Quality Output, Workplace Environment, and Employee Retention: The Positive Influence of Emotionally Intelligent Supply Chain Managers

Abstract

Industry advancements are accelerating at phenomenal rates and changing the management of logistics and supply chain operations. Employers must develop supervision with advanced skills to manage and retain the most effective employees making up the new workforce of highly skilled and technologically advanced personnel. Emotional intelligence is a managerial competence leveraged by leaders to connect with subordinates on a psychologically emotional level. Our research evaluates and applies emotional intelligence within the context of managing logistics and supply chain employees. Recognizing that employees are critical to production and service delivery, logistics and supply chain managers must be able to cognitively analyze situations and connect with employees in a positive manner even during challenging times. We find that managers possessing higher levels of emotional intelligence are better equipped to help their employees manage emotions, build more positive working conditions for subordinates, increase retention of employees, and achieve more positive service outcomes for external customers.