WHY EQ IS MORE IMPORTANT IN CORPORATE SITUATIONS THAN IQ

Amit kumar sec A

What Exactly Is EQ
A form of social intelligence that involves the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions Salovey and Mayer 1990

The Indian Perspective
´ Emotional intelligence is the ability of an individual to appropriately and successfully respond to a vast variety of emotional inputs being elicited from inner self and immediate environment. Emotional intelligence constitutes three psychological dimensions such as emotional competency, emotional maturity and emotional sensitivity, which motivate an individual to recognize truthfully, interpret honestly and handle tactfully the dynamics of human behaviourµ. (Dalip Singh 2003)

IQ v/s EQ
The research shows that IQ can help you to be successful to the 20 extent of percent only in life. 80 The rest of percent success depends on your EQ

20% IQ 80% EQ

Promotion

GETS YOU HIRED

GETS YOU FIRED/PROMOTED

THE PROFESSIONAL SUCCESS

EQ is needed in more areas of corporates

High IQ

High EQ

1.Inspirational Leadership
Leaders who apply the principles of EQ engage their team to go further and do better than they could on their own. They set clear direction . EQ Leaders don·t tell, they inspire, engage, communicate, energize. Coca-Cola saw division leaders who developed EQ competencies outperform their targets by more than 15%. Division leaders who didn·t develop their EQ missed targets by the same margin

Leadership
leaders with high emotional intelligence Articulate and arouse enthusiam for shared vision and mission. Step forward to lead as needed , regardless of position. Guide the performance of others while holding them accountable. Lead by example.

Leadership
A leader's intelligence has to have a strong emotional component. He has to have high levels of selfawareness, maturity and self-control. She must be able to withstand the heat, handle setbacks and when those lucky moments arise, enjoy success with equal parts of joy and humility. No doubt emotional intelligence is more rare than book smarts, but my experience says it is actually more important in the making of a leader. You just can't ignore it." JACK WELCH, CHAIRMAN OF GENERAL ELECTRIC

Communication
Business communication is likely to be a left brained activity. It is steered by the mathematics concerned with planning, budgeting, pricing, payment, ordering, accounting and balancing. All of these activities are quantifying. They are therefore based on mathematical calculations such as measuring, comparing, valuing. These activities can be loaded with emotion. The concept of money itself is 'loaded.' The very idea of 'valuing' has emotion as its connotation. Emotional Intelligence or E.I. is one way of coming to understand these associations and it can be a method whereby we learn to deal with the emotional side of business. By learning to manage our own "triggers" we are able to prevent feelings from causing us trouble in the process. By understanding and acknowledging our reactions to provocations, we are able to choose when we react when we wait and when we act after careful consideration.

2.Communication
Managers with high emotional intelligence Are effective in give and take , registering emotional cues in attuning their message. Deals with difficult issues straightforwardly. Listen well, seek mutual understanding, and welcome sharing of information fully. Foster open communication and stay receptive to bad news as well as good.

3.Conflict Management
Running a business involves the efforts of a large number of people working together. Most of these people come from different social and economic backgrounds. Hence, each has a different way of approaching a problem at the workplace. This often creates conflicts, even among those individuals who are working in the same team. In such a scenario, if one of the individuals has a high emotional intelligence, he will be in a better position to handle the conflicting views of his colleague. Since such people have control over their emotions, they are able to stay calm and think clearly. Due to their sympathetic demeanor, their detractors tend to become calmer and make efforts to find solutions to the problem in an amicable way. The net result is that not only does the conflict at hand get resolved peacefully, but due to improved relations between the employees, the probability of a future problem spiraling out of control also gets minimized.

Managers with high emotional intelligence Handle difficult people and tense situations with diplomacy and tact. Spot potential conflicts bring disagreement into the open and help de escalate. encourage debate and open discussion. Orchestrate win win solutions

4.Retention and Hiring
One the mantras of running a successful business is hiring and retaining a qualified and efficient work force.

EQ helped reduce turnover at Sheraton in Orlando EQ profiling saved the Air Force $2.7 million in recruiting costs
Ernst & Young (E&Y) says nearly 40 of its Indian clients, including state-owned companies, use a behavioural evaluation process. To measure emotional intelligence, companies use specialised tests and modules developed by external agencies. MeritTrac, for instance, has an ¶interest inventory· model that its clients in sectors like retail, banking, financial services and insurance have started to use. The model is based on the principle that if an employee inherently likes something, he will probably enjoy his work and deliver his best.

5.Successor Transitions
Leadership transitions are fraught with emotional tension. There's a lot at stake, and it is much more than a business transaction. Most boards, CEOs and successors find it difficult to handle the situation well because they are unprepared to manage the intense emotional turmoil that accompanies such a transition. The succession issue doesn't have to be so painful and difficult. By preparing the board, the CEO and his successor for the process, it can be a win-win situation. This preparation includes making a plan, involving both the board and CEO in the process, and, of most importance, minimizing the emotionally charged transition by equipping the board, CEO and upper management ranks with techniques to manage their emotions. When those involved in leadership transitions have improved their emotional intelligence (EI) skills, the likelihood of success increases. Recognizing that there are many strong negative emotions during any transition is the first step. Denying these types of feelings just makes the whole situation more difficult and more volatile.

6. Stress and Anxiety
People who rise to the top of their field whether it is Management, Psychology, Law, Medicine, Engineering or Banking are not just good at their jobs. They are easy-going, flexible and optimistic. In other words, it takes more than traditional cognitive intelligence to be successful at work. It also takes 'emotional intelligence,' the ability to restrain negative feelings such as anger, self-doubt, stress, anxiety and instead focus on positive ones such as confidence, empathy and congeniality

Sales
Competencies that drive higher sales: Emotional Literacy Pattern Recognition Consequential Thinking Optimism Intrinsic Motivation Noble Goals Empathy

7.Sales
Optimism is another emotional competence that leads to increased sales . New salesmen at Met Life who scored high on a test of "learned optimism" sold 37 percent more life insurance in their first two years than pessimists . At L·Oreal, sales agents selected on the basis of certain emotional competencies - including learned optimism - significantly out sold salespeople selected using the company·s old selection procedure. Hallmark Communities sales staff who developed emotional intelligence were 25% more productive than their low EQ counterparts and EQ was more important to executive job performance than character, strategic thinking, and focus on results. TalentSmart·s EQ LearningŒ program raised individual and team EQ for the low and high EQ groups to improve group cohesion and job performance

8.Training and Development

Fortune Brands saw 100% of leaders who developed their EQ skills through classroom training, coaching, and online learning exceed the performance targets set for them in the company·s metric-based performance management system. Just 28% of leaders who failed to develop their EQ skills exceeded their performance targets.

9.Learning
Any corporation wishing to thrive through change must make the choice to promote, and allow employee expressions of emotional intelligence . It has also been found that by demonstrating self-awareness, persistence, and leadership qualities and great focus that emotionally intelligent employees can be a model for others and this results into developing shared mental models that are critical when individuals need to respond quickly to external corporate threats. Proponents of corporation learning claim that individuals need to take a system approach and change their mental models to collective mental models before a shared vision or modus operandi can be achieved. corporate learning aims at promoting innovation and flexibility through individual responses and decision choices at all levels so that corporation can respond proactively to change . Emotionally intelligent employees tend to want outcomes that benefit others as well as themselves . Hence, corporate learning is more effective if enacted by emotionally intelligent employees within clear operating boundaries such as those offered by participation in decision-making .

10.Decision Making
Credit managers must sense when a deal might go bad even if the numbers look fine; executives have to decide whether a new product is worth the time and money it takes to develop; people must make an educated guess about who among a field of candidates for a job will have the best chemistry in a working group. All such decisions demand the capacity to fold into the decisionmaking process our intuitive sense of what is right and wrong. Intuition and gut feeling bespeak the capacity to sense messages from our internal store of emotional memory ² our own reservoir of wisdom and judgment. This ability lies at the heart of self-awareness.

Marketing
Skill sets for marketers has changed rapidly building a successful brand depends on the ability to create an emotional connection with a target audience and the ability to message these groups in an engaging manner. Social media and online marketing have provided infinite access to the market mapping is essential . Dell successfully harnessed twitter to create a revenue stream. Success is not only based on learning to use the tools but understanding the emotional needs defined target audiences. Marketers have to be aware of what is being said about their company within the widespread social networks Marketers can learn to become more emotionally intelligent by connecting within communities and tracking target markets online trends. (Google analytics) Only then can they use these media to create revenue streams.

Mergers and Aquasitions
M & A involves unpleasant decision . Research indicates that employee reaction mainly depands on the way bad news is communicated and how individuals are treated by the management . Purely logical and rational communication of the motives for merging are not sufficiently convincing for the employees. Management need to understand that emotion play a critical role in M & A. so managers have to develop an awareness of their own emotions and learn to cop with employees emotions . This will help to turn post merger integration process into a successful and positive experience for those effected.

Operational Efficiency
AT&T participated in a large, cross-industry study that found in all levels of management (from line supervisors to senior executives) increased emotional intelligence, measured through the Emotional Intelligence Appraisal accounted for 20% more productivity than low EQ leaders. Ninety-one percent of top performers were high in EQ, while only 26% of low performers were high in EQ. Emotional intelligence explained nearly 60% of job performance across companies in the study

Team Performance
When a team engages emotional and social intelligence to produce its work effectively, members benefit from what we call Collaborative Intelligence. In a team, ´the ability to understand one another·s emotional expressions explained 40 percent of the variance in team performance.µ Teams with greater average EI have higher team functioning than groups with lower EI averages.

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