The Effect of Emotional Intelligence on Employee Performance in the Private Sector: A Case of Kinyara Sugar Limited

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters of Science in Organizational Development (MOD)The purpose of this study was to analyze the effect of emotional intelligence on employee performance in private sector a case of Kinyara sugar limited in Uganda. The study was guided by four research objectives which sought answers for the effect of emotional intelligence on employee’s performance. The research objectives were: Effect of self-awareness on employee’s performance, the effect of self-management on employee’s performance, Effect of social awareness on employee’s performance and the Effect of relationship management affect employee’s performance. This study being correlational in nature due to its intent to find the effect of EI on employee performance, adopted the descriptive research design and specifically the correlational research study to make inferences on the population of KSL through a cross functional research. KSL’s population is 2,097 staffs. A stratified random sampling was used to sample 208 respondents who represented the total population of KSL with 95% confidence level and 5% margin of error. Data was collected using structured questionnaires that were hand dropped and picked and analyzed using SPSS after coding and cleaning to eliminate any inadequacies. The reports are represented in the forms of descriptive statistics, frequency distribution, percentages and relationships presented using tables and charts. Findings from the research questions tested the theory of emotional intelligence and its effect on employee performance. Findings from the research questions benefited Kinyara Sugar limited, other employers, employees, HR practitioners, Policy makers, stake holders and Scholars in dealing with EI which has captured researchers and employer’s interest. The study also gave appropriate recommendations to the company and others benefiting from the research basing on their findings to the research questions. In regards to the effect of self-awareness on employee performance, the findings concluded that improved self-awareness of employees leads to improved employee’s performance. Employees who have a well-developed self-awareness abilities recognize that they have made errors and monitor their performance and either correct the mistakes or seek someone with better knowledge to come to their rescue and improve their performance. In regards to the effect of self-management on employee performance, the study findings discovered that the improved ability of employee’s self-management results into improved employee’s general performance. Employees rated highly in self-management are more likely to perform very well in their tasks due to their positive attitudes, self-motivation, willingness to learn and ability to adapt and initiate in times of changes. In relation to the effect of social-awareness, the study findings indicated that employee’s improved social-awareness aspects contribute positively to their general performance. High performance is expected from employees or persons with high social connections with employees or colleagues they work with and this is widely due to the ability for these socially aware to seek for advice about issues concerning their jobs from knowledgeable colleagues and are motivated and look forward to going to work daily thus boosting their performance. In regards to the effect of relationship management, the study findings showed that there is a positive effect of improved relationship management skills on their general performance. Employees become more functional and perform better when they have high relationship management abilities because they know how to relate with peers and colleagues and benefit from their different skills, competences and knowledge. The study concluded that well developed and management skills of the four domains of emotional intelligence self-awareness, self-management, social-awareness and relationship management enables employees to understand and manage their abilities and control their short comings in a much better and mature manner while interacting with others and managing their social networks professionally for the purpose of achieving greater performance. The study recommended that EI domains need to be maximized if KSL is to reap improved employee performance. There is need to focus on employee’s self-awareness to meet the organizational objectives. The management of KSL for every opportunity possible needs to formally recognize and encourage good EI practices that lead to improved employee work performance. Effective emotional intelligence management practices that improve self-awareness, self-management, social-awareness, and relationship management should be used to achieve organization goals and enhance employee performance