In today’s fast-paced and highly competitive corporate world, understanding the human element within organisations has become paramount. Among the factors influencing workplace dynamics, Emotional Intelligence (EI) is a critical determinant of organisational behaviour and overall effectiveness. As workplaces evolve to be more inclusive and diverse, emotional intelligence provides a foundation for fostering collaboration, managing conflicts, and achieving sustainable growth.
Emotional intelligence refers to the ability to recognise, understand, and manage one’s emotions and those of others.
First, conceptualised by Peter Salovey and John Mayer and later popularised by Daniel Goleman, EI encompasses self-awareness, self-regulation, empathy, and social skills.
These competencies allow individuals to respond appropriately to various emotional cues, creating a harmonious and productive work environment.
In service-oriented industries like banking, where customer interactions are frequent and often emotionally charged, emotional intelligence becomes even more significant.
Employees with high EI can adapt to customer needs, diffuse tension under challenging situations, and ensure that clients feel valued. For instance, a bank teller encountering an irate customer about a delayed transaction can leverage their emotional intelligence to remain composed, empathise with the customer’s frustration, and resolve the issue effectively.
Such behaviour resolves immediate conflicts and strengthens the customer’s trust and loyalty to the organisation.
Beyond individual benefits, emotional intelligence contributes to the organisation’s overall health by fostering a culture of collaboration and mutual respect.
Teams led by emotionally intelligent managers often exhibit higher morale, better communication, and enhanced problem-solving capabilities. This creates a positive ripple effect, with engaged employees driving customer satisfaction and business success.
EI and Organizational Citizenship Behaviour
One of the most tangible ways emotional intelligence manifests in organisational settings is through its impact on Organisational Citizenship Behaviour (OCB) which refers to voluntary actions that go beyond an employee’s formal job responsibilities and contribute to the organisation’s efficiency and success. Examples of OCB include helping colleagues with tasks, maintaining a positive attitude even in challenging circumstances, and proactively seeking solutions to problems.
Employees with higher emotional intelligence tend to exhibit altruistic behaviours, conscientiousness, and civic virtue. They are more likely to assist colleagues without being asked, conserve organisational resources, and actively participate in initiatives that enhance workplace culture. This aligns with global studies suggesting that emotionally intelligent individuals are naturally inclined to contribute positively to their work environments.
For instance, an employee with high emotional intelligence might notice a colleague struggling to meet a deadline and offer assistance without expecting anything in return. While not formally required, such behaviour creates a supportive workplace where employees feel valued and motivated to perform at their best. Over time, this fosters a culture of mutual trust and collaboration, ultimately enhancing the organisation’s productivity and reputation.
Strategic advantage
Incorporating emotional intelligence into workplace practices offers a range of strategic advantages. As businesses face increasing complexity and uncertainty, employees with strong EI skills are better equipped to navigate these challenges. They can adapt to changing circumstances, manage stress effectively, and maintain focus on organisational goals.
Moreover, emotionally intelligent leaders are valuable in today’s volatile business landscape. Such leaders inspire trust and loyalty, communicate transparently, and foster a sense of belonging among team members. For example, during organisational restructuring, a leader with high EI can empathise with employees’ concerns, provide transparent and honest updates, and create a sense of stability amidst uncertainty. This not only reduces resistance to change but also boosts morale and engagement.
Organisations that prioritise EI also see tangible improvements in their bottom line. A study by TalentSmart revealed that emotional intelligence accounts for 58% of job performance across industries, making it a critical skill for employees at all levels. Furthermore, emotionally intelligent employees are less likely to experience burnout, as they can better manage stress and seek support when needed. This reduces turnover rates, saving organisations significant costs associated with recruitment and training.
To harness these benefits, companies can invest in training programs that develop emotional intelligence competencies. Workshops on self-awareness, empathy-building, and conflict resolution can equip employees with the tools they need to thrive in a collaborative environment. Incorporating EI assessments into hiring processes can help organisations identify technically proficient and emotionally attuned candidates.
Challenges and complexities
Despite its clear advantages, integrating emotional intelligence into organisational practices is not without challenges. One key hurdle is the variability in how EI is measured and understood. While some models emphasise self-awareness and empathy, others focus on social skills and relationship management. This lack of standardisation can make it difficult for organisations to design comprehensive EI training programs.
For instance, an employee with high EI may still struggle to exhibit OCB if they perceive their work environment as unfair or overly demanding. This highlights the need for a holistic approach that combines emotional intelligence development with initiatives to enhance workplace conditions.
Another challenge lies in addressing cultural differences in emotional expression and regulation. In diverse workplaces, employees may have varying norms and expectations regarding emotional communication. For example, in some cultures, openly expressing emotions may be seen as a sign of strength, while in others, it may be viewed as unprofessional. Organisations must be sensitive to these differences and adapt their EI training programs accordingly.
Methodological insights into emotional intelligence and workplace behaviour
This study employed a quantitative methodology to explore the relationship between emotional intelligence and organisational citizenship behaviour. Using a deductive framework, primary data was collected through a self-administered 5-point Likert scale questionnaire supplemented by secondary academic sources.
Data analysis involved advanced tools such as Partial Least Squares – Structural Equation Modeling (PLS-SEM) and SPSS, enabling robust examination of key variables. The measures demonstrated high reliability, with Cronbach’s alpha values exceeding 0.9, ensuring the validity and accuracy of the findings.
The role of EI in the Banking Sector
The banking sector thrives on interpersonal interactions, making emotional intelligence crucial. It helps employees manage emotionally charged situations, such as resolving complaints or negotiating products, with professionalism and empathy. For instance, loan officers can de-escalate conflicts by addressing client frustrations. Similarly, emotionally intelligent managers foster supportive work environments by effectively addressing team stress and disengagement.
The way forward
As the importance of emotional intelligence continues to gain recognition, organisations must take proactive steps to integrate it into their culture.
This begins with leadership. Leaders who model emotional intelligence set the tone for their teams, demonstrating the value of empathy, transparency, and effective communication.
By embedding these principles into their leadership practices, they create a ripple effect influencing the entire organisation.
At the same time, organisations should prioritise ongoing employee EI development. Regular training sessions, mentorship programs, and feedback mechanisms can help individuals refine their emotional intelligence skills. Additionally, creating a supportive work environment that values emotional well-being can amplify the impact of these initiatives.
Conclusion
In an era where human capital is the most significant asset, emotional intelligence is a cornerstone of effective organisational behaviour. Its impact spans from enhancing individual performance to fostering a culture of collaboration and innovation. As the banking sector demonstrates, emotionally intelligent employees and leaders drive customer satisfaction, improve workplace dynamics, and contribute to long-term organisational success.
By investing in emotional intelligence, organisations can unlock the full potential of their workforce, paving the way for a future defined by empathy, resilience, and sustainable growth.
The question is no longer whether emotional intelligence matters but how organisations can harness its power to thrive in an ever-evolving business landscape.
By: Ms. Fiushani Dissanayake
MSc. in Management (USJ) BBM (Hons.) in Entrepreneurship & Management (UWU), AAT Passed Finalist, IABF
Department of Management Studies
Faculty of Indigenous Social Sciences and Management Studies
Gampaha Wickramarachchi University of Indigenous Medicine
