EMOTIONAL INTELLIGENCE AND ITS EFFECT ON JOB SATISFACTION AND JOB PERFORMANCE: A CASE STUDY OF COMPANY ABC
By
Nakhrita Andradite Priyanto 13110108
A thesis submitted to the Faculty of
BUSINESS ADMINISTRATION AND HUMANITIES
in partial fulfillment of the requirements for the
BACHELOR’S DEGREE in
INTERNATIONAL BUSINESS ADMINISTRATION
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
July 2014
Nakhrita Andradite Priyanto
EMOTIONAL INTELLIGENCE AND ITS EFFECT ON JOB SATISFACTION AND JOB PERFORMANCE: A CASE STUDY OF COMPANY ABC
By
Nakhrita Andradite Priyanto 13110108
A thesis submitted to the Faculty of
BUSINESS ADMINISTRATION AND HUMANITIES
in partial fulfillment of the requirements for the
BACHELOR’S DEGREE in
INTERNATIONAL BUSINESS ADMINISTRATION
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
Revision after the Thesis Defence on the 14th of July 2014
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Nakhrita Andradite Priyanto
_____________________________________________
Student Date
Approved by:
Dr. Samuel P. D. Anantadjaya
_____________________________________________
Thesis Advisor Date
Prof. Eric J. Nasution, MBA, MA, PhD
_____________________________________________
Dean Date
Nakhrita Andradite Priyanto
ABSTRACT
EMOTIONAL INTELLIGENCE AND ITS EFFECT ON JOB SATISFACTION AND JOB PERFORMANCE: CASE STUDY OF COMPANY ABC
By
Nakhrita Andradite Priyanto Dr. Samuel P. D. Anantadjaya, Advisor
SWISS GERMAN UNIVERISTY
This research studies the significance of emotional intelligence in every day working situations and how it impacts an individual’s satisfaction towards their job and performance. With increasing competition in the working world, emotional intelligence is considered one of the most important aspects for an employee to have.
The purpose of this research is to find out whether that statement is true based on a survey conducted on a local Indonesian company. It utilizes a questionnaire to measure the current environment. Since this study is quantitative, it uses SPSS and Amos to analyze the data obtained, specifically using the structural equation model. It has also been found that emotional intelligence does in fact have high significance influence on job satisfaction and job performance. In order to increase satisfaction, companies must focus on increasing employees’ emotional intelligence because it also impacts their job performance as a whole.
Keywords: Emotional Intelligence, Job Satisfaction, Job Performance
Emotional Intelligence and its Effect on Job Satisfaction and Job Performance: Case study of Company ABC
Nakhrita Andradite Priyanto Page 5 of 102
© Copyright 2014 by Nakhrita Andradite Priyanto
All rights reserved
Nakhrita Andradite Priyanto
DEDICATION
To the One and Only
Emotional Intelligence and its Effect on Job Satisfaction and Job Performance: Case study of Company ABC
Nakhrita Andradite Priyanto Page 7 of 102
ACKNOWLEDGEMENTS
Dr. Sam P. D. Anantadjaya, thank you for your amazing endurance and knowledge impartment in this moment in time.
Priyono Wignyoatmojo and family, whom I would never have made this far in my educational career without.
Raditianto Adipriyana, Reyhan Ali Firmansyah, and Evan Akira, with whom I’ve spent most of the bittersweet moments of my higher education career.
Hanastasia Gunawan, you’re my breath of fresh air. Thank you for always being able to refresh my head and to bring me back to reality. Or to send me back to the clouds.
Nindyo Utomo Indratno, you’ve always had my back. Will always be grateful that we finally met.
My parents, I would not be the person I am today without you. Thank you, Mom and Bapak.
My brothers, Aga and Arya, thank you for being there for me through all your lives.
I’ll be there for you for all of mine.
Melati, you became everything, like only very exiguous do. I lucked out. Veering everything, you overcame uncertainty. Always have. Always will.
To SGU batch 2010. Finally.
To the one and only.
Nakhrita Andradite Priyanto
Table of Contents
ABSTRACT 4
DEDICATION 6
ACKNOWLEDGEMENTS 7
LIST OF FIGURES 11
LIST OF TABLES 12
1 INTRODUCTION 13
1.1 BACKGROUND 13
1.2 LIMITATION OF RESEARCH 15
1.3 RESEARCH PROBLEMS 15
1.4 RESEARCH QUESTIONS 16
1.5 RESEARCH OBJECTIVES 16
1.6 THESIS STRUCTURE 17
2 LITERATURE REVIEW 18
2.1 FRAMEWORK OF THINKING 18
2.2 THEORETICAL PERSPECTIVES 19
2.2.1 EMOTIONAL INTELLIGENCE 19
2.2.2 JOB SATISFACTION 22
2.2.3 JOB PERFORMANCE 24
2.3 PREVIOUS STUDIES 26
2.4 STUDY DIFFERENCES 31
2.5 RESEARCH MODEL 31
2.6 QUESTION AND HYPOTHESES 31
3 METHOD OF ANALYSIS 32
3.1 RESEARCH PROCESS 32
3.2 TYPE OF STUDY 33
3.3 TYPE OF DATA 33
Emotional Intelligence and its Effect on Job Satisfaction and Job Performance: Case study of Company ABC
Nakhrita Andradite Priyanto Page 9 of 102
3.4 POPULATION AND SAMPLE 34
3.5 PRIMARY DATA COLLECTION 35
3.5.1 QUESTIONNAIRES 35
3.5.2 TABLE OF INDICATORS 36
3.6 RELIABILITY AND VALIDITY 41
3.6.1 RELIABILITY 41
3.6.2 VALIDITY 42
3.7 PRE-TESTING &POST TESTING 43
3.7.1 PRE-TESTING 43
3.7.2 POST-TESTING 43
3.8 STRUCTURAL EQUATION MODEL (SEM) 43
3.8.1 METHOD OF SEM 43
4 RESULTS AND DISCUSSIONS 47
4.1 COMPANY PROFILE 47
4.2 PRE-TEST 48
4.2.1 RELIABILITY AND VALIDITY TEST 48
4.3 POST-TEST 49
4.4 RESPONDENTS’PROFILES 49
4.4.1 GENDER 50
4.4.2 AGE 51
4.4.3 EDUCATION 51
4.4.4 POSITION 52
4.4.5 WORKING EXPERIENCE 53
4.5 DESCRIPTIVE STATISTICS 54
4.6 DATA ANALYSIS 55
4.7 P-VALUE 57
4.7.1 RESULT OF SEMMODEL 58
4.7.2 MODIFICATION OF INDICES 62
4.7.3 GOODNESS FIT CRITERIA 65
4.7.4 RESULTS OF MODIFIED SEM 67
4.7.5 RESEARCH QUESTIONS AND HYPOTHESIS TESTING 71
Nakhrita Andradite Priyanto
5 CONCLUSION AND RECOMMENDATION 75
5.1 CONCLUSION 75
5.2 RECOMMENDATION 76
GLOSSARY 78
APPENDICES 87
APPENDIX A:SURVEY 87
APPENDIX B:RAW DATA 92
APPENDIX C:AMOS OUTPUT 99
CURRICULUM VITAE 101
List of Figures
FIGURE 2-1 FRAMEWORK OF THINKING 18
FIGURE 2-2 RESEARCH MODEL 31
FIGURE 3-1 RESEARCH PROCESS 32
FIGURE 4-1 RESPONDENTS’ GENDER 50
FIGURE 4-2 RESPONDENTS’ AGE 51
FIGURE 4-3 RESPONDENTS’ EDUCATIONAL BACKGROUND 51
FIGURE 4-4 RESPONDENTS’ CURRENT POSITION 52
FIGURE 4-5 RESPONDENTS’ WORKING EXPERIENCE 53
FIGURE 4-6 STRUCTURAL EQUATION MODEL – AMOS RESULTS 55
FIGURE 4-7 MODIFIED SEM RESULTS 64
Nakhrita Andradite Priyanto
List of Tables
TABLE 2-1 DANIEL GOLEMAN’S EMOTIONAL INTELLIGENCE
COMPETENCY 20
TABLE 2-2 PREVIOUS STUDIES 26
TABLE 3-1 SAMPLE SIZE DETERMINATION TABLE 35
TABLE 3-2 TABLE OF INDICATORS 36
TABLE 3-3 LIKERT SCALE 41
TABLE 3-4 CRONBACH’S ALPHA EXPLANATION 42
TABLE 3-5 GOODNESS OF FIT CRITERIA 45
TABLE 4-1 PRE-TEST RELIABILITY ANALYSIS 48
TABLE 4-2 PRE-TEST VALIDITY ANALYSIS 48
TABLE 4-3 POST-TEST RELIABILITY RESULTS 49
TABLE 4-4 POST-TEST VALIDITY RESULTS 49
TABLE 4-5 NUMBER OF RESPONDENTS 50
TABLE 4-6 DESCRIPTIVE STATISTICS ANALYSIS 54
TABLE 4-7 P-VALUE TABLE 57
TABLE 4-8 MODIFICATION OF INDICES 62
TABLE 4-9 ERRORS CONNECTION ON AMOS 63
TABLE 4-10 GOODNESS FIT CRITERIA RESULTS 65
TABLE 4-11 P-VALUE TABLE 66
TABLE 4-12 HYPOTHESIS TESTING 71