Evaluating the correlation between Emotional Intelligence (EI) and Effective Leadership (EL) among managers in Miri Shipbuilding Industry

This article investigates the correlation between Emotional Intelligence (EI) and Effective Leadership (EL) among project managers. Miri shipbuilding industry is chosen for the study due to the reason that the project managers of the shipbuilding companies are facing many challenges from the market right from supply chain to distribution. To retain subordinates and make them work for the success of the projects is the biggest challenge for the project managers of Miri shipbuilding industry. This study is conducted to help the industry find the correct measures to resolve the issues mentioned. Two sets of questionnaires were distributed to the project managers and their subordinates to determine the EI factors that contribute to effectiveness of the leadership quality of the project managers. Data was collected from 8 companies. 50 managers and 8 project managers participated in this study. Many studies have been done in this area in different industries and significant correlation is found evident in many studies. Based on Goleman's EI indicators to determine effectiveness of leadership, this study also shows significant results. Motivation, an indicator of EI shows significant correlation with the effectiveness of the leader. EI and EL also show significant correlation. 1. Background This research examines the impact of EI on EL among managers from Miri shipbuilding industry. The shipbuilding industry is an important industry that provides the backbone for the expansion of shipping business in Malaysia. It is one of the core divisions in the marine transportation sector in the country and provides employment in various fields/activities such as naval architecture; engineering, welding and fabrication. The state of Sarawak in Borneo has the most number of shipyards in Malaysia, mostly consisting of small yards. In recent years, there has been an increase in the activities at local yards to accommodate the booming exploration and construction activities in Malaysian deepwaters. With demand for hydrocarbon energy at high levels and with the discovery of abundant offshore sites in the waters of the states of Sabah and Sarawak, there has been an increase of demand for vessels of various categories. Malaysian yards encounter many challenges to truly recognize their potential on workboat building. There are many reasons for this such as lack of capital, low productivity due to labor-exhaustive and low-tech approach, lack of economies of scale due to small domestic market, and high cost of imported materials. With the increasing pressure from the market, it is important that project managers of an organization must have the capability to handle such situation. Project managers should be able to manage their emotions, and establish good relationships with colleagues in their work environment to be able to deal with the changes during the unstable climate in shipbuilding industries. Having control of their emotions helps to pursue and achieve goals. Leaders must develop the skill so that they can lead effectively, work collaboratively, foster emotional and intellectual growth and be able to cope with daily pressures and