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How Managers’ Emotional Intelligence Impacts Employees’ Satisfaction and Commitment: A Structural Equation Model

Objective: This study explores the power of structural equation modeling (SEM) for determining the relationship between managers’ emotional intelligence and employee satisfaction and commitment in the workplace. This investigation of managerial behavior utilizes SEM to provide a visual portrayal of the relationship with and impact on employee attitudes. The study provides suggestions which may help managers and supervisors to influence employees toward higher levels of satisfaction, commitment, and performance in the workforce.Methodology: Study data were collected via survey methodology from employees across multiple industries. A convenient sample was utilized with responses from more than 600 EMBA students who were working full-time work. Confirmatory factor analysis was used to confirm a factor structure and a measurement model using data from an emotional intelligence inventory. All modeling analyses were conducted using LISREL version 8.80. Overall the structural model had adequate fit with the data obtained (adj. χ²=2.25, RMSEA=.071, NFI=.946, CFI=.969).In addition to fit indices, SEM (Structural Equation Modeling) provides path coefficients which note the direct strength of the relationship between each individual item to the latent construct. Path coefficients can be interpreted as follows: ~.10 as a small effect, ~.30 as a moderate effect, ~.50 as a large effect (Cohen, 1988). The structural equation model displays the manner in which worker satisfaction with the leader/manager leads to organizational satisfaction and organizational commitment via commitment to the leader/manager.