The role of emotional intelligence in the investment management industry : a case study of a South African investment manager

Mulder, Sunette (2009-12)

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.

Thesis

ENGLISH ABSTRACT: The investment management industry is a challenging, exciting and rewarding environment to be employed in. The financial markets and global economies that form the playground for this industry are continually changing and evolving. Firms place a high premium on the intellectual capabilities of their staff and the continued development of those capabilities. However, the perceived soft skills are very often overlooked within the recruitment and development process. The question arises, whether these soft skills have a place within such a highly performance driven environment and does the existence of above average cognitive ability imply the existence of above average emotional ability as measured by emotional intelligence? Adam Smith, who is widely regarded as the father of modern economic theory stated, “If you don’t know who you are, the market is an expensive place to find out”. The rationale of the study is to determine the individual and group emotional intelligence profile for the investment team of an investment manager and the role emotional intelligence plays within their daily operations. The resulting profile will enable the investment management firm to train and develop individual staff members and the group accordingly to improve performance. The result can also be used to build a profile of an ideal candidate that can be used in future recruitment. Data for the case study was collected from an investment management firm where 11 individuals out of the investment team volunteered to take part in the testing. The instrument used was the online BarOn EQ-i. The service of an accredited firm of consulting psychologists was used to conduct the testing. With the help of a trained EQ specialist, the writer compiled and interpreted the results. All results showed an average group composite EQ score below the target score put forward by the writer and EQ specialist and also below the South African standard score, with only a few individuals scoring on or above target for some of the subsections and components of EQ. This study concluded with recommendations to the firm for EQ development on the individual and group level. At an individual level the development should be constructed around the specific needs identified in the EQ results. At an organisational level the recommendations focused on creating organisational acceptance for the development initiative. The study also made proposals regarding future research.

AFRIKAANSE OPSOMMING: Die beleggingsindustrie is ‘n uitdagende, opwindende en lonende omgewing om in te werk. Die finansiële markte en wêreld ekonomieë wat op ‘n deurlopende basis verander vorm die arena waarbinne die industrie moet bestaan. Firmas heg groot waarde aan die intellektuele vaardighede van werknemers en die voortgaande ontwikkeling van daardie vaardighede. Die sogenaamde sagte vaardighede word egter gereeld oor die hoof gesien as nuwe werknemers aangestel word en bestaande werknemers ontwikkel word. Die vraag ontstaan of die sagte vaardighede ‘n bestaansreg het binne so ‘n hoogs kompeterende omgewing en of die bestaan van bogemiddelde intelligensie noodwendig ‘n aanduiding is van bogemiddelde emosionele intelligensie? Die sogenaamde vader van die moderne ekonomiese teorie, Adam Smith, het gesê: “Indien jy nie jouself ken nie, is die markte ‘n duur plek om jouself te vind”. Die beweegrede vir die studie is om die profiel te bepaal vir emosionele intelligensie vir beide die individu en die groep binne die beleggingspan van ‘n batebestuurder en te bepaal wat die rol is wat emosionele intelligensie speel binne die daaglikse aktiwiteite van die firma. Die profiel wat volg uit die resultaat sal die batebestuurder in staat stel om individue en die groep op te lei en ontwikkel om sodoende hul prestasie te verbeter. Die resultaat kan ook gebruik word om ‘n profiel te vorm van ‘n ideale kandidaat wat gebruik kan word in toekomstige werwing. Data vir die gevallestudie is vanaf ‘n batebestuurder verkry nadat 11 individue uit dit beleggingspan aangebied het om deel te neem aan die studie. Die aanlyn BarOn EQ-i is gebruik vir die toetsing. ‘n Geakkrediteerde fima konsulterende sielkundiges is gebruik om die toetse af te neem. Met die hulp van ‘n opgeleide spesialis in die veld van emosionele intelligensie en die BarOn EQ-i, het die skrywer die resultate saamgestel en vertolk. Alle resultate het getoon dat die gemiddelde group saamgestelde EQ telling laer is as die teiken telling wat deur die skrywer en spesialis voorgestel is en ook laer as die Suid-Afrikaanse Standaard telling met slegs enkele individue wat die teiken of hoër as die teiken telling behaal het vir sekere van die onderafdelings en komponente van EQ. Die studie is afgesluit met aanbevelings aan die firma om EQ te ontwikkel op beide die groep en individuele vlak. Aan die individuele kant moet die ontwikkeling bepaal word met inagneming van die spesifieke resultate van die EQ toetsing. Uit die oogpunt van die firma fokus die aanbevelings op inisiatiewe om aanvaarding vir die ontwikkeling in die firma te bewerkstellig. Die studie maak ook voorstelle aangaande verdere navorsing wat onderneem kan word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/990
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