ROLE OF EMOTIONAL INTELLIGENCE ON LEADERSHIP EFFECTIVENESS THE CASE OF COMMERCIAL BANK OF ETHIOPIA AT NORTH ADDIS ABABA DISTRICT

Abstract

The purpose of this research was to explore the impact of emotional intelligence (EI) on leadership effectiveness (LE) within the North Addis Ababa District of the Commercial Bank of Ethiopia. The study aims to provide valuable insights to enhance the bank's leadership effectiveness. Data was collected through questionnaires and standardized tests, and the analysis was performed using SPSS 25. The research approach in the study combines descriptive and explanatory research designs. Descriptive Research Design: This component assesses the current levels of emotional intelligence (EI) and leadership effectiveness among managers and supervisors at the Commercial Bank of Ethiopia’s North Addis Ababa District. It documents the existing state of these variables, identifies patterns and trends, and informs the explanatory analysis. Explanatory Research Design, this component investigates the contribution of EI in predicting leadership effectiveness. It explores the relationships between EI dimensions (self-awareness, self-management, social awareness, and relationship management) and leadership outcomes. This multi-faceted approach ensured a thorough investigation of the role of EI in shaping leadership effectiveness. Descriptive and inferential analysis techniques, such as tables and descriptive correlations, were employed. The questionnaires were completed by 196 employees of the Commercial Bank. The findings indicate a positive relationship between managers' EI and their leadership effectiveness. The study also assessed the EI levels of 44 managers, which were found to be close to the average. However, there were areas where the perception of EI leadership, particularly in self-management, showed a decline. These findings suggest that the bank's leaders need to improve their self-control, take responsibility for their emotions, demonstrate honesty, enhance their listening skills, and provide better support to their subordinates. Additionally, the managers displayed deficiencies in forward- thinking, addressing the emotions and perceptions of their subordinates, and fostering mutually beneficial relationships. The research also revealed weaknesses in conflict management, social interaction, and adherence to expected behavioral standards. On the other hand, leadership effectiveness was associated with strong decision-making skills, effective communication, team cohesion, innovation, and mutual support among employees. However, there were shortcomings in fair evaluation, providing meaningful feedback, and relevant information to employees. The findings underscore the importance of developing emotional intelligence to improve leadership effectiveness. The study concludes that raising awareness of EI, particularly in the area of social awareness, establishing an EI-focused team, and enhancing understanding of subordinates' emotions will contribute to better leadership quality, fair evaluation, and meaningful feedback within the Commercial Bank of Ethiopia.