The role of emotions and emotional intelligence during merger of two banking institutions in Brunei

Abstract

This study seeks to investigate the role of emotional intelligence in merger. Much of the existing literatures state that merger between organizations is a stressful event that affects the emotions of employees and thus have implication on the degree of support and attitudes towards merger. It is suggested that in changing circumstances such as merger, emotional ability could significantly assist individual employees to better deal with change, adapt to, and cope with changing surroundings. This study therefore used emotional intelligence as emotion-focused coping strategy to buffer negative emotional responses and to acquire positive attitudes towards merger. A two time points longitudinal study was conducted aimed to examine employees’ responses at four months post merger and ten months post merger. MSCEIT ability-based model measurement was used to measure the emotional intelligence of employees. Questionnaires were administered to obtain statistical data on the emotional responses, degree of support and attitudes towards merger. Qualitative data was also collected from interviews in order to tap first hand emotional responses of employees experiencing merger. At the same time emotional intelligence training was conducted in order to investigate whether emotional intelligence can be developed using training intervention. This study found relationships between emotional intelligence and degree of supports. This suggests that individual employees were more able to regulate their emotion and accept merger after ten months merger. The training intervention and Islamic culture could have influence the employees’ positive emotions and support for merger.

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