Term ProjectEmotional Business Leadership

(Emotional Quotient and Leadership)

Submitted To:Course Instructor: Miss Umme AmeenCourse Title:Organization BehaviourCourse ID: 94075

 Submitted By:

 Name of Student:Muhammad Asif KhanStudent ID: MB-2-05-51271Program: MBA-Regular (P&OM)Semester:Fall 2016Campus: PAF-Karachi Institute of Economics & Technology (KIET)- City Campus

 Submission Date: 28 November 2016

IQ: Intelligence Quotient• An intelligence quotient (IQ) is a total score derived

from one of several standardized tests designed to assess human intelligence for their technical and professional skills.

• These are often key components in annual performance reviews, as well as professional advancement.

 But are these the traits that result

in highly effective leadership?

Not necessarily.

Emotional Business

Leadership

IQ: Intelligence Quotient• On the contrary, research shows that one’s emotional

quotient:

Not IQ!Is a direct indicator of effective leadership.

• This term has become widely acknowledged since Psychology professors John D. Mayer and Peter Salovey coined it in 1990 and psychologist Daniel Goleman linked it to business leadership in 1995.

Emotional Business

Leadership

In the Harvard Business Review, Goleman stated:“The most effective leaders are all alike in one crucial way:•They all have a high degree of what has come to be known as emotional quotient. •It’s not that IQ and technical skills are irrelevant.•They do matter, but…they are the entry-level requirements for executive positions.•My research, along with other recent studies clearly shows that emotional intelligence is the sine qua non of leadership.•Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won’t make a great leader.”

Emotional Business

Leadership

EQ: Emotional QuotientAccording to the Institute for Health And Human Potential:“EQ is defined as the ability to recognize, understand and manage our own emotions and influence the emotions of others.It is that intangible aspect that affects how we navigate social complexities and make decisions to achieve results.”

Emotional Business

Leadership

EQ: Emotional Quotient•As early as in 1920, Professor Thorndike in his theory of “social intelligence” defined it as:

“The ability to understand and manage men and women, boys and girls, to act wisely in human

relations.”•Further attempts to define emotional quotient (EQ) in 1940 found that there are two types of intelligence:

“intellective” ,and “non-intellective,”

under the theory of intelligence quotient.

Emotional Business

Leadership

EQ: Emotional Quotient•However, EQ was always a part of holistic definition of intelligence. Wechsler in his definition of intelligence identified EQ as:

 “The global capacity of the individual to deal effectively with his environment.”

•The theory proposed by Gardner and Qualter of multiple intelligences proposed interpersonal intelligence and intrapersonal intelligence.

Interpersonal intelligence. Intrapersonal intelligence.

Emotional Business

Leadership

IQ vs. EQ

Emotional Business

Leadership

IQ vs. EQ•It’s not IQ versus EQ, both have their own value.•IQ tells you what level of cognitive complexity a person can manage in their job; you need high levels for top management, the professions, the sciences, while lower levels work fine in lower echelons.•EQ sets apart which leaders, professionals, or scientists will be the best leaders.•A recent study on CareerBuilder stated that 71% of employers value EI over IQ.

Emotional Business

Leadership

Why EQ is Important?Having a heightened degree of emotional quotient can lead to a range of benefits:

•On a personal level, increased self-awareness can help you respond to day-to-day situations.

•High EQ also translates to optimal outcomes as a business leader when navigating challenging situations like contract negotiations and terminations,

Oreven in positive cases like company celebrations.

Emotional Business

Leadership

Why EQ is Important?•Talent Smart tested emotional quotient alongside other important workplace skills and found that EQ was the strongest predictor of performance, explaining 58% of success in all types of jobs.

And •According to another HBR, Measuring the Return on Character, there is a strong link between empathetic leaders and financial performance.

Emotional Business

Leadership

Process of Emotional QuotientPerceive Emotions:i.e. understand nonverbal cues.Reasoning with Emotions:Using emotions to promote thinking and cognitive activity.Understanding Emotions:How we perceive others emotions can have a wide variety of meaning. Managing Emotions:The ability to manage emotions effectively is the key part of emotional intelligence.

Emotional Business

Leadership

EQ Skills

Emotional Business

LeadershipSkills What I see (Recognition) What I Do (Regulation)

Personal Competence (Self)

Self-Awareness Identify:

“hot buttons”

Keep a journal Slow down- present Get to know yourself under stress Rewind the video- what can you learn.

Self-Management

Ability to leverage your self-awareness to positively channel your behavior.

Social Competence (Others)

Social Awareness (Empathy)

Ask good questionsListen with your whole body Watch body language Practice active listening Eliminate distractions.

Relationship Management

Be vulnerable and open.Ask for feedback and follow up Check your attitude daily. When you care, show it ID how you want people to feel. Ensure you words and actions are alignedBe accountable.

Characteristics of Emotional Qutotient

Emotional Business

LeadershipTerms Definition Hallmarks

Self-Awareness

The ability to recognize and understand your moods, emotions, and drives, as well as their effect on others.

Self confidence.

Realistic self-assessment

Self deprecating sense of humor.

Self-Regulation

The ability to control or redirect disruptive impulses and moods

The ability to think before acting.

Trustworthiness and integrity

Comfort with ambiguityOpenness to change.

Characteristics of Emotional Quotient

 

Emotional Business

LeadershipTerms Definition Hallmarks

Empathy

The ability to understand the emotional makeup of other people.

Skill in treating people according to their emotional reactions.

Expertise in building and retaining talent Cross-cultural sensitivity Service to clients and customers.

Social Skills

Proficiency in managing relationships and building networks

An ability to find common ground and build rapport.

Effectiveness in leading change.

Persuasiveness

Expertise in building and leading teams.

How to Improve Your EQHere are 8 techniques to help take a step towards elevated EQ:•Focus more on “we” and less on “me”•Use more personal forms of communication •Ask questions about others & learn about their expectations•Intensify your attention•Increase your empathy•Give generous amounts of recognition•Be aware of the emotional atmosphere•Practice anticipating reactions and responding effectively. 

Emotional Business

Leadership

Emotional Quotient and organizational effectiveness•Emotional quotient can best be described as the ability to monitor one's own and other people's emotions, to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behavior. Salovey et al. have proposed three models of EQ.

Ability Model:The “ability model,” focuses on the individual's ability to process emotional information and use it to navigate the social environment.

Emotional Business

Leadership

Emotional Quotient and organizational effectivenessTrait Model:The “trait model” as developed by Konstantin Vasily Petrides,“encompasses behavioral dispositions and self-perceived abilities and is measured through self-report.”Mixed Model:The “mixed model” is a combination of both ability and trait EQ. It defines EQ as an array of skills and characteristics that drive leadership performance, as proposed by Goleman.

Emotional Business

Leadership

Emotional Quotient and organizational effectiveness•Recently, EQ has been noted to be implied across the workplace having an essential component in determining the leadership effectiveness mainly when leaders are dealing with teams in the workplace.•The application of EQ gained significance when Goleman with his research in this area emphasized its role in organizations and also showed increasing attention on EQ. •Overall leaders with EQ abilities inspire team members to work efficiently in order to achieve organizational goal.

Emotional Business

Leadership

Leadership•When we visualize Martin Luther King making one of his famous speeches or demonstrating against segregation on buses in Alabama, we can almost hear his brilliant oratory.

ButIf he had used his speaking skills to sell used cars, we would never have seen him as a leader.•The very reason he was a leader was that he challenged the status quo.

Emotional Business

Leadership

Leadership• Mahatma Ghandhi had also challenged the status quo by protesting British rule in Sub Continent.•So did Nelson Mandela with regard to white rule in South Africa. •These three leaders had widely different influencing styles but they shared a passion for changing what they thought was horribly wrong.

Emotional Business

Leadership

Leadership•We also think of leadership as a relationship between leaders and followers.•But we overlook a more important relationship, the one between leaders and their target audiences.•The three leaders mentioned above were aiming their cry for change at their respective governments and the population at large.

Emotional Business

Leadership

LeadershipThese three leaders have other things in common.•None of them managed the people responsible for making the policy changes that they were promoting.•They had no formal authority over their respective target audience.•Because they showed leadership from the sidelines, not from an elected office, their leadership came to an end once the target audience bought their proposals.

Emotional Business

Leadership

Leadership•They were able to demonstrate leadership without having to manage the people who had the power to implement their proposals.•Such leadership does not entail getting things done through a group of people working for or with the leader.

Thus,leadership can be defined simply as the successful promotion of new directions.

Emotional Business

Leadership

Why do so many leaders lack EQ?•If EQ can be taught, why do so many leaders lack it?

•Businesses still tend to take for granted that their leaders will be highly emotionally quotient, and thus, effective.

•However, the skills needed to rise to the top are often at odds to the skills needed to excel in leadership.

Emotional Business

Leadership

Why do so many leaders lack EQ?According to Bradberry:

“Companies promote leaders for their knowledge and tenure, rather than their skill in inspiring

others to excel.” However, he notes:

“Once leaders get promoted, they enter an environment that tends to erode their emotional quotient......

Emotional Business

Leadership

Why do so many leaders lack EQ?..They spend less time in meaningful interactions with their staff and lose sight of how their emotional states impact those around them. It’s so easy to get out of touch that leaders’ EQ levels sink further.”

As the saying goes, “It is lonely at the top, and it can therefore be easy to lose touch with the rest of one’s organization.”

Emotional Business

Leadership

“Leader’s Influence theTeam Emotions. The Team Emotions

Drive Overall Performance.”

  ByRobert G. Jerus

Emotional Business

Leadership

Emotional Business

LeadershipThe Visionary Leader

The Affiliative Leader

The Democratic Leader

The Coaching Leader

The Pace-setting Leader

The Commanding Leader

Six Emotional Leadership Styles

•Seeking to support a leader's:

Cognitive,Emotional and Physical resources,

The use of emotional quotient is a modern tool of effective management, enabling the individual to manage a wide range of employees that are often performing in a unique set of roles.

Emotional Business

LeadershipEmotional Quotient and its Impact on Leadership

•In addition, emotional and personal competencies are two primary factors that are shown to be directly linked to performance within a work environment, making their identification and analysis essential for effective management as well as the increased development of the organization's human capital.

It Pays to be 'Likeable'

Moving Up Requires More Than Just Technical Capability

Emotional Business

LeadershipEmotional Quotient and its Impact on Leadership

The Use of Emotional Quotient For Effective Leadership

“There are no extraordinary men… just extraordinary circumstances

that ordinary men are forced to deal with.”

–William (Bill) Halsey, Jr.”

Emotional Business

Leadership

The Use of Emotional Quotient For Effective Leadership

•The act of knowing, understanding, and responding to emotions, overcoming stress in the moment, and being aware of how your words and actions affect others, is described as emotional quotient.

Emotional Business

Leadership

The Use of Emotional Quotient For Effective Leadership

•A leader lacking in emotional quotient is not able to effectively gauge the needs, wants and expectations of those whom they are leading.•Leaders who react from their emotions without filtering them can create mistrust amongst their staff and can seriously jeopardize their working relationships.

Emotional Business

Leadership

The Use of Emotional Quotient For Effective Leadership•Reacting with erratic emotions can be detrimental to overall culture, attitudes and positive feelings toward the company and the mission.•Good leaders must be self-aware and understand how their verbal and non-verbal communication can affect the team.

Emotional Business

Leadership

5 Ways to Spot an EQ-Leader

Emotional Business

LeadershipNon defensive and open

Aware of their own emotions

Adept at picking up on the emotional state of others

Available for those reporting to them

Able to check their ego and allow others to shine

Leadership and Emotional Quotient:•Managers who have outstanding leadership qualities tend to possess emotional intelligence.•Leadership is something that employees bestow upon the most effective mangers and is reserved for individuals with high standards of integrity and outstanding communication skills.•It’s essential for managers who want to be viewed as leaders to remember that actions speak louder than words.

Emotional Business

Leadership

Leadership And Emotional Quotient•The leader has a direct influence on the culture of work environment. •However, it is still a major question to what extent do leaders and managers have a positive influence on their employees and on functions of organizations.The  Figure illustrates organizational factors that are interrelated.

Emotional Business

Leadership

Leadership And Emotional Quotient

Emotional Business

Leadership

Five Models of Organization Behaviour 

Emotional Business

LeadershipBasis

of Model

Autocratic Custodial CollegialSupportive System

Manager-ial

Orienta-tion

Power

Authority

Obedience

Employee

Orienta-tion

Economic Resource

sLeadershi

p Partnership

Trust Communi

ty Meaning

Money Support Team Work

Creating Compassio

n

Security &

BenefitsJob

PerformanceResponsible Behaviour

Psychological Ownership

Five Models of Organization Behaviour 

Emotional Business

LeadershipEmploye

e Psychol-ogical Result

Autocratic Custodial CollegialSupportive System

Employee Needs

Met

Dependence on Boss

Subsistence

MinimumPerfor-mance Result

Dependence on

OrganizationParticipation Self

DisciplineSelf

Motivation

SecurityStatus

and Recognition

Self Actualizati

onWide

Range

Passive Cooperation

Awakened Drives

Moderate Enthusias

m

Passion And Commitment Organization

Goals

Development of Business Incubator Company

•Our core objective is to encourage and support the rural area population male and female (domestic women) to take initiative and commence their own venture though effectively utilizing the available resources and their skills.•The secondary purpose if the company will be to carry out the trading activity and earn profit through outsourcing the orders from the Local and Foreign buyers at highly affordable prices.

Emotional Business

Leadership

“Entrepreneurial Development Incubator Company”

Management Philosophy:•Our management philosophy will reflect the basis of the formation of the company. •We are closely baton with our social cause and our motto:

To re-shape the world•We do not believe in individuality and seek every one’s contribution in the process of growth and prosperity.

Emotional Business

Leadership

“Entrepreneurial Development Incubator Company”

Management Structure

Emotional Business

LeadershipChief Executive

Human Resource Departme

nt

Marketing Departmen

t

Operations Departmen

t

Finance & Accounts

Department

“Entrepreneurial Development Incubator Company”

Management PracticesOur management practices will be based on the following principles:Cooperative Decision Making:We believe in collective wisdom and well come all the suggestions and criticism for the betterment and improvement.Employee Empowerment:We believe that our employees should be motivated towards the cause and empower them to take initiative for the cause.  

Emotional Business

Leadership

“Entrepreneurial Development Incubator Company”

Innovation:We welcome and encourage the input from our employees and from those who have been directly associated with us and provide them opportunity to materialize their creative ideas and innovation.Empathy:We believe that our all acts will be towards the betterment of the society and our actions will reflect the sympathy and affection toward others.  

Emotional Business

Leadership

“Entrepreneurial Development Incubator Company”

Ownership:We believe that our employees will take the responsibility of their decisions and face the outcomes as an owner.

Emotional Business

Leadership

Questions&

Answers 

Thank You