Harnessing Emotional Intelligence for Organizational Transformation: A Quantitative Study of Bank Employees in Islamabad

Abstract

The current research study aims to explore the significance of Emotional Intelligence (EI) in the organizational behaviour of the banking sector in the city of Islamabad, Pakistan. In the context of the banking sector, which is high-pressure, requires strong customer interaction, and operates within a team environment, the role of EI in leadership, employee engagement, and organizational results has a specific context. The study utilized a quantitative research design with the primary data being collected by administering questionnaires to the employees of various banks in Islamabad (N=48) and based on the EI Theory, developed by Goleman, the EI Ability Model developed by Mayer and Salovey, the Social Exchange Theory, and the Transformational Leadership Theory. The questionnaire included 24 items that were rated on a five-point Likert scale for five constructs: Company Mission/Values and EI Leadership, Job Satisfaction, Work Environment, Compensation and Benefits, and General Feedback. Reliability analysis showed high internal consistency for all constructs (Cronbach's alpha values ranged from 0.768 to 0.961). In general, the highest positive correlation was found between Work Environment and General Feedback (r = 0.469, p = 0.001), followed by Compensation and Benefits (r = 0.453, p = 0.001), Job Satisfaction (r = 0.403, p = 0.005), and Company Mission/Values with EI Leadership (r = 0.366, p = 0.010). The regression analysis results revealed that EI Leadership significantly predicts organizational outcomes (β = 0.567, p = 0.001), and also the Job Satisfaction, Work Environment and Compensation and Benefits contributed significantly to the prediction (p = 0.004, p = 0.000 and p = 0.0495 respectively). The overall model explained 23.7% of the variance in General Feedback (R² = 0.237, F = 3.345, p = 0.018). The results of this study highlight the significance of EI in promoting positive organizational climate, increasing the level of employee engagement and performance of an organization in the banking sector of Pakistan. The study is one of the many recent works showing the importance of emotional intelligence in the organizational context and provides implications for leadership development, HRM, and organizational culture plans for the banking sector.