Emotional Intelligence's Influence on Leadership Practices in Bangladesh's Banking Sector

Abstract

The study focuses on the effects of emotional intelligence (EI) on leadership behaviour in the banking sector in Bangladesh. EI refers to the capability to identify, comprehend, control and handle personal feelings and understand and respond appropriately to those of others. It discusses the critical EI competencies of banking managers, the effects of EI on the practices of team management, and its role in conflict management. Leadership concerns in the banking sector, which has a very high rate of technological changes and regulatory system variation, are unique to developing countries such as Bangladesh, where the financial sector faces issues like corruption and political influence. The ability of leaders to manage their feelings and those of other individuals is not only crucial in establishing a fruitful workplace but also in reducing problems in the organisation.

In this study, 10 banking managers in Bangladesh were interviewed online using the Zoom platform. The study used a qualitative approach to determine how leaders who possesses high EI are better equipped to understand employees, encourage them, and maintain appropriate communication with them. The study revealed that EI leaders are better team managers, conflict resolvers and are able to adjust to the fast-evolving demands of the banking business. In particular, the study indicates that leaders with a high degree of EI are in a better position to deal with team behaviour, identify emotional issues in conflicts, and ensure effective communication in stressful contexts. The results indicate that EI not only increases the performance of the leader but also promotes the establishment of a favourable work environment and higher employee involvement rates.

There is a significant gap in the existing literature on EI and leadership in the context of the Bangladesh banking industry; therefore, this study brings new knowledge about the relationship between EI and leadership performance. It recommends that incorporating EI in leadership training programmes could have several positive effects in changing the performance of banking institutions to a more caring, resilient and flexible leadership style. This study demonstrates the need to carry out further research on the use of EI in leadership, particularly in emerging markets where there are specific socio-economic and cultural influences.