Emotional Intelligence

Topics: Decision making, Emotional intelligence, Flipism Pages: 15 (2119 words) Published: February 25, 2014
World Applied Sciences Journal 17 (10): 1308-1315, 2012
ISSN 1818-4952
© IDOSI Publications, 2012

Impact of Employee Decision Making Styles on Organizational
Performance: In the Moderating Role of Emotional Intelligence 1

Rana Rashid Rehman, 2Arfan Khalid and 2Majid Khan

Quaid-i-Azam School of Management Sciences (QASMS),
Quaid-i-Azam University, Islamabad, Pakistan
2
Department of Management Sciences,
COMSATS Institute of Information Technology, Islamabad, Pakistan 1

Abstract: The primary aim of the present study is to determine the impact of employee decision making styles on organizational performance. Study also investigates the moderating role of emotional intelligence on the relationship among decision making styles and organizational performance. Data is collected on random sampling basis from 187 banking sector employees. Findings of the study determine that employee’s different decision making styles influence organizational performance differently. Major findings include that rational and dependent decision making styles have high positive impact on organizational performance while avoidant decision making styles has negative impact on organizational performance. Study further determines that emotional intelligence moderates the relationship among decision making styles and organizational performance.

Key words: Decision making

Decision making styles

INTRODUCTION
Organization’s performance is measured considerably
based on their financial achievements and growth. None
of any organization wants to have losses and low future
growth. Thus managers in the organizations have urge
to craft performance in the line of business operations.
This performance achievement approach makes the
benchmark for the top management to recognize their
manager’s efforts and intellectual abilities in making
productive business. In order to get sustainable
organizational performance, managers have to make
decisions in framing their organization’s path towards the achievement of organizational goals. Managers needed
substantial information to make sound business decisions
thus; managers must have substantial information before
making decisions. As the decisions based on small
information are not effective and this poor business
decision making are reflected in the organizational
performance. However, manager’s decisions affect the
organization daily [1, 2]. Astley and Ven (1983) [3] argue
that decision makers have significant influence on a
firm’s performance. Holt and Jones (2002) [4] found that

Organizational performance

Emotional intelligence

emotional intelligence has an impact on organizational
performance. Consequently, the focus of this paper is to
evaluate the employee different decision making styles
and the impact of these decision styles on organizational
performance. Study also investigates the moderating role
of emotional intelligence on the relationship among
decision making styles and organizational performance.
Literature Review: There is an emerging body of
knowledge devoted to define the individual decision
making styles. The innovation of individual decision
making styles and group decision rules have a significant
inferences for organizations [5]. Researchers have
explored a wide range of individual decision making styles
[5]. Such as, Scott and Bruce (1995) [6] define decision
making styles as “the learned habitual response pattern
exhibited by an individual when confronted with a
decision situation.” Based on this definition, Scott and
Bruce (1995) [6] categorize individual decision making
style in to five major categories which deals in turns with
rational, intuitive, dependent, avoidant and spontaneous
decision making styles. Authors defined decision making
styles as.

Corresponding Author: Rana Rashid Rehman, Quaid-i-Azam School of Management Sciences (QASMS), Quaid-i-Azam University, Islamabad, Pakistan. Tel: +923334899913.

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