What Is Emotional Intelligence

Published Date: 02 Nov 2017

The global economy is driving the need for companies to ensure that they have the right managers employed in key positions to help drive the company’s success. This is especially true in organizations that service the US government, and more particularly the large discretionary budgets available in the US Department of Defense. Raytheon is one of the largest US Defense Contracting companies in the world and heavily relies on their Project Managers (PMs), who ultimately lead the contracts that generate their revenue. Firm internationalization has brought about numerous managerial challenges for top executives, making the ability to effectively and efficiently manage people a skill of the utmost importance to upper level staff at Raytheon. Since the upper echelons of a firm play a pivotal role in shaping organization outcomes, there is an increasing need to understand how to form a competent management team to deal with the complexity of foreign market.

1.1 – Research Overview

Research shows that Emotional Intelligence (EI) is an important business concept, commonly described as "the ability to understand and get along with others", however, it means a bit more than that (Hybels & Weaver, 2008). This concept should also specify the ability to effectively communicate with others. The concept of emotional intelligence is especially important in the professional world because of the diversity that lies within all professions. Corporations invest staggering amounts of their revenues annually towards building future revenues. How much each company spends is hidden within volumes of narratives and financial data that, for public companies, are disclosed within the company’s Annual Report. Each company has a complicated matrix of business development activities comprised of marketing, advertising, research, and development, which are focused on the industry and market for their products and services. Equally important is the investment towards corporate reputation that consists of charitable donations, environmental policies and other programs such as ethics which develop a positive, trusting image in the company’s brand. However, choosing managerial personnel is a vital decision that impacts the company image since it is these individuals that impact the corporate reputation and investment of capital.

Managers stand at the front line, leading teams of personnel that directly interact with customers and generally have the decision making authority to effect change in order to improve profitability, the product or service, and most importantly customer relations and perception of corporate image. It therefore stands to reason that the company should focus its attention on selecting the best managers possible to protect their investment. Furthermore, increasing levels of research over the past 25 years demonstrates how EI is as important as intellect to be a successful leader. While intellect would contribute to a career path such as doctor versus surgeon, the success of the doctor or surgeon would be largely driven by behavioral attributes such as self-control, openness, ethics, values and other soft skills which comprise of one’s EI.

The scope of this research will focus on a company within the Aerospace and Defense Industry, and their use of EI when selecting Project Managers, who are entrusted with executing the contracts that generate revenue and impact the company’s reputation. Particularly, Raytheon Technical Services Company (RTSC), a subsidiary of Raytheon Corporation, which is focused on providing Training, Logistics and Engineering Solutions in an international contracting environment (Raytheon, 2012).

This research paper will therefore answer the question, "Does Raytheon Technical Services Company use Emotional Intelligence when selecting their Project Managers?"

Chapter Two: Literature Review

With the purpose of this study established to investigate whether Raytheon Technical Services Company uses emotional intelligence as a criterion for selecting and developing their PMs, it is critical to review what was studied about emotional intelligence, its linkage to Management in general, and Project Management specifically. This chapter is focused on reviewing comprehensive academic literature in order to pursue the purpose of the study.

2.1 – What is Emotional Intelligence?

In a similar analysis, Reuven Bar-On (1988) indicated that emotional-social intellect consists of a number of abilities and skills that determine person’s behavior when unified. Bar-On was the first to define this as EQ, or Emotional Quotient, by analogy with IQ, or Intelligence Quotient. Furthermore, Salovey & Mayer (1990) suggested that social and emotional abilities existed within a single sphere and developed the concept of Emotional Intelligence. They considered EI as substructure of social intellect that included an individual’s ability to recognize their own feelings and emotions, as well as those of others, and use this information for creating and controlling their thoughts and actions.

Source: Gonzalez (2011)

EI therefore describes an ability or capacity to perceive, assess, and manage the emotions of one's self, and of others. EQ, or Emotional Quotient, is how one measures EI. Emotions have the potential to get in the way of our most important business and personal decisions so there is value in understanding how to recognize and manage emotions. Research has demonstrated that EI is important to leadership development, and performance by tracking over 160 high performing individuals in a variety of industries and job levels, revealing that EI was twice as important in contributing to performenace excellence than intellect and expertise alone (IHHP, 2012).

EI training develops more effective managers and highly competent supervisors. This was demonstrated when supervisors in a manufacturing plant received EI competency training to improve their communication and leadership skills. The results were a 50% reduction in lost-time incidents, formal grievances were reduced from an average of 15 per year to 3 per year, and the plant exceeded productivity goals by $250,000 (Pesuric & Anderson, 1996). In another manufacturing plant where supervisors received similar EI training, production increased by 17% over a peer group of supervisors who were not given EI training (Porras & Anderson, 1981). There are seemingly endless volumes of similar studies with the same positive results, so it seems well established that EI competencies are an influential form of intellect that will continue to be studied.

2.2 – Is Emotional Intelligence Important?

Though social and emotional intellect has been studied for the past century, it wasn’t until Daniel Goleman’s 2005 bestselling book, Emotional Intelligence: Why it can matter more than IQ, that the concept of EI started to take off. Goleman (2005) introduced the idea that EQ was associated with IQ and there for could be a skill that is learned and developed. Since then there has been an increase in the research spurred on by the commercialization of EI assessment, training and development programs for individuals and corporations.

Previously companies focused on the intellectual side of training associated with technical and managerial skills which had loosely developed concepts of soft skills. The idea of expanding these skills to include empathy, self awareness and sensitivity had not been embraced by the business culture and considered unimportant. Once research started to reflect the consistent collation between business results and EI competencies however, the need for EI training could not be ignored (Poskey, 2009). A similar collation was also noted between the increased interaction of a business leader with employees and increased productivity and performance. These conclusions were the force behind education and training programs created to develop the social and emotional competencies of business leaders today (Cherniss & Alder, 2000).

Hay Group employees conducted research in 44 companies from the Fortune magazine’s list of 500 best companies. The results showed that sales managers with higher EQ’s doubled the revenue of other sales managers with middle or low EQ’s. Another study conducted on a sample of IT programmers showed that those programmers with high EQ’s developed new software up to three times faster than their peers with lower EQ’s (Poskey, 2009).

In his article for "Fast Company" in 1999, Paul Viane, the leader of a Pennsylvanian program for manager’s effectiveness, asserted that solid leadership originates from self-analysis. This infers that it’s important to understand the individual value that one has. He further explained the importance of credibility and ability through communicating by carefully listening and observing during conversations. These are skills directly related to EI which are not associated with technical capabilities (Stein & Book, 2000). Peter Drucker (2007) also emphasizes self analysis stating that the ability to do this is an important skill leaders must acquire as the foundation to build mutually satisfactory relationships with subordinates and other business stakeholders.

The Center of Creative Leadership completed a study showing that the main reaons for leadership failures are directly related to a lack of emotional intelligence competencies. The three prime reasons being: inability to work under stress; inability to work as a team; and inability to build effective relationships with key stakeholders.

Egon Zehnder International conducted research on 515 managers from different organizations and the results demonstrated that managers with EQ’s higher than their peers were more successful, even if their peers had advanced technical training. This research indicated that a high EQ can be a more reliable indicator of success than previous work experience or training. Specifically the results showed that high EQ managers accounted for 74% of the successes and only 24% of the failures when compared to their peers. Interestingly this study was multi-cultural, including managers from Latin America, Germany and Japan as well as the United States and the results were the same for all cultures (Consortium for Research on Emotional Intelligence in Organizations, 2012).

According to Goleman (2005) business leaders must have a solid emotional foundation to be effective at their jobs. The most effective and influential leaders can also adjust their styles of management and communications to deal with the diversity within their organization as a result of having superior EI skills. He further states that displaying these skills instills confidence and productivity within his workforce.

Within the business context, much research has been conducted to determine whether EI was a tangible concept or fictitious nonsense. Research has indicated that over 80% of competencies that differentiate top performers from others are in the domain of EI. Companies, who have executives with higher levels of emotional intelligence, are more likely to be highly profitable

Table - EQ Competencies

EQ Competencies

EQ Competencies

Frequency Shown

Self-control

7X

Empathy

3X

Teamwork

2.5X

Self-confidence

2X

Achievement Orientation

2X

Source: Institute for Health and Human Potential  

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Table - Cognitive Competencies

Cognitive Competencies

Cognitive Competencies

Frequency Shown

Analytical Thinking

1.2X

Conceptual Thinking

1.5XC

 Source: Institute for Health and Human Potential  

Daft (2008) stated that emotional intelligence plays a key role in leaders’ success. He assessed that high level of self-consciousness in combination with ability to manage own emotions let leader to demonstrate self-confidence and cause subordinates’ trust and respect.

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2.3 – Defining EQ

The term EQ is used to denote the scale by which assessors measure EI. Howard Gardner’s eight intelligences philosophy pioneered exploration into the theory of various intelligence competencies. Gardner’s philosophy of multiple intelligences introduces eight different points of intellectual stimulation an educator might cater to during the course of instruction. These eight intelligences are spatial, linguistic, mathematical/logical, bodily/kinesthetic, musical, intrapersonal, interpersonal, and ecology/environmental (Brualdi, 1996). Gardener’s theory states that, while we all have a dominating intelligence, we each possess all eight. Although these intelligences are anatomically separated, they must all work in cohesion, complementing one another as we develop skills or solve problems (Brualdi, 1996). This theory also acknowledges that culture does play a major role in the development of these intelligences and that all students will enter the classroom with a different set of developed intelligences and intellectual strengths and weaknesses, therefore it is best for educators to structure presentations in a manner that will engage most or all of the intelligences (Brualdi, 1996).

Howard Gardener’s theory of multiple intelligences maintains that, instead of a single intelligence, there are actually eight different intelligences. People with visual/spatial intelligence are visual learners and organize ideas spatially. They must see concepts inaction in order to understand them and have the ability to "see" things in their mind during planning to create a product or solve a problem. These types of learners need puzzles to keep their minds stimulated. They also benefit from the use of various arts and crafts projects. Verbal/linguistic intelligences can learn through the spoken or written word, which has always been the traditional mode of instruction. Providing reading assignments or verbal instruction would appeal to a verbal/linguistic learner.

Individuals possessing mathematical/logical intelligences are learners that use reasoning and problem solving to learn. This method of learning is also highly valued in traditional environments where logically sequenced delivery of instruction is commonly used. Bodily/kinesthetic intelligences learn best through interaction with their environment and they gain understanding thorough their experience. This type of learner benefits most from interactive activities like sports such as bean bags, jump rope and basketball. Musical/rhythmic intelligences learn through patterns, rhythms and music, which includes auditory learning and identification of patterns through all the senses. This intelligence would benefit most from songs that incorporate the learning materials.

Intrapersonal intelligences learn through feelings, values and attitudes. This type of learner places value on what they learn and take ownership for their learning. Pretending and role-playing provides effective ways to teach this type of learner. Interpersonal intelligences learn by interacting with others through collaboration and working cooperatively with their peers. Various games and buddy partnering provide progressive ways beneficial ways for this type of intelligence to learn. An individual with a naturalistic intelligence learns through classification, categories and hierarchies. This type of learner picks up on subtle differences in meaning and would benefit from lots of hands-on activities and field trips where they could see and touch the objects discussed in the lessons. Gardener’s view of intelligence is still being researched to design performance-based assessments, education for understanding, and figure out how they can use multiple intelligences to design more personalized curriculum, instructions, and assessments.

Figure 2.3.1-EQ Assessment Methods

Source: (Bharwaney, et al., 2011)

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2.4 – Is EQ important to Business

Within the business model, profitability is the most important aspect in determining whether a venture is worth pursuing and the same can be said about EI, and more specifically the EQ of business managers. When evaluating the relevance of EI to the corporate structure, it is necessary to determine whether profitability can be attributed to EI. Research has indicated that, not only does EI significantly contribute to job performance and leadership skills, it has also been found to increase profits (Caruso, 2003). The following chart shows the relationship between emotional intelligence (EI) competencies with a high enough emotional quotient (EQ) to positively affect performance (based on 360 data), and the amount of profit generated at a multinational services firm per year per partner. Furthermore, self-regulation appears to have the greatest impact on profit generation (Ibid).

INSERT CHART

The 4E framework (Engage, Empathize, Educate, and Enlist) creates a shared understanding with the employees concerning the company’s direction and keeps the lines of communication open, honest, and reciprocal (Smith, 2006). This process also allows for the successful unlearning of old habits and the incorporation and reinforcement of the desired actions (Durant, 1999). Successful integration of the 4E framework early in the transitional period gives employees the opportunity to go through the emotional phases of change in a healthy manner and reach the commitment stage within the desired timeframe so the company is still able to maintain productivity and reach its goals (Durant, 2006).

The company’s commitment to social responsibility is joining talent management as a crucial part of the corporate agenda (Schuyler & Berkowitz, 2009). RSTC has built robust community involvement at all levels into the people strategy for the company, committing to the corporate motto that people are their greatest asset (Schuyler & Berkowitz, 2009). Furthermore, RSTC helps improve the communities in which we live and work and also seeks to develop, enhance and strengthen public relations by supporting community stabilization and revitalization efforts. In addition, RSTC has a very strong commitment to supporting small businesses that help make our communities dynamic places where families can live, work, grow and realize their dreams. Our approach involves making investments and bringing together resources to transform not only the physical environment, but also the economic opportunity available for residents and businesses alike. And, when our communities thrive, businesses within that community, including our own, can thrive (Fay & Guillaume, 2007).

Internationalization refers to the degree to which a firm’s sales revenues or operations are conducted outside its home country. Sullivan (1994) proposed that there are three attributes to determine the degree of a firm’s internationalization, including performance (specifically what goes on overseas), structure (namely what resources are located overseas), and attitude (meaning the international orientation of top management). First, the performance attribute is most commonly measured by calculating the ratio of foreign sales to total sales (FSTS). Second, the structural attribute is most commonly measured by expressing the percentage of foreign over total assets (FATA). Third, the degree of a firm’s internationalization can also be determined by the attitudinal attribute through measuring either the international experience of its top managers or the cultural dispersion of internationalization (Sullivan & Bauerschmidt, 1989). According to Thomas and Eden (2004), foreign sales and assets represent the "depth" of the multinational corporations (MNCs) involvement abroad.

2.5 – Managing Diversity through EI

Diversity and group dynamics are important aspects of the team dimensions that must be managed in that groups or teams must be compiled in such a way that the personalities as well as talents of the participants complement each other and the needs of the project (O’Connor & Farnes, 2012a). These are attributes that must be considered by the project manager when they compile their team, but should also be considered by HR personnel when they are considering the applicants for various positions. In this respect, when departmental managers present requests indicating their personnel needs or selecting teams for a project, relational aspects should be considered as well as the skills of each person chosen to create strong, diverse teams. Furthermore, the PM is responsible for ensuring that a proper risk analysis is performed so that appropriate measures can be taken to anticipate relevant changes. For the team dynamic to be effective, the PM or leader must be able to lead the group in understanding and adapting to changes.

An increasingly diverse workforce has been a major challenge facing managers when firms going global. The relevant elements of successful change communication between management and personnel must include measures that will ensure uninterrupted productivity and maintain relative stability within the company during the implementation of new practices. Successful implementation tactics will also be examined to help managerial staff in actively planning strategies to create smooth transitions. Our perceptions are based on the emotional impact our experiences have given us, which have developed our perceptions, as the Sapir-Whorf hypothesis suggests, but perceptions are also derived due to outcomes resulting from the language barriers formed as a result of the different ways people communicate (Hybels & Weaver, 2008).

For instance, the semantic, internal and external noises a man hears differs from those heard by women when certain issues are introduced (Hybels & Weaver, 2008). Knowing how to communicate properly with anyone you may come in contact with is necessary for success. One of the most difficult challenges is the ability to empathize with others as most people have trouble identifying people they feel they have nothing in common with. The Institute for Health and Human Potential (IHHP) website defines EI as the "ability or capacity to perceive, assess, and manage the emotions of yourself and of others", which perhaps more accurately states the function of the concept (IHHP, 2012). An individual’s ability to manage other’s emotions is contingent upon their ability to manage their own emotions. This basically means responding appropriately in personal and professional arenas. A person’s EI is therefore determined by their ability to effectively recognize and communicate feelings and emotions, eventually translating or developing into superior leadership abilities.

Due to the competitive pressure enforced by globalization, the tendency of a firm’s internationalization has emerged as an issue which cannot be ignored by management practitioners and researchers. Firm internationalization has brought about numerous managerial challenges for top executives. One important issue is whether firms managed by top management teams (TMTs) with similar demographic backgrounds and values have superior outcomes as compared to their counterpart firms with more diverse TMTs. Prior research suggested that the diversity of information and values shared among TMTs are better predictors of organizational outcomes than those factors in CEOs (Daily & Schwenk, 1996).

Team diversity refers to the attribute differences among team members (Fay & Guillaume, 2007; Rivas, 2011). These attributes are usually either categorized by visibility, such as surface-level or deep-level diversity, or goal-oriented, as in job-related or non-job-related diversity. Research on team diversity has mainly focused on differences in gender, age, ethnicity, tenure, educational background, and functional background (Milliken & Martins, 1996; Williams & O’Reilly, 1998). Previous findings suggest that the diversity within TMTs, including job-related demographic diversity and non-job-related demographic diversity (Tihanyi, et al., 2000; Rivas, 2011), may serve as a determinant for international diversification (Barkema & Shvyrkov, 2007; Carpenter & Fredrickson, 2001). Although numerous studies have examined the relationship between TMT diversity and internationalization, they have provided conflicting results (Barkema & Shvyrkov, 2007). Part of this confusion is likely due to the neglect of some contextual factors that may have some important effects on the relationship. In order to reduce the possibility of confusion, some researchers have argued for models that take into account moderating variables while explaining the effects of diversity (van Knippenberg & Schippers, 2007).

The key question in diversity research is how differences among team members affect team process and performance. To address this question, diversity research has been guided principally by two theoretical lenses: a cognitive lens (i.e. upper echelons perspective) and a social lens (i.e. social psychology perspective). On one hand, demographic diversity leads to diversity of knowledge, expertise and skill which in turn have a positive impact on team process and organization. On the other hand, a diversified team is likely to form subgroups within itself; these subgroups may disrupt team process and therefore hurt team performance. Both viewpoints have found partial empirical supports (Carpenter, et al., 2004; Williams & O’Reilly, 1998). Findings in those studies on the effects which TMT demographic diversity has on organizational outcomes range from positive (in Barsade et al., 2000; Carpenter, 2002; Gordon, Stewart, Sweo & Luker, 2000; Hambrick, Cho & Chen, 1996; Kilduff, Angelmar & Mehra, 2000), to non-significant (in Ferrier, 2001; West & Schwenk, 1996) to negative (in Michel & Hambrick, 1992). The majority of studies conclude with mixed results, i.e. both positive and negative relationships for different diversity dimensions on different performance variables within the same study (Simons, Pelled & Smith, 1999; Smith et al., 1994). The mixed findings suggest that it is necessary to consider both internal and external contingencies (Finkelstein & Hambrick, 1996). Accordingly, EI is a critical skill for managing diversity that business leaders must address, particularly within large, international organizations such as RTSC, which embrace a diverse organization.

2.7 – Importance of EI to Management

Managing personnel is one of the most important tasks in any organization. Management sets the ‘tone’ of performance within an organization establishing expectations for quality and productivity within the workforce. Playing multiple roles within their organizations, Management must be adept in dealing with operational and administrative personnel and issues while instilling an atmosphere of motivation and support.

As previously defined, EI is the ability to understand and manage the emotions of yourself and others. The ability to recognize emotions is an important skill that facilitates collaboration with others more effectively and improves efficiency as a result, however this ability is not always produce positive results. Farth et al (2012) examined 212 young specialists and their management, discovering that EI is positively linked to high effectiveness of activity only if the work impacts decision at management levels. This situation was further explained by Farth et al (2012) through the Trait Activation Theory (Tett & Burnett, 2003), which identifies a linkage to high effectiveness when the organizational environment signals its necessary.

The ability to collaborate and work effectively with others is a core competency of managers, driving the need for managers with highly developed EI skills. This is not the case for working level employees where collaboration is less important (Farth, et al., 2012). Working level employees with high EI levels can overestimate the importance of emotions being expressed in a given situation adversely impacting their efficiency and performance. Farth et al (2003) therefore concluded that in a work environment EI should be a common competency that is developed in personnel working in emotionally charged environments, such as managers.

This theory was confirmed by Chen et al (1998) who demonstrated that EI could be attributed to as much as 90% of an individual’s success in leadership positions. This information was later cited by Goleman (1998, 1999), further asserting that "… for star performance in all jobs, in every field, emotional competence is twice as important as purely cognitive abilities".

Managerial efficiency refers to the ratio of results to resources. The higher this proportion, the more efficient the manager is. Efficient management means supervisory personnel are able to minimize the cost of the resources used to attain performance. Managerial effectiveness refers to the accomplishment of specific organizational goals and objectives. Organizations that use their resources to achieve long- term goals are being effective and the closer an organization comes to achieving its strategic goals, the more effective it is. An organization can be efficient, but not meet their goals effectively or be effective without being efficient (Brown2011).

Strategies are not and should not be developed in a vacuum. They must be responsive to the external business environment. To avoid such strategic mistakes, firms must become knowledgeable about the business environment. One tool for analyzing trends is forecasting. In the development of forecasts, environmental scanning and environmental monitoring are important in detecting key trends and events. Managers also must aggressively collect and disseminate competitor intelligence. The information gleaned from these three activities is invaluable in developing forecasts and scenarios to minimize present and future threats as well as to exploit opportunities (Thomas2007). Strategic planning at the installation level, as well as the program and service levels are critical management processes because programs that are well organized, incrementally developed, and effectively implemented reflect the competencies and abilities of the management team to successfully orchestrate and implement strategic planning models (United States Army, n.d.). The absence of a coordinated strategic action plan causes many installations to base their programs, operations, services, and facilities on unreasonable interpretations of objectives that are not pertinent to current data or base plans that align with their operating conditions (Ibid). Unsuccessful plans are often based on a "one-shot, meet-the-regulatory-requirement effort" instead of strategies based on on-going processes and are symptomatic of unproductive or poorly considered planning efforts, which often result in projects that are rejected by validation studies (Ibid).

2.8 – The Value of EI in Upper Management

When discussing the influence of a firm’s upper echelons, it is important to note the dividing gap between top management team and board research. While both governance bodies (teams) are at the apex of a firm and have great influence on its organization, structure, strategic decisions and future directions, research on TMT and board effects usually runs in two parallel streams. A large number of studies investigate the influence of top managers’ characteristics on several aspects of firm strategy (Finkelstein & Hambrick, 1996). At the same time, an emerging stream in board research focuses on the board’s influence on firm strategic decisions (Goodstein, Gautam & Boeker, 1994; Hillman, Cannella & Paetzold, 2000; Judge & Zeithaml, 1992; Rindova, 1999). However, the independent and combinative influence of TMTs and boards on firm strategy and other firm level outcomes has rarely been discussed or empirically tested. Carpenter, Geletkanycz and Sanders (2004) suggest extending the research on executive effects further by investigating the effects of boards. Similarly, Nielsen (2010) argues that "[a] great potential exists for studies exploring the independent and interaction effects of TMT, board of directors and CEOs". In addition to top management team influences, characteristics of board directors were also suggested to be important factors to decide the level of internationalization (Sherman, Kashlak, & Joshi, 1998). Board of directors seem to exert a direct influence on foreign expansion strategy through board approval of major investment decisions, as well as an indirect influence through provision of important information, legitimacy, and other resources. Little is known about the impacts of board diversity on a firm’s foreign policies. Therefore, this study seeks to address this gap through a thorough exploration of the effects of different types of diversity in the boards and TMTs on the firm’s internationalization.

In addition to the exploration of the independent and combinative effects of TMTs and boards, this study also examines how demographic similarity between TMT members and board members affect a firm’s internationalization. Based on self-categorization perspective (Tajfel & Turner, 1986; Turner, 1987), previous research suggests that people may favor demographically similar individuals because demographic similarity provides a salient basis for group membership (Tsui, Egan, & O’Reilly, 1992). In addition, similarity-attraction perspective argues that similarity provides mutual reinforcement or "consensual validation" of each individual’s beliefs (Byrne, Clore, & Worchel, 1966: 223), thus enhancing interpersonal attraction and producing bias in evaluation decisions. Empirical finding proves that the governance mechanisms weaken in the presence of greater demographic similarity between the CEO and the board (Westphal & Zajac, 1995). Accordingly, I will argue that demographic similarity between TMT members and board directors may bias board directors’ supervision on TMT’s foreign expansion strategy and consequently reduce the degree of a firm’s internationalization. Notwithstanding the significance of the similarity-attraction, research on demographic similarity between TMT members and board directors in the context of firm internationalization is relatively insufficient. The limited research available has typically involved the choice of new CEOs, top executives, or board directors. In this study, I hope to advance the current international business literature by explicitly recognizing that inter-team similarity between TMT members and board directors may hinder a firm’s foreign expansion.

Research on social processes proposes that common historical experiences (Carroll & Harrison, 1998) among team members will result in more stable, predictable and shared expectations and behaviors. In other words, overlapping tenure will reduce information exchanging between team members and hence the team diversity effects will diminish over time (Barkema & Shvyrkov, 2007). A close examination of the common historical experiences among team members may help to understand how the effects of team diversity evolve over time. Therefore, in this research I will also test the moderating effects of overlap in team tenure on the relationship between team diversity and a firm’s internationalization. As a PM with Raytheon and a member of upper management, I am often responsible for creating and managing teams, making the outcomes of this research of the utmost value.

2.9 – The Role of the PM

In general, the act of planning helps make sure organizations remain relevant and that they are able to properly respond to the needs of the communities they are intended to serve while contributing to the growth and stability and growth of the corporation at large (McKay2001). In addition, planning provides a foundation from which the company can measure their progress and assess the resulting impact of the changes being facilitated, encourage program development, and allows the company to orderly and systematically determine their future endeavours (McKay, 2001). From a managerial perspective, planning enables the setting of policies and goals that will guide the business and provide a clear focus executive and senior staff members can use for program implementation and agency management (Ibid). The role of the PM is to develop plans that are consistent in their focus and scope, and fully address vital sustainability issues associated with the successful completion of the project, which prevents the plan from being ineffective in successfully achieving the intended goals (Lachman, et al., 2009). This allows the strategic plan to effectively function as a management tool, which is important to allowing agencies to be flexible in their management regimes and to assist in identifying and achieving agency goals and objectives (Executive Department Office of Management and Budget, n.d.). Overall, strategic planning is intended to be "…a long-term, future-oriented process of assessment, goal setting, and decision-making that maps an explicit path between the present and a vision of the future – usually three to five years" (Executive Department Office of Management and Budget, n.d.). Three key factors include creating a common vision, developing a model for change, and rewarding changes made according to the model. A common vision gives direction, focus, and commitment to the employees. Organizational changes often starts in one unit or subculture of an organization and people tend to behave in ways that provide rewards or reinforcement, so it is important to keep employees motivated through bonuses and incentives for making the necessary changes (Brown2011).

Tools for change are vital because they provide the employees with information to make the changes, support and collaboration from necessary departments, and the resources required to implement the changes (Ibid). There has been a profound change in business school thinking away from a concentration on big business and the rise of the multi-divisional firm towards a greater focus on the entrepreneur and entrepreneurship as legitimate areas of study. Although strategic planning information is vital for making budgeting decisions, the chief function of the strategic plan is to guide the agency’s management activities, provide employees with a shared purpose and motivation through clear articulation of the values and goals of the corporation, and present a means of communicating with people inside and outside the agency (OfficeofFinancialManagement2010). A concise strategic plan will allow the reader to easily understand:

The overall mission, including the activities of the highest priority activities and its primary customers,

The company’s operating environment and organizational factors,

Specifies the comprehensive results, outcomes, and goals necessary to carry out its mission,

Established objectives the agency can measure to determine the overall progress to achieving the goals,

Specifications regarding how the agency will measure progress during the planning period,

Strategies the agency intends to use in pursuit of the objectives, and

Exact measures of the additional resources the company will need to successfully implement the indicated strategies (OfficeofFinancialManagement2010)

Although the strategic plan has unparalleled significance in aligning the functions of the company by providing a steadfast definition of the organization's values, it is also a powerful tool for merging the community vision and mission with those of the company (McKay2001). This provide a consensus on why the organization exists, what goals or outcomes it seeks to achieve, what it stands for, and whom it serves, which reaffirms the overall relevance of the company within the organization and the community as a whole (Ibid). In addition, specific mandates that indicate what personnel must or must not do based on its articles of incorporation or bylaws are clearly defined, which reaffirms the company’s mission, vision, and core values (Ibid).

2.10 – A PM with EI as an Asset

Research findings earlier outlined the importance of EI within an organization’s management team, but this is especially true for Project Mangers who hold key management roles in a unique environment. Mersino (2007) outlined the following three key elements of the PMs work environment:

Changing Stakeholders:

Each project typically has new customers, business leaders, team members, and other stakeholders with whom relationships must be built and maintained to achieve project success.

Time Constraints:

Projects tend to be temporary in nature which drives the need for PMs to be skilful in quickly assessing and developing key stakeholder relationships over short periods of time.

Limited Authority:

PMs seldom carry full authority over the team members and collaborating partners for the projects they manage. They must be able to achieve results utilizing personnel that may have competing interests.

The main responsibility of a project manager in an organisation is achieving project objectives. Leban (2003) explored connection between leadership style, emotional intelligence and success of completed projects and concluded that success of the project completion can depend on the type of leadership utilized by project manager. Similarly, Mayer and Caruso (2002) found the ability to address underlying feelings and emotions critical for effective managing.

Goleman et al (2002) determined that high level of a leader’s recognizing powerful role of emotions in the workplace distinguishes them as the best leaders. The higher position a leader takes in an organization the more critical emotional intelligence becomes in oppose to hard skills and cognitive ability. Feelings by themselves are not an integral part of leadership, the combination of mood and emotions determines the effectiveness of leadership (George, 2006).

While performance against a project’s Cost, Schedule and Quality requirements are considered the indicators of success or failure by the project management industry, Cabanis-Brewen & Goleman (1999) argues that this is only a partial assessment. They state that a PM’s success is based on the non-technical skills associated with higher EQ’s pointing out that a project can meet or exceed all of its cost, schedule and quality requirements but still fail. Though technical skills lead towards winning a contract award, success is strongly influenced by additional dimensions such as team performance, knowledge transfer, influencing stakeholder management and mobilizing the business case (Cabanis-Brewin & Goleman, 1999). These dimensions are generated by EI and should be considered no less than equally important to technical skills of project management. Goleman (1998) stated that EI can be as much two times more important for success than intellectual or technical skills. This statement is supported by research conducted in Harvard University and Stanford Research Institute which points out that contribution of technical skills into successful performance is only 15% in oppose to soft skills including emotional intelligence that compose 85% (Crosbie, 2005).

Chapter Three: Research Methodology

This chapter outlines the research development process in its entirety, and provides specific details on the Primary Qualitative and Quantitative research tools implemented. Finally, each Proposition and Hypothesis is defined and described with their interconnectivity and relationship to the business problem.

3.1 – Research Development Process

The research development process structure has been divided into seven distinct top level stages described as shown in Figure XX.

Figure - Research Process Model

Source: Author

3.1.1 – Identify the Business Problem

To obtain access to information and relevance in a topic of interest, Stage 1 looked to identify a business problem broadly focussed on a single resource, PMs, within a single company, RTSC. Several information seeking unstructured interviews were held with business leaders and functional managers before deciding on a topic that related to the selection and development of RTSC PMs. Technical capabilities are quickly ascertained through the hiring process by comparing education levels, technical certifications and relevance of past projects. It was therefore decided to focus on the less tangible skills associated with Emotional Intelligence.

3.1.2 – Theoretical Framework

Stage 2 began by investigating the business problem within the Project Management industry to support its relevance against information outside of RTSC. Doing so would validate the business problem beyond the hiring and management practices of RTSC and provide credibility for further research and investigation.

As one of the world’s largest not-for-profit membership associations for project management professionals (Project Management Institute , 2012), the Project Management Institute’s knowledge centre was selected as the appropriate independent reference database. A search of "Emotional Intelligence" AND "Project Managers" resulted in 161 references of varying relevance, but one research paper in particular, "Choosing Appropriate Project Managers: Matching their leadership style to the type of project" (Turner & Muller, 2006) was specifically regarding the level of EI in PMs. Given the specific reference and number of highly relevant references, the business problem was considered validated.

Critical investigation into the multiple aspects of Emotional Intelligence and their relevance to Project Management then continued to clearly define their relationship between one another and if there was a business advantage that could be gained by improving this relationship. The summary of this secondary data search (Saunders, et al., 2009) investigation was previously outlined in detail within Chapter 2, Literature Review.

3.1.3 – Research Methodology

Stage 3, and the subject of this chapter, was the investigation into research methodologies to determine the most appropriate way of collecting and assimilating data. Consideration was given to a single methodology however the envisioned results would not fully reflect all aspects of the business problem, producing incomplete results. For this reason a Qualitative methodology was implemented as the best approach to investigate the business problem with semi-structured interviews of select individuals responsible for hiring and developing RTSC PMs. In parallel, RTSC PMs had to undergo a test to determine their respective and collective EI Quotients for cross reference against the findings from Qualitative results.

3.1.4 – Empirical Research Propositions / Hypothesis and Data Collection

During Stage 4, three propositions and one hypothesis were developed for the Qualitative and Quantitative research respectively. The data necessary to validate or reject these assumptions was collected in two ways: First, through early development (Yin, 2003) of a semi-structured questionnaire for consistency (Saunders, et al., 2009) to complete individual interviews with RTSC business leaders who manage portfolios of projects lead by PMs; Second, a Psychometric mixed model EI Quotient (EQ) test that meets the American Psychological Association and US Equal Employment Opportunity Commission standards was offered to RTSC PMs. Interviews were conducted one on one over the phone given the dispersed subject locations, with notes taken and the conversation recorded to capture all responses. The EQ test was administered by an authorized testing centre online which facilitated the capturing of detailed results for each individual test.

3.1.5 – Data Analysis

All consolidated data was collected for analysis during Stage 5. Interview recordings were reviewed a minimum of twice for data sampling and further development of notes taken during the interview. Detailed notes were then summarized, categorized and unitized (Saunders, et al., 2009) on an interview grid to find response themes and patterns that aligned with each of the propositions in accordance with Yin’s (2003) deductive analytical procedure of pattern matching.

EQ data was organized for analysis using the Excel Analysis Toolpak.

3.1.6 – Conclusions and Recommendations

The

3.1.7 – Limitations and Suggested Future Research

3.2 – Participants and Participation

Research participants were specifically current employees of RTSC, either qualified as a Project Manager or in a Leadership position responsible for assigning PMs to projects and developing their skills.

There are 267 qualified Project Managers within RTSC of which approximately 220 are actively managing or supporting projects (RTSC, 2012). A list of PMs was provided by RTSC and all 267 were invited to participate in the EI Quotient (EQ) online assessment for Quantitative data gathering. This EQ assessment was a self-administered online survey to be completed at the PM’s convenience at any time within a 3 week period. Invitations were sent via e-mail to their work address 48 hours in advance of testing commencement and while several out of office responses were received, all return to work dates were within the testing period. It was therefore considered that all 267 PMs were contacted, available and had the means to complete the assessment. With 50 total responses, the response rate is 18.7% based on the entire 267 PM population invited and would not differ from the active response rate (Saunders, et al., 2009). Given constraints on utilizing RTSC resources and contacting their personnel in a global organization, extending the survey or personally contacting individual PMs was not considered a possible solution to increase participation. While more respondents were preferred, Stutely (2003), as cited by Saunders et al (2009), suggests that a sample size of 30 or more will usually result in normal distribution around the mean. The PM population sample size is therefore considered reasonable and valid to accurately represent the entire population.

Not all of the six Business Units under the RTSC corporate structure are product line businesses, some are product and functional support. Within the product lines businesses there are approximately 15 Product Line Directors / Program Area Managers who are responsible for the hiring and development of PMs. Access to these Executive level leaders is limited and their demanding schedules further complicated availability. A total of five Leaders with were subsequently invited to participate in one-on-one interviews to gather the necessary Qualitative data however schedule conflicts reduced the total number of interviews completed to three. The structured one-on-one interview approach facilitated detailed conversations on each question for an in-depth perspective of the Leader’s opinions. As suggested by Baxter and Eyles (1997) the rigour involved in the interpretation and analysis of the data advocates the use of a focussed group of individuals to provide integrity and confidence in the results of a smaller sample size. The National Centre for Research Methods supports this (Baker & Edwards, n.d. ) by stating "… it was not sample size per se that mattered nor even that the distribution of numbers of persons within a group that was so critical but rather the inclusion of a particular case." While the absolute numbers of interviews are low the entire population is correspondingly small, resulting in an acceptable sample size representing 20% of the Leader population. Given the quality of the interviews and interviewees, this sample is considered sufficient in size to provide a good representation of the Leader population.

3.3.2 – Quantitative Research

The PM group’s combined EQ would be used to validate and cross reference the Leader interviews. Several competing EQ assessment models exist today however the three most widely used are based on:

An ability model which assesses an individual’s adaptive mental abilities as you would with traditional intelligence, by posing questions through a self-report questionnaire which the individual must select the best answer. The shortcomings of this model is developing objective questions which can be clearly defined as correct and incorrect (Petrides, et al., 2004).

The traits model is similar to ability model in that they are designed to measure the same EI elements, however the method of collecting data in the trait model is by performance observation and measurement (Perez, et al., 2005). Shortcomings would include the subjective nature and time required to observe personality traits / behaviours. This model also excludes the cognitive abilities assessment (Perez, et al., 2005) of the subjects EI which is the foundation of more mainstream theories identified by Daniel Goleman (1995, 1998) (Mayer & Cobb, 2004).

A mixed model combines both trait and ability EI aspects through a self-administered test which includes responses to a variety of situations (Goleman, 1995 & 1998; Bharwaney, et al., 2007; Mayer, et al., 2000; Schutte, et al., 1998). Research shows that while there are some overlapping benefits, "All incoming data continue to highlight the need to distinguish between two (trait & ability) constructs …" (O’Connor & Little, 203; Warwich & Nettlebeck, 2004 as cited by Perez, et al., 2005).

Arguably, the three most widely recognized and competing models are the mixed models by Mayer Salovey Caruso Emotional Intelligence Test (MSCEIT), Bar-On Emotional Quotient Inventory (EQi), and Goleman’s Emotional Competency Inventory (ECI). These models continue to develop with research however the foundation these EQ tests were built, and how they compare are show in Figure XX.

Figure - Competing EQ Models

Source: Mayer et al (2000)

There are arguments for each EQ testing model and while the trend appears to be towards mixed model, there is no definitive research on which model or specific test is superior to the others. So for the purpose of this paper selection of an EQ test was based on the following criteria:

Legitimacy; the test had to be scientifically certified and industry recognized to provide meaningful, dependable data

Accessibility; many of the more well-known tests are only available to qualified researchers with PhD in Psychology or something similar

User Friendly; the PM group is globally dispersed so preference was given to an internet based online multiple choice type survey that was self-administered. The nature of this criteria eliminated the trait model.

Ease of Administration; the ability to quickly see the status of testing progress and quickly pull the raw data required for analysis

Affordability; last, but not least, the cost of testing was a burden entirely incurred by the author so it had to be reasonably priced

A broad search of options resulted in selecting the Multi-dimensional Emotional Intelligence Quotient – Abridged, 7th Revision (MEIQ – Ab)(see Attachment XX), from Psych Tests AIM Inc., a Canadian company specializing in psychological assessments (Psychtests, 2012). The MEIQ – Ab is a comprehensive, 156 question self-administered online mixed model test that evaluates abilities, skills, knowledge and behaviours as part of the core EI competencies as well as contributing moderators (Jerabek, n. d.). MEIQ – Ab is qualified as a Class A test in compliance with the American Psychological Association and US Equal Employment Opportunity Commission standards (Psych Tests AIM Inc. , 2012).

Tables XX, XX and XX show the reliability analysis for MEIQ – Ab, MSCEIT and ECI respectively. With the variability to the assessment factors and sub-factors within each test there is no way to completely map results to any one test based on just this data. It is reasonable to conclude however that given the data for each test indicates a high level of reliability, the data generated form the MEIQ – Ab test is as reliable as MSCEIT and ECI.

There is also some consideration as to the subjective nature of the MEIQ – Ab data which has been developed by its proprietary owner. The MSCEIT and ECI data has also been developed by their owners however these tests have been so widely used and cited in scientific journals that these test have high credibility. Though MEIQ – Ab has not had the same level of research citations, the industry recognized classifications and certifications for this test were considered as sufficient validation of credibility, and justification for utilization in this research.

Table - MEIQ - Ab Reliability Analysis

Source: Psych Tests Inc. (Psych Tests , 2012)

Table - MSCEIT Reliability Analysis

Source: www.emotionaliq.org/MSCEIT.htm

Table - ECI 2.0 Reliability Analysis

Source: Hay Group (Wolff, 2005)

3.4 – Goals, Propositions and Hypothesis

The primary research objective is to determine whether Raytheon Technical Services Company uses emotional intelligence when selecting and developing their project managers. To achieve this, three propositions were developed as follows:

Proposition 1: The current business environment is increasingly competitive.

This proposition is to determine if there are external factors that may be driving reactionary business decisions or if the industry / company are in an environment that allows RTSC to execute long term strategies.

Proposition 2: Business Leaders focus on PMs as part of their competitive strategy.

Understanding the Leader’s perception of competition and how they structure their organization to be successful in the current business environment was the focus of Proposition 2. Ultimately the focus was on trying to determine the role PMs play in the Leader’s business strategy.

Proposition 3: Business Leaders use Emotional Intelligence competencies for PM selection and development.

Finally, are Leaders explicitly citing EI, or using language that describes EI when they discuss the roles that PMs play on their project teams, and is this an intended, conscientious strategy or a byproduct of their selection and development approaches.

Answering these questions would only provide part of our answer as the propositions are intended to investigate the Leader’s approach in selecting and developing PMs. To cross reference and validate these findings the following Hypothesis was developed:

Hypothesis: The RTSC PMs have a higher than average EI Quotient

Measured against the MEIQ – Ab test baseline consisting of a random general population sample of 34,867 individuals (Psych Tests AIM Inc. , 2012), the PM group’s consolidated test results would be evaluated to prove or disprove this hypothesis. Demographic data was captured within the PM group to assist in developing recommendations for RTSC and future research, however it was not considered a critical element to researching the business problem.

Chapter Four: Analysis & Presentation of Findings

4.1 – General Overview

Information

.

4.2 – Data Analysis

4.2.1 – Qualitative

Literature review already told us the value of Emotional intelligence but we wanted to understand now if it was already part of the RTSC strategy or culture for PMs and if this was an intended strategy or the result of competition driving the need to

Preset categories for questions we wanted to know about

4.2.2 – Quantitative

Additional statistical data is provided regarding perception barriers and how they affect the PMs self-efficacy. The meaning of the purpose of the study refers to the objective or expected outcome of the study and what the researcher hopes to achieve from conducting the research. A major controversy surrounding the question of the significance of statistical research versus clinical research is that, in statistical research, the sample selected may not be wholly representative of the population in question (Beyea & Nicoll, 1997). If the sample size does not accurately reflect the nature of the population being analyzed, the data collected cannot be relied upon to make relevant inferences regarding the populace in question (Beyea & Nicoll, 1997). If the data collected for analysis within a statistical test, the results of the analysis will be equally flawed (Beyea & Nicoll, 1997). Clinical trials do not rely on statistical data, but on the actual raw data from examination of the elements within the circumstances under question.

A directional hypothesis predicts how the mean of the data sample representing the first group will diverge from that of the second rather than simply indicating that there will be dissimilarity (Tanner, 2012). The hypotheses abridge the methods we use to report statistical results and one-tailed tests, or z tests, provide an alternate hypothesis that is directional because it uses the standard deviation with its fixed value (Tanner, 2012). However, the t test uses varied distributions and, thus has more variables (Tanner, 2012). Subsequently, the value that specifies numerical meaning in a t-test relies strictly on a particular distribution (Tanner, 2012). The two tails refer to the fact that a significant z-test or t-test result can occur in either extreme of the distribution. The sign of t does not matter. Sometimes, rather than significantly different, which can be either a positive or a negative difference, the issue is whether a sample mean is significantly greater or less than the population mean (Tanner, 2012).

Each time the test volume reforms, the levels of freedom change, and it is a different t distribution with a different critical value to indicate significance. The risk that a sample will not reflect the population accurately is with the smallest samples, so to protect against the errors associated with small samples, that is where the values that indicate significance are largest (Tanner, 2012). As it inclines, the critical values decrease until ultimately, the critical values for t match the critical value for z. For the critical value of t to equal that of z, the sample must reach an infinite size (Tanner, 2012).

In a two-tailed test, it does not matter whether the values of z or t are positive (in the upper tail of the distribution) or negative (in the lower tail of the distribution). The negative t value would have been significant in a two-tailed test because it is significantly different from the critical value. Remember that degrees of freedom are the quantity of grades free to diverge when the ultimate value of a characteristic are clearly recognized. The value also indicates that the significance in each t distribution is indexed to the particular distribution’s measure of freedom. For the one-sample t-test, degrees of freedom are the number of scores in the sample, minus one (Tanner, 2012).

Language such as more stressed or less stressed asks for a prediction about how the sample is expected to differ from the population rather than just asking whether the sample may be different from the population. It specifies the direction of the difference (more or less) and so the specific tail in which the difference will occur, rather than allowing for a difference in either tail (Tanner, 2012). In two-tailed tests, the difference can be in either direction, with the resulting value being positive or negative (Tanner, 2012). That is, the most extreme 5% of the distribution is divided into the lowest 2.5% of the left tail of the distribution and the highest 2.5% of the right tail and also distribution that indicates a two-tailed test (Tanner, 2012).

There are several arithmetical techniques that are established to adjust to a certain type of data. Generally, because nominal data can merely be calculated as any tests