Influence of Emotional Intelligence on Employees Performance in Commercial Bank: A Mediating Role of Leadership Style

Abstract

Emotional intelligence (EI) and leadership styles are increasingly recognized as critical determinants of employee performance in dynamic and service-intensive sectors such as banking. This study investigates the influence of EI and leadership styles on employee performance in the banking industry, with a focus on the mediating role of transformational leadership. An explanatory research design was employed, and data were collected from 406 respondents using purposive sampling and self-administered structured questionnaires via the KOBO toolbox. The analysis was conducted using Excel and SmartPLS 4.0. Findings reveal that among the EI dimensions, self-awareness and self-management did not significantly impact employee performance, whereas social awareness and relationship management were significantly associated with both employee performance and leadership styles. The study concludes that EI, particularly social awareness and relationship management, alongside transformational leadership, plays a significant role in enhancing employee performance in the Kathmandu banking sector. Transformational leadership acts as a mediator between EI and performance, highlighting the importance of EI-focused leadership development programs. The findings provide practical implications for HR managers and policymakers to enhance strategic human resource decisions and suggest further research across different industries and regions to strengthen organizational outcomes.