emotional intelligence and emotional quotient ( business perspective)
DESCRIPTION
Psychology & EITRANSCRIPT
Emotional Intelligence and Emotional Quotient (A Business Perspective)
Abhishek Priyanka
KunalPratik
Abhishek Gupta
Introduction• Emotional Intelligence(EI) is the ability to use
emotions effectively• The term became widely known with the
publication of Daniel Goleman’s “Emotional Intelligence-Why it can matter more than IQ”
• Man is a social animal and he makes these connections with emotions which is highly essential for Survival.
EI @ Work• Workplace scenario today demands increasing use
of Emotional Intelligence• Emotional Intelligence Quotient (EQ) is a
measurement of a person’s ability to monitor his or her emotions
• This idea has become very popular at work place and is used for assessments while:– Recruiting employees for the organization– Promotion at managerial positions– Successive leadership planning
Concepts- Mayer & Salovey• The four branch model of Emotional Intelligence
– by Mayer & Salovey
Concepts- Goleman• Goleman found that Truly effective leaders are distinguished by a high
degree of emotional intelligence, which includes self-awareness, self regulation, motivation, empathy, and social skill.
Self Awareness
Motivation
Social SkillsEmpathy
Self Regulation
Concepts- R Bar-On
• Bar-On used Darwin’s work on importance of Emotional expression for survival and conceptualized Emotional-Social Intelligence which includes the following concepts:
– Ability to recognize, understand and express feelings– Ability to understand how others feel and relate to them– Ability to control and manage emotions– Ability to manage change and solve personal and interpersonal
problems– Ability to generate positive effect and be self motivated
Bar-on’s, EQ-I Scales
•Have unrealistic goals and blind ambition•Highly concerned about public Image•Unable to tolerate failure•Tendency to blame others for their own mistakes•Working hard in a compulsive manner
•Has high self awareness•Has high emotional literacy•Ability to fell and understand the emotions of others•Able to take strike balance between Emotion and reason•Taking responsibility of your own emotion s
Persons with High EI
Persons with Low EI
EQ and Business Scenario
• Since the publication of the initial research in 1990, innovative organizations have begun testing how to integrate EQ into training and hiring to gain competitive advantage.
• These skills are foundation of many HPOs like L’Oreal , PepsiCo as part of Human Capital Strategy
• Top issues we face at work :
76%
24%
Percentage
peopla/relational side
Technical/financial side
EQ and Business Scenario Organization
• For a long time, "common wisdom“ Returns from Process and Property • But in Last two decade focus has been shifted to the first one : a company's people
are the differentiating factor and from there on EQ is playing a major role.
People
Process
Property
70% Top
Issues
Leadership Crisis
Solution is cutting edge
science : EQ
Time Management with less Budget and competitive
environment
Work Pressure
Talent
Engagement
Top Issues @ WorkAs we can see the two most important issues are Work PressureEngaging Talent“No Matter how logical decision it is , we cannot take it and cannot make it successful without being involved emotionally” .
In that case people with High EQ make themselves and organizations successful.
As per two eminent research scientist in the field of Psychology who gave the first official /Formal definition of EQ : Peter Salovey and Jack Mayer “people with “high IQ” frequently made very poor decisions”
EQ and Work Relationship
Personal
Self Awareness
Self Disciplineempathy
"Anyone can become angry – that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way – that is not easy."-Aristotle 300 BC
That is called how emotionally intelligent you are.What truly drives the people and what accelerates the performance is emotional intelligence though its emerging science but a necessary one.
UCLA experiment using FMRI((functional magnetic resonance imaging: Specific Brain Activity)For emotion regulation Study of 30 Adults
Sales and Customer Loyalty: The Customer Perspective
• As Benjamin Schneider wrote in the Sloan Management Review, to create loyal customers, organizations must target "customer delight”. But we can not provide delight without relationship and without EQ we can not have a good relationship.
• After a year-long EQ development program, the Sheraton Studio City hotel experienced a dramatic increase in guest satisfaction and market share along with a significant reduction in staff turnover.
• Higher EQ sale people develops: Higher sales, stronger Customer services, Better Customer relation and retention.
• Customer leaves vendor due to technical and production quality 30%
• Due to emotional and relational factors70%
Employee Performance and Retention EQ Perspective
• Primary Reason for leaving is job is Relationship based not logical or compensation only like the example of customer vendor management.
Employee
SupervisorManager
• As leadership guru Richard Leider says, "People don't leave companies – they leave leaders."
• In their landmark research of over two million working Americans, the Gallup team found only about 26% of employees are engaged (caring and committed).Engaged employees are 50% more likely to stay in their jobs.
26% engaged Critical Factors as EQ
50% more likely to stay
Recruitment Cost/Profit: EQ Perspective
• The US Air Force spends millions of dollars on recruitment every year -- but their professional recruiters were only picking up an average of one recruit per month. A $10,000 investment in EQ testing let them profile the top performers, and in one year they saved $2.7 million. Ultimately, the General Accounting Office requested that the Secretary of Defence order all branches of the armed forces to adopt this procedure in recruitment and selection
• Healthcare provides a prime example of the link between EQ, employee retention and the bottom line.
• 28%• Lack of staff
Additional Turnover
• Cut turnover by 50%
Emotional Competence
Program• Dropped to
under 2%• Saving of $80000
annually
Total Turnover
Leadership and Financial PerformanceThe Bottom Line Perspective
• Bottom line is total loss or total profit a company is working on: Turnover.• What it has to do with emotional intelligence. But Performance is directly related to EQ /EI
and performance affect Bottom line .• Jack Welch about EI: My experience says it is actually more important in the making of a leader. You
just can't ignore it.• In one study: 261 members of the Royal Navy were administered measures of intellectual
competency, managerial competency, emotional intelligence competency, overall performance, and personality.
• Compared to both managerial and IQ competencies :
Overall performanc
e
Leadership
EQ Competencies
Gallup Study : EQ and Bottom Line
27% more likely to report higher
profitability
38% more likely to have above
average productivity
56% higher than average customer loyalty
50% more like to have turnover
EQ and Leadership
• EQ competencies made a greater contribution to leadership and performance at higher levels of the organization (i.e., EQ mattered even more for senior officers).
• Determinants of Officer Leadership which predicts performance Intellectual 9.20 % Managerial 10.40% Emotional Intelligence 13%
• In a pilot project at PepsiCo Executive Selected
10% increase productivity
87% decrease in executive turnover
1000% ROI
$3.75m added EVA
Emotional Contagion and Team Performance
• The affect (emotional behaviour) of the leaders plays a major role in team performance. You can see this clearly in the way “everyone just knows” when boss is having a bad day.
• The way feelings spread from one person to another is called “emotional contagion.”
Emotional Contagion
Higher EQ Leaders
Effect Mood of Group Leader
Much Better Decisions
Right Mood for Job
Engage and Influence
effectively
EQ and Development Programs
• A study of 30 retired National Football League players shows that the benefits of emotional intelligence go far beyond financial performance. In fact, over 60% in the variation of these “life success” factors is predicted by emotional intelligence. Keeping that in mind many organizations started various programs.
Management training, Performance reviews
Leadership Development
Sales Hiring
Human Capital Strategy & Leadership Development
Stress Management Training
Leadership Development
Leadership Training and Team Development
Leadership Development in Express
Impacts and Conclusion
• As per Doug Lennick, VP of American Express Financial Advisors (now Ameriprise) EQ is a Blue Chip Investment :
"Emotional competence is the single most important personal quality that each of us must develop and access to experience a breakthrough."
And the good part is very little investment of resources producing high results : ROI exceeds the investment
American Express Financial Advisors:
12 Hours of Training
The Sheraton Turnaround in 24 Hours of Training
The Air Force project $10,000 only for EQ Training
Thank You