Emotional Business Leadership

Term Project
Emotional Business Leadership
(Emotional Quotient and Leadership)
Submitted To:
Course Instructor: Miss Umme Ameen
Course Title: Organization Behaviour
Course ID: 94075
Submitted By:
Name of Student: Muhammad Asif Khan
Student ID: MB-2-05-51271
Program: MBA-Regular (P&OM)
Semester: Fall 2016
Campus: PAF-Karachi Institute of
Economics & Technology (KIET)-
City Campus
Submission Date: 28 November 2016

IQ: Intelligence Quotient
• An intelligence quotient (IQ) is a total
derived from one of several standardized
designed to assess human intelligence for
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.

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.

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
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
shows that emotional intelligence is the sine qua
of leadership.
•Without it, a person can have the best training
the world, an incisive, analytical mind, and an
endless supply of smart ideas, but he still won’t
make a great leader.”

EQ: Emotional Quotient
According 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
navigate social complexities and make
to achieve results.”

•As early as in 1920, Professor Thorndike in his
“social intelligence” defined it as:
“The ability to understand and manage men and
boys and girls, to act wisely in human
•Further attempts to define emotional quotient
that there are two types of intelligence:
“intellective” ,and
“non-intellective,”
under the theory of intelligence quotient.

•However, EQ was always a part of holistic
intelligence. Wechsler in his definition of
as:
“The global capacity of the individual
effectively with his environment.”
•The theory proposed by Gardner and Qualter of
intelligences proposed interpersonal intelligence
intelligence.
Interpersonal intelligence.
Intrapersonal intelligence.

IQ vs. EQ

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.

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,
Or
even in positive cases like company celebrations.

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.

Process of Emotional Quotient
Perceive 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.

EQ Skills
Skills 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 questions
Listen 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 aligned
Be accountable.

Characteristics of Emotional Quotient
Terms 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 ambiguity
Openness to change.

Characteristics of Emotional Quotient
Terms 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 EQ
Here 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 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.

Trait 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.

•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.

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.
But
If 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.

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.

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.

Leadership
These 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.

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.

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.

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......

..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.”

“Leader’s Influence
the Team Emotions.
The Team Emotions Drive
Overall Performance.”
By
Robert G. Jerus

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 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 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.”

•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.

•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.

•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.

5 Ways to Spot an EQ-Leader
Non 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.

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.

Leadership And Emotional Quotient

Five Models of Organization Behaviour
Basis of
Model
Autocratic Custodial CollegialSupportive System
Manager-
ial
Orienta-
tion
Power
Authority
Obedience
Employee
Orienta-
tion
Economic
Resources
Leadership Partnership
Trust
Community
Meaning
Money Support Team Work
Creating
Compassion
Security &
Benefits
Job
Performance
Responsible
Behaviour
Psychological
Ownership

Five Models of Organization Behaviour
Employee
Psychol-
ogical
Result
Autocratic Custodial CollegialSupportive System
Employee
Needs Met
Dependence
on Boss
Subsistence
Minimum
Perfor-
mance
Result
Dependence on
Organization
Participation
Self
Discipline
Self
Motivation
Security
Status
and
Recognition
Self
Actualizatio
n
Wide
Range
Passive
Cooperation
Awakened
Drives
Moderate
Enthusiasm
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.

“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.

Management Structure
Chief Executive
Human
Resource
Department
Marketing
Department
Operations
Department
Finance &
Accounts
Department

Management Practices
Our 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.

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.

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

Emotional Business Leadership

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