Role of Emotional Intelligence in Organizational Learning: An Empirical Study Based on Banking Sector in Sri Lanka

Abstract

In the present millennium one factor that appears to be constant in organizations is change. As a result, of that organizations are forced to make significant transformations in order to adapt and survive in this new world. Revans (1983) says that in any epoch of rapid change, those organizations which are unable to adapt will soon find themselves in trouble, and adaptation is achieved only by learning. Organizational Learning (OL) is about the acquisition of new knowledge and highlights the importance of acquiring and disseminating information to assist organization actions (Miller, 1996). Huber (1991) identified that OL consists of four constructs; Knowledge Acquisition, Information Distribution, Information Interpretation and Organizational Memory. Any organization wishing to thrive through change must make the choice to promote, and allow employee expressions of Emotional Intelligence (EI) (Hunton et al, 1998; Robertson et al, 1999). Goleman (1998) has identified four main dimensions of Emotional Intelligence (EI); Self Awareness, Self Management, Social Awareness and Relationship Management. Most of the literature expressed that there are very few studies on this topic in Sri Lankan context as well as all over the world. In addition to that empirical studies also proved that emotional research studies in organizational setting was ignored for a significant period of time. Therefore researchers were attempted to explore the nature and relationship of emotional intelligence in organizational learning Researchers have selected Sri Lankan domestic banks for the study as financial sector is identified as one of the most dynamic and vibrant sectors of the economy. The units of observation of the study were at individual level, managerial level employees. 70 managerial level employees were selected through simple random sampling method for the study. Both primary data and secondary data were collected for the study. Primary data were collected using a structured questionnaire and in-depth interview. Questionnaire was pre-tested using test-retest method for estimating the reliability. SPSS computer package was used as a tool for compiling and processing data. The findings of this study emphasized that the employees possessed above average level of EI and the processes of OL characterized by innovation, implementation, and sustenance of new ideas, processes structures and the likes are more than satisfactory. Further study results depicted EI as being positively and significantly related with OL. The findings have implications for management of people towards creating and maintaining OL.