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International Journal of Contemporary Hospitality ManagementHow emotional intelligence can improve management performanceSteve Langhorn

Article information:To cite this document:Steve Langhorn, (2004),"How emotional intelligence can improve management performance", International Journal ofContemporary Hospitality Management, Vol. 16 Iss 4 pp. 220 - 230Permanent link to this document:http://dx.doi.org/10.1108/09596110410537379

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http://dx.doi.org/10.1108/09596110410537379

How emotionalintelligence can improvemanagementperformance

Steve Langhorn

The author

Steve Langhorn is a Business Readiness Director at Whitbreadplc, Clophill, Dunstable, UK.

Keywords

Intelligence, Customer services quality, General management,Team working, Hotel and catering industry

Abstract

This paper describes the research conducted in relating theemotional competencies of individual general managers to thekey performance outputs under their direct control. The Bar-OnEqi is the tool used to test emotional intelligence, and theparticipants in the study are a group of managers operating inthe pub restaurant sector of the leisure industry in the UK.Evidence was found of correlation in key areas of profitperformance relating to the emotional intelligence pattern of thegeneral manager.

Electronic access

The Emerald Research Register for this journal isavailable atwww.emeraldinsight.com/researchregister

The current issue and full text archive of this journal isavailable atwww.emeraldinsight.com/0959-6119.htm

Introduction

This paper describes the research undertaken with

a sample of restaurant general managers. The

purpose was to examine the relationship between

the emotional competence of the general manager

sample, and their performance in key areas of the

businesses they manage.

The relationship between the actions of the

general manager of a typical outlet employing

maybe 100 people, and the nature of the ultimate

impact on the customer is clearly a complex one.

The literature describes the notions of

empowerment and discretion in service industries

as a means to improved performance (Lashley,

1995), and the drive for the creation of service

cultures (Leidner, 1993) to enable a level of

motivation around a shared vision of great service

through good teamwork. These approaches are

seen as critical in creating the right conditions for

the continued financial health of those operations.

A number of key performance indicators were

examined in this study and by assessing the general

manager population with the Bar-On Eqi, the goal

was to understand the relationship between the

emotional competence of the general managers

and the performance of the outlets under their

control (Figure 1).

Figure 1 shows the hypotheses that will be

examined in this paper, and these are outlined in

detail as follows.

H1. Managerial emotional intelligence is

positively related to employee satisfaction.


positively related to customer satisfaction.


positively related to profit performance.

H4. Managerial gendered emotional intelligence

is positively related to superior business

(profit) performance.

H5. Managerial, age related emotional

intelligence is positively related to business

(profit) performance.

The performance data

In combination with the Bar-On Eqi, a collection

of critical performance data was collected on the

outlets in the study. This information was used as a

measure of overall management performance from

three distinct areas of business performance and

reflects the “balanced scorecard” of customer,

team and shareholder (Kaplan and Norton, 1996)

measures of the business in the study. These were

as follows.

International Journal of Contemporary Hospitality Management

Volume 16 · Number 4 · 2004 · pp. 220-230

q Emerald Group Publishing Limited · ISSN 0959-6119

DOI 10.1108/09596110410537379

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. Profit performance data. This was the profit

performance (before the allocation of fixed

costs) generated by the site in the full year

under review, compared to the previous full

year performance. This was expressed as a

percentage growth figure. The average in the

study was 15 per cent.. Team satisfaction. This was a figure extracted

from the company’s annual satisfaction survey

(whose structure is based on the “Gallup

twelve questions” (Buckingham and Coffman,

1999)).

This is expressed as an absolute percentage

satisfaction score by individual site, including

all respondent employees in that outlet.

Average response rates to such surveys are 69

per cent. The average satisfaction score in the

study was 90 per cent.. Team turnover. This figure represents the

number of employees who have left the site in

a one-year period, divided by the total number

of employees in that site, expressed as a

percentage. As mentioned in the earlier

literature review, these numbers are extremely

high in this industry, the average in this sample

being 95 per cent per annum.. Customer (guest) satisfaction. The business

has a “mystery guest” programme, which

involves the regular periodical visit of

people employed by an external agency,

visiting the individual sites, posing as regular

customers. The numbers quoted are the

annualised results of this programme reported

by site. The average in the study was 84

percent.. Appraisal rating. The annual appraisal rating

given to each general manager in the year

under scrutiny is recorded in the data set. This

rating is given to general managers by their

immediate line manager (the regional sales

manager) and reflects overall management

achievement against a pre-determined set of

key tasks, which include specifically three of

the above four measures, the exclusion being

team satisfaction, which is used as supporting

data rather than a specific key performance

indicator.

The results

The results in this section deal with the findings

relating to the key parameters under investigation

in the study.

Figure 1 Research model for restaurant managers

How emotional intelligence can improve management performance

Steve Langhorn


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Table I shows that the mean Eqi scores of the

male general managers and female general

managers do not show any pronounced trends at

the total Eqi level or in the Eqi subscales, with the

exception of Optimism with male general

managers (98.0) and female general managers

(103.1). The scores on Optimism are significant

ðp ¼ 0:031Þ:Table II does not demonstrate any pronounced

trends at the total Eqi level, younger (104.1), older

(104.2) and the subscales are not significantly

different, with the exception of assertiveness

(younger, 102.2, older, 108.9), which is significant

ðp ¼ 0:38Þ:Table III shows no overall difference in Eqi

between more experienced general managers

(100.3) and less experienced general managers

(104.4). A study of the Eqi subscales reveals that

less experienced managers have better self-regard

(101.4) than their more experienced colleagues

(93.3), which is significant ðp ¼ 0:037Þ, and are

more happy (104.2) than their more experienced

colleagues (95.4), which is significant ðp ¼ 0:012Þ:Table IV shows that the restaurants that are

managed by female GMs are more profitable (22.3

per cent profit growth) than their male colleagues

(11.4 per cent), although in this example the

difference is not significant.

There is no obvious reason for female managers

to be in control of more profitable outlets than

their male counterparts, but this may well be

pointing toward a relationship between the

emotional competence of the leader and the

concomitant impact on the relationships and

Table II Comparison of mean Eqi scores between younger (n ¼ 42) and older (n ¼ 39) general managers based on the upper andlower quartiles of the population sample

Eqi scales Younger GMs Older GMs t-value p-level (two-tailed)

Total EQ 104.1 104.2 20.03 0.976

Self-regard 100.1 97.6 0.69 0.493

Emotional self-awareness 100.7 104.4 21.02 0.311

Assertiveness 102.2 108.9 22.11 0.038*

Independence 109.0 108.4 0.21 0.832

Self-actualisation 101.1 103.0 20.66 0.510

Empathy 101.8 102.0 20.07 0.948

Social responsibility 100.7 100.3 0.18 0.859

Interpersonal relationship 100.9 105.2 21.50 0.139

Stress tolerance 107.4 104.6 0.93 0.356

Impulse control 98.7 94.7 1.19 0.239

Reality-testing 105.2 106.0 20.25 0.801

Flexibility 108.1 106.0 0.65 0.519

Problem-solving 104.2 107.8 21.12 0.265

Optimism 100.4 100.1 0.10 0.922

Note: *p , 0.005

Table I Comparison of mean Eqi scores between male (n ¼ 109) and female (n ¼ 52) general managers

Eqi scales Male GMs Female GMs t-value p-level (two-tailed)

Total EQ 102.5 104.8 20.96 0.339

Self-regard 98.0 100.5 20.95 0.345


Assertiveness 105.1 106.9 20.72 0.474

Independence 107.6 108.0 20.20 0.840


Empathy 101.5 102.4 20.35 0.729




Impulse control 96.2 96.3 20.03 0.973

Reality-testing 103.5 103.5 0.02 0.987

Flexibility 106.1 109.5 21.36 0.176

Problem-solving 102.9 103.8 20.35 0.730

Optimism 98.0 103.1 22.18 0.031*

Happiness 99.5 103.2 21.51 0.132

Note: *p , 0.005


Steve Langhorn


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atmosphere generated in the outlet under the

individual manager’s control, albeit there is no

independent evidence of this.

Table V shows there is no significant difference

between the restaurants managed by the younger

quartile of GMs and those managed by the older

GMs.

From Table VI, it is interesting to note that the

less experienced managers control outlets

generating significantly higher profit growth

restaurants (30.7 per cent in profit growth) than

the more experienced managers (7.4 per cent).

Given the conclusion in Table V, this may not be

an issue of age, but of duration of experience in

these roles. This could be a function of “burnout”,

having been in the role for an extended length of

time. This finding supports empirical (if not

statistically proven) findings in the organisation,

where the placement of a newmanager in an outlet

often results in increased revenue and profit

performance, often put down to “hunger” and

enthusiasm.

From Table VII, as might be expected, and

somewhat in support of the quality of the appraisal

rating apportioned by the operations management,

the higher performing GMs manage restaurants

that are significantly more profitable (23.6 per

cent) than the lower performing ones, (23.59 per

cent).

In Table VIII, there is no significant difference

between the profit performance of restaurants with

greater or lower team satisfaction.

Much as was in evidence in Table VIII, there is

no significant difference in the profit growth

between restaurants with greater or lesser team

turnover. This again is a source of some surprise

given the well-documented issues of staff turnover

in this industry and the desire of senior

Table IV Comparison of profit growth in restaurants managed by male (n ¼ 109)and female (n ¼ 52) general managers

Male GMs

(%)

Female GMs

(%) t-value p-value

Profit growth 11.4 22.3 21.90 0.060

Notes: *p , 0.005; **p , 0.001

Table V Comparison of profit growth in restaurants managed by younger (n ¼ 42)and older (n ¼ 39) general managers based on the upper and lower quartiles of thepopulation sample

Younger GMs

(%)

Older GMs

(%) t-value p-value

Profit growth 20.8 11.4 1.05 0.298

Notes: *p , 0.005 **p , 0.001

Table III Comparison of mean Eqi scores between the less experienced (n ¼ 43) and more experienced (n ¼ 41) general managersbased on the upper and lower quartile of the population sample

Eqi scales Less experienced GMs More experienced GMs t-value p-level (two-tailed)

Total EQ 104.4 100.3 1.32 0.191

Self-regard 101.4 93.3 2.12 0.037*


Assertiveness 104.2 106.1 20.66 0.512

Independence 110.1 105.5 1.55 0.126


Empathy 103.1 100.1 0.89 0.377




Impulse control 96.8 93.9 0.86 0.394

Reality-testing 102.4 102.5 20.02 0.984

Flexibility 108.0 103.7 1.39 0.169

Problem-solving 103.9 102.9 0.28 0.779

Optimism 100.5 97.2 1.00 0.320

Happiness 104.2 95.4 2.56 0.012**

Notes: *p , 0.005; **p , 0.001

Table VI Comparison of profit growth of restaurants managed by less experienced (n ¼ 40), medium experienced (n ¼ 79) and moreexperienced (n ¼ 42) general managers based on the upper and lower quartiles of the population sample

Less experienced

GMs

(%)

Medium experienced

GMs

(%)

More experienced

GMs

(%) t-valuep-value

(two-tailed)

Profit 31.0 10.4 8.1 6.347 0.002*

Note: *p , 0.005


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management to reduce these numbers of people

leaving the business (Table IX).

Table X shows that the restaurants with higher

customer satisfaction are more profitable (27.6 per

cent) than the ones with lower customer

satisfaction (10.1 per cent). However, the

difference is not significant.

Table XI shows that the more profitable

restaurants are managed by the general managers

with the higher emotional intelligence (107) when

compared to general managers who manage less

profitable restaurants (101); and the difference

between the two approaches is not statistically

significant ðp ¼ 0:079Þ: The three most important

emotional intelligence components appear to be

independence (112 versus 106, 1.93, p ¼ 0:058),reality-testing (107 versus 101, p ¼ 0:061), andself-actualization (106 versus 99, p ¼ 0:053).

The major findings relating to theconnection between emotionalintelligence and the parameters studied

The results that appear in Table XII show that

emotional intelligence is able to predict the

performance of the general manager (as measured

by performance appraisal) with a significant degree

of accuracy (F ¼ 2:44; p ¼ 0:003). Moreover it

can be seen that emotional intelligence contributes

21 per cent to this specific type of performance

(regresssion, R ¼ 0:45), this represents a

considerable variance.

There are no significant relationships between

the major scales of Eqi (intrapersonal,

interpersonal, adaptability, stress management

and general mood) and management performance

as measured by performance appraisal rating.

However, at the subscale level of the Eqi the

main predictors of managerial performance are

emotional self-awareness (p ¼ 0:036), social

responsibility (p ¼ 0:029), interpersonal

relationships (p ¼ 0:000) and optimism

(p ¼ 0:010). Looking at the upper quartile of high

performing managers, the average high mean

scores for the emotional intelligence components

of this model are as follows:. Emotional self-awareness ¼ 103.. Social responsibility ¼ 101.. Optimism ¼ 99.. Self-actualization ¼ 102.. Happiness ¼ 101.

Table VII Comparison of profit growth in restaurants managed by low (n ¼ 26) and high (n ¼ 54) performing managers based onperformance above and below average as rated by appraisal measure

Low performing

GMs

(%)

High performing

GMs

(%) t-valuep-value

(two-tailed)

Profit growth 23.59 23.6 24.22 0.000*

Note: *p , 0.001

Table VIII Comparison of profit growth in restaurants in which there is low (n ¼ 34) and high (n ¼ 37) team satisfaction based on theupper and lower quartiles of the population sample

Low team satisfaction

(%)

High team satisfaction

(%) t-valuep-value

(two-tailed)

Profit growth 14.9 9.07 0.85 0.397

Table IX Comparison of profit growth in restaurants in which there is low (n ¼ 41) and high (n ¼ 38) team turnover based on theupper and lower quartiles of the population sample

Low team turnover

(%)

High team turnover

(%) t-valuep (t)

(two-tailed)

Profit growth 16.0 17.9 20.24 0.814

Table X Comparison of profit growth in restaurants in which there is low (n ¼ 43) and high (n ¼ 40) customer satisfaction based onupper and lower quartiles of the population sample

Low customer satisfaction

(%)

High customer satisfaction

(%) t-valuep (t)

(two-tailed)

Profit growth 10.1 27.6 21.78 0.078


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Table XIII shows that the emotional intelligence of

the general manager is able to predict team

satisfaction with a reasonable degree of accuracy

(F ¼ 1:07; p ¼ 0:393). It can be seen that the

general managers’ emotional intelligence

contributes about 10 per cent to team satisfaction

(regression, R ¼ 0:33).

None of the subscales of the Eqi scales

demonstrate significant relationships with team

satisfaction. However, if the model is carried out at

the major scale level of the Eqi the following

picture emerges (Table XIV).

Table XIV shows that at the major scale level,

adaptability (p ¼ 0:023) and interpersonal skills

(p ¼ 0:036) are significantly related to team

satisfaction.

Looking at the upper quartile, the high mean

scores for the emotional intelligence components

of this model are as follows:. Flexibility ¼ 113.. Stress tolerance ¼ 108.. Reality-testing ¼ 106.

From Table XV, it can be seen that general

managers’ emotional intelligence can predict team

turnover with a moderate degree of accuracy

(F ¼ 1:332; p ¼ 0:191). It can be seen that general

managers’ emotional intelligence contributes over

12percent to teamturnover (regression,R ¼ 0:35).

The main emotional intelligence components that

predict team turnover performance are problem

solving (p ¼ 0:031), stress tolerance (p ¼ 0:003)

and happiness (p ¼ 0:033).

Table XI Comparison of mean Eqi scores between general managers who manage less profitable restaurants (n ¼ 40), and moreprofitable restaurants (n ¼ 35) based on upper and lower quartiles of the population sample

Eqi Scales Male GMs Female GMs t-value p-level (two-tailed)

Total EQ 101.3 106.9 21.79 0.079

Self-regard 98.7 102.0 21.05 0.298


Assertiveness 102.5 105.9 21.04 0.302

Independence 106.3 111.9 21.93 0.058


Empathy 100.5 104.5 21.15 0.254




Impulse control 96.4 96.4 20.53 0.598

Reality-testing 101.4 107.1 21.90 0.061

Flexibility 107.8 110.8 20.91 0.366

Problem-solving 101.0 105.7 21.27 0.208

Optimism 97.9 102.3 21.33 0.189

Happiness 99.9 103.2 21.09 0.281

Table XII The emotional intelligence regression model that bestpredicts the performance of general managers (multipleR ¼ 0.45, F ¼ 2.44, p ¼ 0.003, n ¼ 161)

Eqi b t-value p-level

Self-regard 20.053 20.404 0.687

Emotional self-awareness 0.270 2.115 0.036*

Assertiveness 20.041 20.356 0.723

Independence 0.103 0.974 0.332

Self-actualisation 0.164 1.324 0.188

Empathy 20.218 21.672 0.097

Social responsibility 0.285 2.204 0.029*

Interpersonal relationship 20.554 23.721 0.000**

Reality-testing 20.165 21.334 0.184

Flexibility 20.040 20.361 0.719

Problem-solving 0.047 0.454 0.650

Stress tolerance 20.062 20.474 0.636

Impulse control 0.026 0.281 0.779

Optimism 0.318 2.624 0.010**

Happiness 0.204 1.581 0.116

Notes: *p , 0.005; **p , 0.001

Table XIII The emotional intelligence regression model ofgeneral managers that best predicts team satisfaction (multipleR ¼ 0.33, F ¼ 1.07, p ¼ 0.393, n ¼ 161)


Self-regard 20.105 20.743 0.459

Emotional self-awareness 0.086 0.622 0.535

Assertiveness 20.046 20.360 0.719



Empathy 0.069 0.497 0.620

Social responsibility 20.131 20.957 0.340

Interpersonal relationship 20.274 21.650 0.101


Flexibility 0.142 1.198 0.233




Optimism 0.037 0.280 0.780

Happiness 0.038 0.262 0.794


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There are no significant relationships between the

major scales of Eqi and team member turnover.


scores for the emotional intelligence model are as

follows:. Stress control ¼ 107.. Happiness ¼ 103.. Assertiveness ¼ 106.. Independence ¼ 108.. Flexibility ¼ 107.

From Table XVI, it is clear that the general

managers’ emotional intelligence can only predict

customer satisfaction to a very moderate degree

(F ¼ 1:34; p ¼ 0:185), it can be seen that the

general managers’ emotional intelligence

contributes about 13 per cent to customer

satisfaction (regression, R ¼ 0:35). There are no

significant relationships between the subscales of

Eqi and customer satisfaction. However, if the

major scales are examined, the results in Table

XVII emerge.

Table XVII shows a significant relationship

between the major scale of Eqi for general mood

(p ¼ 0:004) and customer satisfaction.


scores for the emotional intelligence model are as

follows:. Assertiveness ¼ 106.. Independence ¼ 108.. Flexibility ¼ 107.. Stress tolerance ¼ 106.

The results in Table XVIII suggest that general

managers’ emotional intelligence is able to predict

profit growth with only a moderate degree of

accuracy (F ¼ 0:962; p ¼ 0:499). It can be seen

that general managers’ emotional intelligence

contributes around 9 per cent to profit growth

(regression, R ¼ 0:30). The key emotional

intelligence competence in predicting profit

growth in this model is social responsibility

(p ¼ 0:042) and empathy (p ¼ 0:003)There are no significant relationships at the

major scale level of the Eqi. Looking at the upper

quartile, the high mean scores for the emotional

intelligence model are as follows:

Table XIV The emotional intelligence regression model ofgeneral managers that best predicts team satisfaction using themajor scales of the Eqi (multiple R ¼ 0.25, F ¼ 1.95, p ¼ 0.090,n ¼ 161)


Intrapersonal 0.069 0.45 0.656

Interpersonal 20.262 22.12 0.036*

Adaptability 0.291 2.30 0.023*

Stress management 20.077 20.74 0.460

General mood 0.071 0.52 0.606

Note: *p , 0.005

Table XV The emotional intelligence regression model of generalmanagers that best predicts team turnover (multiple R ¼ 0.35,F ¼ 1.332, p ¼ 0.191, n ¼ 161)


Self-regard 0.057 0.423 0.673


Assertiveness 20.072 20.601 0.548

Independence 20.120 21.088 0.279


Empathy 20.025 20.191 0.849




Flexibility 20.990 20.877 0.382

Problem-solving 0.231 2.185 0.031*

Stress tolerance 0.400 2.982 0.003**


Optimism 20.160 21.274 0.205

Happiness 20.286 22.147 0.033*

Notes: *p , 0.005; **p , 0.001

Table XVI The emotional intelligence regression model ofgeneral managers that best predicts customer satisfaction(multiple R ¼ 0.35, F ¼ 1.34, p ¼ 0.185, n ¼ 161)


Self-regard 0.047 0.342 0.733


Assertiveness 0.074 0.609 0.543



Empathy 20.230 20.171 0.864




Flexibility 20.005 20.041 0.968




Optimism 0.252 1.957 0.052

Happiness 0.210 1.518 0.131

Table XVII The emotional intelligence regression model ofgeneral managers that best predicts customer satisfaction usingthe major scales of the Eqi (multiple R ¼ 0.328, F ¼ 3.576,p ¼ 0.090, n ¼ 161)


Intrapersonal 20.128 20.854 0.395

Interpersonal 0.111 20.929 0.354

Adaptability 20.027 20.223 0.824

Stress management 20.172 21.710 0.088

General mood 0.391 2.494 0.004*

Note: *p , 0.001


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. Assertiveness ¼ 106.

. Independence ¼ 108.

. Flexibility ¼ 107.

. Stress Control ¼ 106.

Summary of regression analysis

Table XIX summarises the key findings of the

regression analysis on general managers and the

key performance outputs of the outlets under their

control.

Conclusions

The findings in this paper indicate that a

relationship exists between the emotional

intelligence of the general managers in the study

and their key performance results, as measured by

the performance appraisal rating of the manager,

satisfaction of the team, the profit output of the

units under their control and the satisfaction of the

customers (Figure 2).

Figure 2 shows the Eqi sub-scales that relate

significantly to the overall performance of the

general manager as measured by the performance

appraisal process.

These findings indicate that the performance of

the general managers appears to depend on their

ability to be aware of and understand their own

emotions (indicated in the emotional intelligence

model as emotional self-awareness). In much of

the literature on emotional intelligence, the ability

to understand one’s own emotions represents a

critical starting point in developing the skills of

emotional intelligence. Also the ability to maintain

good relationships with those around them

(interpersonal relationships) is key in delivering

managerial performance.

Furthermore, the general managers’ ability to

identify with their place of work, the team within

the outlet, its role in the local community and

possibly the brand itself are important factors in

delivering good performance. The emotional

intelligence model articulates this as social

responsibility. There also may be indications here

of the importance of relating to the brand itself,

and what it may stand for in the mind of the

general manager. The history and heritage of these

Table XVIII The emotional intelligence regression model ofgeneral managers that best predicts profit growth (multipleR ¼ 0.30, F ¼ 0.962, p ¼ 0.499, n ¼ 161)


Self-regard 0.138 1.016 0.311


Assertiveness 20.030 20.247 0.805



Empathy 20.415 23.061 0.003**

Social responsibility 0.274 2.052 0.042*



Flexibility 20.019 20.168 0.866




Optimism 20.003 20.023 0.982

Happiness 20.054 20.399 0.691

Notes: *p , 0.005; **p , 0.001

Table XIX Summary of significant relationships between Eqi and general manager key performance outputs

Key performance indicator Eqi subscale Eqi major scale

Appraisal rating Self awareness ( p ¼ 0.036) None

Social responsibility ( p ¼ 0.029)

Optimism ( p ¼ 0.010)

Interpersonal relationships ( p ¼ 0.000)

Team satisfaction None Interpersonal relationships ( p ¼ 0.036)

Adaptability ( p ¼ 0.023)

Team turnover Problem solving ( p ¼ 0.031) None

Stress tolerance ( p ¼ 0.003)

Happiness ( p ¼ 0.033)

Customer satisfaction None General mood ( p ¼ 0.004)

Profit growth Social responsibility ( p ¼ 0.042) None

Empathy ( p ¼ 0.003)

Figure 2 Overall managerial performance


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brands is strongly rooted in the community (many

originating from the local pub market), and very

focussed on providing service to a wide range of

“regulars”, albeit more of these are diners rather

than pub visitors these days. The other

“vocational” element in these businesses is one of

being a restaurateur, which is important to the

operators of these units.

The third strong element in this research is the

need to be positive and optimistic, and have more

of an orientation to “look on the brighter side of

life”. In the emotional intelligence model this is

measured by optimism.

Figure 3 shows the three Eqi subscales that

relate significantly to team turnover.

The contribution the general manager can make

to the minimising of team turnover appears to

focus around their ability to effectively control

their emotions through stress tolerance. This is

supported by the creation of a positive working

environment (indicated by happiness), the

manager’s ability to solve problems effectively.

In this fast-moving environment, the ability to

move with the current issues and challenges

without losing control of oneself is seen as an

important factor in providing support to the team

in stressful times.

Figure 4 shows the significant relationships

between the two Eqi subscales of empathy and

social responsibility and profit growth in the outlet

under the general manager’s day-to-day control.

The delivery of positive profit contribution is

clearly a complex combination of a number of

factors. These factors are clearly interrelated, and

related to the general manager themselves. There

is a level of commonality in that each general

manager is provided with a physical resource (the

building and equipment itself), albeit this can be

variable by age and condition. The support

provided by the brand itself is common in terms of

the high level image and internal attributes such as

uniforms, menus, pricing structures and training

methodologies; however, the general managers do

have control of their recruitment processes, the

delivery of training approaches, and the internal

communications and reward and recognition

processes in the outlets. These are critical

determinants of team satisfaction, which in turn

will influence to some extent the potential of

employees to leave the business and impact on

team turnover, and ultimately the quality of service

quality delivery.

This section of the study has highlighted how

the role of emotions can influence these key areas.

The role of emotional intelligence in influencing

profit performance is seen particularly in the

presence of social responsibility, describing the

role of the business in the lives of the employees,

the community and the identification with the

brand itself. The ability to understand the

emotions of those around them (empathy) is an

important factor in building profit performance.

Figure 5 shows the significant relationship

between the major scale of general mood and

customer satisfaction, the subscales of which are

happiness and optimism.

The ability to project a happy and optimistic

outlook would seem to be beneficial in the

development of customer satisfaction. The

likelihood is that these attributes have a greater

impact on the server team who offer the service

directly to the customer than the customers

themselves, where personal service from the

manager would be a very small share of total

customer interactions.

Figure 6 shows the significant relationship

between the major scles of Eqi of interpersonal

skills ðp ¼ 0:036Þ; adapablity ðp ¼ 0:023Þ and team

satisfaction. The subscales that make up each of

these major scales are indicated in the diagram.

The ability to relate well to the team through a

set of emotional competencies would seem to be

Figure 3 Team turnover

Figure 4 Profit contribution

Figure 5 Customer satisfaction


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beneficial in developing good relations with the

team; this, combined with the ability to be

adaptable in the face of the fluctuating demands of

the job, would appear to be positive in developing

the satisfaction of the team overall.

Summary of hypothesis testing H1-H5


positively related to employee satisfaction –

supported.


positively related to customer satisfaction –

supported.


positively related to profit performance –

supported.

H4. Managerial gendered emotional intelligence

is positively related to superior business

(profit) performance – rejected.

H5. Managerial, age related emotional

intelligence is positively related to business

(profit) performance – rejected.

Discussion

Previous research in the field of emotional

intelligence has reported significant predictive

results in areas of education, health and to some

extent business performance and leadership (Bar-

On and Parker, 2000; Cherniss and Goleman,

2001; Goleman, 1995, 1998; Orme, 2001;

Ryback, 1998; Stein and Book, 2000; Weisinger,

1998). This study has sought to quantify the

opportunity for Ei to be used in developing

business results in tangible terms, and in a way that

will cause business leaders to consider more

seriously the impact that the behaviour of their

managers and employees can have on business

success. The study is particularly focussed on the

service sector, where there is a high element of

human contact with the customer, and indeed the

provider of that service becomes “part of the

product itself”.

The service industry in general, and in the UK

in particular, is plagued by the challenge of very

high turnover of employees, making the effective

and consistent delivery of good service and

therefore the product itself, extremely challenging.

There are many complex reasons that cause this

issue, some of which have been explored in this

paper, but without doubt, the challenge of

“employee fit” coupled with a corporate

culture that genuinely reflects a positive, people-

focussed vision is critical. Beyond the high level

corporate “mantra”, the development of the

micro-culture at outlet level is where the

opportunity really starts to bite and can play a big

part in driving improvements in this area. This

study suggests that a more intensive effort to

consider the emotional make-up and development

of those people who lead these businesses on a day-

to-day basis would help develop that culture and

atmosphere in which service employees can give

their best.

Limitations and future direction

This study has provided some useful insights into

the role of management emotional intelligence into

business performance, particularly in the service

sector. However, the focus is confined to one area

of what is a vast and growing sector of the

economy. It would be useful to expand this work

beyond the restaurant industry in the sector itself,

but also consider the wider role of service in our

daily lives, where, whether consciously or

unconsciously, we make constant judgements

about how we are treated by “service providers”.

Furthermore, the study has concentrated on the

role of middle managers, who control the

individual outlets, this raises a number of

questions that are worthy of further research.

What role do the senior leaders of the

organisation have to play in developing the notion

of emotional intelligence and the part it can play in

developing the appropriate culture in the

organisation, and concomitantly how might this

affect the policies and procedures of the

organisation?

Second, this research points to the need to

understand much more clearly the relationship at

“shop-floor” level between management,

supervisors and front line workers. An

understanding of the contrasting emotional

competencies of the management group and the

employees may start to tell us more about the effect

of relationships at the micro-cultural level, and

point to opportunities to develop training and

leadership development interventions.

Figure 6 Team satisfaction


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Organisations have the opportunity to build on

this work in their own particular service situation:. Clarity is needed to understand the service

proposition, and more particularly how this is

reflected in the emotional responses of

customers.. Understanding this emotional proposition

should shape the culture and behaviour at

every level of the organisation.. The research approach adopted in this study

will identify both the critical emotional

drivers, and the “stars” in the organisation

who are delivering outstanding performance.. Instruments such as the Bar-On Eqi have the

potential both to assess the presence of key

emotional competencies, but much more

powerfully, can be used as development tools

for a wide population of the management

team.

The ability to provide emotional experiences for

customers is destined to become the next big

source of competitive advantage in the human

service field. Those service providers who can

harness and embrace the concept of emotions and

their role in lives of their customers and staff will be

best placed to capitalize on the opportunity.

References

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Buckingham, M. and Coffman, C. (1999), First Break All TheRules, Simon and Schuster Business Books, New York, NY,pp. 58-67.

Cherniss, C. and Goleman, D. (2001), The EmotionallyIntelligent Workplace, Jossey-Bass, San Francisco, CA,pp. 32-9, 167-70.

Goleman, D. (1995), Emotional Intelligence, BloomsburyPublishing, London.

Goleman, D. (1998), Working with Emotional Intelligence,Bloomsbury Publishing, London.

Kaplan, R.S. and Norton, D.P. (1996), The Balanced Scorecard,HBS Press, Boston, MA, pp. 43-167.

Lashley, C. (1995), “Empowerment through relayering; a pilotstudy of Macdonalds restaurants”, International Journal ofContemporary Hospitality Management, pp. 29-35.

Leidner, R. (1993), Fast Food, Fast Talk, University of CaliforniaPress, Berkeley, CA.

Orme, G. (2001), Emotionally Intelligent Living, Bell & Bain,Glasgow, pp. 113-26.

Ryback, D. (1998), Putting Emotional Intelligence to Work,Butterworth-Heinemann, Oxford.

Stein, S. and Book, H. (2000), The EQ Edge, Kogan Page, London,pp. 223-51, 262-8.

Weisinger, H. (1998), Emotional Intelligence at Work, JosseyBass, San Francisco, CA.


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http://www.emeraldinsight.com/action/showLinks?system=10.1108%2F09596119510079963

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