Relationships between employee empowerment, emotional intelligence and managerial style in financial organizations

Abstract

The article aims at exploring the relationships between employee empowerment, emotional intelligence and managerial style in financial sector organizations in Lithuania. Method: the anonymous survey of 116 financial sector employees in Lithuania. The questionnaire was designed based on a 4-dimensional emotional intelligence model (16 items), a modified MLQ-Form 5X Short questionnaire (30 items), psychological empowerment questionnaire (15 items) and structural empowerment questionnaire (18 items). Questionnaire items were measured on a 5-point Likert scale. Survey data was analyzed using descriptive statistics, factor analysis, Mann-Whitney U tests Kruskal-Wallis h tests, correlations, and multivariate regressions. Findings: the relationships between emotional intelligence, transformational style, and employee empowerment were confirmed, however, the relationship between transactional style and empowerment was not confirmed. The assessment of others' emotions was identified as the strongest predictor of employee empowerment. Moreover, employee empowerment was positively influenced by intellectual stimulation and negatively influenced by management by exception (passive). Managerial implications: based on the results of the survey it is suggested that the success of empowerment programs in the financial sector can be achieved by strengthening employees' empathy, and by training managers and team leaders to use intellectual stimulation, avoid passive management by exception, and switch towards the transformational managerial style.