Psychology & EI

1. Emotional Intelligence and Emotional Quotient
(A Business Perspective)
Abhishek
Priyanka
Kunal
Pratik
Abhishek Gupta

2. 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.

3. 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

4. Concepts- Mayer & Salovey
• The four branch model of Emotional Intelligence
– by Mayer & Salovey

5. 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
Self
Regulation
Empathy Social Skills

6. 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

7. Bar-on’s, EQ-I Scales

8. Persons with High EI
•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 Low EI
•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

9. 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

10. EQ and Business Scenario
Organization
People
Process
Property
• 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.
70%
Top
Issues
Leadership
Crisis
Solution is
cutting edge
science : EQ

11. Top Issues @ Work
Time Management
with less Budget
and competitive
environment
Work
Pressure
As we can see the two most important issues are
Work Pressure
Engaging 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”

12. EQ and Work Relationship
Self
Awareness
Personal
Self
Discipline
empathy
"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

13. 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
70% relational factors

14. 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
Supervisor
Manager
• 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

15. 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
Emotional
Competence
Program • Dropped to
• Cut turnover by 50%
under 2%
• Saving of $80000
annually
Total Turnover

16. Leadership and Financial Performance
The 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 performance EQ Leadership
Competencies

17. 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

18. 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%
10%
increase
productivity
• In a pilot project at PepsiCo Executive
Selected
87%
decrease in
executive
turnover
1000% ROI
$3.75m
added EVA

19. 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

20. 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.
Stress Management Training
Management training, Performance reviews
Leadership
Development
Sales Hiring
Human Capital Strategy & Leadership Development
Leadership
Development
Leadership
Training and Team
Development
Leadership Development in
Express

21. 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

22. Thank You