories
of contextual performance: volunteering for activities beyond a person‘s
formal job expectations; persistence of enthusiasm; assistance to others;
following rules and procedures; and openly espousing and defending
organization objectives (Organ, 1997) as related to personality variables,
50
motivational basis, organizational support (e.g. Borman et al., 2001; Organ,
1990), social exchange (Konovsky and Pugh, 1994), job satisfaction (Bateman
and Organ, 1983; Koys, 2001), and social capital (Bolino et al., 2002).
Additionally, Lam et al. (1999) provided important insight regarding
perceived boundaries between in-role and extra-role behavior, further
clarifying what behaviors constitute organizational citizenship behavior.
Organizational citizenship behavior continues to be of substantial interest to
researchers and practitioners (LePine et al., 2002). According to Katz and
Kahn (1978), effective organizational functioning requires employees to not
only perform their prescribed role, but also to engage in behaviors that go
beyond these formal obligations. This aspect of performance is consistent with
Organ‘s (1988) conceptualizations of OCBs.
Organizational citizenship behaviors (or OCB‘s) are discretionary workplace
behaviors that exceed one‘s basic job requirements. They are often described
as behaviors that ―go above and beyond the call of duty.‖ OCB‘s have been
defined as ―individual behaviors that are discretionary, not directly or
explicitly recognized by the formal reward system, and that in aggregate
promote the effective functioning of an organization‖ (Organ, 1988). Such
behaviors are said to ―lubricate the social machinery of the organization‖
(Bateman and Organ, 1983). Examples of OCB include acts of helpfulness,
gestures of goodwill and cooperation among organizational members. OCB
benefits organizations in a number of ways. According to Cohen and Vigoda
(2000) some of the benefits of OCBs that can accrue to an organization
include: (a) improved co-worker and managerial productivity, (b) superior
51
efficiency in resource use and allocation, (c) reduced maintenance expenses,
and (d) improved organizational attractiveness for high-quality new recruits.
Organ (1977) was the first to suggest that such behavior, commonly referred
to as Organizational Citizenship Behavior (OCB), be included in appraisals of
performance. Since its initial formulation, there have been numerous
definitions and frameworks of OCB. Research conducted by Smith, Organ,
and Near (1983) suggested a two-dimensional construct comprised of altruism
which represented helping behavior aimed at specific persons, and generalized
compliance, which involved an interpersonal conscientiousness wherein an
individual acts for the sake of the system rather than for specific individuals.
Follow-up research expanded this taxonomy from two to five dimensions
(Organ, 1988). Others have suggested the construct be more broadly
formulated as pro-social organizational behavior (Brief & Motowidlo, 1986)
or extra-role behavior (Van Dyne, Cummings, & McLean-Parks, 1995). In a
recent review of the literature, Organ, Podsakoff, and Mackenzie (2006)
acknowledged that, no matter how they are defined, all frameworks of OCB
describe behaviors that a) do not represent routine job functions, b)contribute
in some way to organizational functioning, and c) are discretionary. In
addition to the literature attempting to define OCB, considerable research
attention has been given to antecedents of citizenship (Moorman & Byrne,
2005; Organ, et al., 2006). The majority of these studies, however, have used
cross-sectional survey designs that do not allow for causal inferences to be
drawn from the results. The purpose of this study is to examine the causal
impact of three antecedents of OCBs: procedural justice, mood and prosocial
52
personality in a laboratory setting. Research utilizing the overall construct of
justice as an antecedent to organizational citizenship arose from equity and
exchange theory, with pro-social organizational behaviors seen as controllable
means for an individual to adjust the terms of a working relationship.
Organ (1977, 1988) posited that when employees feel they are being treated
unfairly, they restore equity by curtailing extra-role/citizenship type behaviors.
On the other hand, when employees are treated fairly they reciprocate this
treatment with discretionary behavior. Thus, the employee views the
relationship with the organization as one of social exchange. If it was indeed
the case, then measures of fairness should be related to extra-role behaviors.
Organ and Konovsky (1989) tested this hypothesis and found that fairness
cognitions, especially those related to pay, were associated with both the
altruism and generalized compliance factors of organizational citizenship.
Further support was provided by Folger and Konovsky (1989), who found
distributive justice was associated with pay satisfaction and procedural justice
was associated with organizational commitment and trust of supervisor among
employees of a manufacturing plant.
Since those initial studies, the influence of procedural justice on citizenship
behaviors has been replicated consistently and has been confirmed by meta-
analytic data that show positive correlations between both procedural and
distributive justice and OCBs (Cohen-Charash & Wright & Sablynski
Organizational Citizenship 399 Spector, 2001; Colquitt, Conlon, Wesson,
Porter, & Ng, 2001; LePine, Erez, & Johnson, 2002; Moorman & Byrne,
2005). Thus, the research examining the contribution of fairness and justice to
53
OCB provides compelling evidence that employees will be more likely to
perform extra role behaviors if they feel the organization has treated them
fairly. Fairness in organizational procedures and fair treatment from managers
and supervisors appears to be the most important component to this
relationship (Tansky, 1993).
Organ and Ryan (1995) defined organizational citizenship behavior as the
extrarole behavior that is not explicitly related to the formal reward system,
but is useful to overall effectiveness and functioning. For example, an
employee may make contributions to an employee newsletter, volunteer to
help plan company-wide events, take extra time to answer questions from a
new employee, or stay late to finish a project. These are all cases in which the
individual chooses these actions and behaviors because he or she intrinsically
wants to contribute to the overall functioning of the organization, not because
of any external motivation.Rioux and Penner (2001) examined the motivation
for organizational citizenship behaviors and identified three underlying
motives: (a) prosocial values, a desire to help others, be altruistic, and gain
acceptance; (b) organizational concern, pride in and care for the organization;
and (c) impression management, a desire to create and maintain a positive
image and avoid negative perceptions from others. Each of these motivational
factors includes some kind of reward for the individual, thus supporting the
belief that employees engage in organizational citizenship behaviors because
they believe that such behavior will result in a favorable outcome for
themselves (Finkelstein & Penner, 2004).Organ (1994) found that job
satisfaction is positively related to the occurrence of constructive,
54
spontaneous, optional, and non-compensated contributions, otherwise referred
to as organizational citizenship behaviors. Organ and Lingl‘s (1995) research
into organizational citizenship indicated that organizational fairness and trust
serve as a strong catalyst for organizational citizenship behavior. Another
common framework for the motivation of organizational citizenship behaviors
is social exchange theory (Blau, 1964), which states that human relationships
must be equitable. Therefore, employees demonstrate organizational
citizenship behaviors because they believe that they will receive fair or good
treatment from their employer. Building upon that premise, employees are
more likely to demonstrate organizational citizenship behaviors when they
believe that doing so will result in a favorable outcome (Dalal, 2005).
Research also has shown that organizational citizenship is related to an
individual‘s perception of the level of organizational support (Organ & Lingl,
1995; Organ & Ryan, 1995). When employees feel that they are treated well
by the organization and that the organization values their thoughts and cares
about their well-being, they are more likely to engage to organizational
citizenship behaviors (Borman, Penner, Allen, & Motowidlo, 2001; Organ &
Konovsky, 1989). Additional research into employee engagement (Kahn,
1990; May et al., 2004) and organizational citizenship behaviors (Farrell &
Finklestein, 2007; Lee & Allen, 2002) has determined that these variables are
related to the cognitive and affective components of job involvement, as well
as a commitment of time, and are indicative of a positive work experience.
Kahn proposed the third characteristic of an emotional connection to work.
Because there is a relationship between the other contributors of a positive
55
work experience, it appears that a psychologically healthy climate would be
related to high levels of the emotional components of employee engagement
and organizational citizenship behaviors. Based on the research done by
Brown and Leigh (1996) as well as Kahn (1990), this researcher designed a
study that assessed the relationship among the variables of psychological
climate, employee engagement, and organizational citizenship behaviors. To
date, research exploring these specific variables has not been conducted,
despite research (Kahn; Lee & Allen, 2002) indicating that they may be
positively related. Let‘s move now to the second type of OCB consequences:
the individual-oriented outcomes.
Past research and theoretical writings on OCB have pointed to a number of
potential outcomes of OCB for the employee who engages in this kind of
behavior, including better scores in managerial evaluations of subordinate
performance, indirect rewards and employee‘s increased positive image in the
workplace (Van Scotter, 2000; Lovell et al., 1999; MacKenzie et al., 1993). It
has been found that OCB has some influence upon managers‘ evaluations of
performance and other related decisions regarding their subordinates
(Podsakoff et al., 2000; Van Scotter, 2000). For example, in MacKenzie et
al.‘s (1993) sample of 261 insurance agents, OCB accounted for 44 percent of
the variance in performance evaluations when common method variance was
not controlled. Likewise, Haworth and Levy (2001) claimed that the decision
to perform OCBs appears to be contingent upon whether the performance of
OCB is seen to yield a positive, valid outcome which may be instrumental in
achieving some greater goal. They indicated that only when employees believe
56
that their managers will fairly reward such behaviors do they enact and sustain
OCBs. By the same token, one potential positive outcome for employees who
help others is that they are more likely to receive help in return when needed
(Deckop et al., 2003).
Most of the studies examining the structure of OCB have agreed that it is a
multidimensional concept (e.g. Graham, 1989; Moorman and Blakely, 1995;
Organ, 1988; Podsakoff et al., 1990). Graham (1989), for example, proposed a
four-dimension model of OCB consisting of: interpersonal helping, individual
initiative, personal industry, and loyal boosterism. Interpersonal helping
involves helping co-workers in their jobs when such help is needed. Individual
initiative is communicating to others in the work place to improve individual
and group performance. Personal industry includes the performance of specific
tasks above and beyond the call of duty. Finally, loyal boosterism involves the
promotion of the organizational image to outsiders (Moorman and Blakely,
1995).
Research Gap
Analyzing the literature available on Emotional Intelligence, Organizational
Climate and Organizational Citizenship Behavior it is seen that there is no
work which analyzes the relationship between these three organizational
components. All the studies are independently trying to understand Emotional
Intelligence, Organizational Climate and Organizational Citizenship Behavior
in some other contexts and relations.
Analyzing some of the literature on Emotional Intelligence it is seen that Dr.
Silva Karkoulin et.al.(2010) investigates the relationship between
57
organizational commitment and knowledge sharing via emotional intelligence.
Michela Davies et.al.(1998) investigates the relations among measures of
Emotional Intelligence and traditional human cognitive abilities and
personality. Kevin S Groves et.al. (2009) examines the relationship between
linear and nonlinear dimensions of managerial thinking style and Emotional
Intelligence. Anand S Godse et.al. studies the relationship between Emotional
Intelligence and conflict resolution styles. Lynette M Loomis et.al. (2008)
comes to the conclusion that emotions should be used to guide employees to a
more productive outcome for themselves as well as the company. Evan M
Berman (2008) studies perceptions of managerial emotional intelligence in
local government as well as the practices and policies affecting it. Nicholas
Clarke (2010) found in his study that Emotional Intelligence and empathy
explained additional variance in the project manager competencies of
teamwork, attentiveness and managing conflict and the transformational
leadership behaviors of idealized influence and individualized consideration,
after controlling for cognitive ability and personality.
Vicky Espin (2010) in the article Emotionally Intelligent Leadership
propounds that Emotional Intelligence is the key component of coaching for
leadership. Sophie Rietti (2009) talks about Emotional Intelligence as a moral
agency and thus adds an ideological dimension to Emotional Intelligence.
Ingrid Smithey develops theoretical propositions linking multiple forms of
intelligence to information acquisition, decision making and tactical choices in
bargaining contexts. Ann E Feyerherm (2002) discusses the relationship
between a team‘s Emotional Intelligence team leader‘s Emotional Intelligence
58
and team performance. Maw Der Foo et.al. examined relationships between
the emotional intelligence of both members of dyads involved in a negotiation
in order to explain objective and subjective outcomes. Kerry S Webb (2009)
tries to find answers to questions like whether Emotional Intelligence is a
better predictor of work performance than traditional measures of intelligence.
From the above analysis it is obvious that no work to understand the
relationship between Emotional. Intelligence, Organizational Climate and
Organizational Citizenship Behavior has been done especially in the context of
Private Sector Banks. Hence this study investigates this gap .Since Emotional.
Intelligence is a current addition to Organizational Literature and its relevance
to the functioning of modern organizations is currently gaining interest the
topic of this study is novel and original.
Many individual studies have been done on Emotional intelligence (EI),
organizational Climate (OC) and Organizational citizenship behavior (OCB)
but there is no study connecting these three organizational variables together.
There is a huge research gap in this area and therefore this research attempts to
cover that by understanding the relation between employee Emotional
Intelligence (EI) and Organizational Climate (OC) and Organizational
citizenship behavior (OCB). Today‘s organizations operate in an increasingly
uncertain and tumultuous global market economy that requires employees to
demonstrate complex and multidimensional thinking, requiring traditional
analytic or linear thinking skills, as well as more nonlinear modes such as
intuition, insight, emotional assessments, creative thinking, and perceptual
flexibility (Vance et al., 2007; Sadler-Smith and Shefy, 2004;
59
Csikszentmihalyi,1996; Damasio, 1994). This study looks into one such
nonlinear behavioral skill i.e. Emotional Intelligence, a recent addition to
Organizational Literature. Never before has there been an attempt made to
understand the impact of Emotional Intelligence on Organizational Climate
and the resulting impact it has on the final outcome Organizational Citizenship
Behavior.
The growing body of empirical work in the leadership domain has been
mainly devoted to examining the effects of emotional intelligence on the
performance of senior executives. The problem with these researches is that it
hardly examines important behavioral attitudes, behavior and outcomes. These
studies too are primarily leadership studies and do not take into account the
overall relationship of the Emotional Intelligence of Employees and the effect
it has on the Organizational climate and nowhere has an effort been made to
connect it with a very important behavioral outcome of Organizational
Citizenship Behavior. All leadership studies stress upon the role of the leader
in maintaining the organizational culture and climate. All leadership studies
emphasize on the importance of having an emotionally intelligent leader
Although Goleman (2002) suggests that the emotionally intelligent leader has
an effect on the organizational climate, no empirical studies could be found to
validate this claim
As Cherniss (2000) pointed out ‗it is more useful and interesting to consider
how important it (Emotional Intelligence) is for effective performance at
work.‘ As Dulewicz and Higgs (2000, p. 341 and p. 351) indicate ‗little
research has been conducted in an organizational context and there is a need
60
for rigorous research to underpin the assertion in an organizational setting.‘
This study is thus novel as it looks into a totally new dimension of Work place
behavior i.e. Emotional Intelligence and its resulting impact on the
organizational Outputs i.e. Organizational Climate and Organizational
61
CHAPTER 3
PROBLEM DEFINITION, OBJECTIVES OF THE
STUDY AND RESEARCH METHODOLOGY.
62
CHAPTER 3
PROBLEM DEFINITION, OBJECTIVES OF THE STUDY
AND RESEARCH METHODOLOGY.
3.01. Introduction to the Problem.
One of the major challenges which banks face is reorganization of the HR in
the face of the rapid changes in the economy, and market conditions. There is
already a crisis of talent. In The Indian Banking scenario a huge expansion is
taking place in the banking sector particularly in the private sector banks.
Expansion is taking place in multiple moves; one is there is physical
expansion; distribution, branch visit, automated teller machine (ATM),
network. But importantly, there is another expansion which is taking place is
that the product in the service range of the private sector banks is becoming
bigger, more complex and more relevant to the dynamic economy in which we
are today.
These two kinds of expansions, they both require people. The first expansion
can be done with the average banker but the second expansion, requires a
different kind of more super skilled bankers. The third thing that is happening
is as these two expansions take place at the very top and near top level certain
positions are required to be manned by specific types of people; it cannot be
done only by seniority alone, only by experience alone.
If the person doesn't have it what it takes to run a risk management department
or to run treasury or to run IT and is in the position just because of seniority
then the bank is going to position itself in a not so enviable position in the
63
foreseeable future. The fact that banks are feeling a scarcity of talent for these
reasons is true even today. Banking industry has to be in sync with the growth
requirements it envisages for itself and for this a very powerful talented,
skilled group of employees are required. Technical and conceptual skills can
be ingrained in the employees easily through their education and other training
programmes. But what is difficult but extremely important is creating a
workforce that is behaviourally competent.
This behavioral study focuses on a very important behavioral component i.e
Emotional Intelligence. Underlying this research interest is the view that
people with high emotional intelligence competencies are more likely than less
emotionally intelligent people to gain success in the workplace. Other than the
personal success that could be attributed to Emotional Intelligence it would be
interesting to understand the contributions it makes to the climate of the
organization and further how these two could affect the individual output that
is Organizational Citizenship Behavior.
3.02. Research Problem
Is Emotional Intelligence an important relevant behavioral component in
Private sector Banks? Does it affect the Organizational Climate within these
Banks? What is the result of the interaction of these two variables for the
Bank? Can these two variables create positive Organizational Citizenship
Behavior within the Bank? Does the study of Emotional Intelligence,
Organizational Climate and Organizational Citizenship Behavior have a larger
relevance in the organizational context?
64
3.03. Objectives of the Study:
1. To analyze the relation between Emotional Intelligence and
demographic variables (of age, gender, position, marital status,
education, experience and state).
2. To study whether the differences in the demographic variables (of age,
gender, position, marital status, education, experience and state) affect
Organizational Climate.
3. To examine whether the differences in the demographic variables (of
age, marital status, gender, position, education, experience and state)
affect Organizational Citizenship Behavior.
4. To explore the impact of Emotional Intelligence on Organizational
Climate.
5. To study whether Emotional Intelligence has a significant impact over
Job Satisfaction (JS), Customer Orientation (CO), Involvement and
Empowerment (IE), and Team work and Co-operation (TC).
6. To inquire into the effect of Emotional Intelligence on Innovation.
7. To investigate the impact of Emotional Intelligence on Organizational
8. To analyze the impact of Emotional Intelligence on Interpersonal
Helping, Individual Initiative, Loyal Boosterism and Personal Industry.
9. To scrutinize the relationship between Organizational Climate and
65
10. To inquire into the relations between Job Satisfaction, Customer
Orientation, Involvement / Empowerment and Teamwork / cooperation
and Organizational Citizenship Behavior.
11. To examine the relation between Employee Training /Knowledge
sharing and Organizational Citizenship Behavior.
3.04. Hypothesis:
H01: There is no relationship between demographic variables (age, gender,
marital status, experience, position, Educational Qualification, state) of the
employee and Emotional Intelligence
H11: There is a relationship between demographic variables (age, gender,
marital status, experience, position, education, state) of the employee and
H02: Differences in demographic variables (age, gender, experience, position,
marital status, education, state) do not affect Organizational Climate.
H12: Differences in demographic variables (age, gender, experience, position,
marital status, education, state) affect Organizational Climate.
H03: Differences in the demographic variables (of age, gender, position,
marital status, education, experience and state) do not affect Organizational
H13: Differences in the demographic variables (of age, gender, position,
marital status, education, experience and state) affect Organizational
66
H04: Emotional Intelligence of employees has no impact on the Organizational
Climate
H14: Emotional Intelligence of employees has a strong impact on the
H05: There is no relationship between Organizational Climate and
H15: There is a positive relationship between Organizational Climate and
H06: Emotional Intelligence of employees has no effect upon Job satisfaction.
H16: Emotional Intelligence of employees has no effect upon Job satisfaction.
H07: Differences in Emotional Intelligence does not affect the Customer
Orientation of Employees.
H17: Differences in Emotional Intelligence affects the Customer Orientation of
Employees.
H08: There is no relationship between Emotional Intelligence and
Involvement/Empowerment.
H18: There is a positive relationship between Emotional Intelligence and
H09: Emotional Intelligence does not impact Teamwork /cooperation within
the organization.
67
H19: Emotional Intelligence positively impacts Teamwork /cooperation within
the organization.
H010: Emotional Intelligence of the employees has no relationship with their
desire to be innovative.
H110: Emotional Intelligence of the employees has a positive relationship with
their desire to be innovative.
H011: Emotional Intelligence of employees has no impact on their
H111: Emotional Intelligence of employees has a positive impact on their
H012: Emotional Intelligence of employees has no effect upon Interpersonal
Helping.
H112: Emotional Intelligence of employees has a positive effect upon
Interpersonal Helping.
H013: There is no relationship between Emotional Intelligence and Individual
Initiative.
Individual Initiative.
H014: An increase in Emotional Intelligence of the employees has no impact
upon the personal Industry displayed by employees.
68
H114: An increase in Emotional Intelligence of the employees has a positive
impact upon the personal Industry displayed by employees.
H015: Employee‘s Emotional Intelligence does not affect their Loyal
Boosterism.
H115: Employee‘s Emotional Intelligence has a positive effect upon their
Loyal Boosterism.
H016: Organizational Climate has no impact upon Organizational Citizenship
Behavior.
H116: Organizational Climate has a strong positive impact upon Organizational
H017: Job Satisfaction, Customer orientation, Involvement/Empowerment,
teamwork/cooperation have no effect on Organizational Citizenship Behavior.
H117: Job Satisfaction, Customer orientation, Involvement/Empowerment,
teamwork/cooperation have a positive effect on Organizational Citizenship
Behavior.
H018: Employee Training and Information / knowledge sharing has no impact
upon Organizational Citizenship Behavior.
H118: Employee Training and Information / knowledge sharing has a positive
impact upon Organizational Citizenship Behavior.
3.05. Research Design

This study is Causal in nature as it analyses the impact of one or more
69
variables on other variable(s), with reasonable level of certainty. Employee
Emotional Intelligence is the independent variable in this study and its impact
on Organizational Climate and Organizational Citizenship Behavior is studied.
3.06. Sampling Design
Since this study is totally focused on Private Sector Banks in India, Public
Sector Banks were not considered. Sampling was done in two stages
Size Suggested
Market Total large / corporate Sample sample
No. Banks Capitalization employees medium office done
1 L1 105481.26CrRs. 55752 Large 1115 132 135
3 L2 33224.36 Cr.Rs. 20500 Large 410 110 102
4 L3 85901.93 Cr.Rs. 79978 Large 1600 137 158
2 M1 8798.97 Cr.Rs 3034 Medium 61 30 34
5 M2 - 2820 Medium 80 60 63
6 M3 6152.58 Cr.Rs. 8270 Medium 175 100 114
7 M4 2328.03 Cr.Rs. 5619 Medium 125 52 62
8 M5 710.88 Cr.Rs. 2100 Medium 42 30 36
Total 3608 651 704
Data as on 7th Jan2012 and also based on the Annual Reports of March 2011
Table 3.1- Sampling
70
In order to get a representative sample, the stratified sampling technique was
first used and two strata developed based on size- one Large and the other
medium. The parameters for size were Market Capitalization of the bank and
employee strength. For the purpose of confidentiality the randomly selected
large banks were coded as L1, L2, L3 and the other strata of medium sized
banks were coded as M1, M2, M3, M4, M5.The entire populations of
employees in the corporate head offices of the selected 8 banks were taken. It
was 3608 employees. The sample suggested at 95% confidence considering
the population of the corporate head offices of each of the banks are shown in
table below. For the purpose of Confidentiality the names of the banks are not
reflected in the study. The suggested sample was 651 and the sample collected
was 704. These 8 Private Banks L1, L2, L3, M1, M2, M3, M4, M5, selected
comprise the sampling frame. The list of Banks is given in the Annexure.
3.07. Data Acquisition
Data Acquisition is through Primary and Secondary sources. The Primary
Sources of Data Collection are the Questionnaire and the In Depth Interviews.
The Secondary Sources of Information are from Annual Reports, Company
Manuals and brochures, Articles, Internet Sources, books, periodicals, guides
and directories, Journal and Newspaper.
3.08. Pilot Study
The Questionnaire was developed based on the study of literature pertaining to
Emotional Intelligence, Organizational Climate and Organizational
Citizenship Behavior. Experts in the area of Behavioral Sciences were also
71
consulted. Experts from banks were also consulted for designing the
Questionnaire. Further the number of questions was scaled down to 65
statements. For the convenience of the respondents open ended questions were
removed so that response would be faster and not take much of their time. All
the questions were converted to the Likert scale so that the uniformity of the
response pattern would make the Questionnaire less cumbersome for the
respondents. Pilot Study was conducted on 95 respondents from six private
sector banks and Questionnaire modified based on findings of the study. For
Pilot Study the researcher used convenience Sampling. 6 Private Banks were
selected randomly viz. Total sample collected was 95 employees, from 6
banks. After the Pilot study it was understood that confidentiality was a major
issue for the employees. Banks functioned under high levels of privacy. The
data collected by the researcher could also be used by competitors hence at
every stage high levels of confidentiality maintaining the privacy of the banks
had to be maintained. Information collected during the interview process too
had to be used with discretion. In order to maintain confidentiality of the
respondents the names were made optional, the designation changed to two
categories. Managerial and non managerial, Income ranges were also created
so that the exact income of the respondents need not be revealed.
3.09. Tools of Data Collection
3.09. a. Personal Interview Method:
The personal Interview was conducted both in a structured and unstructured
72
format and was used for the exploratory research, problem definition,
Questionnaire designing, and interpretation of the qualitative research
outcomes.
3.09. b. Questionnaire:
Through Literature survey, talking to experts both from academics as well as
industry a Questionnaire comprising of 65 Statements using the Likert scale
was developed. The initial part of the questionnaire dealt with the
demographic variables of age, gender, experience, position, marital status,
qualification followed by the 65 statements using the 5 point Likert scale to
measure Emotional Intelligence, Organizational Climate and Organizational
Citizenship Behavior. Of the 65 items 17 were for emotional Intelligence, 32
were for Organizational Climate and 16 were for Organizational Citizenship
Behavior. Of the 17 items on Emotional Intelligence 5 statements were for
expressing emotions, 6 items were for Balancing Emotions and 6 statements
were for understanding emotions. Of the 32 statements for Organizational
climate 2items were for customer orientation, 5statements were for Training
4 statements were for involvement and empowerment, 7 items were for team
work and cooperation, 5items Information and knowledge sharing and
9 statements were for job satisfaction. Of the 16 questions for Organizational
Citizenship Behavior 4 were for Interpersonal helping, 4 were for individual
Initiative, 4 for personal Industry and 4 for Loyal Boosterism.
3.10. Data Analysis
Data Analysis was done using the SPSS software. The chi square test, Anova
73
and T test (In SPSS software the Z test is also under the common name of T
test) was used to find the relationship between the various demographic
variables of age, gender, Experience, marital status, Educational Qualification
and the variables of Emotional Intelligence, Organizational Climate and
Organizational Citizenship behavior. The correlation and regression and
Multiple regression analysis was conducted to find the relation between
Emotional Intelligence, Organizational Climate, Organizational Citizenship
Behavior and Job Satisfaction.
3.11. Presentation of Findings Recommendations and Conclusion
The findings are presented through the SPSS Tables, Percentages, Pie charts,
Bar graphs, and other charts and pictorial representations.
A Major Conclusion drawn is that there is a significant relationship between
the variables of Emotional Intelligence, Organizational Climate and
Organizational Citizenship behavior. The major recommendations of this
study are that all employees related activities should keep in mind the factors
of Emotional Intelligence to improve Organizational Climate and
Organizational Citizenship behavior.
3.12. Limitations of the research
Since the sample has been totally taken from the Private Indian banks cultural
variations could occur across different countries. Differences in values,
attitudes, motivations and perceptions could give different results. This study
is focused mainly on Private Banks and can be replicated across several
74
industries to get a more holistic picture of the influence of Emotional
Intelligence on the Organizational Climate and consequently its impact on
Organizational Citizenship Behavior. Public Sector Banks as well as Foreign
Banks too were not considered in this study.
75
CHAPTER 4
DEMOGRAPHIC VARIABLES
AND EMOTIONAL INTELLIGENCE,
ORGANIZATIONAL CLIMATE &
76
CHAPTER 4
DEMOGRAPHIC VARIABLES AND EMOTIONAL
INTELLIGENCE, ORGANIZATIONAL CLIMATE
& ORGANIZATIONAL CITIZENSHIP BEHAVIOR
4.01. Reliability Tests
The reliability of the questionnaire was first tested before the relationships
between the different variables were proved. The Cronbach Alpha, Guttman‘s
split half and Spearman Brown coefficients were used for validating the
reliability. Reliability in the Cronbach Alpha is .950 for Emotional
Intelligence (Table 4.01a), .983 For Organizational Climate (4.02 a) and .977
for Organizational Citizenship Behavior (4.03a).
Table: 4.01.a: Reliability for Emotional Intelligence
Cronbach's Cronbach's Alpha Based on

Alpha Standardized Items N of Items
.950 .950 17
Hence the Reliability in the Cronbach‘s Alpha is very High validating the fact
that that the Reliability of the Questionnaire is very high. Further Guttman‘s
Split half Coefficient and Spearman Brown Coefficient was also conducted to
test the Reliability of the Questionnaire. The results of these two tests are as
follows - The reliability in the Guttmann‘s Split half Coefficient was .919
(Table 4.01b.) for Emotional Intelligence, .954 (Table4.02b) for
77
Organizational Climate and .952 (Table 4.03b) for Organizational Citizenship
Behavior.
Table: 4.01.b: Split half Reliability
Cronbach's Alpha Part 1 Value .927
N of Items 9(a)
Part 2 Value .888
N of Items 8(b)
Total N of Items 17
Correlation Between Forms .862
Spearman-Brown Equal Length .926

Coefficient
Unequal Length .926
Guttman Split-Half Coefficient .919
4.02 .a. Reliability for climate

.983 .983 32
4.02 .b. Split half reliability for Organizational Climate
N of Items 16(a)
Part 2 Value .970
N of Items 16(a)
Total N of Items 32

Coefficient
Unequal Length .954
78
The Spearman Brown Coefficient was.919(Table 4.01b.) for Emotional
Intelligence, .954(Table4.02b) for Organizational Climate and .952 (Table
4.03b) for Organizational Citizenship Behavior. The Spearman Brown
Coefficient and Guttman‘s Split half Coefficient also prove that the Reliability
is very high.
4.03.a. Reliability for Organizational Citizenship Behavior

.976 .977 16
4.03.b. Splithalf reliability for Organizational Citizenship Behavior
N of Items 8(a)
Part 2 Value .959
N of Items 8(a)
Total N of Items 16

Coefficient
Unequal Length .952
4.02. Demographic Variables & Emotional Intelligence
4.02.1. Age and Emotional Intelligence
Hypothesis Testing:
H01: There is no relationship between demographic variables (age) of the
79
H11: There is a relationship between demographic variables (age) of the
Exploring the relation between age and Emotional Intelligence can provide
some useful thought provoking insights
4.04. Table showing the Descriptive statistics of age and Emotional Intelligence
95% Confidence
Interval for Mean
Std. Lower Upper
N Mean Deviation Std. Error Bound Bound Minimum Maximum
Below 25 175 3.23 1.015 .077 3.08 3.39 1 5
26-35 211 3.27 .848 .058 3.16 3.39 1 5
36-45 197 3.24 .808 .058 3.13 3.36 1 5
Above 45 119 3.36 .849 .078 3.20 3.51 1 5
Total 702 3.27 .881 .033 3.20 3.33 1 5
The mean Emotional Intelligence inferred from the descriptive statistics in
Table 4.04 shows that there is not much Difference in the Emotional
Intelligence because of Age The mean values are 3.23 for employees below
25, 3.27 for employees between 26-35, 3.24 for employees between the age
group of 36-45 and 3.27 for those above 45years.
4.05. ANOVA – Relation between Age and Emotional Intelligence
Sum of Squares df Mean Square F Sig.
Between Groups 1.250 3 .417 .535 .658
Within Groups 543.307 698 .778
Total 544.556 701
80
The Anova (Table 4.05) conducted on 702 (2 did not respond) samples who
responded shows that the calculated p value is .658 which is more than the
level of significance .05 . Hence we accept the null hypothesis and reject the
alternate hypothesis.
Inference: There is no difference in Emotional Intelligence due to differences
in age.
4.02.2. Position and Emotional Intelligence
Hypothesis Testing:
H01: There is no relationship between demographic variables (position) of
the employee and Emotional Intelligence
H11: There is a relationship between demographic variables (position) of the
The Descriptive statistics (Table 4.06) reveal that out of the 704 respondents
344 were in the managerial cadre and 360 were in the nonmanagerial cadre.
17.7% in the managerial cadre had low Emotional Intelligence while 82.3 % in
the managerial level had high Emotional Intelligence. In the nonmanagerial
positions 44.4% had low Emotional Intelligence while 55.6 % had high
Emotional Intelligence. So it is obvious that the managerial level employees
have a higher Emotional Intelligence than the nonmanagerial level employees.
81
Table 4.06. Descriptives – Position and Emotional Intelligence (percentage analysis)
ei
low ei hi ei Total
manager managerial Count 61 283 344

nonmamanager cadre
% within manager 17.7% 82.3% 100.0%
nonmamanager
% within EI 27.6% 58.6% 48.9%
nonmanagerial Count 160 200 360
% within manager 44.4% 55.6% 100.0%

nonmamanager
% within EI 72.4% 41.4% 51.1%
Total Count 221 483 704
% within manager 31.4% 68.6% 100.0%

nonmamanager
% within EI 100.0% 100.0% 100.0%
Exhibit4.01: Position and Level of Emotional Intelligence
82
Table 4.07 Chi-Square Tests- relation between position and Emotional Intelligence
Asymp. Sig. Exact Sig. (2- Exact Sig. (1-

Value df (2-sided) sided) sided)
Pearson Chi-Square 58.278a 1 .000
Continuity Correctionb 57.044 1 .000
Likelihood Ratio 59.936 1 .000
Fisher's Exact Test .000 .000
Linear-by-Linear 58.195 1 .000

Association
N of Valid Cases 704
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 107.99.
b. Computed only for a 2x2 table
Table 4.08 Symmetric Measures : Phi CramerV Tests
Value Approx. Sig.
Nominal by Phi -.288 .000
Nominal
Cramer's V .288 .000
Contingency Coefficient .276 .000
The Chi square test (Table-4.07 ) reveals the calculated p value to be .000
which is less than .05 the assumed level of significance. Since the Chi square
value is significant we reject the null hypothesis. Therefore this means that
there is enough evidence to conclude that position and Emotional Intelligence
are related. To understand the strength of the relation the statistic called phi-
coefficient (Table – 4.08) is used. The phi value in the table is .288 so the
value of phi square is .083. Which explains that 8.3 % of the variance in
83
Emotional Intelligence is explained by position. Based on Luck and Rubin‘s
(1992) ‗ Value of phi and implied relationship‘ table if the value of phi falls
between .20 to .40 then the relationship is weak. This is a very important issue
which the banks must consider seriously because even though Emotional
Intelligence is a prerequisite across the positions those in higher positions i.e
the managerial level need it more. The study shows a weak association hence
there should be serious measures taken by these banks to improve the
Emotional Intelligence of those in the higher level hierarchy.
Inference: Accept Alternate hypothesis. Position affects Emotional
Intelligence but the association is weak.
4.02.3. Educational Qualification and Emotional Intelligence
Hypothesis Testing:
H01: There is no relationship between demographic variables (Educational
Qualification) of the employee and Emotional Intelligence
H11: There is a relationship between demographic variables (Educational
Qualification) of the employee and Emotional Intelligence
The Chi Square test conducted to understand the relation between Educational
Qualification and Emotional Intelligence revealed the following results.
The descriptive statistics (Table 4.09) show that 19.8% of the graduates had
low Emotional Intelligence while 80.2 % had high Emotional Intelligence.
33.9% of the diploma holders had low Emotional Intelligence while 66.1%
had high Emotional Intelligence.76.1 % of the Postgraduates, 59.8% of the
84
professional degree holders had high Emotional Intelligence . The category
‗others comprise of employees who are below the graduation level. 52.5% in
that category had low Emotional Intelligence it is an indication that education
makes a difference to Emotional Intelligence.
Table 4.09 qualification level * Emotional Intelligence Percentages
EI
low EI hi EI Total
qualification level graduate Count 32 130 162
% within qualification level 19.8% 80.2% 100.0%
% within EI 14.5% 26.9% 23.0%
diploma Count 37 72 109
% within EI 16.7% 14.9% 15.5%
postgraduate Count 43 137 180
% within EI 19.5% 28.4% 25.6%
Prof.Degree Count 78 116 194
% within EI 35.3% 24.0% 27.6%
Others Count 31 28 59
% within EI 14.0% 5.8% 8.4%
% within EI 100.0% 100.0% 100.0%
85
Exhibit 4.02 Level of Emotional Intelligence and Qualification
Table 4.10 Chi-Square Tests Relation between Emotional Intelligence and Qualification
Value df Asymp. Sig. (2-sided)

Linear-by-Linear Association 23.562 1 .000
The chi square test (Table 4.10) reveals the calculated value is .000 which is
less than the assumed level of significance.05. Hence we accept the alternative
hypothesis that there is a significant relation between educational
Qualification and Emotional Intelligence.
Inference: Accept alternate hypothesis. There is a relation between
educational Qualification and Emotional Intelligence.
4.02.4. Experience and Emotional Intelligence

Hypothesis Testing:
H01: There is no relationship between demographic variables (Experience) of
the employee and Emotional Intelligence
86
H11: There is a relationship between demographic variables (Experience) of
the employee and Emotional Intelligence.
Table 4.11 Group Statistics – Mean and Standard Deviation (EI &
Experience)
experience N Mean Std. Deviation Std. Error Mean
EI 0-10 329 3.20 .898 .050
above10 366 3.33 .854 .045
Analyzing the group statistics ( Table 4.11 ) mean & Standard Deviations we
come to the conclusion that the mean Emotional Intelligence of the employees
with experience above 10 years is higher than those with experience of less
than 10 years.
Table No: 4.12 T Test- EI & experience
Levene's Test
for Equality of
Variances t-test for Equality of Means
95%
Confidence
Interval of the
Difference
Sig.
(2- Mean Std. Error
F Sig. t df tailed) Difference Difference Lower Upper
EI Equal 3.310 .069 - 693 .053 -.129 .066 -.259 .002

variances 1.935
assumed
Equal - 676.273 .054 -.129 .067 -.259 .002

variances 1.929
not assumed
The T test (In SPSS software the Z test is also under the common name of T
test) the was conducted for testing the equality of two population means i.e
87
those with experience less than 10 years and those with experience of more
than 10 years and understand whether there is a significant difference in the
Emotional Intelligence due to Experience. The Levene‘s Test for Equality of
Variances (Table No:4.12) shows that the significance level is .069 which is
greater than the assumed level of significance i.e .05. This proves that the two
variances are not significantly different. The t value is 1.935 for 693 degrees
of freedom the significance level is .053 which is greater than .05.
Inference: There is no significant difference due to experience in the
emotional Intelligence of the employees or the Emotional Intelligence of the
employees is not affected by their experience. We accept the null hypothesis
and conclude that people with more number of years of experience do not
have higher Emotional Intelligence than people with lesser years of
Experience.
4.02.5. Gender and Emotional Intelligence
Hypothesis Testing:
H01: There is no relationship between demographic variables (gender) of the
H11: There is a relationship between demographic variables (Gender) of the

Table 4.13 Group Statistics- Gender & Emotional Intelligence
male or
female N Mean Std. Deviation Std. Error Mean
EI Male 532 1.69 .461 .020
Female 172 1.66 .474 .036
88
The group statistics (table 4.13) shows that the mean between the Male and the
female population is 1.69 and 1.66 respectively on Emotional Intelligence.
The male population has a higher Emotional Intelligence than the female
population.
Table 4.14 T – Test for equality of means based on gender

Levene's Test
for Equality of
95%
Confidence
Interval of the
Difference
Sig.
(2- Mean Std. Error
EI Equal 2.094 .148 .756 702 .450 .031 .041 -.049 .111
variances
assumed
Equal .746 283.205 .456 .031 .041 -.051 .112
variances not
assumed
(In SPSS software the Z test is also under the common name of T test)
The Levene‘s test of equality for variances in Table- 4.14 shows that the level
of significance is .148 which being more than .05 we understand that the
variances in the two populations are not significantly different. The calculated
t value as shown in table 4.14 is .756 for 702 degrees of freedom and the
level of significance is .450 which being more than .05 level of significance
we interpret that there is no significant difference in Emotional Intelligence
based on Gender. The assumption that women are more sensitive to the needs
89
of others and hence ought to be be more emotionally intelligent is again a
falsehood as the results of this study prove.
Inference: Men and women do not differ in their Emotional Intelligences.
Hence accept the Null Hypothesis.
4.02.6. Marital Status and Emotional Intelligence
Hypothesis Testing:
H01: There is no relationship between demographic variables (Marital
Status) of the employee and Emotional Intelligence
H11: There is a relationship between demographic variables (Marital Status)
of the employee and Emotional Intelligence.
The descriptive statistics to understand whether marital status creates any
change in employees Emotional Intelligence is shown in Table 4.15.
Exhibit 4.03 Marital Status and Emotional Intelligence
90
We can interpret that of the 704 samples collected 266 were single and 438
were married. Out of the unmarried population 36.5 %had low Emotional
Intelligence and 63.5 % had high Emotional Intelligence. Of the married
population 28.3 % had low Emotional Intelligence and 71.7 % had high
Emotional Intelligence. This also indicates that the married population has a
higher Emotional Intelligence than the unmarried population.
Table 4.15 Marital Status * Emotional Intelligence Level
EI
low EI hi EI Total
married unmarried Single Count 97 169 266
% within married 36.5% 63.5% 100.0%

unmarried
% within EI 43.9% 35.0% 37.8%
married Count 124 314 438
% within married 28.3% 71.7% 100.0%

unmarried
% within EI 56.1% 65.0% 62.2%

% within married 31.4% 68.6% 100.0%
unmarried
% within EI 100.0% 100.0% 100.0%
The Chi square value is 5.111. ( Table 4.16 ). The chi square test shows that
the p value is .015 which is less than .05 the assumed level of significance.
Hence we reject the null hypothesis and conclude that there is a relation
between marital status and Emotional Intelligence
91
4.16 Chi-Square Tests relation between Marital Status and Emotional Intelligence


Association
In order to understand the strength of relation the Phi coefficient (Table 4.17)
is taken and according to Luck and Rubin‘s table since the value falls between
.00 and .20 the strength of the relation is negligible. The study proves that
married people are marginally more Emotionally intelligent than their
unmarried counterparts. The reason for this could be due to the life experience
and challenges faced by married people when it comes to major adjustment
and adaptations.
Table 4.17 Symmetric Measures- Phi Cramer V Test
Value Approx. Sig.
Nominal by Nominal Phi .085 .024

Inference: Hence it can be concluded that though the alternate hypothesis
that there is a relationship between Emotional Intelligence and marital status is
accepted, the strength of the relationship is negligible.
92
4.02.7. Comparison of Emotional Intelligence between States
Hypothesis Testing:
H01: There is no relationship between demographic variables (State-
Maharashtra & Kerala) of the employee and Emotional Intelligence
H11: There is a relationship between demographic variables (State-
Maharashtra & Kerala) of the employee and Emotional Intelligence
The samples were collected from the two states of Maharashtra and Kerala
because most of the Indian Private Banks had their head offices or corporate
offices in these two states. The descriptive shown in Table 4.18 reveal that
the mean Emotional Intelligence is 3.33 in Kerala while it is 3.23 in
Maharashtra.
The T test (In SPSS software the Z test is also under the common name of T
test) was conducted to understand the difference in the state wise level of
Emotional Intelligence. The results are displayed in Table 4.19 .The variances
are not equal as the Levene‘s test for equality of variances is .000 which is less
than .05. The p value is .149 which is greater than .05 the assumed level of
significance, hence accept the null hypothesis that the group means are not
different.
Table 4.18 State wise Group Statistics
kerala/maharas
htra N Mean Std. Deviation Std. Error Mean
EI kerala 239 3.33 .707 .046
maharashtra 465 3.23 .960 .044
93
Table 4.19 State wise Comparison with T Test
Levene's Test
for Equality of
95%
Confidence
Interval of the
Difference
Sig.
(2- Mean Std. Error
EI Equal 48.501 .000 1.313 702 .189 .092 .070 -.046 .230
variances
assumed
Equal 1.445 618.137 .149 .092 .064 -.033 .217

variances not
assumed
4.03. Demographic variables and Organizational Climate
Organizational Climate is often attributed to factors like company policies,
superior subordinate relations, employee training, and various other variables.
Another useful and interesting area of enquiry would be to understand whether
Demographic variables of age, gender, position, experience, qualifications
,and marital status affect Organizational Climate.
4.03.1. Employee Age and Organizational Climate
H01: Differences in demographic variables (age) do not affect Organizational
Climate.
94
H02: Differences in demographic variables (age) affect Organizational
Climate.
Table 4.20 Descriptives- Age and Organizational Climate

95% Confidence
Interval for Mean
Std. Std. Lower Upper Minimu Maxi
N Mean Deviation Error Bound Bound m mum
Below 25 176 3.30 1.039 .079 3.15 3.46 1 5
26-35 211 3.37 .895 .062 3.24 3.49 1 5
36-45 197 3.49 .932 .066 3.36 3.62 1 5
Above 45 120 3.52 .899 .082 3.36 3.68 1 5
Total 702 3.41 .945 .036 3.34 3.48 1 5
The mean for the different age groups are not very different for below 25 it
being 3.30, for 26-35 mean being 3.37, for 36-45 age group it is 3.49, and for
above 45 group it is 3.52. In order to compare the means of the different age
group the Anova was executed.
The Anova (table 4.21) shows the level of significance to be .126 which is
more than the alpha significance level of .05. Hence we accept the null
hypothesis and reject the alternate hypothesis. Hence we can conclude that
there is no difference in Organizational Climate due to differences in age.
It cannot be therefore claimed that a particular age group of people working
within an organization would create a better climate or that a particular age
group is responsible for poor climate within the organization.
95
4.21 ANOVA for Age and Organizational Climate
Between Groups 5.108 3 1.703 1.912 .126

Total 626.528 701
Inference: Accept the null hypothesis and conclude that age of the employee
has no effect upon the organizational climate.
4.03.2 Relation between gender and Organizational Climate
H02: Differences in demographic variables (gender) does not affect
H12: Differences in demographic variables (gender) affect Organizational
Climate.
Of the males respondents within the bank 27.5% were of the opinion that the
organizational climate was poor and the rest 72.5% males opined that the
organizational climate was good. Similarly within females 34.9% were of the
opinion that the organizational climate was poor and the rest 65.1% males
opined that the organizational climate was good. The Descriptives in Table
4.19 show that male members feel that the climate is positive within the
organization rather than the female members. To analyze this aspect further
the chi square test was conducted as shown in Table: 4.22
96
Table 4.22 male or female * organizational climate - Percentage Analysis
OC
poor OC gd OC Total
male or female Male Count 144 380 524
% within male or female 27.5% 72.5% 100.0%
% within oc 70.6% 77.2% 75.3%
Female Count 60 112 172
% within oc 29.4% 22.8% 24.7%

% within oc 100.0% 100.0% 100.0%
Table 4.23 Chi-Square Tests-relation between gender and perception of Climate


Association
The Chi square value is 3.425. (Table 4.23). The chi square test shows that the
p value is .064 which is more than .05 the assumed level of significance.
97
Hence we accept the null hypothesis and conclude that there is no relation
between gender and organizational climate.
Exhibit No. : 4.04 male or female * organizational climate - Percentage Analysis
Inference: Accept Null Hypothesis and reject alternate Hypothesis.
4.03.3 Qualification and Organizational Climate
H02: Differences in demographic variables (educational qualification) do not
affect Organizational Climate.
H12: Differences in demographic variables (educational qualification) affect
Table 4.24 ANOVA- Qualification and Organizational Climate
Between Groups 9.090 4 2.273 11.622 .000

Total 144.207 695
The p value is .000 which is less than .05 assumed level of significance.
98
Inference: Therefore the null hypothesis is rejected and the alternative
hypothesis is accepted. It can be concluded that the differences in the
organizational climate could be attributed to the different levels of
qualifications of employees. The more highly qualified the employees are the
better the organizational Climate.
4.03.4 Experience and Organizational Climate
H02: Differences in demographic variables (experience) do not affect
H12: Differences in demographic variables (experience) affect Organizational
Climate.
Table 4.25 experience * organizational climate Percentage Analysis
OC
poor OC gd OC Total
experience 0-10 Count 108 222 330
% within experience 32.7% 67.3% 100.0%
above10 Count 96 269 365
The descriptive statistics (Table 4.25) show that banks with more experienced
employees have better organizational climate because 73.7 % with experience
above 10 years feel that the climate is good where as only 26.3 % with
experience above 10 years feel that the organizational climate is poor. In the
99
below 10 years experience category 67.3% felt that the climate is good while
32.7% felt that the climate is poor.
Exhibit No: 4.05 Experience and Organizational Climate
In order to analyze this further the chi square test was used .
Table 4.26 Chi-Square Test Experience and Organizational Climate

a. 2 cells (33.3%) have expected count less than 5. The minimum expected count is .29.
The Chi square value is 3.869a ( Table 4.26 ). The chi square test shows that
the p value is .144 which is more than .05 the assumed level of significance.
Hence we accept the null hypothesis and conclude that there is no relation
between experience and organizational climate.
100
Inference: Accept Null Hypothesis and reject Alternate hypothesis. Having
highly experienced employees does not improve the climate within the
organization.
4.03.5 Relation between marital status and Organizational Climate
H02: Differences in demographic variables (marital status) do not affect
H12: Differences in demographic variables (marital status) affect
T- test (In SPSS software the Z test is also under the common name of T test)
conducted revealed whether the marital status of employees affect the
organizational Climate .The results are displayed in Table- 4.28
Table 4.27 Group Statistics Marital Status and Organizational Climate
married
unmarried N Mean Std. Deviation Std. Error Mean
oc Single 266 1.66 .474 .029
married 430 1.73 .442 .021
The Levene‘s test of equality of variances show the level of significance to be
.000 which is less than .05 hence the variances are not equal. The calculated p
value is .043 which is less than .05 hence the null hypothesis is rejected.
Inference: Accept Alternate Hypothesis that Marital status affects the
organizational climate. More the married employees within the organization
better is the organizational climate.
101
Table 4.28 Marital Status and Organizational Climate –T Test
Levene's Test
for Equality of
95%
Confidence
Interval of the
Difference
Sig.
(2- Mean Std. Error
OC Equal 15.566 .000 - 694 .039 -.073 .035 -.143 -.004

variances 2.066
assumed
Equal - 531.606 .043 -.073 .036 -.144 -.002

variances 2.032
not assumed
4.03.6 Position and Organizational climate.
H02: Differences in demographic variables (position,) do not affect
H12: Differences in demographic variables (position,) affect Organizational
Climate.
The descriptive statistics (Table 4.29) show that 84.2% of the employees in the
managerial cadre feel that the climate in the banks is good while only 15.8%
of the employees in the same level feel it is bad. In the non managerial level
102
58.1% feel that climate is good while the rest do not. It can be interpreted that
people in the managerial level feel that the climate is good. To probe further
the chi square test was conducted.
Table 4.29 Position* organizational climate percentage Analysis
OC
poor oc gd oc Total
manager managerial Count 53 283 336

nonmamanager cadre % within manager 15.8% 84.2% 100.0%
nonmamanager
% within oc 26.0% 57.5% 48.3%
nonmanagerial Count 151 209 360
% within manager 41.9% 58.1% 100.0%

nonmamanager
% within oc 74.0% 42.5% 51.7%
% within manager 29.3% 70.7% 100.0%

nonmamanager
% within oc 100.0% 100.0% 100.0%
Table 4.30 Position and Organizational Climate chi square test


b
Continuity Correction 57.044 1 .000
Association
103
The chi square test ( Table 4.30) reveals a significant relation between position
and Emotional Intelligence as the p value is less than .05. People in the
managerial level have higher level of Emotional Intelligence than those in the
nonmanagerial level.
Exhibit:4.06 Position & Organizational Climate
Inference: Accept Alternate Hypothesis. Managers create a better
Organizational climate than the nonmanagerial staff. This could be because
the managerial level employees are more empowered and involved in decision
making and hence contribute to the climate within the organization.
4.03.7 State wise difference in Organizational Climate
H02: Differences in demographic variables (state) do not affect Organizational
Climate.
H12: Differences in demographic variables (state) affect Organizational
Climate.
104
The group statistics (Table 4.31) too show that the mean value in Kerala is
slightly better than in Maharashtra.
Table 4.31 Group Statistics for States
kerala/maharash
tra N Mean Std. Deviation Std. Error Mean
oc kerala 236 1.76 .429 .028
maharashtra 460 1.68 .467 .022
The Levene‘s test (Table 4.32-In SPSS software the Z test is also under the
common name of T test)) of equality of variances show the level of
significance to be .000 which is less than .05 hence the variances are not
equal. The calculated p value is .028 which is less than .05 hence the null
hypothesis is rejected. Hence it is concluded that organizational climate differs
in both the states.
Table 4.32 : T- Test for State differences in Organizational Climate
Levene's Test
for Equality of
95%
Confidence
Interval of the
Difference
Sig.
(2- Mean Std. Error
OC Equal 20.668 .000 2.145 694 .032 .078 .036 .007 .149
variances
assumed
Equal 2.204 510.825 .028 .078 .035 .008 .148

variances
not assumed
105
Inference: Accept Alternate hypothesis. There is a difference in the climate of
the banks in the two states.
4.04 Organizational Citizenship Behavior and Demographic variables.
4.04.1 Age and Organizational Citizenship Behavior
H03: Differences in the demographic variables (of age,) do not affect
H13: Differences in the demographic variables (of age,) affect Organizational
Table 4.33 age * Organizational Citizenship Behavior

Ocb
lo ocb hi ocb Total
age test persons Below 25 Count 62 113 175
% within age test persons 35.4% 64.6% 100.0%
26-35 Count 53 158 211
36-45 Count 55 142 197
Above 45 Count 23 96 119
Table 4.34 Chi-Square Tests Age and Organizational Citizenship Behavior

106
The chi square value is 10.123 and the calculated p value is .018 which is less
than .05 hence we reject the null hypothesis and conclude that there is a
significant relation between Organizational Citizenship Behavior and age.
Exhibit:4.07 Age and Organizational Citizenship Behavior
Table 4.35 Symmetric Measures
Value Approx. Sig.

107
Though there is a relation between age and Organizational Citizenship
Behavior as can be inferred from the descriptive statistics in Table 4.33
and the Chi square value too further proves that. The Cramer‘s V value
(Table4.35) is .120 and since the range of this value falls between .11 to .15
there is a Moderate relationship. Hence it can be concluded that the
relationship that exists is moderate.
Inference: Accept Alternate Hypothesis that age of the employees affects
their Organizational Citizenship Behavior. But this relation is moderate.
4.04.2 Gender and Organizational Citizenship Behavior
H03: Differences in the demographic variables (gender,) do not affect
H13: Differences in the demographic variables (gender) affect Organizational
Table 4.36 Group Statistics for Gender & OCB
male or
OCB Male 532 3.57 1.006 .044
Female 172 3.44 1.107 .084
The Levene‘s test of equality of variances (Table 4.37-In SPSS software the Z
test is also under the common name of T test)) show the level of significance
to be .006 which is less than .05 hence the variances are not equal. The
calculated p value is .167 which is greater than .05 hence the null hypothesis is
accepted. Hence it is concluded that organizational Citizenship Behavior does
108
not differ with Gender. Male and female members within the banks do not
exhibit different Citizenship Behavior.
Table 4.37 T Test to compare OCB between gender

Levene's Test
for Equality
of Variances t-test for Equality of Means
95%
Confidence
Interval of
the
Difference
Sig.
(2- Mean Std. Error
OCB Equal 7.674 .006 1.455 702 .146 .132 .090 -.046 .309
variances
assumed
Equal 1.386 268.317 .167 .132 .095 -.055 .319
variances
not assumed
Inference: Accept null hypothesis that there is no relation between gender and
Organizational citizenship behavior
4.04.3 Qualification and Organizational Citizenship behavior
H03: Differences in the demographic variables (educational qualification) do
not affect Organizational Citizenship Behavior.
H:13: Differences in the demographic variables (educational qualification)
affect Organizational Citizenship Behavior.
109
From the descriptive statistics (Table4.38) it is inferred that the mean
Citizenship behavior of the graduates is 1.81 while that of diploma holders is
1.68,that of postgraduates is 1.86 that of people with Professional Degrees is
1.63 and those with other qualifications that are lower majorly that of phone
banking centre employees to be 1.46.
Table 4.38 Descriptives- qualifications & OCB
95% Confidence
Interval for Mean
Std. Std. Lower Upper

N Mean Deviation Error Bound Bound Minimum Maximum
graduate 162 1.81 .390 .031 1.75 1.88 1 2
diploma 109 1.68 .469 .045 1.59 1.77 1 2
postgraduate 180 1.86 .353 .026 1.80 1.91 1 2
Prof.Degree 194 1.63 .483 .035 1.57 1.70 1 2
Others 59 1.46 .502 .065 1.33 1.59 1 2
Total 704 1.72 .447 .017 1.69 1.76 1 2
The Anova table too in Table 4.39 shows the p value (which is .000) is less
than .05 the assumed level of significance therefore the null hypothesis is that
there is no difference in the organizational Citizenship Behavior due to
qualification is rejected and we conclude that Qualification makes an impact
upon organizational Citizenship Behavior. The Descriptives in Table
provide ample proof for this with the employees who are below graduation
level having the lowest mean organizational Citizenship Behavior.
110
Table 4.39 ANOVA between Qualifications for Organizational Citizenship Behavior
Between Groups 10.430 4 2.607 14.008 .000
Total 140.540 703
Inference: Accept alternate hypothesis. Education affects Organizational
Citizenship Behavior. With an increase in Education the Organizational
Citizenship Behavior too increases.
4.04.4 Experience and Organizational Citizenship Behavior
H03: Differences in the demographic variables (experience) do not affect
H13: Differences in the demographic variables (experience) affects
Table 4.40 Group Statistics Experience and Organizational Citizenship Behavior
experience N Mean Std. Deviation Std. Error Mean
ocb 0-10 329 1.70 .461 .025
above10 366 1.75 .433 .023
Table No. 4.41 displays the T test (In SPSS software the Z test is also under
the common name of T test) of the two groups one with experience less than
10 years and another with experience more than 10 years. The Levene‘s test of
111
equality of variances show the level of significance to be .001 which is less
than .05 hence the variances are not equal. Therefore the calculated p value is
.104 which is more than .05 the assumed level of significance hence the null
hypothesis is accepted. Hence it is concluded that experience does not affect
the Organizational Citizenship Behavior.
Table 4.41: T Test for difference in OCB due to experience
Levene's Test
for Equality of
95% Confidence
Interval of the
Difference
Sig.
(2- Mean Std. Error
ocb Equal 10.514 .001 - 693 .103 -.055 .034 -.122 .011
variances 1.632
assumed
Equal - 673.808 .104 -.055 .034 -.122 .011

variances 1.626
not assumed
Inference: Accept null hypothesis. Experience does not affect Organizational
4.04.5 Position and Organizational Citizenship Behavior
H03: Differences in the demographic variables (position) do not affect
112
H13: Differences in the demographic variables (position) affects
The chi square value is 62.358 and the calculated p value is .000 which is less
than .05 hence we reject the null hypothesis and conclude that there is a
significant relation between Organizational Citizenship Behavior and age.
Table 4.42 Chi-Square Tests for position and Organizational Citizenship Behavior


b
Association
Since the sign of the phi coefficient (Table 4.43) does not have any particular
meaning for the 2x2 table the value is .298as depicted in Table 4.43 .Since it
falls between .20 to .40 according to Luck and Rubin (1992) value of phi and
implied strength of relationship we conclude that though the relation is
significant it is weak.
Value Approx. Sig.
Nominal by Nominal Phi -.298 .000
113
Inference : Reject null hypothesis and accept alternate hypothesis but the
relation between position and organizational citizenship behavior is weak.
4.04.6 Marital Status and Organizational Citizenship Behavior.
H03: Differences in the demographic variables (marital status) do not affect
H13: Differences in the demographic variables (marital status) affect
Table 4.44 Marital Status * Organizational Citizenship Behavior
Ocb
lo ocb hi ocb Total
married unmarried Single Count 87 179 266
% within married 32.7% 67.3% 100.0%
unmarried
% within ocb 44.8% 35.1% 37.8%
married Count 107 331 438
% within married 24.4% 75.6% 100.0%
unmarried
% within ocb 55.2% 64.9% 62.2%
% within married 27.6% 72.4% 100.0%
unmarried
% within ocb 100.0% 100.0% 100.0%
Descriptive statistics shown in Table 4.44 displays that 67.3% of the
unmarried employees showed a high Organizational Citizenship Behavior
while 75.6 % of the married employees showed a high Organizational
Citizenship Behavior. Married employees showed a higher Organizational
114

b
Association
Table 4.45 Chi-Square Tests –relation between marital status and OCB
The chi square value is 5.680 and the p value is .017 which is less than the
assumed level of significance.05 hence we reject the null hypothesis and
conclude that there is a relationship between the employees marital status and
the Organizational Citizenship Behavior.
But the relationship is negligible as the phi value is .09 which lies between .00
and .20 (Luck and Rubin‘s Table for value of phi).
Value Approx. Sig.
Inference: Accept the alternate hypothesis that there is a relation between
marital status of the employee and the citizenship behavior they show.
However the relation is negligible.
Based on the above analysis it can be concluded that demographic variables do
not drastically affect Emotional Intelligence, Organizational Climate and
115
Organizational Citizenship Behavior on most of the factors and even if in
some cases where there is a relationship the relationship is weak or negligible.
4.05 Summary of findings of demographic variables in relation to EI.
The Anova computed between the different categories of age and Emotional
Intelligence reveals that there is no relation between age and Emotional
Intelligence. So the myth of getting emotionally more mature with age is
busted. A Young Employee could be emotionally more mature than an older
employee. The implication is that younger employees are able to understand
emotions, Balance Emotions and express emotions in as mature a manner as
the older employees.
The chi square test conducted to understand the relation between position and
Emotional Intelligence rejects the Null Hypothesis and accepts the alternate
hypothesis which states that there is a relationship between the two variables
but the phi test shows that the relationship is weak. Hence it cannot be claimed
that with change in position or as one rises up the ladder the Emotional
Intelligence changes for the better. Since employees at higher positions need it
the most there should be a lot more focus on training the managerial levels to
improve their Emotional Intelligence.
The chi square test conducted to understand the relation between Educational
Qualification and Emotional Intelligence proves that there is a relation
between the two variables. So it is inferred that Emotional Intelligence
increases with Education. This is a very interesting observation as education is
116
a socialization process too where a lot of adjustments and management of self
and others is involved. The T test between experience and Emotional
Intelligence shows a significant relationship between the two variables .So as
experience increases the emotional Intelligence too increases as experience at
a particular job helps in acquiring job related skills which naturally help in
accruing Emotional Intelligence.
The T test conducted to show the relation between gender and Emotional
Intelligence proves the null hypothesis thus confirming that there is no relation
between gender and Emotional Intelligence. So it can be authoritatively said
that neither male employees nor female employees can claim to be more
emotionally intelligent. This is very important because it is usually perceived
that when it comes to understanding emotions and expressing emotions the
general perception is that women are better at it while in the case of balancing
emotions men are supposed to be better.The chi square test to show the
relation between marital status and emotionally intelligence reveals that
though there is a relation the phi test shows that the relation is weak. The T
test conducted between states show that there is no difference in Emotional
Intelligence based on differences in states.
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CHAPTER - 5
EMOTIONAL INTELLIGENCE AND
ORGANIZATIONAL CLIMATE
“…the ability to sense, understand, and effectively apply the power and
acumen of emotions as a source of human energy, information, connection,
and influence” (Cooper & Sawaf, 1997).
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Chapter 5
Emotional Intelligence and Organizational Climate
5.01 Introduction
An important aspect that needs to be explored is whether Emotional
Intelligence of Employees affects the Climate within Private Banks. An
interesting area of enquiry would be whether nonintellective dimensions like
emotional Intelligence adds to the ‗incumbents perceptions of the events,
practices procedures and kinds of behavior that get rewarded supported and
expected in a setting‘ (Schneider1990). The climate of an organization refers
to those aspects of the environment that are consciously perceived by the
organizational members (Amstrong2003). Intrapersonal and interpersonal
relations form an integral part of human interactions. How members of the
organization perceive the life space within an organization is dependent
certainly upon their reactions and handling of day to day events and people
within the banks. Reichers and Schneider (1990) defined organizational
climate as ‗shared perceptions of the way things are around here‘. This shared
perception therefore talks about a collective intelligence which is different
from the technical or intellectual skills and abilities possessed by the
employees.
119
5.02 Relation between Emotional Intelligence and Organizational Climate
H04: Emotional Intelligence of employees has no impact on the Organizational
Climate
H14: Emotional Intelligence of employees has a strong impact on the
In order to understand the relationship and measure the impact of Emotional
Intelligence on Organizational Climate the correlation and regression analysis
was applied.
The correlation coefficient between Emotional Intelligence and Organizational
Climate is .853 (Table 5.01). This suggests a strong positive correlation
between Emotional Intelligence and Organizational Climate since the value is
positive and close to +1. It is interpreted that as Emotional Intelligence of the
employees increases the Organizational Climate becomes better and viceversa.
Table 5.01 Correlations between Emotional Intelligence and Organizational Climate
Emotional Organizational
Intelligence(EI) Climate(OC)
EI Pearson Correlation 1 .853**
Sig. (2-tailed) .000
N 704 704
OC Pearson Correlation .853** 1
N 704 704
**. Correlation is significant at the 0.01 level (2-tailed).
120
Table 5.02 a Regression: Model Summary b
Adjusted R Std. Error of the

Model R R Square Square Estimate
1 .853a .728 .728 .494
a. Predictors: (Constant), EI b. Dependent Variable: OC
Table 5.02 b ANOVAb of Regression

Model Sum of Squares df Mean Square F Sig.
1 Regression 458.181 1 458.181 1880.293 .000a
Residual 171.060 702 .244
Total 629.241 703
a. Predictors: (Constant), EI
b. Dependent Variable: OC
Table 5.02 c Coefficients Regression
Unstandardized Standardized 95.0% Confidence
Coefficients Coefficients Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
1 (Constant) .421 .071 5.895 .000 .281 .561
EIav .915 .021 .853 43.362 .000 .873 .956
a. Dependent Variable: OC
The Model Summary (table No. 5.02 a) shows the R² value to be .728 which
predicts that 72.8 % of the variance in Organizational Climate is caused by the
Emotional Intelligence of the employees.
The F statistics in table 5.02 b. too shows the level of significance to be less
than .05 thus proving the Alternate hypothesis that Emotional Intelligence has
a strong impact on Organizational Climate.
Since p-value ≈ 0.000 ≤ 0.05, we shall reject the null hypothesis. At the α=
0.05 level of significance, there exists enough evidence to conclude that the
slope of the population regression line is not zero and, hence, that Emotional
121
Intelligence is useful as a predictor of Organizational Climate. The regression
equation for the relation is –
Organizational Climate = .421+.915 EI (where EI is emotional
intelligence)
Table 5.02 d. Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N
Predicted Value 1.50 4.73 3.41 .807 704
Std. Predicted Value -2.368 1.632 .000 1.000 704
Standard Error of Predicted .019 .048 .025 .007 704
Value
Adjusted Predicted Value 1.49 4.73 3.41 .807 704
Residual -2.435 1.461 .000 .493 704
Std. Residual -4.932 2.960 .000 .999 704
Stud. Residual -4.941 2.964 .000 1.001 704
Deleted Residual -2.443 1.465 .000 .495 704
Stud. Deleted Residual -5.025 2.980 .000 1.004 704
Mahal. Distance .001 5.607 .999 1.125 704
Cook's Distance .000 .044 .001 .003 704
Centered Leverage Value .000 .008 .001 .002 704
a. Dependent Variable: OC
Exhibit 5.01 a.
122
Exhibit 5.01 b
The Scatter plot in Exhibit 5.01 b. too shows that the values lie around the line
of fit in the graph of the linear equation.
Exhibit 5.01 c.
123
Exhibit 5.01 d.
The residual plot shows a random scatter of the points (independence) with a
constant spread (constant variance) with no values unusually far from the
reference line (no outliers). The studentized residual plot shows a random
scatter of the points (independence) with a constant spread (constant variance)
With no values unusually far from the line of reference.
Inference Drawn: Hence the Alternate Hypothesis is proved that Emotional
Intelligence of the employees in the bank has strong impact upon the climate
in the bank. A higher Emotional Intelligence makes the employees relate
better to their peers, superiors, subordinates, clients and customers. The
interpersonal skills and communication is also very good creating a positive
environment conducive to learning, growth and employee happiness.
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5.03 Emotional Intelligence and the sub variables of Organizational
Climate
Emotional Intelligence was correlated with the variables of Organizational
Climate like Job Satisfaction (JS), Customer Orientation (CO), Involvement
and Empowerment (IE), and Team work and Co-operation (TC).
Pearson‘s Correlation Coefficient ‗r‘ for the relation between Emotional
Intelligence with Job Satisfaction is .813 , Emotional Intelligence with
Customer Orientation(CO) is .864 , Emotional Intelligence with Involvement
and Empowerment(IE)is .852 , and Emotional Intelligence with Team work
and Co-operation(TC) is .816. All the correlation values are high signifying a
positive correlation i.e. with increase in Emotional Intelligence Job
satisfaction (JS), Customer Orientation (CO), Involvement and Empowerment
(IE) and Team work and Co-operation (TC) Increases. The p values are all
.000 which being less than .05 denotes significant relationships (Table 5.03).
Table 5.03 Correlation between EI and JS ,CO, IE and TC
EI JS co IE TC
EI Pearson Correlation 1 .813** .864** .852** .816**
Sig. (2-tailed) .000 .000 .000 .000
N 704 704 704 704 704
5.03.1 Emotional Intelligence and Job Satisfaction
Ho6: Emotional Intelligence of employees has no effect upon Job satisfaction.
Hı6: Emotional Intelligence of employees has no effect upon Job satisfaction.
125
The Model summary in Table 5.04 shows the R² value to be .661 or 66.1 % of
the variance in Job Satisfaction is caused by Emotional Intelligence.
Table 5.04 a. Model Summaryb of Regression (Emotional
Intelligence & Job Satisfaction)
Adjusted R
Model R R Square Square Std. Error of the Estimate
1 .813a .661 .661 .577
a. Independent Variable Emotional Intelligence (EI )
b. Dependent Variable: Job Satisfaction(JS)
Table 5.04 b. ANOVAb of Regression (Emotional Intelligence & Job Satisfaction)
Sum of
Model Squares df Mean Square F Sig.
1 Regression 455.896 1 455.896 1369.441 .000a
Residual 233.700 702 .333
Total 689.596 703
a.: Independent Variable (Constant), EI
b. Dependent Variable: JS
Table 5.04 c. Coefficientsa of Regression (Emotional Intelligence & Job Satisfaction)

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .456 .083 5.464 .000
EI .913 .025 .813 37.006 .000
a. Dependent Variable: JS
126
The F statistics in table 5.04 b. too show the level of significance to be less
a strong impact on Job Satisfaction.
This relation between Emotional Intelligence and Job Satisfaction is evident
from the positive signs of the estimated coefficients of the corresponding
variables shown in Table 5.04 c. This means that if the Emotional
Intelligence increases there is a positive increase in Job Satisfaction. The t
values are also significant as the p values of the coefficients are .000 which is
less than .05.
The Regression equation inferred from the above Table is-
Job Satisfaction = .456+.913 EI (Emotional Intelligence)
Exhibit5.02a.
127
Table 5.04 d. Residuals Statisticsa(Emotional Intelligence & Job Satisfaction)
Predicted Value 1.53 4.75 3.44 .805 704
Value
Residual -2.095 1.543 .000 .577 704
Std. Residual -3.631 2.674 .000 .999 704
Stud. Residual -3.638 2.682 .000 1.001 704
Mahal. Distance .001 5.607 .999 1.125 704
Cook's Distance .000 .024 .001 .002 704
a. Dependent Variable: JS
The residual plot (Table 5.02 c) shows a random scatter of the points
(independence) with a constant spread (constant variance) with no values
unusually far from the reference line (no outliers). The studentized residual
plot ( Table 5.02 b) shows a random scatter of the points (independence) with
a constant spread (constant variance) with no values unusually far from the
reference line (no outliers).
128
Exhibit 5.02 b & c : Residual Plot(EI & JS)
Inference: Emotional Intelligence of employees impact their Job satisfaction
level. The higher the emotional intelligence of the employees greater will be
job satisfaction they experience .Hence accept alternate hypothesis and reject
null hypothesis.
5.03.2 Emotional Intelligence & Customer Orientation
Being on par in terms of price and quality only gets you into the game. Service wins the game.
Tony Allesandra
H07: Differences in Emotional Intelligence does not affect the Customer
Orientation of Employees.
129
H17: Differences in Emotional Intelligence affects the Customer Orientation of
Employees.
The descriptive statistics show that 81.4% of the employees with low customer
orientation had low Emotional Intelligence and only 18.6 % with low
customer orientation had high Emotional Intelligence. 86.3%of the employees
who had high Emotional Intelligence had high customer orientation. This
indicates that employees with high emotional Intelligence displayed high
Customer Orientation.
Table 5.05 Emotional intelligence * customer orientation

Customer orientation
Low CO Hi CO Total
EI low EI Count 180 41 221
% within ei 81.4% 18.6% 100.0%
hi EI Count 66 417 483
% within ei 13.7% 86.3% 100.0%
% within ei 34.9% 65.1% 100.0%
Exhibit 5.03 a. Level of Customer Orientation with Emotional Intelligence
130
Table 5.06 Chi-Square Tests- Relation between Emotional Intelligence & Customer
Orientation


Association
The chi square test (Table 5.06) too reveals that there is a significant
relationship between Emotional Intelligence and Customer orientation as the p
value is .000which is less than the assumed level of significance .05.
Customer Orientation is growing in importance as a competitive business
differentiator. That many banks attribute their growth to their successful
customer service. There is a strong emphasis on the customer service at all
levels of the organization, all the way down to the branch level. With an
increase in the competition among the banks, customer service definitely plays
an important role in deciding the fate of a bank. Banks today face
unprecedented challenges to sustain their growth path, if not for survival. The
challenges include customer acquisition and retention, reducing cost of
transactions risk management and regulation compliance. Effective use of
technology, however, has greatly helped the banking sector to transform these
challenges into opportunities. The banks are competing on the grounds of
131
number of customers, number of branches, dimensions of fund reserves,
profitability, types of services, etc. Though many of the banks are
computerized, they are not really scattered throughout the geographical
boundaries. There is still a big market potential waiting to be exploited.
Today, it will not be a wise thing to establish branches everywhere. Rather, it
will be beneficial to extend the technological network and cover the potential
market territories through installation of hi-tech banking stations. Tomorrow,
only a true techno-bank will become the market leader. A bank with adequate
number of MBMs will be able to impress and attract large number of
customers. Technology has dramatically altered the way businesses operate in
a business-to-business (B2B) context and has had profound influences on
services, altering the way services are delivered. It is believed that the
increased use of self-service technologies (SSTs) impacts on B2B
relationships. Private Banks in order to survive must make customer
Orientation its main Mantra. Therefore it would be of interest to study the
relationship between employee emotional intelligence and Organizational
Climate factor Customer Orientation .
The Model summary table denotes that the R² value is .746 and hence 74.6 %
of the variance in Customer orientation is dependent upon the Emotional
Intelligence of the employees. This is a strong relationship in behavioral
Research. Since p-value ≤ 0.05, we shall reject the null hypothesis. At the α=
0.05 level of significance, there exists enough evidence to conclude that the
slope of the population regression line is not zero and, hence, that Emotional
Intelligence of employees is useful as a predictor of Customer Orientation .
132
Table 5.07 a. Model Summaryb of Regression (EI & CO)

1 .864a .746 .745 .490

b. Dependent Variable: co
Table 5.07 b. ANOVAb of Regression Analysis(EI & CO)
1 Regression 493.575 1 493.575 2059.525 .000a
Residual 168.238 702 .240
Total 661.812 703

b. Dependent Variable: co
Table 5.07 c. Coefficientsa of Regression Analysis(EI & CO)
Standardized
1 (Constant) .165 .071 2.331 .020
EIav .950 .021 .864 45.382 .000

a. Dependent Variable: co
This relation between Emotional Intelligence and Customer Orientation is
evident from the positive signs of the estimated coefficients of the
corresponding variables shown in Table 5.07 c. This means that if the
Emotional Intelligence increases there is a positive increase in Customer
Orientation. The t values are also significant as the p values of the
coefficients are .02 which is less than .05.
The Regression equation inferred from the above Table is-
Customer Orientation = .165+.950EI (Emotional Intelligence)
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Exhibit 5.04
One of the large Banks in this study through an innovative programme called
Skill Through Drill, had their branch staff trained in service skills required to
deliver the Khayaal Aapka promise to their customers. The Bank has also
introduced an innovative programme called the Service Assessor Programme
wherein their staff video recorded live and feedback on service behaviors
given. In 2011the Bank also introduced a rigorous evaluation and certification
process for all employees in customer service roles to ensure employees
engaged in servicing the customers at various levels had thorough knowledge
of banking regulations, processes and product features.
The objective of the yet another major bank in this study is to provide its
target market customers a full range of financial products and banking
services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to
customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile
134
Banking. This Bank runs a Preferred program for high net worth individuals,
and the Investment Advisory Services programs have been designed keeping
in mind needs of customers who seek distinct financial solutions, information
and advice on various investment avenues. The Bank also has a wide array of
retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
This Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro
debit card as well. The Bank launched its credit card business in late 2001. By
March 2010, the bank had a total card base (debit and credit cards) of over 14
million. The Bank is also one of the leading players in the ―merchant
acquiring‖ business with over 90,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well
positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments,
etc.
Therefore all private banks whether it be large or medium sized are all
customer centric and in order to maintain this customer focused climate the
Employees need high Emotional Intelligence. The study proves it with the R²
value is .746 (Table 5.07 a.) and hence 74.6 % of the variance in Customer
orientation is dependent upon the Emotional Intelligence of the employees.
This is a strong relationship in behavioral Research.
135
Inference Drawn: Since p-value ≤ 0.05, the null hypothesis can be rejected.
At the α= 0.05 level of significance, there exists enough evidence to conclude
that the slope of the population regression line is not zero and, hence, that
Emotional Intelligence is useful as a predictor of Customer Orientation.
5.03.3 Emotional Intelligence and Involvement and Empowerment
H08: There is no relationship between Emotional Intelligence and
Involvement/Empowerment
Correlation between Emotional Intelligence and Involvement and
Empowerment is .852 which means that there is a high degree of positive
relation between the two variables. The R² value is .726 which signifies that in
72.6 % of the variance in the perception of Involvement and Empowerment is
because of the Emotional Intelligence of the Employees.
Table 5.08 a. Model Summary of Regression (Emotional Intelligence & Involvement/

Empowerment
Std. Error of the

Model R R Square Adjusted R Square Estimate
1 .852a .726 .726 .515

Since p-value ≤ 0.05, we shall reject the null hypothesis. At the α= 0.05 level
of significance, there exists enough evidence to conclude that the slope of the
population regression line is not zero and, hence, that EI is useful as a
predictor of Involvement and Empowerment.
136
than .05 thus proving the Alternate hypothesis that Emotional Intelligence
has a strong impact on Involvement and Empowerment.
Table 5.08 b. ANOVAb of Regression
1 Regression 494.594 1 494.594 1864.482 .000a
Residual 186.221 702 .265
Total 680.815 703

b. Dependent Variable: IE
This relation between Emotional Intelligence and Involvement and
Empowerment is evident from the positive signs of the estimated coefficients
of the corresponding variables shown in Table 5.08 c. This means that if the
Emotional Intelligence increases there is a positive increase in the perception
Involvement and Empowerment of the employees. The t values are also
significant as the p values of the coefficients are less than .05.
Table 5.08 c. Coefficientsa of Regression
Standardized
1 (Constant) .170 .074 2.287 .022
EIav .951 .022 .852 43.180 .000

a. Dependent Variable: IE
The Regression Equation for the relationship between the two variables is:
Involvement and Empowerment = .170+.951EI
137
Inference: Reject Null Hypothesis and accept alternate hypothesis. Emotional
Intelligence has a strong impact upon Involvement and Empowerment
5.03.4 Emotional Intelligence & Teamwork Cooperation
„Individually, we are one drop. Together, we are an ocean‟- Emma
H09: Emotional Intelligence does not impact Teamwork /cooperation within
the organization.
H19: Emotional Intelligence positively impacts Teamwork /cooperation within
the organization.
The rapidly changing business environment and the constant challenges it
poses to organizations and businesses make it imperative to continuously
enhance knowledge and skill sets across the organization. Some of the private
Banks in this study believes that building a learning organization is critical for
being competitive in products and services and meeting customer
expectations. These Banks has built strong capabilities in training and
development to build competencies. Training on products and operations is
imparted through web-based training modules. Special programmes on
functional training and leadership development to build knowledge as well as
management ability are conducted as a dedicated training facility. These
Banks also draws from the best available training programmes and faculty,
both international and domestic, to meet its training and development needs
and build globally benchmarked skills and capabilities. Their objective is to
build in all its employees a total commitment towards exceptional standards of
performance and productivity, adaptability to changing organizational needs
138
and the demands of the business environment and a willingness to learn and
acquire new capabilities. They believe in defining clear performance
parameters for employees and empowering them to achieve their goals. This
has helped to create a culture of high performance across the organization.
Some of the larger banks in this study also have a structured process of
identifying and developing leadership potential. The focus on human resources
management as a key organizational activity has resulted in the creation of an
exceptional pool of talent, a performance-oriented organizational culture and
has imparted agility and flexibility to the organization, enabling it to capitalize
on opportunities and deliver value to its stakeholders.
The Model Summary shows that the R value is .816 which shows the strength
of the positive correlation that exists between Emotional Intelligence&
Teamwork Cooperation. Since the R² value is .666 it can be concluded that in
66.6% of the variance in Teamwork Cooperation is caused by Emotional
Intelligence of the members in the team .
5.09 a. Model Summary b Emotional Intelligence &Teamwork Cooperation

Std. Error of the
1 .816a .666 .665 .594
a. Predictors: (Constant), Emotional Intelligence (EI)

b. Dependent Variable: Teamwork Cooperation (TC)
than .05 thus proving the Alternate hypothesis that Emotional Intelligence
has a strong impact on Teamwork Cooperation .
139
This relation between Emotional Intelligence and Teamwork Cooperation is
corresponding variables shown in Table 5.09 c. This means that if the
Emotional Intelligence increases there is a positive increase in Teamwork
Cooperation The t values are also significant as the p values of the coefficient
is .000 which is less than .05. Since p-value ≤ 0.05, we shall reject the null
hypothesis. At the α= 0.05 level of significance, there exists enough evidence
to conclude that the slope of the population regression line is not zero and,
hence, that EI is useful as a predictor of OC.
Table 5.09 b. ANOVAb(EI & TC)

1 Regression 493.340 1 493.340 1398.126 .000a
Residual 247.706 702 .353
Total 741.046 703
b. Dependent Variable: TC
Table 5.09 c. Coefficientsa (EI & TC)
Unstandardized Standardized 95.0% Confidence
Coefficients Coefficients Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
1 (Constant) .337 .086 3.923 .000 .168 .506
EIav .949 .025 .816 37.392 .000 .900 .999
a. Dependent Variable: TC av
The Regression equation inferred from the Table no.5.09 c. is-
TC= .337+.949EI
(TC is teamwork and Co-operation, EI is Emotional Intelligence)
140
Table 5.09 d. Residuals Statisticsa(EI & TC)
Predicted Value 1.45 4.80 3.44 .838 704
Value
Residual -2.333 1.777 .000 .594 704
Std. Residual -3.928 2.992 .000 .999 704
Stud. Residual -3.933 2.995 .000 1.001 704
Mahal. Distance .001 5.607 .999 1.125 704
Cook's Distance .000 .024 .001 .002 704
a. Dependent Variable: TC av
Exhibit 5.05. a. Scatter Plot (TC&EI)
141
The Scatter plot in Fig. 5.05 a. too shows that the values lie around
the line of fit in the graph of the linear equation.
Exhibit 5.05. b Studentized Residual Plot
Exhibit 5.05. c Unstandardized Residual Plot (TC & EI)
142
reference line (no outliers) (line at 0). The studentized residual plot shows a
random scatter of the points (independence) with a constant spread (constant
variance).With no values unusually far from the line of reference (line at 0).
Inference: Reject Null Hypothesis and accept alternate hypothesis. Emotional
Intelligence has a strong impact upon Teamwork and cooperation within the
organization.
Since climate is the perception that individuals within the organization have
about the overall environment within the organization it will be affected by the
employees ability to manage, understand, control and balance their emotions.
This is obvious from the results of the study. In private banks the scenario is
dynamic and ever changing. At one of the large Banks in this study , in order
to improve consumers need to access to smart and efficient solutions to
manage their financial needs they have devised a bouquet of services, many
of which are the first of their kind in the industry. Their focus is on leveraging
technology to make banking more accessible and convenient to their
customers. Through continuous innovations across banking touch points such
as ATMs, Internet, Mobile and Call Centre, they have made financial
transactions faster, simpler and more secure. Their focus on innovative
technology is a manifestation of their philosophy of ‗Khayaal Aapka‘.
Offering convenience through technology-led solutions is a reinforcement of
their commitment towards continuously improving and deepening their
relationship with their customers. When the organizational philosophy stresses
143
at constant change through technology it becomes imperative for the
workforce to also be ready to take these challenges. Training in new skills is
off course given but what is of prime importance is the ability of the
workforce to sustain the attitude of change always be prepared to put in efforts
to withstand success as well as failures. This climate can be maintained only
by emotionally balanced employees within the organization.
This Bank also seeks to nurture a mutually beneficial relationship with its
employees. This relationship is characterized by the investment which the
Bank makes in its employees by providing challenging roles and assignments,
Opportunities for personal growth, relevant and timely performance support,
training and an enabling environment. The Bank seeks to create a workplace
which combines achievement orientation with care for employees. they have
formalised this employee value proposition through launch of the ―Saath
Aapka‖ campaign. Through Saath Aapka, the Bank has clearly and in a
transparent manner articulated what employees can expect from the
organisation. At the same time, the Bank has defined the desired competencies
levels in the organization as ―DNA anchors‖ which communicate to
employees what the organisation expects from them. The key elements of the
―Saath Aapka‖ proposition are:
•• Opportunities for personal growth and learning for employees, as they work
towards the organisation‘s growth and success.
•• An enabling work culture that facilitates the achievement of aspirational
goals.
144
•• A merit-oriented organisation, setting high performance standards and
linking rewards to performance.
•• Standing by employees in their hour of need just as employees go the extra
mile for the organisation whenever there is a need for the same.
•• A winning organisation that is conscious of its larger role in society
and in nation building.
Many of these banks have acquired other banks and hence the need to
integrate the functioning is a major area of focus. The integration process
stresses on both business as well as cultural integration. The people and
cultural integration is achieved through well-planned communication of the
Bank‘s values and culture. The Bank reached out to all employees of the
acquired bank and addressed their expectations and concerns. This is usually
achieved through communication from the top management of the Bank, open
house sessions jointly conducted by senior managers from both Banks and
one-on-one sessions wherever required. Further, to align the skill sets of the
acquired bank employees, special training programs are designed and
conducted by the Bank. To further augment the Bank‘s efforts in providing
best-in-class service to its customers, the Bank had ensured that more
experienced and seasoned employees are placed in leadership roles at
branches. The Bank had also ensured that the average banking experience and
vintage of customer service staff at branches are enhanced, despite an increase
in the number of branches. These Banks also continue its efforts in training its
branch staff and other employees to increase their banking related knowledge.
Therefore to maintain a proper climate within the Organization during times of
145
flux and change and in a volatile banking environment it is important that the
Emotional Intelligence of the Employees be very high.
5.03.5 Innovation
H010: Emotional Intelligence of the employees has no relationship with their
desire to be innovative.
H110: Emotional Intelligence of the employees has a positive relationship with
their desire to be innovative.
The Chi square test in Table 5.10 shows the p values to be below .05 the
assumed level of significance and hence it can be concluded that there is a
strong degree of relation between Emotional Intelligence of Employees and
their desire to innovate.
The chi square test shows there is a significant relation between Emotional
intelligence of the employees and their desire to be innovative and creative.
The Cramer‘s V test shows the strength of the relationship to be.735 which is
above .25 we can interpret the relation to be very strong.
Table 5.10 Chi-Square Tests(Emotional Intelligence & Innovation)
Asymp. Sig. (2-

Value df sided)

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is
23.23.
146
Value Approx. Sig.

Inference: Accept Alternate hypothesis and conclude that there is a strong
impact of Emotional Intelligence on the desire for innovation by employees.
Employees who are high on Emotional Intelligence are more innovative by
nature.
Innovation drives organizations to grow, prosper and transform in sync with
the changes in the environment, both internal and external. Banking is no
exception to this. In fact, this sector has witnessed radical transformation of
late, based on many innovations in products, processes, services, systems,
business models, technology, governance and regulation. A liberalized and
globalized financial infrastructure has provided an additional impetus to this
gigantic effort. The pervasive influence of information technology has
revolutionalized banking. Transaction costs have crumbled and handling of
astronomical number of transactions in no time has become a reality.
Internationally, the number brick and mortar structure has been rapidly
yielding ground to click and order electronic banking with a plethora of new
products. Banking has become boundary less and virtual with a 24 * 7 model.
Banks who strongly rely on the merits of relationship banking‘ as a time tested
way of targeting and serving clients, have readily embraced Customer
Relationship Management (CRM), with sharp focus on customer centricity,
147
facilitated by the availability of superior technology.CRM has, therefore,
become the new mantra in customer service management, which is both
relationship based and information intensive. Risk management is no longer a
mere regulatory issue. We now see the evolution of many novel deferral
products like credit derivatives, especially the Credit Risk Transfer (CRT)
mechanism, as a consequence. CRT, characterized by significant product
innovation, is a very useful credit risk management tool that enhances liquidity
and market efficiency. Securitization is yet another example in this regard,
whose strategic use has been rapidly rising globally. So is outsourcing.
5.03.5.a. Some Recent Innovations In Indian Banking:-
Now it is possible to do shopping without revealing the credit card number.
‗Net Safe‘ card is a one-time use card with a limit that‘s specified, taken from
the customer‘s credit or debit card. Even if the customer fails to utilize the full
amount within 24 hours of creating the card, the card simply dies and the
unspent amount in the temporary card reverts to his original credit or debit
card. Welcome to one of the myriad ways in which bankers have been trying
to innovate. They‘re bringing ATMs, cash and even foreign exchange to their
customers‘ doorsteps. Indeed, innovation has become the hottest banking
game in town. The purchase of a house can be accomplished without haggling
with brokers and the mounds of paperwork? The bank takes the responsibility
of handling all the ground work. It‘s ready to come every step of the way for
the customer to buy a house. Some of the large banks in this study for
instance, have property advisors to guide a customer through the entire process
148
of selecting and buying a house. They also lend a hand with the cumbersome
documentation formalities and the registration.
Other innovations are that the new house or car can be leveraged these days
with big banks that are ready to extend loans against either, till it‘s about five
years old. Loans are available to all car owners for almost all brands of cars
manufactured in India that are up to five years old.
Still, innovation is more evident in retail banking. True, all banks offer pretty
much the same suite of asset and liability products. But it‘s the small tweaking
here and there that makes all the difference. For example, the once staid
deposits. Some bank accounts combine a savings deposit account with a fixed
deposit. A sweep-in account, as it is called, works like this: the account will
have a cut-off, say, Rs 25,000; any amount over and above that gets
automatically transferred to a fixed deposit which will earn the customer a
clean 2 per cent more than the returns that a savings account gives. A large
bank in this study introduced a variant of the sweep-in account. If the balance
tops Rs 1.5 lakh, the excess runs into the bank‘s liquid mutual fund. ―Even
if the money is there only for the weekend, a liquid fund can earn you a clean
4.5 per cent per annum,‖ points out the, vice president, marketing, of the
Bank. That‘s not a small gain considering that the current account does not
pay that particular customer any interest. And if, meanwhile, this same
customer wants to buy a big-ticket home theatre system, the minute he swipes
his card the invested sum will return to his account. There‘s plenty of
innovation on home loans.
149
Banks are also attempting to reach out to residents of metropolitan cities
where people are pressed for time (what with long commuting hours, traffic
jams and both spouses working), beyond conventional banking hours. Some
Banks, for example, introduced eight to eight banking hours, seven days of the
week, in major cities. Not to be out done, some of the other private banks have
also done this too. A leading Bank even has a 24-hour branch at Mumbai‘s
international airport. Several banks are even bringing ATMs to customer
doorsteps. Banks now have mobile ATMs or vans that go along a particular
route in a city and are stationed at strategic locations for a few hours every
day. This saves the bank infrastructure costs since it has one mobile ATM
instead of multiple stationary ones. That‘s not all. Even money is delivered to
customers at home. Many of these private banks, delivers cash at the doorstep.
A customer can withdraw a minimum of Rs 5,000 and up to a maximum of Rs
2 lakh and get the money at home. The list of banks offering a similar service
includes most of the large and medium sized Bank too. A large bank brings
even foreign exchange, whether travelers cheques or cash, to the doorstep
courtesy its tie-up with Travelex India. All one has to do is call up the branch
or the Bank‘s phone banking number. One of such bank‘s country head,
retail, believes that continuous innovation will always make a difference, with
customer needs changing day by day. ―Innovation will never become less
important for us,‖ he says.
Another major Bank has pioneered other innovations. Take point of sale
(POS) terminals, a prerequisite in any store or restaurant worth its name in the
country. Earlier this year, it tied up with Reliance Info-comm. to offer mobile
150
POS terminals. Although this might sound a tad too fancy today, there could
soon be a day when the customer could swipe his card to pay the cabby, the
auto rickshaws and even for the groceries from the local kirana store even in
the remotest villages of India. But internet banking and shopping have been
slow starters, given the low computer penetration in the country but banks are
going all out to get the customer on line.
Not only is electronic fund transfer between banks across cities possible
through internet banking today but banks also offer other features that benefit
the customer. A Large Bank in the purview of this study, for instance, has an
option called ‗One View‘ on its internet banking site which provides
customers a comprehensive view of their investments and fund movements.
Customers can look at their accounts in six different banks on one screen.
Banks are also innovating on the company and treasury operations fronts. In
corporate loans, plain loans are passé. Mumbai inter-bank offered rate
(MIBOR)-linked and commercial paper-linked interest rates on loans are
common. MIBOR is a reference rate arrived at every day at 4 pm by Reuters.
It is the weighted average rate of call money business transacted by 22
institutions, including banks, primary dealers and financial institutions. The
State Bank of India was the first to usher in MIBOR-linked loans for top
companies. Soon enough, other banks followed. A premier Bank in this study
carried out the world‘s first ever securitization of a micro finance portfolio last
year. The bank securitized Rs 4.2crore for Bharatiya Samruddhi Finance Ltd
for crop production. Banks, of course, realize that innovation gives them only
a first mover advantage until their rivals catch up.
151
CHAPTER – 6
EMOTIONAL INTELLIGENCE AND
152
Chapter 6
Emotional Intelligence and Organizational Citizenship
Behavior
6.01 Introduction
Organizations are a social system where constant interchange and exchanges
take place. These exchanges have to take place in a life space that is positive,
ethical and beneficial to the individual as well as the organization. To make
this possible the forces of altruism have to be unleashed. This is especially
needed when cross functional, and cross departmental teams come together to
achieve certain targets and goals. Since performance is measured on how well
people do their jobs, they focus on it with scant regard to the larger outcomes
or synchronizing it to the outcomes of others within the company. It is
important for employees to see the organization as a system where every
individual is working as a part of the system and the failure of any individual
will not result in the desired organizational outcomes.
For employees to perceive every individual within the organization as a part of
the system the forces of altruism have to be stimulated. This is possible for
people with high Emotional Intelligence. This chapter focuses upon the
relationship between Emotional Intelligence and organizational Citizenship
behavior. Organizational Citizenship behavior is an attitude possessed by the
employees which can go a long way in improving the goodwill and image of
the organization. Again it reduces absenteeism, deviant workplace behavior
and adds to the productivity of the employees.
153
Table 6.01: OCB level of Employees
Cumulative
Frequency Percent Valid Percent Percent
Valid lo ocb 194 27.6 27.6 27.6
hi ocb 510 72.4 72.4 100.0
Total 704 100.0 100.0
Exhibit 6.01 : Pie chart showing OCB level
Table No: 6.01 shows that in the sample of 704 employees 27.6 had low
Organizational Citizenship Behavior while the rest were with high
Organizational Citizenship Behavior. Organizational Citizenship Behavior
was measured on the parameters of Personal Industry, Individual Initiative,
Loyal Boosterism and Interpersonal Helping.
6.02 Relationship between Emotional Intelligence and Organizational

154
Hypothesis:
H011: Emotional Intelligence of employees has no impact on their
H111: Emotional Intelligence of employees has a positive impact on their
Table 6.02 : EI * OCB percentage analysis
ocbre
lo ocb hi ocb Total
ei low ei Count 190 31 221
% within ei 86.0% 14.0% 100.0%
% within ocb 97.9% 6.1% 31.4%
% of Total 27.0% 4.4% 31.4%
hi ei Count 4 479 483
% within ei .8% 99.2% 100.0%
% within ocb 2.1% 93.9% 68.6%
% of Total .6% 68.0% 68.6%
% within ei 27.6% 72.4% 100.0%
% within ocb 100.0% 100.0% 100.0%
% of Total 27.6% 72.4% 100.0%
The descriptive statistics in Table 6.02 shows that 86% of the employees who
had low OCB had low Emotional Intelligence while 99% who had high
Emotional Intelligence displayed high Organizational Citizenship Behavior.
The pie chart shows that of the total sample 27.6% displayed low
Organizational Citizenship Behavior while the rest i.e 72.4 % displayed high
155
The Correlation between Emotional Intelligence and Organizational
Citizenship Behavior shows that Correlation is significant with the p value
being.000 which is less than .05. The correlation coefficient is high with .871
which proves that there is a positive relation between Emotional Intelligence
Table 6.03 : Correlations between Emotional Intelligence ,OCB, IH, II, PI and LB
EI OCB IH II PI LB
** ** ** ** **
EI Pearson Correlation 1 .871 .819 .853 .806 .826
Sig. (2-tailed) .000 .000 .000 .000 .000
N 704 704 704 704 704 704

** ** ** ** **
OCB Pearson Correlation .871 1 .943 .960 .931 .955
Sig. (2-tailed) .000 .000 .000 .000 .000
N 704 704 704 704 704 704

** ** ** ** **
IH Pearson Correlation .819 .943 1 .914 .806 .856
Sig. (2-tailed) .000 .000 .000 .000 .000
N 704 704 704 704 704 704

** ** ** ** **
II Pearson Correlation .853 .960 .914 1 .859 .883
Sig. (2-tailed) .000 .000 .000 .000 .000
N 704 704 704 704 704 704

** ** ** ** **
PI Pearson Correlation .806 .931 .806 .859 1 .874
Sig. (2-tailed) .000 .000 .000 .000 .000
N 704 704 704 704 704 704

** ** ** ** **
LB Pearson Correlation .826 .955 .856 .883 .874 1
Sig. (2-tailed) .000 .000 .000 .000 .000
N 704 704 704 704 704 704
156
Similarly the correlation coefficient between Emotional Intelligence and the
sub-variables of Organizational Citizenship Behavior- Interpersonal Helping
(IH) is .819, between Individual Initiative (II) is .853, and between Personal
Industry (PI) .806 and between Loyal Boosterism (LB) is .826.All the
correlations are significant as the p values are .000 which is below the
assumed level of significance i.e .05.
Table 6.04 a. Model Summaryb of Regression(EI & OCB)

1 .871a .759 .759 .507

b. Dependent Variable: OCB
The Model summary in Table 6.04 a. shows the R² value to be.759 or 75.9
% of the variance in Organizational Citizenship behavior is caused by
Emotional Intelligence. The Scatter plot in Exhibit: 6.02 b. too shows that the
values lie around the line of fit in the graph of the linear equation.
a strong impact on Organizational Citizenship Behaviour.
Table 6.04 b. ANOVAb(EI & OCB)
1 Regression 568.729 1 568.729 2214.944 .000a
Residual 180.252 702 .257
Total 748.981 703

a. Predictors: (Constant), Emotional Intelligence
b. Dependent Variable: Organizational Citizenship Behavior
157
Standardized
1 (Constant) .206 .073 2.813 .003
EIav 1.019 .022 .871 47.063 .000
a. Dependent Variable: Organizational Citizenship behavior
Table 6.04 c. Coefficientsa(EI & OCB)
This relation between Emotional Intelligence and Organizational Citizenship
behavior is evident from the positive signs of the estimated coefficients of
the corresponding variables shown in Table 6.04 c. This means that if the
Emotional Intelligence increases there is a positive increase in Organizational
Citizenship Behavior. The t values are also significant as the p values of the
coefficients are less than .05.
The Regression Equation for the relationship between Emotional Intelligence
and Organizational Citizenship behavior is-
OCB = .206 + 1.019EI
a
Table 6.4 d. Residuals Statistics (EI & OCB)

Predicted Value 1.41 5.00 3.54 .899 704
Value
Residual -2.593 2.063 .000 .506 704
Std. Residual -5.118 4.071 .000 .999 704
Stud. Residual -5.124 4.081 .000 1.001 704
Mahal. Distance .001 5.607 .999 1.125 704
Cook's Distance .000 .041 .002 .004 704
a. Dependent Variable: OCB
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Exhibit 6.02 a. Histogram
Exhibit 6.02 b. Scatter Plot
159
Exhibit 6.02 c. Unstandardized residual Plot(EI&OCB)
Exhibit 6.02 d. Studentized residual Plot
with no values unusually far from the reference line (no outliers).
160
6.03 Emotional Intelligence &Interpersonal Helping
Hypothesis:
H012: Emotional Intelligence of employees has no effect upon Interpersonal
Helping .
H112: Emotional Intelligence of employees has a positive effect upon
Interpersonal Helping
Inter personal helping is an extra role demand that is not an exclusive part of
any organizational job description. However coaching , mentoring, knowledge
and skill substitution, team work all require Interpersonal Helping behavior. In
the context of the bank when they the social and psychological context of
work has become recognized as critical in organizations where flexibility,
knowledge sharing, and the development of social capital underpin proactive
change and long-term success. have adopted team oriented work structures.
This is a good predictor of group and organizational success. The social
intellectual as well as skill exchange processes improve task performance and
attainment of organizational goals. Empathy is off course an important
component in interpersonal helping behavior. Teams are formed mostly on the
basis of expertise differences and complimentary knowledge and skill
domains. This is both an opportunity as well as a challenge for interpersonal
helping behavior. Employees high in Emotional Intelligence who have more
161
of goal focus and organizational belonging will facilitate the process of
interpersonal helping.
The correlation coefficient between Emotional Intelligence and interpersonal
helping is as high as .819 (Table 6.3). This value of ‗r‘ suggests a strong
positive linear correlation since the value is positive and close to 1. Since the
above value of r suggests a strong positive linear correlation, the data points
are clustered closely about a positively sloping regression line. This is
positive correlation signifying that with increase in Emotional intelligence
Interpersonal Helping too increases.
Table 6.05 a. Model Summaryb (Regression for EI and IH)
Std. Error of the

1 .819a .671 .671 .61763

a. Predictors: (Constant), Emotional Intelligence(EI)
b. Dependent Variable: Interpersonal Helping(IH)
Table 6.05 b. ANOVAb (Regression for EI and IH)
1 Regression 546.245 1 546.245 1431.982 .000a
Residual 267.785 702 .381
Total 814.030 703

b. Dependent Variable: Interpersonal Helping (IH)
This relation between Emotional Intelligence and Interpersonal Helping is
corresponding variables shown in Table 6.05 c. The t values are also
162
significant as the p values of the coefficients are are.000 which is less than
.05.
Table 6.05 c. Coefficientsa (Regression for EI and IH)
Standardized
1 (Constant) .244 .089 2.734 .006
EI .999 .026 .819 37.842 .000

a. Dependent Variable: Interpersonal Helping (IH)
b. Predictors: (Constant), Emotional Intelligence (EI)
Table 6.05 d. Residuals Statisticsa (Regression for EI and IH)
Predicted Value 1.4194 4.9452 3.5067 .88149 704

Value
Residual -2.79879 2.12543 .00000 .61719 704
Std. Residual -4.532 3.441 .000 .999 704
Stud. Residual -4.537 3.450 .000 1.001 704
Deleted Residual -2.80600 2.13593 -.00012 .61899 704
Mahal. Distance .001 5.607 .999 1.125 704
Cook's Distance .000 .029 .001 .003 704
a. Dependent Variable: Interpersonal Helping( IH)
This relation between Emotional Intelligence and Interpersonal Helping is
163
corresponding variables shown in Table 6.05 c. The t values are also
significant as the p values of the coefficients are are.000 which is less than
.05.
The Regression Equation for the relationship between Emotional Intelligence
and Interpersonal Helping is-
IH = .244 + .999 EI
Exhibit 6.03 .a Residual Plot
Exhibit 6.03 b. Studentized residual Plot
164
with no values unusually far from the reference line (no outliers)
6.04 Emotional Intelligence & Individual Initiative
Hypothesis:
H013: There is no relationship between Emotional Intelligence and Individual
Initiative.
Individual Initiative.
Initiative can be seen as a specific form of employees‘ proactive behavior at
work that focuses on self-starting, proactive and persistent goal-directed
behavior. Employees‘ proactive behavior has been defined as ‗taking initiative
in improving current circumstances or creating new ones; it involves
challenging the status quo rather than passively adapting to present conditions‘
(Crant, 2000, p. 436). Different types of behaviors‘ and dispositions have been
identified that reflect a proactive stance on the part of the employee (see Crant,
2000 for a review of these streams of research). Some researchers focus
primarily on an individual‘s disposition towards proactivity (proactive
personality; e.g. Bateman & Crant, 1993). Other researchers focus on
proactive behaviors and behavioral syndromes such as personal initiative (e.g.
Frese & Fay, 2001). Such behaviors aim at improving given work methods
and procedures as well as developing personal prerequisites for meeting future
165
work demands (Sonnentag, 2003) and reflect an active, self-starting approach
toward work and performance (Frese et al., 1996; Morrison & Phelps, 1999;
Parker, 2000). As Sonnentag shows, initiative behavior varies intra-
individually over time. Also, recent research shows that workplace factors and
organizational variables affect demonstrated levels of personal initiative (e.g.
Fay & Frese, 2001; Fay & Sonnentag, 2002).
Since not much study has been done in this area it is interesting to understand
the impact that Emotional Intelligence has over Individual Initiative.
The Regression Analysis conducted to understand the impact of Emotional
Intelligence on Individual Initiative shown in Table 6.06 a. proves that 72.8%
of the variance in Individual Initiative is displayed due to Emotional
Intelligence of the employees.
Table 6.06 a. Model Summaryb (Regression Analysis EI&II)

1 .853a .728 .727 1.85320

b. Dependent Variable: Individual Initiative
Table 6.06 b. ANOVAb(Regression Analysis EI&II)
1 Regression 6448.407 1 6448.407 1877.622 .000a
Residual 2410.913 702 3.434
Total 8859.320 703

a. Predictors: (Constant), Emotional Intelligence( EI)
b. Dependent Variable: Individual Initiative (II)
166
a
Table 6.06 c. Coefficients (Regression Analysis EI&II)
Standardized
1 (Constant) .431 .268 1.609 .108
EIav 3.432 .079 .853 43.332 .000
a. Dependent Variable: Individual Initiative
The F statistics as well as the t values in Table 6.06 b. and 6.06 a.
show that the p value is .000 which is less than the assumed level of
significance .05. Hence it can be said that the Emotional Intelligence of the
employees has an effect upon the Individual Initiative exhibited. The
Regression Equation for the relationship is-
II=.431+3.432EI
(II is Individual Initiative , EI is Emotional Intelligence)
Individual Initiative is a proactive behavior whether it be in the area of social
interaction within the banks or in the area of creativity and idea generation.
But sometimes in the banks where the structures are very rigid and most of the
initiatives are taken from the top there is very little scope for individuals to
show their initiatives in the areas of creative idea generation and the authority
to implement them. However there is plenty of scope in the social setup of the
organization to show individual initiative. In work teams too there is plenty of
scope for individual initiative.
6.05 Emotional Intelligence & Personal Industry
Hypothesis:
H014: An increase in Emotional Intelligence of the employees has no impact
upon the personal Industry displayed by employees.
167
H114: An increase in Emotional Intelligence of the employees has a positive
impact upon the personal Industry displayed by employees.
Personal industry includes the performance of specific tasks above and beyond
the call of duty. This includes taking on difficult and challenging tasks,
volunteering for extra work assignments, staying back late t complete a project
or even working on weekends and other off days to complete a project or a
task. This is quite a common phenomenon in banks especially with the IT
departments when there are deadlines to be met or corrections in processes.
Table 6.07 a. Model Summaryb(Regression Analysis EI&PI)

1 .806a .650 .649 2.04454

b. Dependent Variable: Personal Industry
Table 6.07 b. ANOVAb(Regression Analysis EI&PI)
1 Regression 5448.746 1 5448.746 1303.485 .000a
Residual 2934.457 702 4.180
Total 8383.203 703

b. Dependent Variable: Personal Industry (PI)
a
Table 6.07 c. Coefficients (Regression Analysis EI&PI)
Standardized
1 (Constant) 1.118 .296 3.781 .000
EI 3.155 .087 .806 36.104 .000

a. Dependent Variable: Personal Industry(PI)
168
This relation between Emotional Intelligence and Personal Industry is evident
from the positive signs of the estimated coefficients of the corresponding
variables shown in Table 6.07 c. This means that if the Emotional
Intelligence increases there is a positive increase in Personal Industry . The t
values are also significant as the p values of the coefficients are less than
.05. The Regression Equation for the relationship between Emotional
Intelligence and Personal Industry is-
PI = 1.118+ 3.155 EI
(PI is Personal Industry, EI is Emotional Intelligence.)
Every employee within the organization works as befits the tasks allocated to
them or their roles demand but some employees go out of their way to
complete the tasks. Deadlines for task completion within the banks are very
rigid . Individuals who display Personal Industry are very task focused and
dependable.
6.06 Emotional Intelligence & Loyal Boosterism
„….. we cannot legislate loyalty, for loyalty is a kind of morality . We cannot
produce these things by decree or commissions or public inquisitions . There
are certain things in man that have to be won not forced; inspired not
compelled‟(- Alfred Whitney Griswold.)
Hypothesis:
H015: Employee‘s Emotional Intelligence does not affect their Loyal
Boosterism.
169
H115: Employee‘s Emotional Intelligence has a positive effect upon their
Loyal Boosterism.
Loyal boosterism involves the promotion of the organizational image to
outsiders (Moorman and Blakely, 1995). Loyal boosterism comprises of pride
in ones place of work, not talking ill about the company to outsiders,
defending company policy and products and always talking positively about
the company to others. Employees with high levels of Emotional intelligence
display higher levels of loyal boosterism is evident from the high degree of
positive correlation between these two variables (.826) and the variance being
68.2%.
Table 6.08 a. Model Summaryb(Regression Analysis EI&LB)
Std. Error of the

1 .826a .682 .682 .63758

a. Predictors: (Constant), Emotional intelligence ( EI)
b. Dependent Variable: Loyal Boosterism (LB)
Table 6.08 b. ANOVAb(Regression Analysis EI&LB)
1 Regression 612.383 1 612.383 1506.440 .000a
Residual 285.370 702 .407
Total 897.752 703
a. Predictors: (Constant), Emotional intelligence (EI)
b. Dependent Variable: Loyal Boosterism (LB)
170
Table 6.08 c. Coefficientsa(Regression Analysis EI&LB)
Standardized
1 (Constant) .099 .092 1.072 .284
EI 1.058 .027 .826 38.813 .000
a. Dependent Variable: Loyal Boosterism( LB)
The ‗t‘ value and the F statistic show the p value to be .000 which is less than
.05 the assumed level of significance. Hence we conclude that there is a
significant relation between the two variables. The regression Equation for the
relation is-
LB = .099 + 1.058 EI
(LB is Loyal Boosterism , EI is Emotional intelligence)
Employee loyalty is of prime importance to these private banks. Brand Trust
happens only when the internal stakeholders i.e the employees speak
positively about the bank. The feeling of pride in belonging to the bank affects
their attitudes positively which in turn reflects the way in which the company
image is projected to the external stakeholders.
6.07 Organizational Citizenship Behavior as a Customer Acquisition and
Retention Strategy.
Since competition is a major challenge which these private banks have to
surmount, new strategies and understanding of methods to acquire and retain
customers and clients have to worked out. But every strategy would fail if the
staff within are not high on Organizational Citizenship behavior. Survival for
these private banks depends totally upon Customer retention and Customer
171
acquisition. Customer defection rates have to be kept low and Customer
retention rates high. A high customer defection rate makes the market
attractive to new entrants since it makes easier for new players to acquire
customers. Low defection rates increase barriers to entry and make the market
less attractive for new entrants. A private bank can develop its client
acquisition strategy by focusing on both organizational issues as well as
placing a greater emphasis on marketing based activity. The marketing based
approach focuses on acquiring clients via selling, promotional and various
marketing activities. This approach, however, has been shown to not always
be effective by itself in the short run because of difficulties associated with
potential client recognition and skepticism associated with a relatively
financially sophisticated potential target market. A marketing based approach
has to be developed in conjunction with a reorganization of the business
organization so that prospective clients can be offered value relevant product
and service propositions. Once a successful framework for client acquisition
has been identified (easier said than done) private bankers/wealth managers
should aim to convert the prospect to client and then develop a strong focus on
customer knowledge to innovate its own client propositions.(Mercer Oliver
Wyman: European Wealth Management Survey 2004.) Customer retention is
obviously an essential part of relationship development. The economic value
of customer retention is widely recognized. It was found that customer
retention has a more positive effect on profits than market share, scale
economies and other variables that are commonly associated with competitive
advantage. (Reichheld, F.F – Sasser W.E.: Zero Defections: Quality Comes to
172
Services, in Harvard Business Review, Vol. 68, No.5, September/October,
pp.105-111.)
In order for Customer acquisition and retention to happen The Organizational
Citizenship of the employees need to be very high. The relationship
development is possible only by a set of employees who are very loyal to the
company and show characteristics that go beyond the calling of ordinary duty.
The image projected to the customers and the sincerity with which they try to
retain and acquire new clients depends totally upon the quality of citizenship
behavior they exhibit. This study thus proves that in order to have a high
organizational citizenship behavior the employees need to have a very high
Emotional Intelligence.
173
CHAPTER – 7
ORGANIZATIONAL CLIMATE AND
174
Chapter 7
Organizational Climate and Organizational Citizenship Behavior
7.01 Introduction
Private Banks which face severe competition have to create a conducive work
environment to augment the employee productivity. This is possible only
through a committed talented workforce that is ready to give more than their
role demands. Employee development, Employee Engagement and fostering
and encouraging Organizational Citizenship Behavior is the means through
which the Banks can create the extra advantage to be ahead in the race. The
loyalty, initiative of the internal customers i.e the employees is an area that
should be of prime importance to any modern Bank. In the era of intense
competition, rapidly changing technology, uncertainty, high customer
expectations and demand, banks cannot afford to trivialize the capability
development of their employees. As stated by Dag Hammarskjöld,
"fundamentally man is the key to all problems, not money. Funds are valuable
only when used by trained, experienced, and devoted men and women. Such
people, on the other hand, can work miracles even with small resources and
draw wealth out of a barren land (UN 1995, p.3).
Organizational Citizenship Behavior is discretionary in nature sometimes not
recognized by the formal reward system and not a part of the formal job
requirement. It however acts as lubricant for the entire organizational system
to function smoothly and efficiently. The impact of Organizational Citizenship
Behavior on organizational output at both group and individual levels has
been empirically established. It is positively related to both the quantity and
175
quality of product output (Podsakoff et al., 1997), contributes to team
effectiveness (MacKenzie, Podsakoff, and Ahearne, 1996, as cited in
Podsakoff and MacKenzie, 1997). OCB has also been found to contribute to
overall performance (Podsakoff and MacKenzie, 1994) as well as overall
operating efficiency and customer satisfaction (Walz and Niehoff, 1996 as
cited in Podsakoff and MacKenzie, 1997).
Since it is an established fact that Organizational Citizenship Behavior affects
efficiency and productivity it would be desirable to study the factors that affect
Organizational Citizenship Behavior. The alternative hypothesis No.Hı16
of this study states that Organizational Climate has an impact upon
Organizational Citizenship Behavior. Chi square test, Correlation and Multiple
Regression Analysis is used to analyze the impact of Organizational Climate
7.02 Impact of Organizational Climate upon Organizational Citizenship
Behavior.
Hypothesis:
H016: Organizational Climate has no impact upon Organizational Citizenship
Behavior.
H116: Organizational Climate has a strong positive impact upon Organizational
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The descriptive statistics show that in 86.8% of the cases when the OC was
poor the OCB was also low whereas when the OC was high in 94.5% cases the
OCB was good. The Descriptive statistics are elaborated in the Table No.7.01.
This shows that good Organizational Climate is an important condition for
employees to exhibit positive Organizational Citizenship Behavior
Table 7.01 : Organizational climate (OC)* organizational citizenship behavior

(OCB)
ocb
lo ocb hi ocb Total
oc poor oc Count 184 28 212
% within oc 86.8% 13.2% 100.0%
gd oc Count 10 482 492
% within oc 2.0% 98.0% 100.0%
% within oc 27.6% 72.4% 100.0%
Exhibit 7.01:OCB Level
177
Table 7.02 Chi-Square Tests (OC & OCB)
Asymp. Sig. (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)
Association
The Chi square value is also significant as can be seen in the table No.7.02
as the p values are less than .05.

Value Approx. Sig.
The phi coefficient in Table 7.03 is used to measure the strength of
relationship. The value is .87 which (according to the Luck and Rubin Table
(1992)) is greater than .80 and hence it can be concluded that the strength of
the relation is very strong.
The correlation and regression analysis too is computed to study the impact of
the independent variable organizational Climate upon Organizational
178
Table 7.04 Correlations between OC & OCB
OC OCB
OC Pearson Correlation 1 .886**
N 704 704
**
OCB Pearson Correlation .886 1
N 704 704
The Correlation between Organizational Climate and Organizational
Citizenship Behavior shows that Correlation is significant with the p value
being.000 which is less than .05. The correlation coefficient is high with .886
which proves that there is a positive relation between Organizational Climate
The Model summary in Table 7.05 a. shows the R² value to be.784 or 78.4
% of the variance in Organizational Citizenship behavior is caused by
Table 7.05 a. Model Summaryb(Regression OC & OCB)

Model R R Square Adjusted R Square Std. Error of the Estimate
1 .886a .784 .784 .480
a. Predictors: (Constant), OC
b. Dependent Variable: OCB
The Scatter plot in Exhibit 7.02 too shows that the values lie around the line
of fit in the graph of the linear equation.
than .05 thus proving the Alternate hypothesis that Organizational Climate has
a strong impact on Organizational Citizenship Behaviour.
179
Exhibit 7.02: Scatter plot around the line of fit in the graph of the linear equation.
Table 7.05 b. ANOVAb(Regression OC & OCB)

1 Regression 587.506 1 587.506 2554.137 .000a
Residual 161.475 702 .230
Total 748.981 703
a. Predictors: (Constant), (OC) Organizational Climate
b. Dependent Variable: (OCB )Organizational Citizenship Behaviour
This relation between Organizational Climate and Organizational Citizenship
behavior is evident from the positive signs of the estimated coefficients of the
corresponding variables shown in Table 7.05c. This means that if the
Organizational Climate increases there is a positive increase in
Organizational Citizenship Behavior. The t values are also significant as the p
values of the coefficients are .000 which is less than .05.
Table 7.05 c. Coefficientsa(Regression OC & OCB)

Standardized
1 (Constant) .241 .068 3.569 .000
OC .966 .019 .886 50.538 .000
a. Dependent Variable: (OCB) Organizational Citizenship behavior
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The Regression Equation for the relationship between Organizational Climate
and Organizational Citizenship behavior is
OCB = .241 + .966 OC
OCB (Organizational Citizenship Behavior), OC(Organizational Climate)
Table 7.05 d. Residuals Statisticsa(Regression OC & OCB)
Predicted Value 1.45 4.89 3.54 .914 704
Value
Residual -2.126 1.826 .000 .479 704
Std. Residual -4.433 3.808 .000 .999 704
Stud. Residual -4.439 3.816 .000 1.001 704
Mahal. Distance .000 5.207 .999 1.052 704
Cook's Distance .000 .033 .001 .003 704
181
Exhibit 7.03 Histogram of Standardized residual
Inference Drawn: Accept Alternate hypothesis that Organizational Climate
has strong positive impact upon Organizational Citizenship Behavior. The
regression equation derived shows the impact level.
7.03 Correlations & Multiple regression analysis
The sub variables of Organizational Climate were Job Satisfaction, Customer
Orientation, Involvement and Empowerment, Information and Knowledge
sharing, Employee Training, Teamwork and Cooperation. These sub variables
were obtained from the linkage research literature on Organizational Climate.
These variables are measures of more than just opinions. These variables
identify and emphasize upon Organizational Practices to predict important
work related outcomes.
7.03.1 Job Satisfaction
Job satisfaction is one of the most important areas of organizational
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Psychology. It is an important employee attitude which defines not only
productivity, efficiency, effectiveness but also retention, deviant workplace
behavior, absenteeism and organizational citizenship behavior Locke (1976)
defines job satisfaction as a pleasurable or positive emotional state resulting
from the appraisal of one's job or job experiences. Job satisfaction has been
studied both as a consequence of many individual and work environment
characteristics and as an antecedent to many outcomes. Employees who have
higher job satisfaction are usually less absent, less likely to leave, more
productive, more likely to display organizational commitment, and more likely
to be satisfied with their lives (Lease, 1998). Job satisfaction is an attitude,
which Porter, Steers, Mowday and Boulian (1974) state is a more "rapidly
formed" and a "transitory" work attitude "largely associated with specific and
tangible aspects of the work environment". There are different perspectives on
job satisfaction and two major classifications of job satisfaction (Naumann,
1993) are content (Herzberg, 1968; Maslow, 1987; Alderfer, 1972) and
process theories (Adams, 1965; Vroom, 1964; Locke, 1976; Hackman &
Oldham, 1975).
The table No 7.06 displays that 98.4% of the employees who have low Job
Satisfaction exhibit poor Organizational Citizenship Behavior and only a very
miniscule % i.e. 5.2% who have high Job Satisfaction exhibit poor
Organizational Behavior. 94.5% of employees with high Job Satisfaction
display high Organizational Citizenship Behavior while 5.5% of employees
with low Job Satisfaction display high Organizational Citizenship Behavior.
183
From this it is obvious that higher the Job Satisfaction higher will be the
Table No. 7.06 ocb * JS percentage analysis
Job Satisfaction(JS)
lowJS high JS Total
(ocb) lo ocb Count 184 10 194
% within ocb 94.8% 5.2% 100.0%
hi ocb Count 28 482 510
% within ocb 5.5% 94.5% 100.0%
% within ocb 30.1% 69.9% 100.0%
The Phi value (Table 7.07) is .870 which is more than.80 we conclude
according to Luck and Rubin (1992) (value of phi and implied relationship)
the relationship Job Satisfaction and Organizational Citizenship Behavior is
very strong
Value Approx. Sig.

184
Exhibit 7.04 JS & OCB
The bar chart too shows the same outcome.
7.03.2 Customer Orientation
The new banking idiom must compulsorily create and nurture a strong
orientation towards serving the customer well and a strong emphasis on
delivering a high quality product and service. Customer orientation should be
a part of the climate within the bank. Clear instructions and messages should
percolate throughout the organization with clear standards and guidelines. Day
to day decisions and choices made by management must stress upon the
relative importance of these values.
185
Table 7.08 Organizational citizenship behavior * customer orientation
CO
lo CO hi CO Total
ocb lo ocb Count 176 18 194
% within ocb 90.7% 9.3% 100.0%
% within co 71.5% 3.9% 27.6%
% within ocb 13.7% 86.3% 100.0%
% within co 28.5% 96.1% 72.4%
% within ocb 34.9% 65.1% 100.0%
% within co 100.0% 100.0% 100.0%
Exhibit 7.05 OCB & CO
The descriptive show that 90.7% of employees with low customer orientation
had low Organizational Citizenship Behavior while 9.3% high customer
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orientation had low Organizational Citizenship Behavior. The descriptive table
also displays that 86.3% of employees with high customer orientation had
high Organizational Citizenship Behavior while 13.7% low customer
orientation had high Organizational Citizenship Behavior. The graph too
shows the same.
7.03.3 Involvement & Empowerment
‗Job Involvement measures the degree to which people identify
psychologically with their job and consider their perceived performance level
important to self worth. Employees with a high level of job involvement
strongly identify with and care about the work they do. Another closely related
concept is psychological empowerment, which is employees‘ beliefs in the
degree to which they influence their work environment, their competence, the
meaningfulness of their job, and the perceived autonomy in their work. A high
value should be placed on the input and involvement of employees within
these private banks. This can be demonstrated through a variety of techniques
aimed at engaging executive management and employees in dialogue and
soliciting and using ideas. Superiors should attend to shortcomings observed
and reported by employees. Individuals and Teams must be encouraged to
innovate. Adequate recognition for their efforts should be ensured. Decision
making should be more decentralized giving more autonomy to the employees
so that they feel empowered and perceive themselves as part of the
organizational success.
187
Exhibit 7.06 OCB & IE
Table 7.09 organizational citizenship behavior * Involvement /Empowerment
IE
loIE HiIE Total
% within ocb 93.3% 6.7% 100.0%
% within IE 73.9% 2.8% 27.6%
% within ocb 12.5% 87.5% 100.0%
% within IE 26.1% 97.2% 72.4%
% within ocb 34.8% 65.2% 100.0%
% within IE 100.0% 100.0% 100.0%
188
Table 7.09 displays that 93.3% who felt that their involvement and
empowerment within the organization was low showed low Organizational
Citizenship Behavior while 87.5% who showed high Involvement and
empowerment displayed high Organizational Citizenship Behavior. Thus the
conclusion that high Involvement and empowerment displayed high
Organizational Citizenship Behavior and vice versa can be drawn.
7.03.4 Teamwork and Cooperation
In a mutually interdependent environment, Teamwork and cooperation form
the hallmark of smooth and effective functioning within any organization.
Work teams generate positive synergy through coordinated effort. The
individual efforts result in a level of performance that is greater than the sum
of those individual imputs. In order to improve performance and productivity
managements have restructured work processes around teams. The nature of
work in organizations has undergone important changes in recent years. Most
work organizations are now relying on team-based structures to help face
increasing levels of market competition and technological innovation
(Sundstrom, 1999). Teams, more than groups in general, include highly
interdependent members holding specialized roles. In addition, to maintain
competitive levels of knowledge and skills, employees, particularly those in
such high-technology industries as the Banks , transit across work projects and
organizations much more frequently than ever before (Hall, 1996; Katz, 1997).
Such team proactivity is collective in emphasis: it is about the way the team
behaves as a group, that is, as an interdependent and goal-directed
combination of individuals (Morgeson & Hofmann, 1999). As such, proactive
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team performance is not the same as the sum of individual team member
proactive performances, such as multiple individual team members acting
proactively to contribute to individual or team goals (Strauss, Griffin, &
Rafferty, 2009). Collaborative technologies such as group support systems
(GSS) are often developed to improve the effectiveness and efficiency of
teams; however, the satisfaction users have with the processes and outcomes
of the teamwork itself often determines the ultimate adoption and sustained
use of collaborative technologies. Much of the research on teamwork has
focused on meetings in particular and, consequently, satisfaction with the
process and outcomes of meetings, referred to collectively as meeting
satisfaction.
Table 7.1 organizational citizenship behavior * Teamwork/Cooperation
percentage Analysis
TC
loTC HiTc Total
ocbre lo ocb Count 183 11 194
% within ocb 94.3% 5.7% 100.0%
% within TC 85.9% 2.2% 27.6%
% within ocb 5.9% 94.1% 100.0%
% within TC 14.1% 97.8% 72.4%
% within ocb 30.3% 69.7% 100.0%
% within TC 100.0% 100.0% 100.0%
190
94.3% who displayed low Teamwork and Cooperation displayed low
Organizational Citizenship Behavior while 94.1% who displayed high
Teamwork and Cooperation showed high Organizational Citizenship
Behavior.
Value Approx. Sig.

The Phi value (Table 7.11) is .860 which is more than .80 we conclude
according to Luck and Rubin (1992) (value of phi and implied relationship)
the relationship Job Satisfaction and Organizational Citizenship Behavior is
very strong .
Exhibit 7.07 OCB & TC
191
Hypothesis:
H017: Job Satisfaction , Customer orientation, Involvement/Empowerment,
teamwork/cooperation have no effect on Organizational Citizenship Behavior.
H117: Job Satisfaction , Customer orientation, Involvement/Empowerment,
teamwork/cooperation have a positive effect on Organizational Citizenship
Behavior
7.03.5 Correlation Analysis
Table 7.12 Correlation between OCB & JS, CO, IE, IK, ET ,TC
OCB JS CO IE IK ET TC
OCB Pearson 1 .857** .796** .805** .767** .791** .855**

Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 704 704 704 704 704 704 704
The correlation coefficient between the Six factors of Organizational Climate
– Job Satisfaction (JS), Customer orientation (CO), Information and
knowledge sharing (IK), Involvement and Empowerment (IE), Employee
Training (ET), Teamwork and Cooperation (TC) is depicted in Table No.
Table 7.12 . The correlation is significant between all the factors of
Organizational Climate and Organizational Citizenship Behavior. The P value
is.000 which is less than the assumed value of .05. The value of ‗r‘ for
(Organizational Citizenship Behavior) OCB and Job Satisfaction (JS) is .857
value of ‗r‘for (Organizational Citizenship Behavior ) OCB and Customer
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orientation CO .796 , value of ‗r‘for (Organizational Citizenship Behavior )
OCB and Involvement and Empowerment IE is .805, value of ‗r‘for(
Organizational Citizenship Behavior ) OCB and Information and knowledge
sharing IK .767 , value of ‗r‘for(Organizational Citizenship Behavior) OCB
and ET is .791 ,value of ‗r‘for (Organizational Citizenship Behavior) (OCB
and Teamwork and Cooperation TC .855. The ‗r‘ values show that there is a
high positive correlation between all the factors of Organizational Climate and
Since there is a strong positive linear correlation between all the factors a
multiple regression analysis was conducted to understand the impact of the
independent variables on the outcome i.e the dependent variables
7.03.6 Multiple Regression Analysis
Table 7.13 a. Model Summary (Multiple regression Analysis)
1 .901a .811 .810 .449
a. Predictors: (Constant), teamwork /cooperation(TC), customer
orientation (co), Job Satisfaction (JS),Involvement/Empowerment(IE).
Table 7.13 b. ANOVAb(Multiple regression Analysis)
1 Regression 607.763 4 151.941 752.071 .000a
Residual 141.219 699 .202
Total 748.981 703
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a. Predictors: (Constant), teamwork /cooperation (TC), customer orientation (co), Job Satisfaction
(JS),Involvement/Empowerment(IE).
b. Dependent Variable: Organizational Citizenship Behavior.
The Multiple regression analysis shows the ‗R‘ value to be .901 and the R²
value to be .811 for the climate variable . This proves that 81.1% of the
variance in Organizational Citizenship Behavior can be predicted by the
Organizational Climate variables Job Satisfaction (JS), Customer orientation
(CO), Information and knowledge sharing (IK), Involvement and
Empowerment (IE), Employee Training (ET), Teamwork and Cooperation
TC. For Behavioral Studies this value is extremely high and it can be said that
Organizational Climate has a strong impact on Organizational Citizenship
Behavior. The Anova Table shows that the value of R² is significant as
indicated by the p value of F statistic which is .000 (less than .05)
Table 7.13 c. Coefficientsa(Multiple regression Analysis)
Standardized
1 (Constant) .178 .064 2.796 .005
JS .398 .036 .382 11.184 .000
CO .194 .030 .198 6.533 .000
IE .126 .035 .128 3.632 .000
TC .263 .041 .262 6.479 .000
a. Dependent Variable: OCBav
The four relationships could be written mathematically as:
194
Equation 1: OCB= f(JS,CO,IE, TC) teamwork /cooperation (TC), customer orientation (co),
Job Satisfaction (JS),Involvement/Empowerment(IE).
Equation 1 states that OCB depends upon Job Satisfaction, Customer
Orientation, Involvement and Empowerment, Teamwork and Cooperation.
The Regression Equation for Organizational Citizenship Behavior from Table
Is-
OCB= .178 + .398JS+.194CO+.126IE+.263TC
(OCB is Organizational Citizenship Behavior
JS is Job Satisfaction, CO is Customer Orientation, IE is Involvement and
Empowerment, TC is Teamwork and Cooperation.)
Inference Drawn: Accept Alternate hypothesis that Job Satisfaction,
Customer Orientation, Involvement and Empowerment, Teamwork and
Cooperation have an impact upon Organizational Citizenship Behavior. The
standardized coefficients for the independent variable Job Satisfaction is the
highest( beta= .382, t=11.184,p=.00) and it can be said that it has the strongest
influence on OCB. The second strongest influence is that of
Teamwork/Cooperation (beta=.263) after that comes Customer
orientation(beta=.194) and Involvement /Empowerment(beta=.126).
7.04 Employee Training and Information and Knowledge Sharing
Employee training is a means to acquire Knowledge and Skills to be shared
and Transmitted to other Employees within the Banks. Information and
Knowledge sharing occurs through Employee Training. According to Peter
Drucker and Daniel Bell, the management Gurus knowledge is the only
meaningful economic resource. Knowledge management can be defined as a
195
systematic and integrative process of coordinating organization-wide activities
of acquiring, creating, storing, sharing, diffusing, developing and deploying
knowledge by individual and groups in the pursuit of major organizational
goals. It also involves the creation of an interacting learning environment
where organization members transfer and share what they know; and apply
knowledge to solve problems, innovate and create new knowledge.
Knowledge management is as much about people and culture as it is about
technology. Knowledge management thrives only when the human
communication network operates freely across the shortest path between the
knowledge providers and knowledge seekers. There must be a culture that
promotes and rewards the pooling together of knowledge resources. Thus
organizations must build a culture that motivates people to create, share and
use knowledge. After the preoccupation with system and procedures to collect
data ad translate it into information, its time for firms to focus on the next
plane- knowledge. Knowledge management is not a buzzword. Every
knowledge management solution, if currently implemented, has definite
measurable business benefits. Future business success increasingly depends on
the retention and the creative use of the knowledge ideas and experiences of
an organization and its employees. And in knowledge economy corporations
need for workers will be more than the workers need for employer. The work
will demand more formal education and more cutting edge knowledge
accumulation.
196
7.04.1 Employee Training
Training refers to the acquisition of Knowledge skills and abilities or
competencies or changing of attitudes or behavior to improve the
performance of the employees. Training programs serve a variety of causes
and organizations initiate training for various purpose. In private banks one of
the urgent needs for training is the requirement to keep abreast of the changes
in Technology and also respond to competition to keep the valuable
customers from straying. The resulting changes in job description too need
multi-skilled employees who have behavioral aptitudes to expand, innovate
and create new horizons for the banks. Retaining its valued internal
customers i.e the employees depend largely upon the investment in training
that the bank is ready for.
The most obvious results of lack of training are haphazard work, malfunctions
delays, because of errors or mistakes, performance and quality standards not
met, excessive wear of equipment and failures to follow rules and procedures.
Behavioral symptoms are absenteeism, untidy work, lack of sense of
responsibility and poor communication. Appropriate training should make a
person happier, involved, committed and engaged. But does this lead to
improving Organizational citizenship behavior?
The descriptive statistics in Table 7.14 displays that 94.8% of the
employees who received poor training show low Organizational Citizenship
Behavior and 91.4% of the employees who received good Training show
high Organizational Citizenship Behavior.
197
Exhibit 7.08 OCB & ET
Table 7.14 ocb * ET percentage Analysis
ET
poorET gd ET Total
ocbre lo ocb Count 184 10 194
% within ocb 94.8% 5.2% 100.0%
% within ET 80.7% 2.1% 27.6%
% within ocb 8.6% 91.4% 100.0%
% within ET 19.3% 97.9% 72.4%
% within ocb 32.4% 67.6% 100.0%
% within ET 100.0% 100.0% 100.0%
198
The phi value in the table is .823.. Based on Luck and Rubin‘s (1992) ‗ Value
of phi and implied relationship‘ table if the value of phi is above .80 then the
relationship is very strong .
Value Approx. Sig.
7.04.2. Information and Knowledge sharing
Regression model for these two variables were analyzed and inferred to
understand their impact on Organizational Citizenship Behavior. Without any
debate Information and knowledge sharing is a principle method of building a
futuristic organization that can meet the challenges posed by the economical,
sociological and technological changes. The knowledge of individuals
through the process of knowledge sharing becomes the collective knowledge
reservoir of the organization. Information and knowledge sharing creates
‗metanoia‘ or a total shift of mind thus building Learning Organizations.
Existing mental models have to be changed or realigned to create Learning
Organizations. Information and knowledge sharing should drive the
organization to continually expand its capacity to create its future. This
overall knowledge sharing becomes the climate of the organization making it
distinct from others thus creating the competitive edge. However, there also
199
exist many barriers of effective knowledge sharing. Such barriers are
concerned with source reliability, motivation to share, ability to learn and
apply new knowledge and so on. With the existence of these barriers, it is
hard for individuals to conduct knowledge sharing activities during their
work unless they find such activities adequately useful and beneficial. Just as
Ruggles noted, the biggest difficulty of managing knowledge is to change
people‘s behaviors. According to the Theory of Reasoned Action, an
individual‘s intention to perform a behavior and their actual behavior can be
determined by their attitude toward this behavior. Individuals may behave
differently when their attitude toward a certain type of behavior is changed.
Specifically, individuals are usually more likely to perform a behavior if they
possess positive attitude toward this behavior and vice versa. Based on this
theory, in the context of knowledge sharing, it is expected that individuals
may demonstrate more knowledge sharing behavior if they hold positive
attitude toward knowledge sharing. An interesting area of inquest would be to
find whether knowledge sharing leads to Organizational Citizenship behavior
in people.
From the percentage analysis in Table 7.16 it can be inferred that 92.3% of the
employees who are low on information/knowledge sharing have low
organizational citizenship behavior while 90.2 % of the employees who are
high on information/knowledge sharing have high organizational citizenship
behavior.
200
Exhibit:7.09 OCB & IK
Table 7.16 ocb * ik
ik
loIK hiIK Total
% within ocbre 92.3% 7.7% 100.0%
% within ikre 78.2% 3.2% 27.6%
% within ocbre 9.8% 90.2% 100.0%
% within ikre 21.8% 96.8% 72.4%
% within ocbre 32.5% 67.5% 100.0%
% within ikre 100.0% 100.0% 100.0%
201
This clearly means that information/knowledge sharing is a prerequisite for
organizational citizenship behavior. All modern organizations need to be
learning organization. In the words of Peter Senge it is no longer enough to
have one person learning for the organization. People within organizations
have to learn to learn together.
7.04.3 Multiple Regression
H018: Employee Training and Information / knowledge sharing has no impact
H118: Employee Training and Information / knowledge sharing has a positive
impact upon Organizational Citizenship Behavior.
Table 7.17 Model Summary(Multiple RegressionET, IK & OCB)
1 .811a .658 .657 .604
a. Predictors: (Constant), ET, IK
With Employee Training and Information / knowledge sharing as the
independent variable and Organizational Citizenship Behavior as the
dependent variable multiple correlations was executed.
The Regression analysis results show in Table 7.17 prove that both Employee
Training and Information and knowledge sharing positively influence
Organizational Citizenship Behavior. The R² value is 65.8 i.e. 65.8 % of the
variance in Organizational Citizenship Behavior can be predicted by
Employee Training and Information and knowledge sharing. The F statistics
202
too show the level of significance to be less than .05 thus proving the
Alternate hypothesis (No. H118) which propounds that Employee Training
and Information and knowledge sharing have an impact upon Organizational
Table 7.16 b. ANOVAb(Multiple Regression, IK & OCB)
1 Regression 493.144 2 246.572 675.612 .000a
Residual 255.838 701 .365
Total 748.981 703
a. Predictors: (Constant), Employee Training (ET), Information / knowledge sharing (IK)

b. Dependent Variable: Organizational Citizenship Behavior
Table 7.16 c. Coefficientsa(Multiple Regression ET, IK & OCB)

Standardized
1 (Constant) .676 .082 8.234 .000
IK .356 .043 .342 8.235 .000
ET .487 .040 .501 12.044 .000
This relation is evident from the positive signs of the estimated coefficients of
the corresponding variables. This means that if the Employee Training and
Information and knowledge sharing increase there is an increase in
Organizational Citizenship Behavior. The t values are also significant as the p
values of the coefficients are .000 which is less than .05.
The regression model for the above relationship can be as follows-
OCB = .676+ .356IK +.487ET
(OCB = Organizational Citizenship Behavior
203
IK = Information and Knowledge Sharing
ET = Employee Training)
Inference: The standardized Coefficient for the independent variable
Employee training is the highest( beta= .487) so it can be said that of the two
independent variables Employee training &Information/Knowledge sharing
the former has a stronger influence over OCB. Accept Alternate hypothesis
and reject Null hypothesis. Hence it can be concluded that Organizational
Citizenship Behavior is influenced positively by Information and Knowledge
sharing as well as Employee Training. The extent to which it is influenced is
proved by the regression equation.
204
CHAPTER 8
IMPLICATIONS AND RELEVANCE OF THE
STUDY
"HDFC's finest investment is in it's Human Resources. It draws it's personnel
from many disciplines. They are the building blocks on which the company's
performance & productivity is based". Mr. H. T. Parekh, Founder-Chairman,
HDFC Ltd
205
CHAPTER 8
IMPLICATIONS AND RELEVANCE OF THE
STUDY
8.01 Introduction
The accomplishment of the corporate goals is reliant on the caliber of its
employees. The output of the private sector banks is to a large extent
dependent upon the Quality of the employees it possesses. Hence one of the
major HR roles is to place the right person at the right place at the right time
and keep him motivated to perform his best. "It has become almost a truism in
management that the human resource is, of all economic resources, the one
least efficiently used and the greatest opportunity for improved economic
performance lies in the improvement of the effectiveness of people in their
work. Therefore, the management of human resources is the basic function of
management". Private banks are one of the largest employers in India . So
management of human assets is one of the core areas to be looked into.
Without people organizations do not exist. The challenge, opportunity,
strengths, weaknesses of all organizations develops ultimately from people
related or people created issues. The problems arise from the mechanistic
approach that organizations have towards people. There is a strong connection
between how firms manage their people and the economic results they
achieve. One of the basic premises on which companies must work is that
every individual within the organization is different from every other within
206
the same. The personality types, their attitudes, their skills ,intellect,
backgrounds, previous experiences ,training education, social class ,age group
aspirations and various other competencies differ . The list is indefinite and
now with the seamless boundaries created by the global multinational
organizations the challenge is to consider various aspects of cultural variations
between countries and economies. In a scenario like this organizations of the
future have to look into the issues of Talent Management focused on
behavioral competencies accompanied by skill building. Whetting of the
behavioral competencies and skill acquisition is possible only when the
Emotional competencies of the employees are honed. Therefore Talent
Management has to focus on competency building. Any competency or skill
development in order to yield sustained results must focus first and foremost
upon the emotional competencies of their personnel. Studies have shown that
emotional competencies are trainable .
8.02 Talent Management
Talent management refers to the skills of attracting highly skilled workers, of
integrating new workers, and developing and retaining current workers to
meet current and future business objectives. Companies engaging in a talent
management strategy shift the responsibility of employees from the human
resources department to all managers throughout the organization. The
process of attracting and retaining profitable employees, as it is increasingly
more competitive between firms and of strategic importance, has come to be
known as "the war for talent." Talent management is also known as HCM
(Human Capital Management).
207
Companies that engage in talent management (Human Capital Management)
are strategic and deliberate in how they source, attract, select, train, develop,
retain, promote, and move employees through the organization. Research done
on the value of such systems implemented within companies consistently
uncovers benefits in these critical economic areas: revenue, customer
satisfaction, quality, productivity, cost, cycle time, and market capitalization.
The mindset of this more personal human resources approach seeks not only to
hire the most qualified and valuable employees but also to put a strong
emphasis on retention.
Succession
Planning
Competencies (Critical
Characteristics that
Assessment
HRD cause or predict & selection
outstanding
perfpormance)
performance
management
Exhibit 8.1 Talent Management Model
The model depicted below shows Competencies i.e critical characteristics that
cause or predict outstanding performance is the key or the locus around which
all the other HR functions revolve . This study delves into one of the most
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understudied core competencies that is a must for Talent Management-
Emotional Intelligence. The outcomes of this core competencies are many
People with high Emotional Intelligence have better social support, are more
successful and avoid inter arguments & fights, they have lower levels of
aggression and less conflicts, are Involved, have more social networks, they
are less likely to be addicted to drugs & alcohol, they are able to motivate
themselves and others , are able to control impulses, are able to persist in the
face of frustrations and ultimately able to regulate their moods and understand
the moods of others. This term "talent management" is usually associated with
competency-based management. Talent management decisions are often
driven by a set of organizational core competencies as well as position-
specific competencies. The competency set may include knowledge, skills,
experience, and personal traits (demonstrated through defined behaviors).
Older competency models might also contain attributes that rarely predict
success (e.g. education, tenure, and diversity factors that are illegal to consider
in relation to job performance in many countries, and unethical within
organizations). New techniques involve creating a competency architecture for
the organization that includes a Competency dictionary to hold the
competencies in order to build job descriptions.
A Large Bank in this study for example attributes its success to the
contributions made by its employees. Talent management initiatives in this
bank are driven by a set of organizational core competencies (Mantra 10) as
well as position-specific competencies. The competency set includes
knowledge, skills, experience, and personal traits (demonstrated through
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defined behaviors) based on the bedrock of sharp vision and strong values of
the bank.
In this endeavor of shaping and nurturing the talent pool, HDFC adopts a four-
step model: Acquire Develop Engage Reward
8.03 Employee Retention
Employee retention can be a competitive advantage for any private sector
bank. One of the major factors facing the private sector bank is the increased
attrition. Movements on a larger scale from one bank to another are a common
feature and there is always shortage of competent personnel. The problem is
not one of availability of personnel but one of the costs incurred in training
and then their eventual exit to the competing banks .With massive layoffs
common during times of recession the employee employer relation has
changed. The new employee mantra is ‗be loyal to your work not to your
company.‘ There can be a vociferous debate on the topic but the fact remains
that retention is a major issue faced by these private banks especially when
multinational foreign Banks are poaching on these already trained and
experienced employees. ―Until recently, loyalty was the cornerstone of that
relationship. The loss of talented employees may be very detrimental to the
company‘s future success. Outstanding employees may leave an organization
because they become dissatisfied, are under paid or unmotivated and while
trying to retain employees within the organization they may present other
challenges as well. They may demand higher wages, not comply with the rules
and regulations, create problems for coworkers and demand other privileges
210
etc. The costs associated with recruiting, selecting, and training new
employees often exceed 100% of the annual salary for the position being filled
(Cascio, 2006). The devastating impact which organizations have to bear are
in the form major organizational readjustment , work tempo disturbances , and
loss of organizational memory and seasoned mentors associated with turnover
are significant. High performers and employees with rare super specialized
skill sets are hard to replace. Moreover the socialization processes and getting
acclimatized to the new environment by the replacements can also unsettle the
organizational calm. When competition is so rife this can cause severe damage
to the company.
Even when voluntary turnover rates drop because of unfavorable labor
markets, it would be shortsighted to ignore retention management. For
example, there is evidence that high unemployment rates have little impact on
the turnover of high-performing employees or those with in-demand skill sets
(Trevor, 2001). Aggressive recruitment of valuable employees still occurs, and
the retention of high performers remains critical (Smith, 2009). In fact, large-
scale layoffs in difficult times often lead to higher turnover among survivors
(Trevor & Nyberg, 2008). Further, concerns remain about an eventual talent
shortage in both the overall supply of talent and in the specialized skills and
competencies most valued by organizations. Coupled with the likelihood that
many current employees may remain with their organizations only because
there are fewer external opportunities, the possibility exists for substantial
pent-up turnover to occur when labor markets become more favorable for
employees. A recent survey reported that 54% of employed adults, including
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71% of those between the ages of 18 and 29, are likely to seek new jobs once
the economy improves (Adecco, 2009). Despite extensive research on
employee turnover, there are few resources that effectively and
comprehensively bridge scholarly evidence concerning employee retention
and practitioner employee retention efforts.
Table1
Four Common Misconceptions About Employee Turnover
Turnover Misconceptions Evidence-Based Perspective
Misconception #1
All turnover is the same, and it is all bad
● There are different types of turnover
● Some turnover is functional
● Turnover costs vary
Misconception #2
People quit because of pay
● Pay level and pay satisfaction are relatively weak predictors of individual
turnover decisions
● Turnover intentions and job search are among the strongest predictors of
turnover decisions
● Key attitudes such as job satisfaction and organizational commitment are
relatively strong predictors
● Management/supervision, work design, and relationships with others are
also consistent predictors
Misconception #3
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People quit because they are dissatisfied with their jobs
● Job dissatisfaction is the driving force in fewer than half of individual
turnover decisions
● There are multiple paths to turnover decisions
● Different paths have different retention implications
● It is also important to consider why people stay
Misconception #4
There is little managers can do to directly influence turnover decisions
● There are evidence-based human resource practices associated with turnover
● Recruitment, selection, and socialization practices during organizational
entry affect subsequent retention
● Managers can influence the work environment and turnover decisions
through training, rewards, and supervisory practices
Employers have several misgiving on the subject of Retention. First and
foremost pay is not the only criterion which provokes employees to want to
leave the organization. There could be a variety of individual level behavioral
Incompetencies which force the employee to analyse and look at problems in a
totally skewed manner. Lack of Emotional Intelligence is one of the foremost
reasons as is reflected in this study by the impact it has on the climate within
the organization. However, when we consider what leads employees to seek
out these other opportunities to begin with, we find that pay level and pay
satisfaction are relatively weak predictors of individual turnover decisions.
(Griffeth, Hom, & Gaertner, 2000). Turnover remains important even as
challenging economic times may temporarily make retention seem a less
213
pressing issue. Furthermore, the effects of globalization and an increased
reliance on technology may create demand for workers with skill sets that
colleges and universities are not providing (Gordon, 2005). There is an
emerging consensus that it may soon become more challenging for
organizations to retain their key employees. Organizations and managers who
have a shared understanding of turnover effects and trends may achieve a
competitive advantage.
Exhibit 8.2 Percentage of Employees who desire to leave the Bank
Table: 8.1 Percentage of Employees who desire to leave the Bank
Cumulative
Frequency Percent Percent
Valid leave 373 53.0 53.0
stay 331 47.0 100.0
Total 704 100.0
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The table no. 8.1 shows the results of this study and depicts the percentage
of employees wanting to leave the banks where they are working currently and
the percentage who want to stay back. The current study reveals the high level
of turnover in the industry with 53% of the employees having an intent to
leave and only 47% desirous of staying . So retention policies and methods to
arrest turnover have to be devised. One of the best methods to do this is to
devise Training Programmes attuned to Improving the Emotional Intelligence
of The employees which as the study proves improves the Organizational
Climate and Organizational Citizenship Behavior of Employees .
Organizational Citizenship Behavior plays a very crucial role in abetting the
employees feeling of Belongingness to the Organization and thus improves the
retention possibilities. Relationships within the organizations between superior
–subordinate, within peer groups, and with clients and customers all form a
part of the organizational climate. Having a higher Emotional Intelligence
improves the possibility of all these relations flourishing thus adding to the
betterment of the climate.
8.04 Human Resource Planning - Recruitment and Selection
The recruitment and selection process starts with employment and personnel
planning. This is the process of deciding what positions the firm will have to
fill, and how to fill them. Personnel planning embraces all future positions ,
from maintenance clerks to CEOs ( most banks call filling up of executive
positions as succession planning). Management builds employment plans on
basic forecasts. Several factors have to be taken into considerations while
making the forecasts. The usual practice is to forecast the revenues and then
215
estimate the size of the staff required to achieve this volume. But in
practicality other factors have to be considered such as projected turnover
(resignations or dismissals), decision to upgrade (downgrade), products or
services, technological changes, the department‘s financial resources.
Once the staffing needs are identified the supply of internal as well as external
candidates has to be identified. The internal candidates get the first priority.
The main objective here is the skill set identification and qualifications needed
for the projected opening. There are qualifications inventories which contain
the past performance details, qualifications, experience and other relevant
employee informations. These are usually computerized and available for the
HR on the intranet within the banks. The employee‘s inventory is
automatically updated based on the performance appraisal or Training
provided.
This study shows the importance of Emotional Intelligence as a very important
factor in improving the organizational climate and thus enabling employees to
exhibit organizational citizenship behavior. In this complex process what is of
prime relevance is during the internal recruitment what is the level of
importance given to the behavioral skills? When HR is just an enabling
function in Banks the emphasis naturally falls on other skills that are more
functional and operational .For the internal employees various psychometric
tests can be administered from time to time ,with proper training counseling,
coaching and mentoring. Since Emotional Intelligence is such an important
behavioral skill and it is a trainable ability, employees should get regular
training and feedback to improve.
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At one of the medium sized private banks undertaken in the study the
recruitment parameters are- Post Graduates in Science and Engineering –
Minimum Marks – 60% or Post Graduates in Arts, Commerce, Law and others
– Minimum Marks – 55% is required. Selection is on the basis of a written
test/skill test and a personal interview. Candidates who will be qualified in the
written test/skill test will only be called for the personal interview. Another
large Bank in the study has a multistage selection process through a Aptitude
test, Group Process, Profiling and Interview. Actually these tests are very
broad based tests usually testing the analytical, numerical and language skills
of the subjects while the skill tests are totally subject oriented. The
psychometric part with emphasis on behavioral aspects is not given much
importance. Even the personal interviews conducted do not reveal much in
fact due to perception and judgmental errors it is never accurate and cannot
replace the psychometric testing of candidates. Another interesting
phenomenon is the Group Discussions held during Campus Interviews.
Though they do provide a lot of information about the candidate there can be
lot of judgmental errors.
Another medium sized bank in the study which was previously more of a
regional player in order to project itself on the national arena and develop a
more professional image recruited specialist officers . All these banks under
study have national level recruitments through entrance tests. They also recruit
employees from colleges through campus interviews.
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Theoretically all banks especially the larger ones claim that people placement
process was based on appropriate competency profiling tools and matching
employee profiles to job specifications. The grade integration process should
also be after using job evaluation techniques. The recruitment process should
also be streamlined and a uniform recruitment policy and process
implemented across the organization. Robust ability-testing and competency-
profiling tools should be used to strengthen the campus recruitment process
and match the profiles of employees to the needs of the organization. Banks
continues to be a preferred employer at leading business schools and higher
education institutions across the country, offering a wide range of career
opportunities across the entire spectrum of financial services. In addition to
campus recruitment, Banks also undertakes lateral recruitment to bring new
skills, competencies and experience into the organization and meet the
requirements of rapidly growing businesses.
A leading bank in this study has undertaken a Six Sigma initiative for the
lateral recruitment process to improve capabilities in this area. Some Banks
encourage cross-functional movement, enriching employees‘ knowledge and
experience and giving them a holistic view of the organization while ensuring
that the bank leverages its human capital optimally.
8.05 Training and Development
There is widespread evidence for the beneficial effects of employer training on
employees‘ wages (e.g. Bartel 1995; Blundell et al. 1996; Green et al. 1996;
Booth et al. 2003).1 Several studies also support the view that training has
positive effects on individual or organizational productivity (e.g. Holzer et al.
218
1993; Zwick 2005; Alba-Ramirez 1994; Conti 2005), a partial exception being
Black and Lynch (1996). Bartel (2000) gives an overview There are also
established benefits for other intermediate outcomes. Dearden et al. (1996) and
Green et al. (2000), for example, report that company training has modest
effects on indirect indicators of performance such as labor turnover and
mobility. Booth and Zoega (2000) suggest that training helps to attract good
quality workers, while Black and Lynch (2005) find that training affects both
productivity and pay via its contribution to workplace organization and
organizational capital. Of special note for the current paper, Barron et al.
(1989), Bishop (1994) and Dearden et al. (2000) report that productivity gains
exceed employees‘ remuneration gains, which implies the possibility of a
positive impact of training on profit but falls short of proving such an impact
since there are non-zero direct costs to the investment. Also relevant, Vignoles
et al. (2004) provide evidence that the returns to training are greater for those
chosen to receive it than for those not chosen, suggesting that employers are at
least to some extent rational in allocating their training budgets between
workers. Kitching and Blackburn (2002) support this view, reporting that
employers who have a strategic orientation to training are more likely to
experience sales and employment growth. They also suggest that those
employers who measure the benefits of training have greater chances to
improve business performance.
The impact of Training and Development and information and knowledge
sharing on Organizational Citizenship Behavior has been elaborately discussed
in the Analysis part of this study. One of the large banks which was a part of
219
this study conducted its aptitude tests and interviews across India to attract
bright graduate students to pursue a career in Banking. These selected
candidates then undergo a one year intensive residential classroom training
and internship in the areas of :
Corporate Banking
Private Banking
Risk and Credit Management
Treasury
Branch Management
Relationship Management
The training is usually held at Bangalore or any other location in India as
decided by the Bank. During the Training ,a stipend is given to candidates to
meet out pocket expenses. All cost of the program including food and lodging
is borne by the bank. On successful completion of the program they are
absorbed as Assistant Managers Band 1 at a gross salary of more than 3.5
Lakhs per annum. Applicants joining the Probationary Program are enrolled
for MBA in Banking and Finance. It is UGC approved program and Manipal
University awards the degree. Their curriculum details are as follows-
MBA (Banking & Finance) course duration is for a period of 30 months (2 ½
years) with the maximum period for completion being 60 months.
MBA (Banking & Finance) program consists of two phase,
First Phase:
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o Comprising of 12 months of On campus program(9 months of
classroom training & 3 months of internship in the Bank).
o On successful completion of the first 12 months of training POs
will be awarded the Post Graduate Diploma in Banking from
the Bank‘s Manipal Academy.
o On successful completion of the first 12 months of training
program, the POs will be absorbed as Assistant Managers in the
Bank
o On Campus program comprises of Semester I and II and is
designed to provide banking skills to perform effectively in a
banking environment.
The students are provided with an exit option after successfully completing the
first year of the MBA (Banking & Finance) program. Such students are
allowed to exit the MBA program with a Post Graduate Diploma in Banking
(PGDB).However POs who wish to continue with the MBA (Banking &
Finance) program are allowed to rejoin the MBA (Banking & Finance)
program within 1 year of their completion of PGDB from IMA campus. Such
students, by virtue of their being Assistant Managers working at different
branches/locations of the Bank will be provided their lectures and study
materials online.
Second Phase:
Comprising of 18 months of Online Training.(3 Semesters viz,
III, IV & V) are designed to provide managerial skills to the
students in a working and business environment.
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Students who have chosen to continue with their MBA
(Banking & Finance) program can pursue the Second phase
along with their Job at the Bank.
Another leading large bank in the ambit of the study has plans to set up a
leadership institute to deploy leadership interventions on the lines of the GE
model of leadership development. The initiative will be headed by a top
management professional of the bank. The bank has already acquired property
in Panvel (Maharashtra) for the institute.
Some medium private banks in this study have their own staff training
colleges which has been in existence since the early days of inception of these
banks. Since then these medium sized banks in the study has made substantial
improvements and these training colleges have played a key role in the
progress of the organization. It could meet the qualitative and quantitative
training needs of the organization. In addition to the Central Staff Training
College at their head offices, Regional training centers were set up by this
bank at Delhi, Mumbai, Bangalore, Chennai and Coimbatore in 2005. Later,
Regional training centers were set up at Calcutta and Hyderabad also.
Some Other large Banks in this study have a state of Art Training centre at
Khandala where the employees are periodically sent for Training. Another
large bank has its training center at Lonavla. But most of the Training
programs have an academic Model. The focus is always on imparting job
related technical knowhow and at the most behavioral areas like team-work,
leadership, change management are covered. This kind of Training is usually
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like teaching the language without teaching the alphabets. Training in
Emotional Intelligence helps to handle and comprehend the other training
programs and makes it more practically applicable and useful.
Emotional Intelligence training programs should focus on creating
organizational changes both for the individual as well as the organization.
These changes should create sustainable results by creating emotionally
intelligent employees and ultimately an emotionally intelligent organization.
All the Training Programs should be conducted through the following
process-
1.Need Identification
At Individual, Team or Organization Wide program
Vision, Mission and Goals of the individuals ,teams and organization
Organizational Culture and Values
2.Gap Assessment
Gap existing at Individual, Team or Organizational level.
Measures
Requirements
Assessments (pre measures, 360º and others)
Issues and challenges
3.Train
Select Personal/Team /Organizational Goals
Design Training module
Implement training program
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Implement Personal Action Plan
Coach, counsel, mentor
4.Evaluate
Did change occur?
Is the change due to training?
Is it positively related to Organizational Goals?
Reinforce
In 1997 survey of benchmark practices among major corporations, done by
American Society for Training and Development , found that four out of the
five companies were trying to promote Emotional Intelligence in their
employees through training and development when evaluating performance
and hiring. In India so is not the case especially when retaining the existing
customers and at the same time adding new ones to the fold is of major
priority the relevance of training in Emotional Intelligence is a must.
Emotional Intelligence is not static and improves with Training and an
understanding of oneself and life experiences. This study has revealed that
age, gender, position, marital status and other demographic variables do not
affect Emotional Intelligence hence Training in Emotional Intelligence can be
conducted across the organization.
8.06 Team Work and Cooperation
Individual commitment to a group effort - that is what makes a team work, a
company work, a society work, a civilization work. Vince Lombardi
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The benefits of an emotionally competent team are seen as a general
improvement in co-operation and communication skills, including in the
informal networks where day-to-day arrangements are made. This is likely to
mean that better use will be made of the skills available. Team members will
support each other more, feel more valued, and have more resources to cope
with any personal problems. They will have a better understanding of their
roles and those of others, and a greater urge to help solve any problems. The
atmosphere will bring more camaraderie and a safer environment in which to
make innovations. Conflict will diminish, and with it, threats of costly
litigation.
The basis of all modern Organizations are well functioning , well lubricated
teams which act as the engine to spearhead them towards greater glories and
success. How to form these teams and what are the dynamics that make them
function? When at the societal level too India is increasingly becoming more
and more individualistic in nature and when people are competing with each
other for one-upmanship and career growth, the task of creating teams
become all the more difficult. But evolutionary processes have ingrained the
DNA of understanding in the human race that survival is possible only by
cooperation and mutual sharing.
When a team typically goes through the processes, of Forming, storming,
Norming, Performing and Adjourning, the first two steps involve a lot of
conflicts at the individual level between the members. These conflicts can be
resolved only if the Emotional Intelligence of the team is very high.
225
Exhibit 8.3 Stages of Team Formation
1. Forming
– Members feel much uncertainty
2. Storming
– Lots of conflict between members of the group
3. Norming Stage
– Members have developed close relationships and cohesiveness
4. Performing Stage
– The group is finally fully functional
5. Adjourning Stage
– characterized by concern with wrapping up activities
226
Past research has shown that self-reported EI is associated with conflict
resolution styles. Jordan and Troth (2004) found that integrative and
dominating styles of conflict handling are positively correlated with ability to
deal with own and others‘ emotions and overall EI of the individuals members
working in a team; however they also found that avoiding style of conflict
resolution style is negatively correlated with ability to deal with own emotions
and overall EI of individuals in the team. Further, Jordan and Troth found that
integrating style of conflict resolution was positively correlated with ability
to deal with own and others‘ emotions, and overall Emotional Intelligence of
the teams; but avoiding style of conflict resolution was negatively correlated
with ability to deal with own emotions of the teams.
The need for mastering learning in teams has become an unavoidable
necessity with the rapid change in the global markets, economies and
technology. Team Learning is a collective discipline. Individual learning has
to be converted to team learning and ultimately to organizational learning. In
order to create a vibrant organization the existing paradigms have to be
changed and replaced by new learning and knowledge. Creativity must be
unleashed and convergent as well as divergent thinking processes have to be
set free.
To put in the words of John Farago & David Skyrme October 1995.
 The challenge facing managers today is to make the effort needed to
learn some of the new skill and techniques, and to put in processes that
engage their workforce in programmes of continuous capability
development.
227
 Learning should be integrated into the doing, as part and parcel of
everyday work.
 It should also be energizing, stimulating and fun. Getting the best out
of everybody, including oneself to meet the challenges ahead.
For any learning to occur especially team learning the Emotional Intelligence
of the participants must be very high and only then will the team output be
more than the sum of the individual outputs. The cohesiveness of the team
depends upon its Emotional Intelligence. Social Loafing can be avoided in the
team. The feeling that others in the team are not doing their bit may force
some members to reduce their effort. Again because sometimes individual
output is drowned in the group rewards and overall measure of the team‘s
performance many individuals with low Emotional Intelligence may become
free riders. The morale, commitment and creative potentials of a team high on
Emotional Intelligence contribute to the climate of the Organization.
Decision Making by a team high on Emotionally Intelligent will be far
superior than one by a Team whose Emotional Intelligence is low. Confirmity
pressures and group think will not be high in an Emotionally Intelligent team
hence the decisions will be more accurate. This is very important especially
when Cross functional and problem solving teams are working together. Since
these banks have a national base and some of the larger ones are spreading
their wings on the international scene too , virtual teams are also trying to tie
up employees across into working teams . Emotional Intelligence for the
members is a must in such virtual teams. One of the major requisites of Team
228
functioning is effective Communication and interpersonal skills. For both
these the team has to be Emotionally Intelligent.
8.07 Relevance of Organizational Citizenship Behaviour
Performance is not only related to the in role behaviour exhibited by
employees but also to the extra role behaviour. Organizational Justice in the
form of Interactional justice, procedural justice and outcome justice is
reciprocated by employees directly in the form of Organizational Citizenship
Behaviour. Employees are involved in very complex veiled relationships with
their organizations. These relationships affect the way in which they perceive
themselves as a part of the Organizational System. Pro social behaviour within
the organization which goes beyond the routine job functions when performed
by employees can become the competitive edge for the organizations.
Organizational Citizenship Behaviour is being loyal to the organization,
showing initiative to take up extra activities and work, showing personal
industry by working beyond what the role demands not complaining about
minor inconveniences and always representing the company in a positive
manner before the customers and client. This encourages affirmative
exchanges between the customers, community, society and the organization
and thus adds to the goodwill and business of the organization.
This study has focussed upon Organizational Citizenship Behaviour as the
most important outcome of Emotional Intelligence. When Competition
between the different Banks is so high, when the product differentiation and
services between the banks for the customer is marginal the huge employee
229
base which these banks have are the brand builders and image creators for the
companies. Their positive approach towards the organization makes them
perform the extra role behavior that will take the organization forward. This
study proves the impact which Emotional Intelligence has over Organizational
Citizenship Behaviour and also the impact that Organizational Climate has
over Organizational Citizenship Behaviour. Deviant Workplace behavior can
also be diminished by high Organizational Citizenship Behavior. OCB can
also reduce the costs to the company by reducing absenteeism.
8.09 Customer and Client Management
One of the major aspects which Banks have to consider today to ward off
competition and stay and prosper. This is possible through Customer and
client management. Broadly speaking the most important area to consider in
this is acquisition and retention of new clients and customers. High value
clients usually have multiple banking relations and hence to retain them is a
prime challenge as well as a great necessity. Targeting the mass affluent
segment is also very important for these private banks as the high Indian
population, the rising middle class can become an area to poach upon. Also
these banks are penetrating into the rural areas where a huge market exists.
The customers are spoilt for choice of products and services hence the banks
have to figure out ways in which to retain as well as acquire customers.
Individualized and personalized services, customized products all need to be
worked out. Since competition is a major challenge which these private banks
have to surmount new strategies and understanding of methods to acquire and
retain customers and clients have to worked out. But every strategy would fail
230
if the staff within are not high on Organizational Citizenship behavior.
Survival for these private banks depends totally upon Customer retention and
Customer acquisition. Customer defection rates have to be kept low and
Customer retention rates high. A high customer defection rate makes the
market attractive to new entrants since it makes easier for new players to
acquire customers. Low defection rates increase barriers to entry and make the
market less attractive for new entrants. A private bank can develop its client
acquisition strategy by focusing on both organizational issues as well as
placing a greater emphasis on marketing based activity. The marketing based
approach focuses on acquiring clients via selling, promotional and various
marketing activities. This approach, however, has been shown to not always
be effective by itself in the short run because of difficulties associated with
potential client recognition and skepticism associated with a relatively
financially sophisticated potential target market. A marketing based approach
has to be developed in conjunction with a reorganization of the business
organization so that prospective clients can be offered value relevant product
and service propositions. Once a successful framework for client acquisition
has been identified (easier said than done) private bankers/wealth managers
should aim to convert the prospect to client and then develop a strong focus on
customer knowledge to innovate its own client propositions.(Mercer Oliver
Wyman: European Wealth Management Survey 2004.) Customer retention is
obviously an essential part of relationship development. The economic value
of customer retention is widely recognised. It was found that customer
retention has a more positive effect on profits than market share, scale
231
economies and other variables that are commonly associated with competitive
advantage. (Reichheld, F.F – Sasser W.E.: Zero Defections: Quality Comes to
pp.105-111.)
In order for Customer acquisition and retention to happen The Organizational
Citizenship of the employees need to be very high. The relationship
development is possible only by a set of employees who are very loyal to the
company and show characteristics that go beyond the calling of ordinary duty.
The image projected to the customers and the sincerity with which they try to
retain and acquire new clients depends totally upon the quality of citizenship
behavior they exhibit. This study thus proves that in order to have a high
organizational citizenship behavior the employees need to have a very high
Emotional Intelligence.
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CHAPTER-9
AN OVERVIEW
233
CHAPTER-9
AN OVERVIEW
This study focuses on a totally untouched area of enquiry i.e the relationship
between Emotional Intelligence, Organizational Climate and Organizational
Citizenship Behavior in Private Sector Banks . Private sector banks are one of
the important employers in India. Young India no longer looks towards the
public sector jobs which their parents cherished to have, these banks are the
destinations which they look up to for their careers and are the aspired work
places. Response to a question ―Which sectors will you most prefer to seek
In
employment in?‖ asked to graduates and unemployed respondents from small
towns in India (BCG Talent Survey) it was found that 33% preferred financial
services, 18% preferred academics, 16 % IT , 10 % BPO‘s, 5%Telecom,4%
Healthcare, 4%Research,2% Manufacturing ,8%Others (includes construction,
retail, travel & tourism, aviation and transport & logistics) 100%All. This
shows that banks are a preferred destination for the employment seeking
youth. Steady induction of Talent into the fold and Proper Talent management
in terms of career advancements , fulfillment , creating opportunities for
learning have to be addressed.
As this study proves that this is possible only if the Behavioral Competencies
of the employees are first addressed. Emotional intelligence is a major
Behavioral competency which must be given a place of prominence if the
mission and vision of Organizations are to be achieved. Emotional Intelligence
acts as the foundation on which the entire Organizational people related
programs can stand otherwise all efforts in the direction of Training and
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employee retention can be a total failure. Emotional intelligence helps an
individual deal efficiently and effectively with his/her personal and
professional life, without getting into emotion based decision making. The
world is becoming increasingly complex due to the social, political,
technological, and economic changes. With the complexities increasing in
organizational life space, people with low emotional Intelligence can wreck
havoc on the entire Organizational Climate. They react to change in the
manner most uncomplimentary and undesirous , destroying the organizational
fabric. Banks that want to survive and flourish must therefore seek not only to
hire people with high Emotional Intelligence but once in the organizational
fold they must be given constant training to further this life skill which adds
value to individual as well as organizational life.
One of the best methods to create and maintain a talented workforce is to keep
them ever charged and motivated. Emotional Intelligence is primary requisite
for a motivated workforce. Studies of close to 500 organizations worldwide,
reviewed by Daniel Goleman, indicates that people who score highest on EQ
measures rise to the top of corporations. 'Star' employees possess more
interpersonal skills and confidence, for example, than 'regular' employees who
receive less glowing performance reviews. 'Emotional intelligence matters
twice as much as technical and analytic skill combined for star performances,'
he says. 'And the higher people move up in the company, the more crucial
emotional intelligence becomes.' Bosses and leaders, in particular, need high
EQ because they represent the organization to the public, they interact with the
highest number of people within and outside the organization and they set the
235
tone for employee morale, says Goleman. Leaders with empathy are able to
understand their employees needs and provide them with constructive
feedback.
The demands for high emotional intelligence are most important in today‘s
retail banking sector which is characterized by three basic characteristics:
· Multiple products (deposits, credit cards, insurance, investments and

securities)
· Multiple channels of distribution (call center, branch, internet)
· Multiple customer groups (consumer, small business, and corporate).
In these areas success of the bank requires the empathic ability by the staff to
gauge a customer‘s mood and the interpersonal skills to decide when to pitch a
product and when to keep quiet. This kind of sensitivity to customer needs
can be possible only if the Bank promotes high Emotional Intelligence of all
its employees.
Emotions have always been relegated to the back burner when organizations
are concerned . In a swanky Bank where formally dressed people enact the
roles that have been assigned to them, it goes by the more stylish euphemism
of professionalism or non emotionalism.. Training comprises in converting the
recruits into mechanical non emotive entities who are then dubbed as
professionals. However much one tries emotions will always have a role
wherever human activity is there . What is important is how to learn to
regulate these emotions and use them to the optimum for the benefit of the
individual as well as the organization. Logic, reasoning , arguments , intellect
236
and emotions should go hand in hand during the decision making process. The
entire climate within the organization would then become more humane and
conducive for performance and improved productivity.
Developing emotional intelligence in the workplace means acknowledging
that emotions are always present, and doing something intelligent with them.
People vary enormously in the skill with which they use their own emotions
and react to the emotions of others—and that can make the difference between
a good employee and a bad one. It‘s not overly egalitarian to suggest that most
professionals, managers and executives are fairly smart people (of course there
can be glaring exceptions), but there can be a huge difference in how well they
handle people. That is, the department manager may be a genius in technical,
product or service knowledge—and get failing marks in terms of people skills.
The need of the hour is not only Emotionally Intelligent people in the
managerial positions but also in the nonmanagerial cadres too. This creates a
conducive organizational climate across the bank.
Today work places have become stress zones where employees are losing their
work life balance. High workload, sometimes perceived work overload ,tight
deadlines, high targets, type of work, lack of job satisfaction, long working
hours, pressure to perform, etc. Interpersonal conflicts at the workplace, such
as boss-subordinate relationships and relationships with peers, were also a
source of stress. Prolonged exposure to such situations can cause severe
mental and physical problems which in turn leads to lack of satisfaction,
attrition , deviant behavior. People high on Emotional Intelligence are better in
interpersonal skills , communication, and are able to manage themselves
237
better. There has to be a total transformation in the approach to the internal
customers i.e the employees within the banks if they want to maintain their
competitive edge.
9.01 Model Developed in the Study
Exhibit 9.1 which represents the model that has been developed in this study
sums up the entire study. Emotional Intelligence (with its three components
Expressing Emotions, Balancing Emotions and Understanding Emotions) is
the individual and group level imput which affects Organizational Climate
(measured by its components Customer Orientation,
involvement/Empowerment, Information/Knowledge sharing, Employee
Training, Teamwork /Cooperation, and Job Satisfaction).The Organizational
Climate in turn affects Organizational Citizenship Behavior(with its
components being Interpersonal Helping, Personal Industry, Individual
Initiative and Loyal Boosterism). All these three variables have a positive
impact on each other as proved in the study. For the Banks an increase in the
Emotional Intelligence of the Employees results in better Organizational
Climate which in turn results in high Organizational Citizenship Behavior by
the employees. The positive outcome of the interaction between these variable
affects Talent Management, abets employee retention, curbs absenteeism,
improves customer and client Management and helps in stress management,
Recruitment and Selection and Employee Training.
238
ORGANIZATIONAL
RELEVANCE
ORGANIZATIONAL
CLIMATE
TALENT
MANAGEMENT
ORGANIZATIONAL
CUSTOMER CITIZENSHIP
EMOTIONAL ORIENTATION BEHAVIOR EMPLOYEE
INDIVIDUAL INTELLIGENCE RETENTION
INVOLVEMENT / INTERPERSONAL
UNDERSTANDING EMPOWRMENT HELPING ABSENTIEEISM
EMOTIONS HUMAN (Curbing)
OUTPUT OUTPUT
INFORMATION &
INDIVIDUAL CUSTOMER &
INPUTS KNOWLEDGE
BALANCING INITIATIVE CLIENT
Organizational SHARING
EMOTIONS MANAGEMENT
System Level
EMPLOYEE PERSONAL TRAINING &

EXPRESSING TRAINING INDUSTRY DEVELOPMENT
EMOTIONS
GROUP OR
TEAM LEVEL OVERALL
SATISFACTION LOYAL RECRUITMENT
BOOSTERISM SELECTION
TEAM WORK /
COOPERATION STRESS
MANAGEMENT
MODAL DEVELOPED
Exhibit 9.1 Model Developed in this Study
239
ANNEXURE
240
Annexure I
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Annexure II
Questionnaire
Instructions:
1. Q1-65 : Each of the statements have 5 choices – Strongly Disagree,

Disagree, Neutral, agree and strongly agree.
2. Please put a ‘ X’ at the correct option of your choice
3. If Using a soft Copy kindly save the copy before sending to
[email protected] or [email protected]
4.
Questionnaire
Age: below 25 ( ) 26-35 ( ) 36-45 ( ) above45 ( )
Gender: Male ( ): Female ( )
Marital Status: Single ( ) Married ( )
Qualifications: Graduate ( ) Diploma( ) Post Graduate( ) Prof. Degree( )

Others ( )
Position: Managerial ( ) Nonmanagerial ( )
Experience: 0-10 yrs ( ) above10 yrs ( )
1. If you are sad, upset, grieving or mourning, your facial expression are
controlled and do not reveal your emotions
Strongly disagree ( ) disagree ( ) neutral ( ) agree ( )

strongly agree ( )
2. If you are thwarted in your plans, actions or activities you feel bitter or
complain

Strongly agree ( )
3. You always look at the positive aspects of people and situation

strongly agree ( )
4. You can refuse a person regardless of his position if you think he is being
unreasonable or wrong.
256
strongly agree ( )
5. You get into an argument with someone, about a subject which you have
strong feelings. The other person starts to get loud and obnoxious about your
stance on the issue. You argue and make efforts to get your point across.

strongly agree ( )
6. You are able to maintain cordial and warm relations with other members
within the organization

strongly agree ( )
7. Even after an argument or disagreement you are able to talk amicably with
the concerned members

strongly agree ( )
8. Others come and confide to you about their problems

strongly agree ( )
9. You are a good listener

strongly agree ( )
10. You do not pass a judgment on others even if what they are saying is not in
accordance to your way of thinking

strongly agree ( )
11. Others very often fall in agreement with your point of view

strongly agree ( )
12. When you are angry you are unable to concentrate on the task at hand

strongly agree ( )
257
13. You feel that you are able to handle the work at hand.

strongly agree ( )
14. Lately you are dependent a lot on

alcohol/drugs/tea/coffee/cocoa/chocolates or cigarettes.

strongly agree ( )
15. You cannot stop thinking about your problems.

strongly agree ( )
16. You can bear disappointment or frustration, without succumbing to

criticism of self or others

strongly agree ( )
17. If the results are not what you expected then you feel a great sense of
disappointment

strongly agree ( )
18. There is a strong emphasis in the company to provide quality services to

customers.

strongly agree ( )
19. The policies and procedures in the company are more employee oriented
than customer oriented

strongly agree ( )
20. People have strong associations with their supervisors and look to them for
suggestions and guidance.

strongly agree ( )
258
21. There is constant encouragement to be innovative

strongly agree ( )
22. Sufficient effort is taken to get opinions of other employees

strongly agree ( )
23. There is encouragement to participate in decisions

strongly agree ( )
24. Superiors/Management gives clear vision /direction

strongly agree ( )
25. Employees are informed about issues

strongly agree ( )
26. Interdepartmental communication is good

strongly agree ( )
27. The required transparency is maintained

strongly agree ( )
28. The senior management provides service guidance

strongly agree ( )
29. The training program helps to develop the skills required for the work

strongly agree ( )
30. Training is based on the identified needs and is aligned to organizational

goals
259
strongly agree ( )
31. There are opportunities for participating in training programs.

strongly agree ( )
32. There is Satisfaction with the training and development programs

strongly agree ( )
33. The Training program provides career development opportunities

strongly agree ( )
34. Team work is encouraged

strongly agree ( )
35. Workload is divided fairly

strongly agree ( )
36. There is cooperation to get job done

strongly agree ( )
37. The Goals of the team are well defined

strongly agree ( )
38. Members in the team respond positively to help requested

strongly agree ( )
39. The team is given adequate resources to carry out its functions.

strongly agree ( )
40. The team has enough freedom to decide its way of working
260
strongly agree ( )
41. The work is not tedious or boring

strongly agree ( )
42. My job uses my skills, knowledge and abilities.

strongly agree ( )
43. My work gives me a feeling of accomplishment growth and fulfillment

strongly agree ( )
44. I have never considered leaving the company.

strongly agree ( )
45. My relations with my co-workers is very good.

strongly agree ( )
46. My relations with my immediate superior is good.

strongly agree ( )
47. My relations with my subordinates is good.

strongly agree ( )
48. The compensation, pay and benefits give me a lot of satisfaction.

strongly agree ( )
49. There is flexibility to balance life and work issues.

strongly agree ( )
261
50. Have Helped co-worker learn new skills or shared job knowledge.
Assisted a co-worker with device or equipment such as computers, copy
machines, etc

strongly agree ( )
51. Lent a compassionate ear when someone had work problems.

strongly agree ( )
52. Changed vacation schedule, work days, or shifts to accommodate co-

worker‘s needs.

strongly agree ( )
53. Finished something for co-worker who had to leave early.

strongly agree ( )
54. Feel that working in a team helps complete the task effectively.

strongly agree( )
55. Went out of the way to give co-worker encouragement or express

appreciation.

strongly agree ( )
56. Offer suggestions, innovative ideas to improve how work is done.

strongly agree ( )
57. Tried to acquire new skills, knowledge in order to improve task and
performance effectiveness.

strongly agree ( )
58. Worked weekends or other days off to complete a project or task.
262
strongly agree ( )
59. Came in early or stayed late without pay to complete a project or task.

strongly agree ( )
60. Took on challenging and difficult tasks.

strongly agree ( )
61. Volunteered for extra work assignments

strongly agree ( )
62. Have a feeling of pride in the place of work

strongly agree ( )
63. Do not like to listen to people talking ill about the company.

strongly agree ( )
64. Defend company policies and products.

strongly agree ( )
65. Always talk positively about the company to others.

strongly agree ( )
Thank you!
263
ANNEXURE-III
Operational Definitions
Operational Definition of Emotional Intelligence, Organizational Climate,
Organizational Citizenship Behavior in this study-
Emotional Intelligence in this study comprises of three sub variables –
1. Expressing Emotions: The extent to which emotions are translated into
facial and other physical expressions and exhibited verbally or otherwise.
2. Understanding Emotions It is the ability to detect and decipher emotions in
faces, pictures, voices, and cultural artifacts—including the ability to identify
one's own emotions. The ability to comprehend emotion language and to
appreciate complicated relationships among emotions.
3. Balancing Emotions: The ability to harness emotions to facilitate various
cognitive activities, such as thinking and problem solving. The ability to
regulate emotions in both oneself and in others.
Organizational Climate in this study comprises of six sub variables-
1. Customer Orientation: Do the employees see a strong focus on customer
service and in fact believe their organization does a good job of satisfying
customers.
2. Teamwork and Cooperation: Employees both within and across departments
work in teams with cooperation to meet the short term as well as long term
goals. Workload is managed effectively – the work is divided fairly .
264
3. Knowledge & Information Sharing: Management creates and communicates
a compelling vision and direction for the company. Employees understand
their role in the organization- how their goals fit into the overall company
objectives. Employee‘s reports having enough information about their
individual jobs, including company information, advance warning of changes
and informations from other departments.
4. Involvement & Empowerment: Employees have the authority and support
they need to serve their customers. Employees are asked to participate in
decisions that affect their work and more important to innovate. Management
uses and solicits opinions of employees in such a way that employees can see
the connection.
5. Training & Development: Employees have relevant Training and
development programs which help them to garner new skills and knowledge
while at the same time hone their existing proficiencies. Whether on the job or
formal they get training to perform current job well. New employees are
oriented and are able to come up to speed quickly, without undue burden on
existing staff.
6. Job Satisfaction: Employees derive intrinsic satisfaction from their work,
see a good match among their jobs, their interests and their skills and abilities.
Employees are happy in their organizations. There is a confidence in the
company‘s ability to succeed, leading to long term stability for the employee.
265
Organizational Citizenship Behavior in this study is:
1. Interpersonal Helping: Interpersonal helping involves helping co-workers in
their jobs when such help is needed.
2. Individual Initiative: Individual initiative is communicating to others in the
work place to improve individual and group performance.
3. Loyal Boosterism: Finally, loyal boosterism involves the promotion of the
organizational image to outsiders (Moorman and Blakely, 1995).
4. Personal Industry: Personal industry includes the performance of specific
tasks above and beyond the call of duty.
266
ANNEXURE- IV
LIST OF BANKS
1. HDFC
2. Kotak Mahindra Bank
3. ICICI
4. Yes Bank
5. Catholic Syrian Bank
6. Federal Bank
7. South Indian Bank
8. DCB
267
Annexure – V
Tables and Exhibits of other statistical Analysis
1. Reliability statistics for EI, OC & OCB
Summary Item Statistics
Maximum
/ N of
Mean Minimum Maximum Range Minimum Variance Items
Inter-Item
.529 .294 .744 .450 2.532 .008 17
Correlations
Item-Total Statistics
Scale Cronbach's
Scale Mean Variance if Corrected Squared Alpha if
if Item Item Item-Total Multiple Item
Deleted Deleted Correlation Correlation Deleted
Expressing Emotions 52.31 201.138 .669 .576 .948
Understanding
51.89 196.403 .821 .747 .945
Emotions
Understanding
52.03 198.119 .773 .675 .946
Emotions
Understanding
52.18 200.572 .764 .693 .946
Emotions
Understanding
52.18 197.901 .751 .729 .946
Emotions
Understanding
52.24 200.381 .735 .654 .947
Emotions
Understanding
52.47 203.487 .666 .540 .948
Emotions
Balancing Emotions 52.26 198.555 .694 .605 .947
268
Item-Total Statistics
Scale Corrected Squared Cronbach's

Scale Mean if Variance if Item-Total Multiple Alpha if Item
Item Deleted Item Deleted Correlation Correlation Deleted
OCB 53.03 240.998 .782 .703 .976
OCB 53.01 240.941 .806 .738 .975
OCB 53.12 240.196 .834 .773 .975
OCB 53.06 240.595 .840 .774 .975
OCB 52.88 239.471 .888 .835 .974
OCB 53.03 239.175 .852 .759 .975
OCB 53.01 239.351 .862 .786 .975
OCB 53.06 241.599 .842 .769 .975
OCB 53.12 243.956 .804 .733 .975
OCB 53.03 241.978 .771 .695 .976
OCB 52.99 238.868 .878 .807 .974
OCB 53.05 239.815 .864 .839 .974
OCB 52.92 241.056 .848 .775 .975
OCB 53.08 239.332 .838 .779 .975
OCB 53.03 237.187 .835 .760 .975
OCB 53.00 236.989 .884 .817 .974
Summary Item Statistics
Maximum
/ N of
Mean Minimum Maximum Range Minimum Variance Items
Inter-Item
.722 .555 .830 .276 1.498 .003 16
Correlations
The covariance matrix is calculated and used in the analysis
269
Mean, Median, Standard Deviation
Std. Error Std.
N Mean of Mean Median Deviation Minimum Maximum
ExEmo 704 16.2969 .17788 17.0000 4.71958 5.00 24.00
UnEmo 704 19.9233 .21694 21.0000 5.75605 6.00 30.00
BalEmo 704 19.2670 .21051 21.0000 5.58547 6.00 29.00
EI Total
704 55.4872 .56568 60.0000 15.00914 20.00 80.00
Score
CO 704 6.8494 .07935 7.0000 2.10535 2.00 10.00
InvEmp 704 13.3580 .15779 15.0000 4.18658 4.00 20.00
Inf_know 704 16.9460 .18720 19.0000 4.96702 5.00 25.00
TrDev 704 16.9673 .20003 19.0000 5.30737 5.00 25.00
TeamCoop 704 24.0625 .27087 26.0000 7.18692 7.00 35.00
OvSat 704 30.9276 .33595 34.0000 8.91379 10.00 45.00
IntHelp 704 17.7060 .20180 20.0000 5.35432 5.00 25.00
IndIni 704 10.5881 .12222 12.0000 3.24279 3.00 15.00
PerInd 704 14.0554 .15954 16.0000 4.23305 4.00 20.00
LoyBoost 704 14.2131 .17036 16.0000 4.52023 4.00 20.00
OC Total
704 109.1108 1.14194 122.0000 30.29916 40.00 154.00
Score
OCB Total
704 56.5625 .62243 63.0000 16.51497 16.00 80.00
Score
270
Tables and Charts
Age Distribution of Sample
Cumulative
Valid Below 25 175 24.9 24.9 24.9
26-35 211 30.0 30.1 55.0
36-45 197 28.0 28.1 83.0
Above 45 119 16.9 17.0 100.0
Total 702 99.7 100.0
Missing 0 2 .3
Total 704 100.0
271
Age & Gender Crosstabulation
Count
male or female
Male Female Total
age test persons Below 25 99 76 175
26-35 159 52 211
36-45 171 26 197
Above 45 102 17 119
Total 531 171 702
272
Age Marital status Crosstabulation
Count
married unmarried
Single married Total
26-35 63 148 211
36-45 32 165 197
Above 45 22 97 119
Total 265 437 702
273
Age & Qualification
Age& Qualification level Crosstabulation

Count
qualification level
postgra Prof.Deg
graduate diploma duate ree Others Total
age test persons Below 25 58 43 13 35 26 175
26-35 55 24 68 46 18 211
36-45 24 22 61 79 11 197
Above 45 25 19 38 33 4 119
Total 162 108 180 193 59 702
274
Age & State Bar Chart
age test persons * kerala/maharashtra Crosstabulation
Count
kerala/maharashtra
kerala maharashtra Total
26-35 79 132 211
36-45 99 98 197
Above 45 40 79 119
Total 239 463 702
275
Gender Distribution
Cumulative
Valid Male 532 75.6 75.6 75.6
Female 172 24.4 24.4 100.0
Total 704 100.0 100.0
276
Gender & Marital Status Crosstabulation
Count
married unmarried
Single married Total
male or female Male 165 367 532
Female 101 71 172
Total 266 438 704
277
Gender * qualification level Crosstabulation
Count
qualification level
diplom postgra Prof.De

graduate a duate gree Others Total
male or female Male 115 62 152 152 51 532
Female 47 47 28 42 8 172
Total 162 109 180 194 59 704
278
Gender * Position Crosstabulation
Count
manager nonmamanager
managerial cadre nonmanagerial Total
Female 56 116 172
Total 344 360 704
279
Gender * experience Crosstabulation
Count
experience
0-10 above10 3 Total
male or female Male 227 305 0 532
Female 108 63 1 172
Total 335 368 1 704
280
Gender * State Crosstabulation
Count
kerala/maharashtra
kerala maharashtra Total
Female 44 128 172
Total 239 465 704
281
Participation in Decision Making (Those with responseStrongly
disagree,disagree & Neutral feel that they have no role in decision making)
Cumulative
Valid Strongly Disagree 44 6.3 6.3 6.3
Disagree 163 23.2 23.2 29.4
Neutral 109 15.5 15.5 44.9
Agree 266 37.8 37.8 82.7
Strongly Agree 122 17.3 17.3 100.0
Total 704 100.0 100.0
282
Superior subordinate relation(Those with responseStrongly disagree,
disagree & Neutral feel that relation is Bad)
Cumulative
Disagree 134 19.0 19.0 27.4
Neutral 126 17.9 17.9 45.3
Agree 296 42.0 42.0 87.4
Strongly Agree 89 12.6 12.6 100.0
Total 704 100.0 100.0
283
Interdepartmental Communication(Those with responseStrongly disagree,
disagree & Neutral feel that the interdepartmental communication is poor)
OC26
Cumulative
Disagree 130 18.5 18.5 23.2
Neutral 115 16.3 16.3 39.5
Agree 290 41.2 41.2 80.7
Strongly Agree 136 19.3 19.3 100.0
Total 704 100.0 100.0
284
Team autonomy(Those with responseStrongly disagree,disagree & Neutral
feel that the team autonomy is missing)
Statistics
OC40
N Valid 704
Missing 0
Mean 3.43
Median 4.00
Std. Deviation 1.194
Variance 1.426
Range 4
OC40
Cumulative
Disagree 126 17.9 17.9 25.1
Neutral 133 18.9 18.9 44.0
Agree 258 36.6 36.6 80.7
Strongly Agree 136 19.3 19.3 100.0
Total 704 100.0 100.0
285
Satisfaction with compensation, pay and benefits((Those with response
Strongly disagree,disagree & Neutral feel that the compensation pay and
benefits are not satisfactory)
Statistics
OC48
N Valid 704
Missing 0
Mean 3.13
Variance 1.420
OC48
Cumulative
Disagree 163 23.2 23.2 32.8
Neutral 170 24.1 24.1 57.0
Agree 212 30.1 30.1 87.1
Strongly Agree 91 12.9 12.9 100.0
Total 704 100.0 100.0
286
Work Life Balance (Those with responseStrongly disagree,disagree &
Neutral feel that the work life balance is not satisfactory)
Statistics
OC
N Valid 704
Missing 0
Mean 3.40
Variance 1.405
OC
Cumulative
Disagree 100 14.2 14.2 22.6
Neutral 174 24.7 24.7 47.3
Agree 239 33.9 33.9 81.3
Strongly Agree 132 18.8 18.8 100.0
Total 704 100.0 100.0
287
Chisquare test between JS and OCB
Chi-Square Tests

a
Pearson Chi-Square 533.191 1 .000
b

Association
Chisquare test between TC and OCB
Chi-Square Tests

a
b

Association
288
Chi square ET and OCB
Chi-Square Tests

a
b

Association
Age & Job satisfaction
289
Age and JS
age test persons * JS Crosstabulation
JS
loJS hi JS Total
% within JS 29.9% 22.8% 24.9%
% of Total 9.0% 16.0% 24.9%
26-35 Count 62 149 211
% within JS 29.4% 30.3% 30.1%
% of Total 8.8% 21.2% 30.1%
36-45 Count 57 140 197
% within JS 27.0% 28.5% 28.1%
% of Total 8.1% 19.9% 28.1%
% within JS 13.7% 18.3% 17.0%
% of Total 4.1% 12.8% 17.0%
% within JS 100.0% 100.0% 100.0%
% of Total 30.1% 69.9% 100.0%
290
Age and JS
ANOVA
JS
Between Groups 3.607 3 1.202 1.227 .299
Total 687.519 701
age * Involvement Empowerment Crosstabulation
IE
loIE HiIE Total

% within IE 30.3% 22.1% 24.9%
% of Total 10.5% 14.4% 24.9%
26-35 Count 85 126 211
% within IE 34.8% 27.5% 30.1%
% of Total 12.1% 17.9% 30.1%
36-45 Count 59 138 197
% within IE 24.2% 30.1% 28.1%
% of Total 8.4% 19.7% 28.1%
% within IE 10.7% 20.3% 17.0%
% of Total 3.7% 13.2% 17.0%
% within IE 100.0% 100.0% 100.0%
% of Total 34.8% 65.2% 100.0%
291
292
Age & Information & Knowledge Sharing
age test persons * ik Crosstabulation
ik
loIK hiIK Total

% within ik 26.3% 24.3% 24.9%
% of Total 8.5% 16.4% 24.9%
26-35 Count 74 137 211
% within ik 32.5% 28.9% 30.1%
% of Total 10.5% 19.5% 30.1%
36-45 Count 62 135 197
% within ik 27.2% 28.5% 28.1%
% of Total 8.8% 19.2% 28.1%
% within ik 14.0% 18.4% 17.0%
% of Total 4.6% 12.4% 17.0%
% within ik 100.0% 100.0% 100.0%
% of Total 32.5% 67.5% 100.0%
293
ET
poorET gd ET Total
% within ET 28.2% 23.4% 24.9%
% of Total 9.1% 15.8% 24.9%
26-35 Count 76 135 211
% within ET 33.5% 28.4% 30.1%
% of Total 10.8% 19.2% 30.1%
36-45 Count 54 143 197
% within ET 23.8% 30.1% 28.1%
% of Total 7.7% 20.4% 28.1%
% within ET 14.5% 18.1% 17.0%
% of Total 4.7% 12.3% 17.0%
% within ET 100.0% 100.0% 100.0%
% of Total 32.3% 67.7% 100.0%
Age * Employee Training Crosstabulation
294
295
age * Team work Crosstabulation
TC
loTC HiTc Total
% within TC 33.5% 21.2% 24.9%
% of Total 10.1% 14.8% 24.9%
26-35 Count 59 152 211
% within TC 27.8% 31.0% 30.1%
% of Total 8.4% 21.7% 30.1%
36-45 Count 52 145 197
% within TC 24.5% 29.6% 28.1%
% of Total 7.4% 20.7% 28.1%
% within TC 14.2% 18.2% 17.0%
% of Total 4.3% 12.7% 17.0%
% within TC 100.0% 100.0% 100.0%
% of Total 30.2% 69.8% 100.0%
296
297
age test persons * co Crosstabulation
core
lowco hico Total

% within co 26.1% 24.2% 24.9%
% of Total 9.8% 15.1% 24.9%
26-35 Count 86 125 211
% within co 32.6% 28.5% 30.1%
% of Total 12.3% 17.8% 30.1%
36-45 Count 70 127 197
% within co 26.5% 29.0% 28.1%
% of Total 10.0% 18.1% 28.1%
% within co 14.8% 18.3% 17.0%
% of Total 5.6% 11.4% 17.0%
% within co 100.0% 100.0% 100.0%
% of Total 37.6% 62.4% 100.0%
Descriptives
co
95% Confidence Interval

for Mean
Std. Std. Lower Upper

N Mean Deviation Error Bound Bound Minimum Maximum
Below 175 3.21 1.075 .081 3.05 3.37 1 5

25
26-35 211 3.23 .891 .061 3.10 3.35 1 5
36-45 197 3.31 .961 .068 3.17 3.44 1 5
Above 119 3.36 .961 .088 3.18 3.53 1 5

45
Total 702 3.27 .970 .037 3.20 3.34 1 5
298
ANOVA
co
Between Groups 2.180 3 .727 .771 .511
Total 660.134 701
Gender and Job Satisfaction
male or female * JS Crosstabulation
JS
loJS hi JS Total
% within JS 70.3% 77.8% 75.6%
% of Total 21.2% 54.4% 75.6%
% within JS 29.7% 22.2% 24.4%
% of Total 8.9% 15.5% 24.4%
% within JS 100.0% 100.0% 100.0%
% of Total 30.1% 69.9% 100.0%
299
male or female * IE Crosstabulation
IE
loIE HiIE Total
% within IE 73.1% 76.9% 75.6%
% of Total 25.4% 50.1% 75.6%
% within IE 26.9% 23.1% 24.4%
% of Total 9.4% 15.1% 24.4%
% within IE 100.0% 100.0% 100.0%
% of Total 34.8% 65.2% 100.0%
male or female * ik Crosstabulation
ik
loIK hiIK Total
% within ik 72.9% 76.8% 75.6%
% of Total 23.7% 51.8% 75.6%
% within ik 27.1% 23.2% 24.4%
% of Total 8.8% 15.6% 24.4%
% within ik 100.0% 100.0% 100.0%
% of Total 32.5% 67.5% 100.0%
300
male or female * ET Crosstabulation
ETre
poorET gd ET Total
% within ET 71.1% 77.7% 75.6%
% of Total 23.0% 52.6% 75.6%
% within ET 28.9% 22.3% 24.4%
% of Total 9.4% 15.1% 24.4%
% within ET 100.0% 100.0% 100.0%
% of Total 32.4% 67.6% 100.0%
301
male or female * TC Crosstabulation
TC
loTC HiTc Total
% within TC 70.9% 77.6% 75.6%
% of Total 21.4% 54.1% 75.6%
% within TC 29.1% 22.4% 24.4%
% of Total 8.8% 15.6% 24.4%
% within TC 100.0% 100.0% 100.0%
% of Total 30.3% 69.7% 100.0%
302
male or female * co Crosstabulation
co
lowco hico Total
% within co 71.4% 78.1% 75.6%
% of Total 27.0% 48.6% 75.6%
% within co 28.6% 21.9% 24.4%
% of Total 10.8% 13.6% 24.4%
% within co 100.0% 100.0% 100.0%
% of Total 37.8% 62.2% 100.0%
303
male or
JS Male 532 3.45 .958 .042
Female 172 3.35 1.050 .080
co Male 532 3.29 .964 .042
Female 172 3.20 .989 .075
IE Male 532 3.29 .965 .042
Female 172 3.22 1.043 .080
IK Male 532 3.43 .953 .041
Female 172 3.27 1.102 .084
ET Male 532 3.44 1.040 .045
Female 172 3.25 1.112 .085
304
Levene's Test
for Equality of
95% Confidenc
Interval of the
Difference
Sig.
(2- Mean Std. Error
JS Equalvariance 7.605 .006 1.185 702 .236 .102 .086 -.067 .271
assumed
Equalvariance 1.131 269.154 .259 .102 .090 -.076 .279

not assumed
co Equalvariance 1.295 .256 1.022 702 .307 .087 .085 -.080 .254
assumed
Equalvariance 1.009 283.530 .314 .087 .086 -.083 .257

not assumed
IE Equalvariance 4.455 .035 .827 702 .409 .071 .086 -.098 .241
assumed
Equalvariance .794 271.998 .428 .071 .090 -.106 .248

not assumed
IK Equavariancel 10.367 .001 1.875 702 .061 .163 .087 -.008 .334
assumed
Equalvariance 1.741 258.712 .083 .163 .094 -.021 .347

not assumed
ET Equalvariance 4.714 .030 2.047 702 .041 .190 .093 .008 .372
assumed
Equalvariance 1.978 274.269 .049 .190 .096 .001 .379

not assumed
305
qualification level * JS Crosstabulation
reJS
loJS hi JS Total
% within JS 15.6% 26.2% 23.0%
% of Total 4.7% 18.3% 23.0%
% within JS 19.8% 13.6% 15.5%
% of Total 6.0% 9.5% 15.5%
% within JS 14.2% 30.5% 25.6%
% of Total 4.3% 21.3% 25.6%
% within JS 35.4% 24.2% 27.6%
% of Total 10.7% 16.9% 27.6%
% within JS 15.1% 5.5% 8.4%
% of Total 4.5% 3.8% 8.4%
% within JS 100.0% 100.0% 100.0%
% of Total 30.1% 69.9% 100.0%
306
qualification level * IE Crosstabulation
IEre
loIE HiIE Total
% within IE 20.0% 24.6% 23.0%
% of Total 7.0% 16.1% 23.0%
% within IE 13.9% 16.3% 15.5%
% of Total 4.8% 10.7% 15.5%
% within IE 25.7% 25.5% 25.6%
% of Total 8.9% 16.6% 25.6%
% within IE 27.3% 27.7% 27.6%
% of Total 9.5% 18.0% 27.6%
% within IE 13.1% 5.9% 8.4%
% of Total 4.5% 3.8% 8.4%
% within IE 100.0% 100.0% 100.0%
% of Total 34.8% 65.2% 100.0%
307
qualification level * ik Crosstabulation
ik
loIK hiIK Total
% within ik 13.1% 27.8% 23.0%
% of Total 4.3% 18.8% 23.0%
% within ik 17.5% 14.5% 15.5%
% of Total 5.7% 9.8% 15.5%
% within ik 23.6% 26.5% 25.6%
% of Total 7.7% 17.9% 25.6%
% within ik 32.8% 25.1% 27.6%
% of Total 10.7% 16.9% 27.6%
% within ik 13.1% 6.1% 8.4%
% of Total 4.3% 4.1% 8.4%
% within ik 100.0% 100.0% 100.0%
% of Total 32.5% 67.5% 100.0%
308
qualification level * ET Crosstabulation
ET
poorET gd ET Total
% within ET 14.9% 26.9% 23.0%
% of Total 4.8% 18.2% 23.0%
% within ET 18.4% 14.1% 15.5%
% of Total 6.0% 9.5% 15.5%
% within ET 22.4% 27.1% 25.6%
% of Total 7.2% 18.3% 25.6%
% within ET 30.3% 26.3% 27.6%
% of Total 9.8% 17.8% 27.6%
% within ET 14.0% 5.7% 8.4%
% of Total 4.5% 3.8% 8.4%
% within ET 100.0% 100.0% 100.0%
% of Total 32.4% 67.6% 100.0%
309
qualification level * TC Crosstabulation
TCre
loTC HiTc Total
% within TC 19.7% 24.4% 23.0%
% of Total 6.0% 17.0% 23.0%
% within TC 19.7% 13.6% 15.5%
% of Total 6.0% 9.5% 15.5%
% within TC 14.1% 30.5% 25.6%
% of Total 4.3% 21.3% 25.6%
% within TC 31.9% 25.7% 27.6%
% of Total 9.7% 17.9% 27.6%
% within TC 14.6% 5.7% 8.4%
% of Total 4.4% 4.0% 8.4%
% within TC 100.0% 100.0% 100.0%
% of Total 30.3% 69.7% 100.0%
310
qualification level * co Crosstabulation
core
lowco hico Total
% within co 16.9% 26.7% 23.0%
% of Total 6.4% 16.6% 23.0%
% within co 15.0% 15.8% 15.5%
% of Total 5.7% 9.8% 15.5%
% within co 24.1% 26.5% 25.6%
% of Total 9.1% 16.5% 25.6%
% within co 31.2% 25.3% 27.6%
% of Total 11.8% 15.8% 27.6%
% within co 12.8% 5.7% 8.4%
% of Total 4.8% 3.6% 8.4%
% within co 100.0% 100.0% 100.0%
% of Total 37.8% 62.2% 100.0%
311
Differences based on Qualification in JS,CO,IE,IK,ET,TC.
ANOVA
Sum of
Squares df Mean Square F Sig.
JS Between Groups 33.984 4 8.496 9.240 .000
Total 676.662 703
co Between Groups 30.060 4 7.515 8.315 .000
Total 661.812 703
IE Between Groups 23.128 4 5.782 6.145 .000
Total 680.815 703
IK Between Groups 16.504 4 4.126 4.262 .002
Total 693.162 703
ET Between Groups 25.756 4 6.439 5.887 .000
Within Groups 764.549 699 1.094
Total 790.305 703
TC Between Groups 36.402 4 9.100 9.028 .000
Within Groups 704.644 699 1.008
Total 741.046 703
312

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IMPACT OF EMOTIONAL INTELLIGENCE

ON ORGANIZATIONAL CLIMATE AND

Thesis Submitted to the

ON ORGANIZATIONAL CLIMATE AND

ORGANIZATIONAL CITIZENSHIP BEHAVIOR

IN PRIVATE SECTOR BANKS.

I hereby declare that the thesis entitled ‘Impact of Emotional Intelligence

on the Organizational Climate and Organizational Citizenship behavior

in Private sector Banks’ submitted for the Award of Doctor of

Philosophy in Business Management at the Padmashree Dr. D.Y. Patil

University Department of Business Management is my original work and

associateship, fellowship or any other similar titles.

Place: Navi Mumbai

Dr. R. Gopal Dr. R. Gopal Deepa Nair

(Head of the department) (Research Guide) (Research Scholar)

This is to certify that the thesis entitled ‘Impact of Emotional Intelligence

on the Organizational Climate and Organizational Citizenship Behavior

in Private Sector Banks’ and submitted by Ms. Deepa Nair is a bonafide

research work for the award of the Doctor of Philosophy in Business

Management at the Padmashree Dr. D. Y. Patil University Department of

Business Management in partial fulfillment of the requirements for the

award of the Degree of Doctor of Philosophy in Business Management

any degree, diploma, associateship, fellowship or any other similar title of

any University or Institution. Also certified that the thesis represents an

independent work on the part of the candidate.

Place: Navi Mumbai

Prof. Dr. R. Gopal Prof. Dr. R. Gopal

(Head of the department) (Research Guide)

I am greatly indebted to the Padmashree Dr. D.Y. Patil University,

I, with deep gratitude and respect, acknowledge the constant guidance

I am grateful to my parents who have always been encouraging me in all

Date: Signature of the student

4.04.4 Experience and Organizational Citizenship 111

In a Business Environment that is extremely volatile, banks are always

expansion is taking place particularly in the private sector banks. Expansion is

taking place in multiple moves; one is there is physical expansion;

distribution, increased number of branches, automated teller machine (ATM),

network. But importantly, there is another expansion which is taking place is

Emotional Intelligence is a person‘s ability to be self aware, detect emotions in

to Darwin's work on the importance of emotional expression for survival and

adaptation. In the 1900s, even though traditional definitions of intelligence

emphasized cognitive aspects such as memory and problem-solving, several

the importance of the non-cognitive aspects. For instance, as early as 1920,

understanding and managing other people.

The first use of the term "emotional intelligence" is usually attributed to

Wayne Payne's doctoral thesis, A Study of Emotion: Developing Emotional

Intelligence from 1985. However, prior to this, the term "emotional

intelligence" had appeared in Leuner (1966). Greenspan (1989) also put

forward an EI model, followed by Salovey and Mayer (1990), and Goleman

(1995). The distinction between trait emotional intelligence and ability

emotional intelligence was introduced in 2000.

Climate can be defined as the ‗incumbents perceptions of the events, practices

a setting‘ (Schneider1990; pg.384). The climate of an organization refers to

those aspects of the environment that are consciously perceived by the

organizational members (Amstrong 2003). In short it refers to how members

of the organization perceive it as they go about their daily business. Reichers

and Schneider (1990.pg.22) defined organizational climate as ‗shared

perceptions of the way things are around here‘.

Organizational Citizenship Behavior.

Organizational citizenship behavior (OCB) has become a major construct in

citizenship behavior ―represents individual behavior that is discretionary, not

directly or explicitly recognized by the formal reward system, and in the