1. Emotional intelligence (EI)
Understanding and controlling emotions is
a key component of emotional intelligence (EI), a concept that is important in
both our personal and professional life. Emotional intelligence (EI) is the
capacity to recognize and control emotional cues and data. It is a crucial
factor in determining wellbeing and success on both a personal and professional
level. It speaks to the capacity to identify, comprehend, control, and affect
one's own emotions as well as those of others. It encompasses a number of
fundamental abilities, including self-awareness, self-management, self-motivation,
empathy, and social skills. The ability to
recognize, analyze, integrate, and control one's own and other people's good
and negative emotions is the most formal definition of emotional intelligence
(EI). (Mayer J., et al. (1997).
Being emotionally intelligent is a skill. It
aids in our understanding of both our own and other people's sentiments. We can
regulate and control these feelings. Throughout our lives, we employ it in a
variety of situations, such as when we're happy, sad, or furious. Our emotional
responses to one another and to ourselves are also influenced by our emotional
intelligence. It takes more than simply awareness to be able to express and
control your emotions.
Emotional intelligence (EI) is a set of skills
that show a person's ability to understand their own emotions, desires, and
behaviors and to control them in a way that makes the most sense for the
situation. An individual's "Emotional Intelligence Quotient," a group
of capabilities, can serve as a demonstration of these abilities. The majority
of the time, the term "emotional intelligence" refers to the capacity
to handle and regulate emotions, including emotional empathy, attention to, and
discrimination of one's own emotions, accurate recognition of one's own and
others' emotions, emotions management or control over emotions, and the
capacity to respond with appropriate (adaptive) emotions and behaviors in
various life situations (especially to stress and difficult situations).
2. Dimensions
of Emotional intelligence (EI)
The widely accepted model of EI, popularized
by Daniel Goleman, includes five main dimensions of the emotional intelligence:
-
Figure 1: Dimensions of emotional
intelligence
i) Self-Awareness: Know how you feel
· Self-awareness is the ability to recognize and understand one's
own motivations, emotions, and states of mind as well as those of oneself and
one's environment.
· The capacity to acknowledge and comprehend one's feelings,
virtues, flaws, and the effects one has on other people.
· Because it helps people recognize their emotional triggers and how
their emotions might affect their choices and behaviors, self-awareness is an
essential component of emotional intelligence.
· Examples: -
o
Identifying your tension
or anxiety and knowing why you are experiencing it.
o
Being aware of
how your interactions with family, friends, and coworkers are impacted by your
mood.
ii) Self-Management: Manage your own emotions and impulses
· Self-management refers to the ability to manage one's emotions and
impulses and reroute them as necessary.
· The tendency to consider things out before acting on them and to
refrain from passing judgment too quickly.
· The capacity to control or refocus erratic feelings and impulses
as well as adjust to shifting conditions.
· Individuals who possess strong self-regulation or self-management
are able to exhibit restraint, remain composed under pressure, and control
their emotions under frustrating circumstances.
· Examples: -
o
Restraining irrational
emotions or rage under tense circumstances.
o
Maintaining
composure in the face of hardship or criticism.
iii) Self-Motivation: The ability to persists in the face of setbacks and failures
· A drive to strive for objectives other than wealth or prestige.
· A tendency to pursue objectives with energy and determination.
· A drive to work toward objectives on a personal and organizational
level out of intrinsic motivation rather than in search of prestige or
financial gain.
· In emotional intelligence, motivation is the will to succeed and
grow; it is the determination to continuously pursue objectives with hope and
tenacity.
· Examples: -
o
Setting and
meeting high standards despite obstacles.
o
Maintaining
motivation and optimism in the face of adversity.
iv) Empathy: Sense & understand what others feel
· The capacity to understand the emotional composition of others.
· The capacity to recognize, understand, and share the emotional
needs and viewpoints of others.
· Empathy is beneficial for establishing trusting bonds, encouraging
teamwork, and leading groups.
· It enables people to react to other people's feelings with
compassion and respect.
· Examples: -
o
Recognizing when
a coworker is under stress and providing support.
o
Actively
listening to understand the other person's perspective when there is a
disagreement.
v) Social Skills: Can handle the emotions of others
· A proficiency with network building and relationship management
techniques.
· The ability to identify common ground and form connections with
people.
· The capacity to create networks and handle relationships well.
· It requires cooperation, effective communication, and dispute
resolution.
· People with strong social skills are able to lead, influence, and
collaborate with others.
· Relationship management in both personal and professional contexts
requires it.
· Examples: -
o
Developing
respect and trust inside the team to lead it.
o
Successfully
settling disputes or engaging in negotiations with teammates.
Emotional intelligence is defined by the
interaction of these five dimensions: self-awareness,
self-management, self-motivation, empathy, and social skills. People can
improve their relationships, leadership abilities, personal growth, and general
well-being by making improvements in these areas. Navigating social
difficulties, controlling one's own emotions, and building fruitful connections
are all made possible by emotional intelligence.
3. Different
Theories of Emotional Intelligence
i) Goleman’s EI Performance Model
Among the several theories of emotional intelligence is Goleman's
Emotional Intelligence Performance Model. Goleman claims that emotional
intelligence is the capacity to identify our own emotions as well as those of
others.
It includes having the ability to keep calmness and inspire
oneself in a variety of circumstances. This concept can be applied in a variety
of contexts, such as educational settings where it might enhance students'
emotional intelligence.
When managers possess strong emotional intelligence, they may be
self-aware and objective in the workplace, which boosts employee motivation and
productivity. Goleman's EQ model can also be used to evaluate the emotional
intelligence of staff members and pinpoint areas in need of development.
Figure 2: Daniel Goleman’s model of
emotional intelligence
Source: Jossey-Bass
ii) Bar-On’s EI Competencies Model
A theory called Bar-On's EI abilities Model focuses on 15
interrelated emotional and social abilities to explain emotional intelligence.
This paradigm proposes that our thoughts and actions can be influenced by our
ability to recognize and control our emotions.
The EQ-i is a self-report tool that can be used to gauge emotional
intelligence using Bar-On's concept. This model defines emotional intelligence
as a combination of competencies, skills, and facilitators.
The validity and reliability of the EQ-i have been extensively
researched, and it has been translated into other languages. Bar-On’s model is
one of several theories that explore how emotions impact our thinking,
learning, problem-solving, and decision-making abilities.
Figure 2: Bar-On’s model of emotional
intelligence components
Source: Rhodes University
iii) The Ability Model – Mayor and Salovey
Since 1990, when Peter Salovey and John Mayor
(Mayer J., et al., 1997) first used the term "emotional
intelligence," they have carried out studies on the concept's importance.
The terms intelligence and emotions come from two distinct fields of study.
They discovered that intelligence includes the ability to think abstractly
based on the theory of intelligence. According to the emotion study, there are
several fundamental, universal feelings as well as signals that express
consistent, understandable meanings about relationships. Four branches make up the more
psychologically integrated process that frames the updated EI model. Table 1 displays the ability model developed
by Mayor and Salovey.
4.
Relevance of the Emotional Intelligence (EI) in
the banking sector
When applied in a work context, emotional intelligence helps to
establish a culture where people care about their relationships with others to
the same extent as the community as a whole. Businesses have long understood
the importance of emotional intelligence (EI) in the workplace, but they
haven't always done a good job of communicating this to their staff
members. Acquiring people with a high
level of emotional intelligence will become equally as crucial as acquiring
intellectual qualities, as the importance of emotional intelligence (EI)
becomes increasingly clear.
Emotionally intelligent businesses can increase their odds of
being profitable and dramatically increase their level of productivity in
general. As a result of the increased likelihood of intimate relationships
between members of these groups. The
accomplishment of tasks or objectives, effective communication, positive
interpersonal dynamics, cohesiveness, and the skillful resolution of conflicts
are just a few of the employee characteristics that impact the team's
performance.
Businesses are finding it
difficult to adapt to the changing needs and wants of their target audiences as
a result of the significant changes taking place in the workplace environment
and culture. Employees may find this to
be an extremely stressful experience, and tensions within the company may
result. As a direct result, workers experience low levels of morale,
satisfaction, motivation, devotion, and productivity. One instance of this is the banking
sector. The banking sector in Nepal has
evolved to become more customer-focused as a result of their development of
their service offerings, which now include both online and offline services.
Emotional intelligence is becoming more and more crucial in the banking
industry. The banking industry's use of emotional intelligence can be described
from a variety of angles, as below: -
i) Relationship Management with Customers
Keeping solid client
relationships is crucial in banking. Employees at banks can establish trust and
enduring connections by using emotional intelligence (EI) to better understand
the wants, worries, and emotions of their customers. Particularly in complex
financial situations, empathy enables staff to offer individualized solutions.
ii) Resolution of Conflicts
Problems that banks frequently handle include
loan denials, consumer complaints, and poor service. Employees with emotional
intelligence are better able to manage these kinds of confrontations by
remaining composed, actively listening, and diplomatically resolving issues,
which raises customer satisfaction levels all around.
iii) Cross-selling and sales
Understanding client behaviors
and financial objectives is essential for upselling and cross-selling banking
products, and emotional intelligence aids bankers in this regard. With empathy,
they may better match their services to the financial and personal needs of
their customers, increasing sales and fostering customer loyalty.
iv) Teamwork
Collaboration is frequently
necessary in the banking industry, particularly at large branches and corporate
headquarters. Emotional intelligence (EI) enhances teamwork, communication, and
conflict resolution. Leaders with emotional intelligence are better able to
inspire their staff and create a healthy work environment.
v) Leadership and Management
Leaders in banking that possess strong
emotional intelligence are more effective at encouraging, inspiring, and
leading their teams. They are better able to handle stress, make more
thoughtful and sympathetic decisions, and foster a positive work atmosphere—all
of which are critical in the high-stress banking industry.
vi) Stress Management
The banking sector is prone to stress due to
its high standards, lengthy work hours, and frequent changes in regulations.
Strong emotional intelligence makes an employee more robust and capable of
handling stress, which keeps them focused on producing outcomes and productive.
vii) Adaptability in a Changing Industry
The banking industry is going through a lot of
change because of new rules, digitalization, and changing consumer demands.
High emotional intelligence (EI) workers are better at adjusting to change
because they can control their emotions throughout changes and support others
in doing the same.
viii) Ethical Decision-Making
Emotionally intelligent staff members are more
inclined to think through the moral and emotional implications of their
decisions. Banks encounter ethical issues. They are able to balance the effects
on the client and the organization, guaranteeing that choices take into account
the needs of the client as well as legal obligations.
ix) Enhancing Customer Experience
In a time when a bank's ability to
differentiate itself through client experience is crucial, staff members who
possess emotional intelligence add greater value. Bankers may design more
personalized and significant experiences by comprehending the emotional factors
that influence financial decisions.
x) Employee Retention and Job Satisfaction
An emotionally intelligent leader can foster a
more stimulating and encouraging work atmosphere. Increased job satisfaction,
fewer employee turnover, and increased staff morale are the results of this.
Over time, it also aids in preserving a robust staff in the competitive banking
sector.
5.
Conclusion
- Emotional Intelligence (EI) describes the capacity to identify, comprehend, control, and affect one's own emotions as well as those of others.
- The foundation of emotional intelligence skills are its five
dimensions: self-awareness, self-management, self-motivation,
empathy, and social skills.
- Emotional intelligence is a critical skill in the banking industry
that helps with stress management, teamwork, leadership, and customer service.
- Emotional intelligence assists staff of the banking sector in understanding
and managing own and customers’ as well as other stakeholders’ emotions and
successfully contributing to organizational success as banks focus a greater
emphasis on customer-centric models.
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References
· Rastogi, S. and Agarwal, M. (2024) Emotional Intelligence among
Banking Professionals. Available at:
https://jier.org/index.php/journal/article/view/588/524 (Accessed: 20 September
2024).
· P Radha & Aithal, Sreeramana. (2023). A Study on the
Influence of Emotional Intelligence Interventions in the Banking Sector.
International Journal of Case Studies in Business, IT, and Education.
· Nourizade, F. & Mohseni, M. (2014). A review
of the emotional Intelligence Literature. Doctoral Thesis.
· Mayer J., Salovey P. (1997). What is emotional intelligence? In: Salovey P., Sluyter D. J., editors. Emotional
Development and Emotional Intelligence: Implications for Educators. Basic
Books; New York, NY, USA.
·
Goleman, D. (1995). Emotional Intelligence.
New York: Bantam Books.
·
Goleman, D., Boyatiz, R.E., and Rhee, K.S. (2000). Clustering
competence in emotional intelligence: Insights from the emotional competence
inventory. In R. Bar-On and J. D. A. Parker (Eds.). Handbook of Emotional
Intelligence, San Francisco: Jossey-Bass.
·
Bar-On, R. (1988). The Development of an
Operational Concept of Psychological Well-Being. Doctoral dissertation,
Rhodes University, South Africa.
(नेपाल राष्ट्र बैंक कर्मचारी संघद्धारा प्रकाशित 'अरुणोदय विशेषाङ्क (बैंकिङ दिग्दर्शन) २०८१' बाट साभार)
