Management Theory and Studies for Rural Business and Infrastructure Development, Volume 38, Number 1

The impact of the manager's emotional intelligence on organisational performance

Karolis Ramanauskas

Abstract

The problem dealt with in the paper is the impact of manager's emotional intelligence (EI) on the economic, social, and ecological sides of the organisational activity and the qualitative criteria of the evaluation of the organisational performance from the viewpoint of sustainable development (SD) of the organisation. The aim of the paper is to justify the interrelationship of the EI of the manager of an organization and the performance of the organization in terms of its sustainable development. Methodology: to evaluate EI, the methodology proposed by J. N. Hall (2005) was adopted as a basis, by means of which the EI of the respondents – the heads of eight organisations that provided a wide range of services (logistics, ICT, etc.) – has been measured. To evaluate the effectiveness of the organisational performance, the indicators of effectiveness proposed by R. S. Kaplan and D. P. Norton (1992, 2001) and supplemented by the author – a balanced scorecard (BS) – has been applied. It was established that, in the evaluation of any organisation, the existing BS of economic indicators should be supplemented by social-cultural and environmental instruments. The EI of managers was found to be closely related both to the individual indicators of the organisational performance and with the integrated BS.

JEL codes: O15, M12, M53.

Keyword(s): emotional intelligence, indicators, sustainable development


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.