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Abstract With the increasing competition, it is imperative for organizations to bring about managerial innovation and focus on managerial

effectiveness. Studies indicate that only 27% of success at work is contributed by an employee's Intelligence Quotient, the rest of it being contributed by Emotional Intelligence. This paper attempts to study the role of Emotional Intelligence in Managerial Innovation and Effectiveness. The results of the study indicate a positive correlation between Emotional Intelligence and Managerial Innovation and Managerial Effectiveness implying thereby that Emotional Intelligence should be an integral part of an organization's recruitment and developmental process. Keywords: Managerial innovations, managerial effectiveness, intelligence quotient, emotional intelligence Introduction In the dynamic world of rapid technological development and intensifying global competition, it has been seen that organizational imperatives change from efficiency to adaptability, with major implications for how our corporations are organized and managed. Increasingly, today?s corporations see themselves as having to become more inventive in all aspects of their operations and management, if they are to survive and thrive in the new economy (Leavy, 2002). In an environment where product quality is regarded as an inherent component of marketing, product innovations become the only factor that can gain a competitive edge. Previously, structured and fixed corporate procedures, processes, and job descriptions discouraged the development of creative thinking in many organizations. However, the necessity to produce innovative products forces corporate planners to integrate the creative process across the full range of the organizational structure. A growing number of executives believe that creativity can come from anywhere within the company, including technicians, accounting specialists, and secretaries. At Clorox, R&D encompasses all aspects of its various departments. At the Global Advanced HVAC Innovation division of General Motors, department manager Den Black encourages creative thinking by establishing an ?innovation council,? which consists of volunteers from different departments. Pointers in creating an idea-friendly culture include giving employees? freedom to fail, giving them opportunities to ask ?silly? questions, and providing them with management support. Employees should also be trained on their potential to think creatively (Caudron, 1998). Although in this effort to excel and produce the best in this era of competition, somewhere the corporate world has been very mechanistic, consequently neglecting the softer aspects of the human resource of the organization. Emotional Intelligence The term ?emotional intelligence? was first coined by Peter Salovey and John Mayer (1990). They carried out comprehensive tests to establish EI as a genuine intelligence, based on the theoretical concept and definition of intelligence. Their goal was to produce a test that measured EI in a similar manner as IQ and the Wechsler Adult Intelligence Scales. Recently, Salovey and Mayer (1990) have succeeded in producing a norm-tested EQ scale. They postulated that EI is made up of four branches: managing and regulating emotion, understanding and reasoning about emotion, assimilating basic emotional experiences, and perceiving and appraising emotion.

In Working with Emotional Intelligence, Goleman (1998) applies the emotional intelligence concept to the workplace environment. In this analysis, he argues that the emotionally intelligent worker is skilled in two areas, which he presents in his emotional competence framework. These are ?personal competence? (how we manage ourselves), and ?social competence? (how we manage relationships). Each broad area consists of a number of specific competencies. Emotional Intelligence plays an important role in helping organizational leaders make good decisions about new products, markets, and strategic alliances. It influences organizational development in a number of areas such as emotional recruitment and retention, development of talent, teamwork, employee commitment, morale, innovation, productivity, efficiency etc. Having been considered as dubious within industrial psychology circles, the measurement of ?emotional quotients? (EQs) is now beginning to find practical applications in hiring and training. According to Stephen Stein, president of Torontobased Multi-Health Systems Inc. (MHS), some 600 firms in North America have tested or are currently using his company?s BarOn Emotional Quotient Inventory, a 133-question assessment that claims to quantify emotional intelligence. Acknowledging that a human being represents as complicated a ?system? as the atmosphere, Stein admits that early critics of EQ would be right if EQ inventory was promoted as a replacement for other assessments. Stein says that EQ is a complement to IQ and other standard personality assessments. (Stuller, 1997). Today is the time of multiple competency and leadership being one of the prime areas of focus. Leadership being one of the most important aspects of an organization, includes skills such as risktaking capabilities while being rational at the same time. All effective leaders possess a high degree of emotional intelligence. Research at almost 200 large, worldwide companies has shown that emotional intelligence, particularly at the highest levels, is the key element in leadership. The investigator examined the various aspects of emotional intelligence and demonstrated how it is identified in potential leaders, how and why it results in measurable business results, and how it can be learned (Goleman, 1998). The role of emotions in the workplace was probably first underscored by Hochschild who studied the effects of emotional labor in service industries (Hoschild, 1983). The growth of the service industry in the recent decades has enhanced the role of emotional intelligence in the workplace (Rafaeli, 1989; Rafaeli & Sutton, 1987). Also, the changing nature of the workplace has a dual effect on the importance of emotional intelligence in the workplace. On one hand, telecommunicating and other technological advances minimize human interaction and thereby reduce the importance of EI and on the other, the same technological advances make the perception, understanding, assimilation and management of emotions in the self and others more critical for success; what is true of the workplace is true of the society at large. In a time of frequent downsizing and continuous restructuring, emotions are a critical component of success. The emotionally intelligent worker is more likely to succeed in such a work environment. Additionally, with the increasingly diverse workplace demographics, EI can benefit a worker. Beyond helping the worker as an individual, EI should also help the team as a whole. Daftuar, Nair, and Nira (2000) investigated the relationship between EQ and 16 dimensions of managerial effectiveness using EQ Map of Cooper & Sawaf (1997). They found the self- awareness of managers to be positively correlated with 9 dimensions, resilience with 12 dimensions, interpersonal connection with 12 dimensions, integrity with 12 dimensions and intuition with 14 dimensions of managerial effectiveness. The specialized field of Industrial/Organizational Psychology has generally followed the path of its parent discipline in its neglect of emotions. Feelings and emotions are at the core of human

experience. Further, we spend most of our lives engaged in work than any other single activity. The logical conclusion would be that as a discipline concerned with behavior at the forefront in explaining the role of emotions at work, the workplace offers a bountiful opportunity to experience a wide range of emotions. Despite the centrality of these emotions to our work lives, the vast majority of them are rarely, if ever, openly discussed in organizational behavior (Muchinsky, 2000). Kumar (2001) conducted a study on 390 executives across various hierarchical positions and found that a high level of correlation existed between the emotional intelligence and team cohesiveness, organizational effectiveness and job satisfaction. He also found a strong correlation between transformational leadership and EI. Leaders need to be aware of the way they present themselves to their followers. Johnson (2002) says, ?Self-aware managers tend to be the best performers because they are able to change their behavior and adapt to changes in the organizational environment, whether that?s new technology, working with people from different cultures or leading new business initiatives.? Most importantly, he found that managers, who are self-aware of their leadership styles and rated themselves on a similar level as subordinates, tended to get the best marks from supervisors and they proved to be the most successful in their work environments. Selfawareness has been recognized as an important component of emotional intelligence. A secondary, more speculative motivation for building general models of emotion is that they may give insight into building models of intelligent behavior in general. Social emotions such as anger and guilt may reflect a mechanism that improves group utility by minimizing social conflicts, and thereby explains peoples ?irrational? choices in social games such as prison?s dilemma (Frank, 1988). Similarly, ?delusional? coping strategies such as wishful thinking may reject a rational mechanism that is more accurately accounting for certain social costs (Mele, 2001; Gratch and Marsella, 2003). A study examined the predictive relationship between emotional intelligence and transformational leadership style. The researchers also wanted to determine gender differences in the relationship between emotional intelligence and transformational leadership style, as well as the gender differences in the emotional intelligence scores and transformational leadership style of managers. A significant predictive relationship (p < .05) was found between transformational leadership style and emotional intelligence. No significant interaction (p > .05) was found between gender and emotional intelligence while predicting transformational leadership style. A significant difference (p < .05) was found in the emotional intelligence of scores of male and female managers. Lastly, no significant difference (p > .05) was found in the transformational leadership scores of male and female managers (Mandella & Pherwani, 2003). Organizations continue to employ the matrix organizational form as it enables companies to use human resources flexibly, produce innovative solutions to complex problems in unstable environments, increase information flow through the use of lateral communication channels, and leverage economies of scale while remaining small and task oriented. Despite its strengths, the matrix has inherent problems. Earlier studies have primarily addressed structural problems. In this paper, we aim to identify a relationship between EI and Managerial Innovation and Managerial Effectiveness to help organizations identify talent within the organization. Managerial Innovation Strong relations may be beneficial, such as by providing social support to enhance creativity and innovation (Ibarra, 1992; Krackhardt, 1992).

The high-innovation outcomes were higher on environmental stimulants, including the feeling of working on challenging projects; having a sense of freedom or autonomy; being part of a team where people have a diversity of skills, are cooperative, and supportive of people?s ideas, yet at the same time challenge each other?s ideas; supervisors who serve as enthusiastic work models and foster communication and collaboration; and an orientation at the highest levels of management toward innovation, risk-taking, and rewarding and recognizing creative work (Stevens, 1995). Scientific and technological breakthrough thinking occurs when people well-versed in their own field apply the right brain functions of synthesis, visualization, conceptualization, and holistic thinking to their work (D?Silva & Novak, 1997). Creative people are more influenced by their own intrinsic standards than those of domain or profession (MacKinnon, 1962 & Storr, 1991). MacKinnon (1962) found that his most creative subjects appeared to give ?more expression to the feminine side of their nature than do less creative persons?. When innovation is pursued through group activity, additional considerations of composition and dynamics come into play. What seems important is that the members of a group can work together and stimulate each other creatively, and shared obsession provides the main cohesion, not amiability (Bennis & Biederman, 1997; Cummings & Oldham, 1997). In two prominent innovation models (Amabile, 1988; Woodman, et al, 1993), researchers propose that actors in the work environment, such as supervisory support and social influences resulting from group interaction, are important antecedents to creativity. Enhancements to domain-relevant knowledge should influence the incidence of creative performance (Campbell, 1960; Mumford & Gustafon, 1988; Simonton, 1999) by increasing the ability to generate and validate potential solutions for determining their appropriateness. This is supported by a study on product managers with more creative marketing programs (Andrews & Smith, 1996). Communication with others in the domain should enhance one?s understanding of the area and facilitate the generation of approaches that are feasible and appropriate while being unique. Galbraith (1990) offers a more radical set of structural changes. Typical corporate structures are ideal for achieving operating efficiency, for producing the millionth car or serving the millionth client in the most efficient manner possible. However, they are not effective environments for nurturing new ideas and innovation. The lines of command and communication are functional and/ or product-based, and the focus is on accounting measures of performance such as cost savings, revenues, returns to investment and so forth. Managers who develop a people-oriented leadership style may be those who prefer the activities involved in leading employees, such as guiding, developing, supporting and training employees. If women have a stronger preference than men for managerial activities involved in leading employees, this may result in a more people-oriented leadership style. Like other professionals, managers have a great deal of autonomy; spending their time in ways they judge to be most appropriate. Such professional autonomy is necessary because managers perform task that are too complex and ambiguous to be subjected to bureaucratic routines or simple decision rules. In a study of US managers, these researchers found that compared to effective managers, successful managers spent much more time engaged in networking activities such as socializing, politicking and interacting with outsiders. Successful managers were rewarded with rapid advancement for these activities. (Luthans, et al, 1988) Managerial Effectiveness

Bouchard (1969) reported that individual member intelligence predicted group performance on a creative task, and groups whose members have high levels of these would perform well. Performance is enhanced when task functions such as initiating discussion or action, clarifying, summarizing, testing for consensus and seeking or giving information are performed (Alexander, 1985). However, maintenance functions such as encouraging involvement and participation, sensing and expressing group feelings, reconciling disagreements, and setting standards are also necessary. Various other skills and abilities have been proposed as important to group performance. For example, studies of R&D project teams have concluded that high performers are individuals with high levels of self-esteem, job satisfaction, innovative orientation and formal education (Allen, 1977). Mathur and Virmani (1984) have discussed Vivek, a new construct of intelligence that is viewed as the intelligence to use intelligence?the cognitive ability in an individual that lies beyond general intelligence, creativity, and social intelligence. Vivek is presented as a quantifiable leadership trait that can increase theorists? understanding of managerial effectiveness. Vivek as a leadership trait is discussed in terms of behavior theory, situational leadership theory, and idiosyncratic credit theory; vivek is also discussed in terms of J. P. Guilford structure-of-intellect model. Luthans, Welsh and Taylor (1988) developed a model of managerial effectiveness, which suggests that Human resource management activities may help attain more output but, traditional management activities like planning and keeping contact with outsiders such as suppliers may help improve quality. Balaraman (1989) defined managerial effectiveness in behavioral terms which evaluated managers on selected job-oriented criteria such as communication, cost awareness, delegation, interdepartmental cooperation. In a working paper by Hamlin (2002), a generic theory of managerial effectiveness has been developed. This study was a meta-analysis of organizations from the public sector of the UK and meta-level analyses was designed to identify the degree of internal and external generalizability of the respective sets of criteria obtained from the MPhil students, Anglia and NHS Trust studies, a ?generic model of managerial and leadership effectiveness? was developed. This new model comprises six positive criteria indicating the range and type of behavior that managers/leaders need to exhibit if they are to be deemed particularly effective by their superiors and subordinates. These are effective organization and planning/proactive management, participative and supportive leadership, empowerment and delegation, genuine concern for people, open and personal management approach, and communication and consulting widely. Shipper, Kincaid, Rotondo and Hoffman (2003) explore the relationship between EI and managerial effectiveness using a cross-cultural sample. They have studied that empathy, ability to perceive other?s emotions, self-awareness, self regulation are highly related to managerial effectiveness. Support was found for positive relationship between effectiveness and self-awareness. The sample for the study was 3,785 managers of a multinational firm located in the US, UK, and Malaysia. Objectives of the Study 1. To find out the relation between emotional intelligence and managerial innovation in Indian industries.

2. To study the relation between emotional intelligence and managerial effectiveness in Indian industries. Hypotheses 1. A manager?s innovation performance is positively related to EI. 2. A manager?s effectiveness is positively related to EI. Measures Used Emotional Quotient Inventory BarOn (2000a) describes the Emotional Quotient inventory as a self report measure of emotionally and socially competent behavior which provides an estimate of one?s emotional and social intelligence. The instrument was initiated in the early 1980s as an experimental tool. EQ-I consists of 15 subscales with 133 items. It is a five-point rating scale. Emotional Self Awareness (ES), Self-Regard (SR), Assertiveness (AS), Independence (IN), and Selfactualization (AS) constitute Intra-personal skills. Interpersonal skills on the other hand consist of Empathy (EM), Social Responsibility (SRES), and Interpersonal Relationship (IR). Additionally there is the adaptability scale, which consists of Reality Testing (RT), Flexibility (FL), and Problem Solving (PS). Equally important is the Stress Management skill, which includes Impulse Control (IC) and Stress Tolerance (ST). The General mood scales on the other hand are Happiness (HA) and Optimism (OP). Scoring of EQ-I: Out of 133 items belonging to different sub-scales, 57 items are to be reverse scored. A score of 1 is awarded if the respondent has checked on Very Seldom or Not True of Me, 2 to Seldom True of Me, 3 to Sometimes True of Me, 4 to often true of Me and a score to Very Often True of Me or True of Me. Negative items are scored in a reverse order. Reliability of EQ-I: BarOn (2000) has reported internal reliability by using Cronbach alpha. For the largest North American sample (N=3,831), the Cronbach alpha ranges from .70 for Social Responsibility to .89 for Self-regard. Kumar (2001) has conducted an Indian study on the relation between emotional intelligence and organizational effectiveness done on 390 executives varying on hierarchical position reported the internal consistency of the 15 sub scales ranging from 0.65 to 0.89. Validity of EQ-I: The construct validity study was carried out by correlating the inventory?s subscale scores with various scores of other measures like 16 PF, MMPI, Personality Assessment Inventory, Mayer-Salovey-Caruso Emotional Intelligence Test, Multifactor emotional Intelligence Test, etc. The factor analysis was done to statistically check if the factorial components of emotional intelligence structurally ?exist?. The 13-factor solution of the principal components analysis afforded the greatest interpretability. Managerial Creativity Scale This scale has been developed by Pethe and Gupta (1997). The scale has 26 items on a five-point rating scale. The responses are in the form of always, frequently, sometimes, rarely, and never.

Scoring of Managerial Creativity Scale: The positive items are scored as 5, 4, 3, 2 and 1 respectively and the negative items are scored as 1, 2, 3, 4, and 5. The negative items are 3, 4, 15, 16, 19, 20, and 21. Reliability of Managerial Creativity Scale: The split half reliability of the scale is .79. The cronbach alpha has been computed with the help of the pilot study. Managerial Effectiveness Scale This scale developed by Gupta (1996) consists of 45 items measuring 16 dimensions. The scale has been further factor analyzed, giving 3 factors. Communication and task assignment, networking, colleagues management, informal communication, management of market, conflict resolution, integrity and communication, motivating, delegation, welfare management, and consultative representing the factor constituting activities of his position. Discipline, client management & competence, and image building represent the factor responsible for achieving results. Confidence in subordinates and inspection & innovation are the factor of developing further potential. Scoring of Managerial Effectiveness Scale: Positive items are scored by awarding 5 to a rating of Always; 4 to Usually; 3 to Neutral; 2 to Sometimes; and 1 to Never. Items no. 3, 5, 14, 15, 19, 20, 21 are reverse scored. Items for reverse scoring are scored in the reverse order. Reliability and validity of Managerial Effectiveness Scale: The test-retest reliability and split-half reliability are .73. A high degree of content validity has been ensured. Sample: The sample consisted of male and female executives from entry-level managers to middlelevel managers from 11 organizations from Mumbai, Ahmedabad and Chennai. The sample size for this study was 90. The mean age for this sample is 36 years. The organizations were of service type in nature, which represented the public and private sectors. Results and Discussion Managerial Innovation has been found to be significantly correlated to all the subscales of EI. Hence, Hypothesis 1 is accepted. Similarly, Activities of his position (ACT) of Managerial Effectiveness is also significantly correlated to all sub-scales of EI. On the other hand, only IC is not significantly correlated to Achieving the results (ACH) and Developing further potential (DEV). This leads to acceptance of hypothesis 2 stating that a manager?s effectiveness is positively correlated to EI. Results of Table 1 show that Managerial Innovation and Managerial Effectiveness have significant positive inter correlation with Emotional Intelligence. Managerial Innovation and Managerial Effectiveness require high level of selfawareness and inter-personal skills. Study wherein all the 5 realms and subsequently 15 skills of Emotional intelligence have been found to be necessary for Managerial Innovation and Effectiveness. This study implies that with the help of Emotional Intelligence, one could successfully complete the activities of his position and achieve the desired results. In addition, an emotionally intelligent manager could also undertake activities of developing his/her potential further. This would finally lead to the development of the organization. Implications of the Study With several organizations across the globe accepting and implementing the concept of Emotional Intelligence for their Organizational Development, EI is yet to be incorporated into the policies of

Organizational Development in the Indian Corporate Sector. With the help of the study conducted here, we can draw the following implications, which would prove beneficial to the Indian organizations: 1. Recruiting and Selecting people on the basis of their Emotional Intelligence would ensure higher degree of Managerial Innovation and Managerial Effectiveness. 2. Development of Managers? Emotional Intelligence could prove to be a catalyst in the activities of Innovation and enhance their effectiveness in terms of their activities, achievement of expected results and development of further potential. 3. Impulse control does not have a significant relation with achievement of results and development of further potential. However, it is suggested that if the same study is conducted on a larger sample, it could give a better understanding of the result. 4. To bring about innovation and effectiveness in the organization, it is imperative that a high degree of inter-personal and intrapersonal skills of members be emphasized and developed. 5. Stress Management could be made an integral part of the HR initiatives to create a conducive environment for innovation and effective performance. 6. With the help of this study, it is recommended that Emotional Intelligence be considered an integral part of the recruitment and development policy of the Indian corporate sector.