The Influence of Emotional Intelligence on Leadership Effectiveness in Banking Organizations at Dire Dawa Administration City: A Comparative Study Between Private and Public Owned Banks

This research was aimed at examining the influence of EI on leadership effectiveness of private and public private banks at DDC. The study applied a quantitative research approach via employing descriptive and explanatory research designs to quench the specific and general objectives of the study. This Study used census inquiry for 170 managerial employees whereas applied proportionate stratified random sampling to select 242 employees as respondents from private and public commercial banks at Dire Dawa Administration City. Both descriptive and ordered logistic regression (O-logit) was employed to satisfy specific objectives of this study. The mean and T-statistics results revealed that Leaders of commercial banks perceived the five attributes of leadership effective practices significantly better than the perception of employees. In addition leaders’ perceived attributes of emotional intelligence namely self awareness, self management, social awareness and relationship management practices more favorable than employee respondents. Leader respondents ranked relationship management (m=4.2 with the SD=0.247), self management (m=4.13 with SD=0.48), social awareness (m=4.12 with SD=0.46) and self awareness (m=4.03 with SD=0.52) from first to fourth. However, employee respondents ranked self awareness (m=3.1 with SD of 0.331), self management (m=2.98 with the SD=0.37), relationship management (m=2.95 with SD=0.47) and social awareness (m=2.94 with the SD=0.46). The O-logit regression result revealed that almost 95% of leadership effectiveness of public and private commercial banks was determined by those statistically significant antecedents in this study i.e. self awareness, self management, social awareness and relationship management. Generally, the attributes of emotional intelligence had a strong influence on leadership effectiveness of financial sector in general public and private commercial banks in DDC in particular. So, both private and public commercial banks at Dire Dawa Administration City should give due attention in order to their leaders effectiveness.