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Term project organization behavior (94075)-fall 2016-emotional business leadership-paf-kiet (city campus)-co ms


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Emotional Business Leadership an emerging attitude to increase the organizational performance and profit through applying emotional quotients.

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Term project organization behavior (94075)-fall 2016-emotional business leadership-paf-kiet (city campus)-co ms

  1. 1. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 1 of 30 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:
  2. 2. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 2 of 30 Name of Student: Muhammad Asif Khan Student ID: MB-2-05-51271 Program: MBA-Regular (P&OM) Semester: Fall 2016 College: College of Management Sciences (CoMS) 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 tests designed to assess human Quotient. 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. On the contrary, research shows that one’s emotional quotient (EQ, also referred to as 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 be known as emotional
  3. 3. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 3 of 30 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 Quotient 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.” While the link between EQ and leadership has been debated, numerous studies over the past two decades have concurred with Goleman’s conclusion. 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 we navigate social complexities and make decisions to achieve results.” Our emotional mind will harness the rational mind to its purposes, for our feelings and reactions–rationalizations–justifying them in terms of the present moment, without realizing the influence of our emotional memory.–according to Goleman. As early as in 1920, Professor Thorndike in his theory of “social Quotient” 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 Quotient, “intellective” and “non-intellective,” under the theory of intelligence quotient.
  4. 4. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 4 of 30 However, EQ was always a part of holistic definition of Quotient. Wechsler in his definition of Quotient identified EQ as: “The global capacity of the individual to deal effectively with his environment.” The theory proposed by Gardner and Qualter of multiple Quotients proposed interpersonal Quotient and intrapersonal Quotient. Interpersonal Quotient is the ability to understand the perception and desires of other people, whereas in intrapersonal Quotient, it is the capability to control and understand oneself. This ability helps in building effective work environment. IQ vs. EQ  It’s not IQ versus EI both have 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.
  5. 5. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 5 of 30  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; self-management skills improve your ability to adapt to change; and heightened levels of social awareness and relationship management can lead to a healthier response from other parties when you are faced with a challenging situation. 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. 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. Four Branches of Emotional Quotient Perceiving Emotions Reasoning with Emotions Understanding Emotions Managing Emotions
  6. 6. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 6 of 30 First step in understanding emotions is to accurately perceive them. i.e. understand nonverbal cues. Using emotions to promote thinking and cognitive activity. Help prioritize what we pay attention and react to; we respond emotionally when things catch our attention. How we perceive others emotions can have a wide variety of meaning. i.e. boss is acting angry – could be your work, could be he got a speeding ticket driving to work. The ability to manage emotions effectively is the key part of emotional Quotient. Regulating emotions, responding appropriately and responding to the emotions of others are all important aspects of emotional management. EQ Skills Travis Bradberry, bestselling co-author of Emotional Quotient describes EQ as being comprised of four core skills, which are often categorized under two umbrellas: 1. Personal Competence:
  7. 7. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 7 of 30 It refers to your ability to be aware of and manage your emotions and behavior. It focuses more on you individually than your interactions with others and is comprised of: i. Self-awareness – ability to predict, perceives, and be aware of your emotions. ii. Self-management – ability to leverage your self- awareness to positively channel your behavior. 2. Social Competence: It refers to your ability to understand people’s moods, behaviors, and motives in order to build relationships and effectively interact with others. It is comprised of: a. Social awareness – ability to pick up on others’ emotions and understand what is going on. b. Relationship management – ability to use your social awareness and others’ emotions to successfully manage situations It stands to reason that you can’t predict emotional Quotient based on how smart someone is. However, it might be tempting to think that because EQ is a flexible set of more qualitative skills, it is directly tied to personality. On the contrary, personality results from hard-wired preferences (e.g., introversion versus extroversion). EQ, on the other hand, can be developed, even if it doesn’t come naturally. Skills What I see (Recognition) What I Do (Regulation)
  8. 8. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 8 of 30 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.
  9. 9. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 9 of 30 Characteristics of Emotional Quotient Self-Awareness: People with high Emotional Quotient are usually very self-aware. Understand their emotions and don’t let feelings rule them. They are confident – because they trust their intuition and don’t let their emotions get out of control. Willing to look at themselves honestly. Know their strengths and their weaknesses; work on these areas so they can perform better. Some believe this is the most important part of EI. Self-regulation: Ability to control emotions and impulses. People who self-regulate typically don’t allow themselves to become too angry or jealous, they don’t make impulsive, careless decisions. They think before they act. Characteristics include thoughtfulness, comfort with change, integrity, and the ability to say no. Motivation: People with a high degree of EI are usually motivated. They are willing to defer immediate results for long-term success. They’re highly productive, love a challenge, and are very effective in whatever they do. Empathy: This is perhaps the 2nd most important element of EI. Empathy is the ability to identify with and understand the wants, needs
  10. 10. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 10 of 30 and viewpoints of those around you. People with empathy are good at recognizing the feelings of others, even when those feeling may not be obvious. As a result these people are usually excellent at managing relationships, listening and relating to others. They avoid stereotyping and judging too quickly and they live their lives in a very open and honest way. Social Skills: It’s usually easy to talk to and like people with good social skills, another sign of high EI. Those with strong social skills are typically team players. Rather than focus on their own success first, they help others develop and shine. The can manage disputes, are excellent communicators, and are masters at building and maintaining relationships. 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 Trustworthiness and integrity Comfort with ambiguity
  11. 11. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 11 of 30 The ability to think before acting. Openness to change. 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 How do you go beyond recognizing EQ as important and actually working on it? Emotional Quotient is not something that can be developed by sitting and reading instruction manuals. It requires mindful practice. Here are 8 techniques to help take a step towards elevated EQ: 1. Focus more on “we” and less on “me”
  12. 12. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 12 of 30 Hugh Downs, TV commentator, aptly said, “To say my fate is not tied to your fate is like saying, ‘your end of the boat is sinking.’” Fight the urge to think only of yourself, and put other people’s needs ahead of yours. Making a conscious effort to be humble and engage your employees will empower them to take initiative. 2. Use more personal forms of communication Seek genuine human contact instead of hiding behind digital communication. Karl Albrecht, founder of the supermarket chain Aldi, said, “Making things happen still required the ability to make people like you, respect you, listen to you, and want to connect to you. And by connect, I mean connect personally, not digitally. The human connection will always, always, always outrank the digital connection as a get-ahead skill.” 3. Ask questions about others & learn about their expectations Be obsessively interested in other people. How long has each team member been with the organization? What fresh perspective from newer members of your team? What has been each team member’s most fulfilling work experience? What motivates them – money, advancement, or a challenge? Answers to these questions will tell you what you need to do to create a more positive, inspired, and productive work environment. 4. Intensify your attention Practice active listening, and listen as if your life depended on it. Paying undivided attention to every individual you communicate with and communicating real interest will result in more engaged employees.
  13. 13. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 13 of 30 5. Increase your empathy Other people may see things differently than your do, and effective leaders are aware of this. What’s more, they want to learn how those people see things and what those people feel. Practice putting yourself in other person’s shoes and try to see the world from his/her point of view. If you’re in a position to do so, help other rising leaders in your organization do the same. Michael Eisner instituted once-a-month field trip for executives where they had to go out and work alongside other Disney employees, so VPs were working in the laundry and folding towels all day next to housekeeping employees and learning more about each other. 6. Give generous amounts of recognition Leaders nearly always notice when their employees make a contribution or accomplish a notable achievement. However, it can be easy to make a mental note about the accomplishment and move on without saying anything to your employee. Instead, when you care, show it. Everybody wants recognition, it’s easy to give, and there is always something you can recognize. Positive reinforcement will encourage your people to continue going the extra mile. 7. Be aware of the emotional atmosphere Start by watching your emotions like a hawk. Your emotions feed into your behavior, which will impact your one-on-one interactions and how your employees perceive. Once you have improved your self-awareness, turn to the world around you. Great leaders are able to pick up the mood and feelings of their work environment.
  14. 14. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 14 of 30 Turning your attention to the emotions of your employees and showing that you care about their situations will result in increased trust and loyalty and improved performance among employees. 8. Practice anticipating reactions and responding effectively Emotionally intelligent leaders are able to anticipate how their people will react to situations instead of waiting until after the damage has been done to respond. If you are aware that bad news is coming (e.g., anticipated layoffs, business closures, etc.), take the initiative and do what you can to openly respond to them before they happen. 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. The “ability model,” focuses on the individual's ability to process emotional information and use it to navigate the social environment. The “trait model” as developed by Konstantin Vasily Petrides, “encompasses behavioral dispositions and self-perceived abilities and is measured through self-report.” The “mixed model” is a combination of both ability and trait EI. It defines EI as an array of skills and characteristics that drive leadership performance, as proposed by Goleman.
  15. 15. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 15 of 30 There was further addition to the concept of EQ as enumerated by Salovey et al. For them, EQ concerned the way in which an individual processes information about emotion and emotional responses. These findings pointed to different ways in which competencies such as empathy, learned optimism, and self-control contributed to important outcomes in the family, the workplace, and other life arenas. Recently, EI 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 EI gained significance when Goleman with his research in this area emphasized its role in organizations and also showed increasing attention on EI. Overall EI leaders inspire team members to work efficiently in order to achieve organizational goal. There had been lack of study on relations between EI and its positive impact on the corporate world. 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. We tend to forget that fact because we are so awestruck by his oratorical powers and their impact on us. Mahatma Gandhi also challenged the status quo by protesting British rule in India. So did Nelson Mandela with regard to white rule in South Africa.
  16. 16. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 16 of 30 These leaders had widely different influencing styles but they shared a passion for changing what they thought was horribly wrong. 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. In fact, you could say that their followers on the street actually helped them show that they were leaders, especially to their governments. For example, Martin Luther King’s leadership effort in Alabama was successful when the U.S. Supreme Court ruled segregation on buses unconstitutional. 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 governments. 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. 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, and it is receiving an increasing amount of attention, why do so many leaders lack it? Businesses still tend to
  17. 17. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 17 of 30 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 The Visionary Leader: The Visionary Leader moves people towards a shared vision, telling them where to go but not how to get there - thus motivating them to struggle forwards. They openly share information; hence giving knowledge power to others. They can fail when trying to motivate more experienced experts or peers. This style is best when a new direction is needed. Overall, it has a very strong impact on the climate.
  18. 18. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 18 of 30 The Coaching Leader: The Coaching Leader connects wants to organizational goals, holding long conversations that reach beyond the workplace, helping people find strengths and weaknesses and tying these to career aspirations and actions. They are good at delegating challenging assignments, demonstrating faith that demands justification and which leads to high levels of loyalty. Done badly, this style looks like micromanaging. It is best used when individuals need to build long-term capabilities. It has a highly positive impact on the climate. The Affiliative Leader: The Affiliative Leader creates people connections and thus harmony within the organization. It is a very collaborative style which focuses on emotional needs over work needs. When done badly, it avoids emotionally distressing situations such as negative feedback. Done well, it is often used alongside visionary leadership. It is best used for healing rifts and getting through stressful situations. It has a positive impact on climate. The Democratic Leader: The Democratic Leader acts to value inputs and commitment via participation, listening to both the bad and the good news. When done badly, it looks like lots of listening but very little effective action. It is best used to gain buy-in or when simple inputs are needed (when you are uncertain). It has a positive impact on climate. The Pace-setting Leader: The Pace-setting Leader builds challenge and exciting goals for people, expecting excellence and often exemplifying it themselves. They identify poor performers and demand more of them. If necessary,
  19. 19. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 19 of 30 they will roll up their sleeves and rescue the situation themselves. They tend to be low on guidance, expecting people to know what to do. They get short term results but over the long term this style can lead to exhaustion and decline. Done badly, it lacks Emotional Quotient, especially self-management. A classic problem happens when the 'star techie' gets promoted. It is best used for results from a motivated and competent team. It often has a very negative effect on climate (because it is often poorly done). The Commanding Leader: The Commanding Leader soothes fears and gives clear directions by his or her powerful stance, commanding and expecting full compliance (agreement is not needed). They need emotional self-control for success and can seem cold and distant. This approach is best in times of crisis when you need unquestioned rapid action and with problem employees who do not respond to other methods. Emotional Quotient and its Impact on Leadership Defined as the skills or ability necessary to identify, assess and control the emotions of oneself, other people or entire groups, emotional quotient is a concept that has become widely popular in management texts and related literature for its ability to enhance and capitalize on the human potential of an organization. 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. 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
  20. 20. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 20 of 30 for effective management as well as the increased development of the organization's human capital. It Pays to be 'Likeable': In part, emotional quotient is a response to the problems businesses face in the modern world. With tighter budgets, escalating costs and the continuous demand to produce more for less, there's a need to develop a higher standard for leadership skills, ones that will effectively address the challenges of high employee turnover, a rapidly changing business environment and the ever-increasing demand for improved products and services. And at least in part, the solution to these problems is found in a leader who possesses technical knowledge as well as the social and emotional abilities that will enable them to meet and beat the afore mentioned challenges and maximize the human potential of their organization while achieving their own personal agenda. Any organization at the forefront of its industry needs to retain the best employees to remain competitive. And if you take a look at the factors that contribute to the highest levels of creativity and effectiveness in the workplace within these types of businesses, you'll find components of emotional quotient 9 out of 10 times. That's because duration of employment is directly linked to an individual's relationship with their immediate supervisor, with some figures reporting that only 11 percent of employees who rated their boss as 'excellent' would consider looking for a new job. This figure is in comparison to the 40 percent who would consider leaving after rating their boss 'poor'. Moving Up Requires More Than Just Technical Capability:
  21. 21. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 21 of 30 Your skills can land you a great job but emotional Quotient is what enables you to keep it and, more importantly, get promoted and motivate those around you. In fact, some psychologists believe that emotional Quotient matters twice as much as both technical and analytic skills combined. And the higher the individual moves up within an organization, the more crucial emotional Quotient becomes - not really a surprise given the high degree of loyalty required to inspire people toward achieving an expansive, complex or long-term goal. To climb the modern corporate ladder, a leader must be competent within their chosen field but also have a finely-tuned sense of emotional Quotient. Specifically, they are typically expected to be more positive, approachable, warm, empathetic and optimistic, traits many believe to be more important than traditional cognitive Quotient in the successful achievement of workplace goals. The reason for this may be due to the fact that a focus on emotional Quotient often includes the ability to contain any negative feelings and focus instead on a positive outcome - a capability that is vital for high- reaching leaders and executives. 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 ability to be perceptively in tune with yourself and your emotions, can as well as having sound situational awareness be a powerful tool for leading a team. The act of knowing, understanding,
  22. 22. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 22 of 30 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 quotient is widely known to be a key component of effective leadership. Understanding how the brain operates and how the emotional response system works should also be a factor in where we place team members within our organizations. Being able to relate behaviors and challenges of emotional Quotient on workplace performance is an immense advantage in building an exceptional team. One of the most common factors that lead to retention issues is communication deficiencies that create disengagement and doubt. A leader lacking in emotional Quotient is not able to effectively gauge the needs, wants and expectations of those they lead. 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 EI Leader
  23. 23. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 23 of 30 What Does Emotional Quotient Have TO Do With Business Individuals The modern workplace is characterized by open communication teamwork and mutual respect among employees and their supervisors. Possessing emotional quotient allows managers to better understand and motivate people they supervise. Individuals who come from the old School philosophy of management by intimidation often find it challenging to adapt their management style to the demands of today’s worker. In the modern business environment authoritarian managers are much less likely to be successful for the long term than those who utilize a democratic style of management. If one does want to succeed in the business world now and in the future, it’s important that you understand the role of emotional quotient in business today. Management and Emotional Quotient: 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
  24. 24. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 24 of 30 Managers who possess emotional Quotient approach supervisory responsibilities form a different perspective than authoritarian managers. They understand the importance of communicating effectively with staff members and of treating each employee with respect. Those who want to be effective 21st century managers are well served by developing a deeper understanding of the concept of emotional Quotient and applying it to their management strategies. Leadership and Emotional Quotient: Managers who have outstanding leadership qualities tend to possess emotional Quotient. It’s important to realize that leadership is not an inherent part of being in a position of authority. 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. An individual who is in tune with his or her own emotions is much more likely to be able to understand and empathize with the emotions that impact the attitudes and behaviors of others. This is why emotional importance is so valuable for managers. It’s essential for managers who want to be viewed as leaders to remember that actions speak louder than words. This is something Quotient seems to inherently understand. Supervisors who take the time to get to know and really listen to their employees are utilizing emotional Quotient as a management strategy whether or not they realize they are doing so. Most employees respond best to managers who treat them as individuals who deserve respect. When you take the time to focus on an
  25. 25. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 25 of 30 employees’ needs and make yourself accessible to them that’s exactly what you’re doing. Leadership And Emotional Quotient The leader has a direct influence on the culture of work environment. Studies have found the impact of leader on the behavior of employees. 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. Each of these factors influences emotional Quotient. At the same time, the HR functions of recruitment and selection, training and development, and management performance have a strong impact on leadership. Figure (A model of emotional quotient and organizational effectiveness. Figure adapted from Cherniss) The leadership has a direct influence on the extent to which HR functions are effective in helping to increase the EQ of organizational members. The high level of EQ helps in identifying talents, delegation of roles accordingly and resolving the conflict
  26. 26. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 26 of 30 amicably. The review of literature revealed mechanisms of EI and its synthesis with leadership. The mechanism includes the qualities given as under:  Perception of others emotions: Accurate social perception allows individuals to gain considerable knowledge of other group members’ attitudes, goals, and interests, which should enable influence by identifying, understanding, and addressing members’ unstated needs and creating goals that might be accepted.  Understanding of others emotions: EI members may improve the performance of their group. The ability to orchestrate one's emotions as per the need of the group helps in accomplishment of the group task, which in turn influences group performance.  Manage emotions: The effective management of emotions enables a member to influence the group by changing other members’ emotional reactions to particular courses of action; these influencers draw upon past experience and apply on them. Role of EI in achieving organizational effectiveness is very significant, and it is reiterated in studies carried out across the globe. Available literature suggests that facets of EI align well within the framework of achieving goals of the organization and ultimately leading to job satisfaction. Organization Behaviour Models 1) Autocratic: 2) Custodial:
  27. 27. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 27 of 30 3) Supportive: 4) Collegial: 5) System: Development of Business Incubator Company Introduction: The basic purpose to develop the company is to provide workspace, coaching, and support services to potential entrepreneurs at early-stage of their entrepreneurial careers. 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. For the attainment of this objective at initial I have decided to develop an organization in individual capacity which serves as a business incubator for the upcoming and tentative entrepreneurs. 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. Our primary purpose to form this organization is to develop to Business Incubator, which will not only educate and train the entrepreneurs but will help them to continue their ventures through continually assisting them in their entrepreneurial life. We are committed to create a diversified value chain through effectively developing the Micro Level Enterprises with the help of these entrepreneurs and provide value to our customer with affordable price and the pride to contribute toward a social cause. This success of the venture will allow us to transform it in to the:
  28. 28. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 28 of 30 “Entrepreneurial Development Incubator Company” Organization Behaviour Model For The EDIC: Management 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 wants every ones contribution in the process of growth and prosperity. We do not want to indulge ourselves into the hierarchical structure burden, in order to avoid the communication gap and unnecessary waste of time in decisions making and approvals, we will follow the flat hierarchical structure. The basic structure of our management will be as follows: Chief Executive
  29. 29. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 29 of 30 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: Human Resource Department Marketing Department Operations Department Finance & Accounts Department
  30. 30. Organization Behaviour (94075) Muhammad Asif Khan (51271) Page 30 of 30  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.