Bank Employees Emotional Intelligence Commerce Essay

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Emotional Intelligence concerns ability of understanding, receiving, using and managing ones own emotions and those of others. During last 15 years, significance of this concept and its influence on the world of commerce has gained a particular practical and collegial motivation. Nowadays, Emotional Intelligence Theory which follows the promotion of the value of human communications has got a great development accounting for one of the most popular issues of organizations and commercial companies. Emotional Intelligence as a major human's skill plays an important role in the efficacy of employees.

The aim of the current research was to assess the relation between bank employees' emotional intelligence and marketing efficacy of bank services. Research methodology was based on an applied descriptive approach. Statistical community included all the employees of banks and finance and credit institutes of Larestan. 169 persons were selected by a randomized sampling method. 2 questionnaires were used for gathering data. Cronbach's Alpha Test was applied to determine the reliability of the questionnaires and a coefficient of 90.63 was gained. Validity of the questionnaires was confirmed by relevant specialists. Data was analyzed using Spearman's Correlation Test and Paired Comparisons (AHP).

Findings were indicative of a significant effect of Emotional Intelligence and its indices on marketing efficacy of bank services. Furthermore, results of AHP represented components of Relationship Management, Social Awareness, Self-Regulation, and Self-Awareness are influential on marketing efficacy of bank services, respectively.

Key words: Emotional Intelligence, Self-Awareness, Relationship Management, marketing efficacy

1-Responsible author: imandoust@pnu.ac.ir; Tel: 09171832757

Introduction:

Several factors affect on the efficiency of individuals in organizations, one of which could be mentioned as Emotional Intelligence. In recent decade, this phenomenon was welcomed by many people. Perhaps, the reason for that was to reduce the contradictions between IQ and emotions or what was traditionally called the opposition between heart and wisdom. High emotional intelligence can cause an enhancement of healthiness, welfare, affluence, accomplishment, love, and happiness. Concept of Emotional Intelligence was first introduced by Peter Salway and John Myer in 1990. It states it is a sort of emotional data- processing including a true evaluation of sentiments in others and oneself, appropriate expression of emotions, and their adaptive adjustment (Shafaqizadeh, 1384).

In brief, we can point out Emotional Intelligence includes understanding of one's own sentiments as well as those of others in order to use them for suitable decision-makings in life. In other words, it is a factor that produces motivation at the time of failure and leads to a good communication with people by means of high social skills. This case is also true for the performances of bank employees. Thus, it is necessary to attempt to preserve customers of a firm by using Emotional Intelligence.

Emotional Intelligence:

Emotional Intelligence is an important part of intelligence including ability of cognition, understanding, and adjustment of emotions and using them in one's life. It relates to the ability of understanding one's own sentiments as well as those of others and managing them. It is another sort of intelligence. It includes understanding one's emotions and using them for proper decisions in life. It is the ability of administering temperaments and mental state and controlling tensions properly. It is known as a factor to produce motivation and hope in an individual at the time of failure so as to attain his or her goal. Sympathy means being aware of emotions of the people surrounding us. Social ability is defined as compromising people and controlling one's own feelings towards others and being able to encourage and guide them. Emotional Intelligence takes into account one's emotional and sentimental aspect of life. New researches show Emotional Intelligence plays an important role in an individual's daily activity, satisfaction, and job performance. Moreover, a high degree of Emotional Intelligence has a positive relation with abilities such as problem-solving, imitation, keeping low stress, and control of anger. It is the ability of understanding one's own sentiments and those of others as well as controlling and managing them, which is the product of two capabilities, social and individual. Intelligence and Emotional Intelligence are not two opposite issues. However, we might say they are rather distinct. All of us possess a dual combination of intelligence and sentiments. Some people are with a high intelligence and low emotional intelligence and some others are vice versa. Today, the role of Emotional Intelligence has become much more outstanding in the marketing efficacy of companies and industries while managers are attempting to reach a good competitive condition through individual and social capabilities of Emotional Intelligence and gain marketing efficacy (Sasani Moqaddam, 1388).

Golman's aspects of Emotional Intelligence Model

In 1995, Daniel Golman began with the initial definitions of Salway and Myer. He could identify 5 main realms in the field of Emotional Intelligence. These realms were as follows: (Wannamaker, 2005, 10)

Self-awareness:

The first aspect or component of Emotional Intelligence is self-awareness or understanding of one's own emotions and sentiments. Understanding of emotions and how they affect on one's performance as well as understanding their weak and strong points constitute an important part of this component. In other words, self-awareness is the key for understanding one's weak and strong points. Mainly, self-aware individuals spend some time on thinking in solitude; this method allows them to contemplate on different aspects of a subject instead of taking an emotional action (Safarzadeh, 1388). In this research, the following sub-criteria were considered for this criterion:

Extent of one's familiarity with his or her job; tendency towards self-thinking and contemplation; ability of a true and precise understanding of one's emotions, nature of work and its level of difficulty; explicitness towards others' feedback.

Self-regulation

Self-regulation is the second aspect of Emotional Intelligence. This component of leading sentiments towards a particular purpose is very important for concentration, producing motivation to dominate one's self, and creativity. Control of emotions provides a background for any sort of skills and success and those who are able to provoke their emotions on time try to be productive and effective in any job entrusted to them. Feeling of self-regulation suppresses misfortunes and anxieties, which may disappoint and prevent us to continue our jobs (Wannamaker, 2005). In this research, the following sub-criteria were regarded for this criterion:

Satisfaction for learning to do a job better; creating a motivation in a job and in oneself to dominate one's self; control of sentiments

Self-management:

Emotional self-management is the third aspect of Emotional Intelligence. This component displays an individual's ability to adjust distressing emotions such as anxiety and anger and learn how to manage such conditions. This inner aspect becomes important at the time of a person's confrontation with hard mental situations necessitating spiritual tranquility. Self-management is indicative of one's capability of adaptation, taking an innovative action, willing for success, job conscience, internal confidence, flexibility, and a comprehensive attitude towards others (Safarzadeh, 1388). In this research, the following sub-criteria were considered for this criterion:

Willing for success; innovative action; flexibility; ability of adaptation; ability to adjust distressing emotions

Social-awareness:

The fourth aspect of Golman's Emotional Intelligence theory is mainly based on congeniality. It means that a person can identify different situations by being aware of other's sentiments, interests, and needs and then use this source of information in a real communication with them.

In this research, the following sub-criteria were considered for this criterion:

Ability of understanding one's own emotions as well as those of others; awareness of others' emotional feelings; congeniality with people; understanding and addressing the needs of subordinates; utilizing work teams.

Relationship management (social skills):

The last aspect of Golman's Emotional Intelligence is relationship management, which shows how people interact with each other in emotional situations. It is also called social skills including subtle control of one's own sentiments, suitable reaction, team work, ability of dialogue and clear relation. (Nwokah, N.G, & Ahiauzu, 2009).

The following sub-criteria were regarded for this criterion in this research:

Ability of dialogue and clear relationship, true communication with employees, suitable reaction, interaction with people, subtle control of one's own sentiments.

Marketing efficacy

Marketing efficacy does not necessarily appear through current selling and profit-making. Perhaps, satisfactory outcomes are due to the reason that a sector has been situated at the right place and time and not that it has got a good and efficient marketing management. A modifying action in marketing of that sector may change its state from a good to an excellent condition. Other sections may not be able to represent a good performance despite a true planning for marketing. Marketing efficacy criterion holds on this belief that the power of consolidating a customer-oriented and organizational performance depends on the level of integrity of marketing efficacy, which covers varied issues in the marketing operation. A fivefold model consisting of customer-orientation philosophy, integrated marketing efforts, marketing information, strategic orientations and operational efficacy is of Katler's marketing efficacy features adopting both internal and external perspectives for marketing capacities (Nwokah, N.G & Ahiauzu, A.I, 2009,867).

Problem statement:

In the assessment of factors of an individual's success in organizations, Intelligence or IQ has been always mentioned as a key factor, which possesses the highest effect in the trend of employees' occupational progress. However, now we know that the way of using sentiments and emotions in addition to cognitive intelligence or IQ is a more important factor that determines one's success or failure. Daniel Golman mentions in his book entitled "Working with Emotional Intelligence" that it is as a new criterion for employees and the main condition for maintaining one's job. Its relation to the positive action of a person has been proven (Petrides, 2003). Despite the fact that emotion and intelligence are two contradictory issues, subject of emotion has been included in the literature of intelligence since 1920. On the other hand, nature of bank services is so that their qualitative offering has a close relationship with bank employees' characters and emotional and social skills. Banks as customer-based organizations always try to attain their goals through reinforcing communicative skills and providing necessary background in order to understand customer needs and demands. The main factor to facilitate the accomplishment of bank marketing purposes is to employ persons with high emotional and social capabilities or at least enhance such features in persons who offer bank services. Contrary to the process of producing goods with standard qualities, customers encounter those who offer less definite and more changing quality of services in servicing jobs. Thus, service marketing needs something more than traditional external marketing which is enforced through a mixed marketing trend. So, there is a need of internal and reciprocal marketing in service marketing (Ashurzadeh/1388). The present research looks for the identification and assessment of the relation between components of employees' emotional intelligence and marketing efficacy of bank services. Conceptual model of this research was

Emotional Intelligence

Marketing efficacy

of

bank sevices

Self-management

Self-regulation

Self - awarenesstaken after Golman's model (2001) that is presented in figure 1.

Relationship management

(social skills)

Social awareness

Fig. 1: Research conceptual model, the relation between emotional intelligence and marketing efficacy of bank services. (Wannamaker, 2005)

Research background:

Previous studies were not consistent in the field of the relation between emotional intelligence and marketing efficacy of bank services. Therefore, presence of such a relationship has always been doubted. This survey has not exactly been carried out in Iran and thus it necessitates investigating the relation between emotional intelligence and banking, which can be used in all banks and finance and credit institutes. Thus, this research highly contributes to the clarification of the relation between these two components. Some of the studies carried out on this ground are as follows:

A) Internal studies:

Kargar (1390), Relation between Emotional Intelligence and Job Satisfaction Associated with Organizational Obligation of High School Teachers. Results obtained indicated gender was the only influential variable in the significance of the difference between averages of various sample groups, i.e. women with an average emotional intelligence had a higher degree of job satisfaction and organizational obligation than men, which was significant. No significant difference was observed in averages of other demographic variables.

Bani Hashemian (1389), Relation between Leadership Approach and Emotional Intelligence of managers and their Effects on Job Satisfaction of Employees. Results gained by this research show that there is a significant relationship between collaborative leadership approach of managers with emotional intelligence and job satisfaction of employees. Congeniality, high motivation, and confidence are characteristics of emotional intelligence and collaborative leadership approach, which lead to the promotion of employees' self-esteem, motivation and job satisfaction.

In their research Ostovar et al. (1387) assessed the relation between emotional intelligence, job satisfaction, and organizational obligation of the employees of a private sector factory in Shiraz. Results represented a significant relation between emotional intelligence and job satisfaction, emotional intelligence and organizational obligation, and job satisfaction and organizational obligation. Furthermore, there is a multiple relation between emotional intelligence and job satisfaction, and emotional intelligence and organizational obligation. In this case, emotional intelligence predicts 16% of job satisfaction variance and 14% of organizational obligation variance.

B) External studies:

Tareq (2010), Impact of Managers' Emotional Intelligence in Marketing Creativity of Commercial Banks in Jordan. Results were indicative of a high effect on emotional intelligence and its components (self-awareness and control of sentiments, motivation, social skills, congeniality) on marketing creativity of commercial banks in Jordan.

In 2009, Sanusi Utman & Onugrah in their research entitled "Assessment of the Relation between Occupational Obligation and Success and Mediatory Role of Obligation related to Emotional Intelligence-Occupational Success" concluded that individuals with a high degree of emotional intelligence show more obligations in their jobs.

In their research aimed at the effect of Emotional Intelligence and its dimensions on job satisfaction and organizational obligation of nurses, Golrivz, Gunni, Misky Iodine, and Assan Found out that Emotional Intelligence is highly related to job satisfaction and organizational obligation (Glorivz, Gunni, Misky, Iodine, Assan, 2008).

Research hypotheses:

Main hypotheses:

There is a significant relation between emotional intelligence of bank employees and marketing efficacy of bank services.

There is a significant relation between self-awareness of bank employees and marketing efficacy of bank services.

There is a significant relation between self-regulation of bank employees and marketing efficacy of bank services.

There is a significant relation between self-management of bank employees and marketing efficacy of bank services.

There is a significant relation between social awareness of bank employees and marketing efficacy of bank services.

There is a significant relation between relation-management of bank employees and marketing efficacy of bank services.

Research methodology:

This is a descriptive research of an applied type. Statistical community of this research includes all the employees of banks and finance and credit institutes of Larestan. 169 persons were selected as the research sample by a randomized sampling method. A questionnaire was used for gathering data. 120 out of 169 questionnaires were returned. The mentioned questionnaire was prepared in the form of an organized package to assess the relation between emotional intelligence and bank marketing efficacy using 42 questions. In order to determine the reliability of these questionnaires, Cronbatch's Alpha Test was used with a coefficient of 90.63. Validity of the mentioned questionnaires was also confirmed by the relevant experts. Different methods of descriptive and inferential statistics were used for analyzing data and answering research questions. Descriptive statistical methods were applied for the illustration of typical situations. However, most of the analyses were implemented by the use of SPSS software. Moreover, a questionnaire of Paired Comparisons with a hierarchical technique (AHP) was used for prioritizing the impact of Emotional Intelligence components on marketing efficacy of bank services.

Research findings:

First research hypothesis: There is a significant relation between self-awareness of bank employees and marketing efficacy of bank services.

Spearman's Correlation Test was used for this hypothesis.

Table 1: Results of Spearman's Correlation Test between self-awareness of bank employees and marketing efficacy

Statistical index

N

rÙ…

Df

Rب

Sig

Variables

Self-awareness

120

0,942

118

0,195

0,000

Marketing efficacy

With regard to the significant level of Spearman's Correlation Test less than 0.05, there is a significant relation between self-awareness of bank employees and marketing efficacy of bank services.

Second research hypothesis: There is a significant relation between bank self-regulation of employees and marketing efficacy of bank services.

Table 2: Results of Correlation Test between self-regulation and marketing efficacy of bank services

Statistical index

N

rÙ…

Df

Rب

Sig

Variables

Self-awareness

120

0,326

118

0,195

0,000

Marketing efficacy

With regard to the significant level of Spearman's Correlation Test less than 0.05, there is a significant relation between self-regulation of bank employees and marketing efficacy of bank services.

Third research hypothesis: There is a significant relation between self-management of bank employees and marketing efficacy of bank services.

Spearman's Correlation Test was used for this hypothesis.

Table 3: Results of Spearman's Correlation Test between self-management and marketing efficacy of bank services

Statistical index

N

rÙ…

Df

Rب

Sig

Variables

Self-awareness

120

0,367

118

0,195

0,000

Marketing efficacy

With regard to the significant level of Spearman's Correlation Test less than 0.05, there is a significant relation between self-management of bank employees and marketing efficacy of bank services.

Fourth research hypothesis: There is a significant relation between social awareness of bank employees and marketing efficacy of bank services.

Table 4: Results of Spearman's Correlation Test between social awareness and marketing efficacy of bank services

Statistical index

N

rÙ…

Df

Rب

Sig

Variables

Self-awareness

120

0,317

118

0,195

0,000

Marketing efficacy

With regard to the significant level of Spearman's Correlation Test less than 0.05, there is a significant relation between social awareness of bank employees and marketing efficacy of bank services.

Fifth research hypothesis: There is a significant relation between social relationship management of bank employees and marketing efficacy of bank services.

Table 5: Results of Spearman's Correlation Test between relationship management and marketing efficacy of bank services

Statistical index

N

rÙ…

Df

Rب

Sig

Variables

Self-awareness

120

0,269

118

0,195

0,000

Marketing efficacy

With regard to the significant level of Spearman's Correlation Test less than 0.05, there is a significant relation between relationship management of bank employees and marketing efficacy of bank services.

Results of hierarchical analysis:

A hierarchical technique an Expert Choice software were used for ranking and prioritizing indices of bank employees' emotional intelligence and marketing efficacy of bank services. Considering results obtained, prioritizing emotional intelligence components by the use of a hierarchical analysis is as shown in the following table. Relation-management and social awareness are of the most important criteria and thus fall in dominant priorities. Self-regulation, self-awareness and self-management occur as the next priorities.

Table 6: Prioritization of main criteria of Emotional Intelligence of bank employees and marketing efficacy of bank services using AHP method

No.

Main criteria

weight

priority

1

Self-awareness

0,108

4

2

Self-regulation

0,182

3

3

Self-management

0,057

5

4

Social awareness

0,291

2

5

Relationship management

0,363

1

Table 7: Prioritization of self-awareness sub-criteria using AHP method

No.

main criteria

weight

priority

1

Tendency towards self-thinking and contemplation

0,302

2

2

Explicitness towards others' feedback

0,084

5

3

Extent of one's familiarity with his or her own job

0,331

1

4

Nature of work and its level of difficulty

0,097

4

5

Ability of true and precise understanding of one's own emotions

0,186

3

Table 8: Prioritization of self- regulation sub-criteria using AHP method

No.

self- regulation

weight

priority

1

Producing motivation in one's job

0,303

2

2

Motivation in oneself to control one's self

0,129

3

3

Control of sentiments

0,113

4

4

Satisfaction for learning to do one's job better

0,455

1

Table 9: Prioritization of self-management sub-criteria using AHP method

No.

self- management

weight

priority

1

Ability to control distressing emotions

0,086

5

2

Ability for adaptation

0,131

4

3

Initiative

0,218

2

4

Willing to success

0,351

1

5

Flexibility

0,139

3

6

Internal self-reliance

0,077

6

Table 10: Prioritization of social awareness sub-criteria using AHP method

No.

Social awareness

weight

priority

1

Understanding others' emotions

0,285

2

2

Ability of understanding one's emotions as well as those of others

0,345

1

3

Application of work teams

0,089

5

4

Congeniality with others

0,159

3

5

Understanding and addressing subordinates' needs

0,122

4

Table 10: Prioritization of social awareness sub-criteria using AHP method

No.

Relationship management

weight

priority

1

Interaction with others

0,100

4

2

Subtle control of one's own emotions

0,081

5

3

Suitable reaction

0,162

3

4

Ability of dialogue and clear communication

0,381

1

5

Making a suitable relationship with employees

0,277

2

Research limitations:

Lack of accessibility to the whole statistical community and possibility of any errors in the questionnaire responses.

Lack of possibility of generalization of these results to bank managers in the future.

Results were obtained using a questionnaire tool. There is a probability of gaining other results through face-to-face interviews with bank managers.

Discussion and conclusion:

The aim of the present research was to assess the relation between Emotional Intelligence of bank employees and marketing efficacy of bank services. Research findings demonstrated there is a significant relation between Emotional Intelligence and marketing efficacy of bank services. Based on the results of data analysis, this research indicated that relation-management, social awareness, self-regulation, and awareness have the most effects on the efficacy of bank services in Larestan banks and finance and credit institutes, respectively. Findings of the current research for the relation between Emotional Intelligence and marketing efficacy of bank services are consistent with those found by Safarzadeh (1389) in a similar investigation. Based on the results obtained in Safarzadeh's research, Emotional Intelligence is regarded as the major factor in the growth and profit-making of most firms due to producing transparent and innovative strategies. In addition, true understanding of market needs and demands and reaching a dominant competitive condition in the market as well as operational efficiency can enhance marketing efficacy of firms. Results of studies carried out by Tareq (2010) are also indicative of a great influence of Emotional Intelligence and its components (self-awareness and emotional self-control, motivation, social skills, congeniality) on marketing creativity of commercial banks in Jordan.

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