Emotional Intelligence And Employees Performances In Malaysia Education Essay

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This research relates to emotional intelligence of the employees in commercial banks in Malaysia. Employees need emotional intelligence in working environment. It is important for the commercial banks to keep their employees working to their full potential. An employee must have emotional intelligence in order to be able to understand and handle his own and other people's emotions, motivate oneself and control compulsion, and effectively manage interpersonal relationships in the working environment (Goleman, 1998). Daniel Goleman, the man most associated with popularizing Emotional Intelligence, defines Emotional Intelligence according to five characteristics. In his article "What Makes a Leader?" (Harvard Business Review, Nov.-Dec. 1998), he presents a chart that describes Emotional Intelligence as: Self-awareness, Self-regulation, Self-motivation, Empathy and Social-skill.

Every one of us has different personalities, wants and needs, and ways of showing our emotions. We need to handle them well if we wish to succeed in life. This is where emotional intelligence becomes important. We use emotional intelligence to analyze our emotions, understand what they are telling us, and realize how they will affect others. Besides that, motional intelligence also involves our perception of people around us: when we understand how they feel, this allows us to manage relationships more effectively.

People will be able to succeed in most things they do if they possess high emotional intelligence in them. Why? Because they are what others need in this society. When an email is sent by people with high emotional intelligence, it will be able to get answered quickly. They will be able to get helps whenever and wherever they need it as people who have high emotional intelligence tend to make others feel good and their lives are much more relaxing than people who get upset easily.


In the commercial banks, employees' emotional intelligence has become an important factor to the success of today's banking organizations in Malaysia. The success of any organizations in banking sectors has become dependent upon the effectiveness of its management, coupled with the effectiveness of management to keep employees' emotional intelligence at high level and enhance their performances. Corporate leaders are one entity that gives surety to business success, and the workforce is another entity that assists businesses. According to Steward (2009), she indicated that managers in banking sectors should to keep the employees' emotional intelligence at high levels in organizations as that can assure that the tasks are completed in a timely fashion to promote profitability and satisfy shareholder interests.

A successful bank is very dependent on the management and leadership skills of the effective manager and his or her understanding of importance of emotional intelligence, as they apply to generationally diverse subordinates (Steward, 2009). Employees' emotional intelligence is very important as it link to the success of a company. According to Kim (2004), in her study she examined the importance of how banks depend on their employees for the ultimate success.

Emotional intelligence influences productivity (Kim, 2004). A banking organization need to understand what keep employees' emotional intelligence at high levels in order for them to reach peak performance. It is not an easy task to keep employees' emotional intelligence at high levels because employees respond in different ways to their jobs and their organization's practices. Emotional intelligence is able to moves a person toward a goal.

According to Goleman (1997), the research in emotional intelligence gives us new insights into human behavior which often seem paradoxical. For example, the research indicates that IQ accounts for 4 percent to 25 percent of a person's success. The remaining 96 percent to 75 percent depends on a person's ability to perceive, identify and manage emotion. Improving this ability provides the basis for the kinds of social and emotional competencies that are essential for success in any job or challenging task in life. This revelation is almost shocking to corporate America, which puts such high value on graduate school and other formal education that focuses on the cognitive aspects of intelligence (Laurens & Budinich, 2006).

Frontline bank people, for example, face complex and demanding issues such as: fierce competition, delivering customer service, sales performance, compliance and a host of others. Developing the required emotional competencies, such as mutual trust, respect, empathy and cultivating interpersonal skills to handle these issues is important. Equally important is the ability to effectively monitor their own and others' feelings and emotions, discriminating among them and using that information to guide their thinking and action. Laurens et al. (2006) indicated in their study that emotional competencies and emotional intelligence are not taught in colleges and universities and don't come naturally to most companies who are submerged in analytical thinking.

The Domains of Emotional Intelligence (Goleman, 1998)

Daniel Goleman's five characteristics of emotional intelligence model are shown above. The term emotional intelligence is linked with the concepts of self-awareness, self-regulation, motivation, empathy, and social skills. Self-awareness is the ability to recognize and understand personal moods and emotions. Self-regulation is the ability to control or redirect disruptive impulses and moods and the propensity to suspend judgment and think before acting. Motivation is a passion to work for reasons that go beyond money and status. Empathy is the ability to understand the emotional make up of other people, a skill that may be used in treating people according to their emotional reactions. Social skills often ensure proficiency in managing relationships and building networks and enhance an ability to find common ground and build rapport with others. These terms are defined by Goleman in his book, Working with Emotional Intelligence (1998).


A problem many commercial banks have today is that they never put and treat emotional intelligence as an important skill in their working environment. Due to retention problems, commercial banks have been constantly accruing the cost of proving training for new employees. There are plenty of human resources departments do not understand how emotional intelligence is. According to Fleming (2000), emotional intelligence of many employees or the job applicants of banks are not realized of how to be assessed by managers. There are many people that not having any knowledge or the different traits create the term emotional intelligence. According to Miller (1999), self awareness, self-regulation, motivation, empathy and social skills are the components of Emotional Quotient and qualities of an all-rounded person. Therefore, banks can find people who mostly likely would fit well in their working environment if they recruit professionals to help them in measuring the emotional intelligence of the job applicants.

Besides that, it has been difficult to get top management to agree that they need to implement new recruiting tools in their employee searches. People might think that it is too illogic for top management to focus on the bottom line, but emotional intelligence is increasingly being considered as a precious people skill that defines the top-performers from average employees (Beagrie, 2004). In order for employees to be successful in the commercial banks, management staffs must learn and understand they need to look beyond a resume.

In addition, there is more variation in emotional intelligence than there is in Intelligence Quotient among the top management people and the professionals. There is a very big difference between those at the high and low ends of the emotional intelligence scale, and being at the top has major competitive advantage. Thus, skills related to emotional intelligence matter even more for success in workplace (Goleman, 1998).

Normally employees who perform well and outshine in commercial banks are those who usually possess high emotional intelligence. However, it does not mean that a person is the smartest or the finest in the commercial bank but it means that they are able to provide their best skills to the rest of the commercial bank and at the same time understanding what else they need to work on. According to Goleman (1998), employees who perform well have limits on their abilities too, but they know how to improve them by working with someone else that has strength that they do not have as they are aware of their limits.


According to Goleman (1998) and Bar-On (2002), emotional intelligence comprises of self-awareness, self-regulation, motivation, empathy, social skills, adaptability and stress management. These are the skills that are important to a success of a person in an organization.

In addition, according to Smewing (2004), emotional intelligence is not a journey with a clear path, not one that should be embarked upon lightly. Emotional intelligence is a skill which we can learn and improve. It does not guarantee that a person will have learned the emotional competencies that matter for work if he or she possesses high emotional intelligence. It means only that they have outstanding potential to learn them (Goleman, 1998). Therefore, organizations must provide training and development of emotional intelligence seriously for it to be effective.

Besides that, management needs to know how important emotional intelligence skills are as they can be developed and then bring benefit to their organization. Management have been unwillingly putting money for training employees on emotional intelligence because it takes a long time for them to have any results. While an organization is trying to recruit new employees with high emotional intelligence, it is important for them to train those current employees too as the whole culture of a workplace could be shaped. According to Laabs (1999), he indicated that emotional competences development needs old habits of thought, feeling and action that are deeply ingrained to be unlearned and new ones to be learned by learners. This requires motivation, effort, time, help and lasting practice.


In accordance with the purpose of the study, and based on the problem statement, the following questions have been formulated:

Is there any relationship between emotional intelligence affects employees' performances in commercial banks in Malaysia?

Does emotional intelligence affects employees' performances in commercial banks in Malaysia?

How emotional intelligence affects employees' performances in commercial banks in Malaysia.

Is there any correlation between emotional intelligence and employees' performances in commercial banks in Malaysia?


The purpose of this research is to examine the determinants of the emotional intelligence on employees' performances in commercial banks, where the research population mainly focuses on men and women who are the employees working in the banks. The objectives of the research are stated as below:

1: To examine if there is a relationship between emotional intelligence and employees' performances in commercial banks in Malaysia.

2: To examine if emotional intelligence affects employees' performances in commercial banks in Malaysia.

3: To examine how emotional intelligence affects employees' performances in commercial banks in Malaysia.

4: To examine if there is any correlation between emotional intelligence and employees' performances in commercial banks in Malaysia.


This study will help commercial banks to understand the significant role emotional intelligence plays in their banks. It will show that Emotional Quotient is equally important with Intelligence Quotient in the workplace. By using emotional intelligence assessment tools, they would allow human resource departments to have information to back up their opinions and ideas that are based on logical thinking for using emotional intelligence when looking for new employees. Commercial banks can highlight the leaders within the workplace and can understand how they contribute to the organizational environment.

Besides that, this paper will also give the commercial banks ideas about the importance and effects of high levels of emotional intelligence in the current employees. This study will show how people with different levels of emotional intelligence can influence their performances in the commercial banks.

The study will also give managers of the commercial banks ideas about who they should recruit. Grades are an important thing to look at in newly graduated students, their emotional intelligence abilities should also be evaluated during the hiring process. Too many wonderful graduates are overlooked because their grades were not convincing but they were involved in a number of extra school activities that also took up some of their study time to help benefit their school environment. It is important to note that the current way that many organizations hire their employees is flawed and needs improvement. Recruiting for employees with high levels of emotional intelligence should become an accepted practice in commercial banks because doing so would help in the development of new leadership within those commercial banks. This would produce happy employees and higher retention rates. Emotional intelligence awareness and action taken in commercial banks would benefit them greatly over time.


Research Methodology presents the overview of the research methods that will be carried out in the Chapter 4 in depth. It sets forth a description of theoretical framework, hypotheses development, sampling design, data collection, as well as explanation of the procedures for analyzing data, which refers to data analysis. The independent and dependent variables are shown below.

Independent Variables


Employees' Performances in Commercial Banks






Stress Management

Dependent Variable

The development of questionnaires and measurements are mostly in Likert scale and Itemized rating scale. Sampling plan is based on 200 respondents of those employees working in commercial banks. Data collection techniques is based on self administered and web enable survey instrument. Data analysis techniques which include descriptive analysis and correlation analysis are also being discussed in that chapter of studies.


For the purpose of uniformity and clarity, the following terms are defined in relation to their use in the study. Understanding the terminology is important to better understanding the information that follows.

Emotional Intelligence: "The ability, capacity, skill, or self-perceived ability to identify, assess, and manage the emotions of one's self, of others, and of groups" (Goleman, 1998).

Self-awareness: "The ability to recognize and understand your moods, emotions, and drives, as well as their effect on others" (Goleman, 1998).

Self-regulation: "The ability to control or redirect disruptive impulses and moods and the propensity to suspend judgement - to think before acting" (Goleman, 1998).

Self-motivation: "A passion to work for reasons that go beyond money or status and a propensity to pursue goals with energy and persistence" (Goleman, 1998).

Empathy: "The ability to understand the emotional makeup of other people and skill in treating people according to their emotional reactions" (Goleman, 1998).

Social-skill: "Proficiency in managing relationship and building networks and an ability to find common ground and build rapport" (Goleman, 1998).

Adaptability: "

Stress Management: "


This project has been arranged steadily. I have organized the information of this project properly and as it has been requested so that readers will be able to interpret the findings clearly.

Chapter 1: Introduction

This chapter states a brief introduction of emotional intelligence. This section is composed of background of the study, problem statement, research objectives, and research questions, significance of study and the definition of terms. These sections are discussed in details which would secure a brief preliminary understanding regarding the research topic.

Chapter 2: Literature Review

This chapter carries out the extensive literature reviews that emphasize on the study of the determinants of Emotional Intelligence to review the related studies. Apart from that, past researches which are closely related to the research topic will be discussed thoroughly.

Chapter 3: Research Methodology

In this chapter, a further details and methodology of this project will be clarified. Hypotheses will be developed based on the independent and dependent variables. In this case, the dependent variable is the employees' performances while the independent variables are Self-awareness, Self-regulation, Self-motivation, Empathy and Social-skill. Data collection method and research design are bound to be discussed in this chapter as well. Besides, data analysis techniques will be discussed in this chapter along with sections addressed before this section.

Chapter 4: Data Analysis

This chapter will continue with the data analysis. This is where will be goodness of measure; that is the questionnaire is valid or not to the hypotheses testing and will conclude it in a summary.

Chapter 5: Discussion

The last chapter will be the discussion and recommendation. This is where the conclusion and summary of what have been discussed in the earlier chapters. There will be parts included in this final chapter such as implication of the study, limitation of the study and suggestion for future research. Flowed by overall conclusion from what has been finding in this project.