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. |