International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)391. INTRODUCTIONEmotional Intelligence (EI) is one of the most emerging and significantly growingareas of study in organizational sciences. EI has its roots in psychology but due toinvolvement of human beings in all sorts of businesses, it is important to accept it as aninseparable part of study of business management and administration. Daniel Goleman in hisbook ‘Emotional Intelligence’ (1995) had first unveiled the significance of EI for effectivebusiness performance. He worked upon identification of capabilities that contribute to idealleadership. He categorized these capabilities into three parts: purely technical skills likeaccounting and business planning; cognitive abilities like analytical reasoning; andcompetencies demonstrating emotional intelligence, such as the ability to work with othersand effectiveness in leading change. In order to reach to the purpose he researched 200companies across the world and when he calculated the ratio of technical skills, IQ, andemotional intelligence as ingredients of excellent performance, emotional intelligence provedto be twice as important as the others for jobs at all levels.Another great contribution in field of EI was made by Dr. Stefen Covey through hisbook ‘The Seven Habits of Highly Effective People’ (1989). He correlates effectiveemployee performance with high levels of Emotional Quotient (EQ). He also discussedvarious ways how EQ is used on different scales in terms of management and leadership. Hesynthesized number of EQ based initiatives that can lead businesses to great heights ofsuccess in very short period of time.Gordon Allport’s Trait theory emphasize upon the fact that ‘leaders are born, notmade’. His theory states that leaders have some innate traits on the basis of which theyachieve success or failure in their roles of leaders. This theory has been criticized by numberof thinkers of behavioral sciences who opined that traits can be learnt and developed. Beingemotional intelligent is significant trait that helps leaders to manage self behavior andbehavior of others including all their colleagues and subordinates. Travis Bradberry and JeanGreaves in their book ‘Emotional Intelligence 2.0’ suggest 66 strategies which providespecifics of what one need to say, do and think to increase their EQ. They developed thesestrategies after careful testing and years of efforts in the field of study of emotionalintelligence fundamentals. Their study proves that EI is one of the most importantcompetencies that can be developed with appropriate interventions and strategies.This research paper is an attempt to develop type of strategy in form of the business modelthat take into assumption the principles of EI and help small, medium and new entrepreneursto develop their business as the big concerns do. The study investigates the core reasonsbehind the success of world’s five most successful companies by way of comparativeanalysis and justifies the significance of EI in their success. On the basis of findings of thisanalysis, ‘360 Degree EI Implementation Business Model’ is developed which is expected tohelp entrepreneurs who are in their inception and growth level of business cycle to achievethe peak position and higher revenues.2. METHODOLOGYThe study is divided into two parts. Part one enunciates the comparative analysis offive Fortune 500 Companies: Tata Steel, Walmart, British Petroleum, Toyota Motors andSamsung Electronics. This sample of five companies represents initiatives of world’s top 500companies which use EI as the tool to achieve competitive advantage. The sample is selectedusing convenience sampling technique. In order to empirically process the data the coding system
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)40is implemented. Various study constructs are defined, interpreted and tested through systematicstructured coding. Most of the data for comparison is being collected from annual reports of thecompanies available at company’s official websites and archives. Technique of observation isused to study the reasons of slow growth of new, small and medium enterprises. Following nullhypothesis statement is formed to prove study results empirical and relevant.H#1: EI initiatives to satisfy the business stakeholders are not the common concerns of world’smost successful companies.Two variables in above hypothesis are – EI initiatives and success of companies. On the basis ofprinciple of causal relationship these variables have been tested with empirical evidences. On thebasis of which a suggestive conceptual model is developed.3. COMPARATIVE STUDY AND ANALYSISThrough the study I tried to investigate the areas where companies exactly implement EIstrategies to ensure rapid growth. EI activates where element - ‘human’ needs to be confronted. Incourse of business, we have to deal with this element in different forms. It can be your investor,supplier, distributor, employee, government, consumer, society and even natural environment asany adverse environmental business practice can cause societal distress and conflict. All thesehuman associations make business’s ‘Stakeholders’ who directly or indirectly affect business theyare associated with. All successful entrepreneurs give due importance to the interests of thesestakeholders as they consider business ‘of the people, for the people and by the people’.For this study I have selected 5 companies out of the list of ‘Fortune 500 GlobalCompanies’ (year 2012) The Fortune Global 500 list of top companies is compiled by FortuneMagazine annually and ranks publicly listed corporations on the basis of revenues companiesearn. If someone wants to know which companies are the biggest, most profitable and mostpowerful in the world; Fortune Global 500 list is there to let you know all about these players.This list is considered as the most authentic source to see corporation’s market standing and isheavily used by investors and policy makers across the world. The sample of five companies forthis study has been selected using convenience sampling method. Further, companies dealing indifferent industries are taken into consideration to reduce any bias of homogeneity of businesstypes.In order to reach to the purpose of the study, information given in annual reports of thecompanies and their official websites has been retrieved. A set of priori codes has been formed todefine various constructs onto which the comparison is made amongst various constructs.Following six codes and constructs are being formed to make comparison:Table 1: Codes and ConstructsCodes ConstructsC1 Human Resource based PracticesC2 Consumer based PracticesC3 Society and Community based PracticesC4 Government and Environment based PracticesC5 Investors and Shareholders based PracticesC6 Third Parties (Suppliers, Contractors, Vendors, Distributorsetc.) based PracticesMethod of coding is basically selected to support the study with empirical evidenceand reduce the error of generalization. Priori codes were formed in anticipation and on the
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)41basis of study of data, various constructs – the bases onto which the comparison can be madeare defined. Several EI based strategies, initiatives, policies and practices relevant to theconstructs are then compared to reach to the purpose of the study.Using codes, the method of constant comparison is also used wherein every time weselect a passage of text and code it, we compare it with all those passages we have alreadycoded that way. This ensures that the coding is consistent and allows us to consider thepossibility either that some of the passages coded that way don’t fit as well (and mighttherefore be better codes as something else) or that there are dimensions or phenomena in thepassages that might well be coded another way as well. This method ensures the efficacy ofthe comparison and reduces the bias of researcher’s generalizations over constructs taken intoconsideration for the study.4. RESULTS OF THE COMPARISONDetails pertaining to codes, constructs, companies and comparison can be seen with the helpof table 2.Table 2 – Comparative Analysis of Five Fortune 500 CompaniesCode Construct CompaniesTata Steel Walmart Stores Toyota Motors Samsung Electronics British PetroleumC1Human Resourcebased PracticesRight tofreedom ofassociationandcollectivebargaining,Equalopportunityemployer,Promoting ajust and fairworkplace,Encouragingwork-lifebalance foremployees,Caring forthe well-being of itsemployees,includingthose withspecialneeds,Providing asafe,hygienic andhumaneworkplace,SafetyGovernanceStructure,Skilldevelopmentand creatingworld-classemployees,Offering aharassment-freeworkplace toallDeveloping existingtalent throughprograms likeBusiness LeadershipSeries, WaltonInstitute and MerchantDevelopmentinitiatives, Building aDiverse Team,Supporting theNations Heroes,global women’sstrategySafety and health,Mutual TrustBetween Labor andManagement, FullyCommitted andThorough HumanResourcesDevelopment,Diversity and EqualOpportunities, BasicPrinciples ofPersonnelManagement, StableEmployment,Creating GoodWorkplaceEnvironments,Facility to HelpChild Rearing"Toyota Child CareBubu Land", CareerDesign ForumTalent Management,Provision of opportunitiesand happy workenvironment, Training andeducation for selfdevelopment, opportunitiesfor lifetime learning, humanrights, health and safety,balance between work andpersonal life, developingindividual competence,maximizing the efficiencyof human resourcemanagement, andcultivating a corporateculture of trust andcooperation, facilities towomen employeesStrengtheningcapability, developingpeople, Meeting theexpectations of people,diversity and inclusion,employee engagement,work life balance
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)42C2Consumer basedPracticesCustomer ValueCreation, Servingthe overall well-being of society,Wideningcustomer choiceand encouragingfree competitionin all segments,Educatingcustomers onsafe andresponsible usageof steel products,Buildingknowledgecapabilities ofchannel partnersto disseminateinformation,Encouragingsavings in naturalresources,Leveragingfeedback todeliver enhancedvalueSam’s Clubmembership,Customer-CentricPolicies, Bestcustomer service,lowest possible prices;guaranteed satisfactionwith what customersbuy; friendly,knowledgeableservice; convenienthours; free parking; apleasant shoppingexperienceMaking Cars thatCustomers in EachRegion Demand,safe vehicle,customer firstpolicy, customersatisfaction,Customer RelationsDivision Initiatives,"Amlux Toyota"Functioning toExchangeInformation withCustomers,providing highquality, making userfriendly vehiclesSafe and reliableproducts, Improving theVOC (voice of customer)response system,Customer communication,Customer health andsafety, Customercertification marksVariety of methodsto communicatewith and listen toour customers,includinginterviews, surveys,feedback tools andmarketingprogrammes, BPtourism campaign,Customer InsightsC3Society andCommunity basedPracticesFacilitatingpolicies for thefuture as aresponsiblecorporate citizen,Innovating andinvesting topromote the well-being of thesociety,Employeevolunteerism,Social changethrough sports,Access to urbanamenities, Ruraldevelopment,Resettlement andrehabilitation ofcommunitiesOne of the world’slargest charitablecontributors to localcommunities throughvolunteerism, financialcontributions and in-kind donations, Wehelp millions ofassociates buildsuccessful andrewarding careers.grants to localnonprofits,Scholarships forWalmart associatesand their Dependents,Driving change to feedthe nationSupport forRecovery from theGreat East JapanEarthquake,ContributionTowards SustainableDevelopment,Traffic safetycampaigns, Safedriving courses,Satoyama LearningInstitute Eco-no-Mori HouseOpened,Employment ofDisabled PersonsCommunity support andcontribution programs,"Green Planet School forEnvironment andChildren", participation incommunity-orientedvolunteer activities, suchas Free Eye TreatmentProject that has continuedfor 17 years, buildingcommunity networks forcollaborative projectswith various stakeholders,sharing activities tofurther enhance win-wincooperation with thecommunity and dedicateourselves tocommunicating with thecommunity andimplementingpersonalized volunteeractivitiesPhilanthropy,Employee supportedcauses, Enterprisedevelopmentprogrammes,Agriculturaldevelopmentprogrammes,Education and othercommunity needs,Access to energy,Infrastructuredevelopment, Artsand culture,Communityengagement inprojects andoperations
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)43C4Government andEnvironment basedPracticesResourceconservation,Process optimisation,waste managementthrough reduce,reuse and recycle,Research anddevelopment ofinnovativetechnologies andprocesses for Oreand CoalBeneficiation,Adoption of greenand cleantechnologies, bestoperating practicesand processupgradation,Mitigating theimpact of ClimateChange,EnvironmentManagementSystems (EMS),Employeeparticipation,Extendingenvironmentmanagement acrossthe supply chain,conducting meetingswith Governmentalbodies like-Pollution ControlBoards, TaxDepartments, Centraland State Ministriesand other influentialgroupsThree aspirationalsustainability goals- to be supplied100% byrenewable energy;to create zerowaste; to sellproducts thatsustain people andthe environment,Walmart publicaffairs andgovernmentrelations initiativesAdoption of EarthCharter,EnvironmentalAction Plan,implementing threemajor environmentaltechnologydevelopment themes- energy sourcediversity, CO2emission (globalwarmingprevention)reduction and airpollutionprevention,Preliminary Eventsto the Opening ofthe ToyotaShirakawa-GoNature School,ToyotaEnvironmentalActivities GrantProgram, Supportfor EnvironmentalNPOs, Workingwith governmentagencies forenhanced trafficenvironment safety,The Toyota SmartCenter optimizesenvironment-friendly car batterycharging and homeenergy managementEco value creation, EcoNetworking,environmentalsustainability goal setting,environmentalaccounting, supply chainenvironmentalmanagement, cleanerproduction, environmentconscious designing,green communication,confirming fair taxationpayment to governmentsin all nationsWorking with stateand federal agenciesto identify andsupport emergencyand early projects torestore naturalresources in theGulf of Mexico,Wildlifemonitoring,Emergencyrestoration projects,Early restorationprojects, NationalFish and WildlifeFoundation projects,Engagement withgovernments onmany fronts, fromconsulting onenvironmentalregulation tounderstanding thetax liabilities andcollaborating oncommunity orentrepreneurialinitiatives. In someplaces, work inpartnership withgovernmentsthrough production-sharing contractsC5Investor andShareholder basedPracticesForums of theAnnual GeneralMeeting, analystmeetings andinvestor road showsto meet withinvestors and addressissues ofperformance, long-term strategy andgrowth plans,Ensuring maximumpossible return toshareholders on theirinvestmentsReport on InternalControl OverFinancialReporting, Goodreturn oninvestment,Transparency inreporting,Evaluation ofDisclosureControls andProcedures, Reporton EthicalStandardsFinancial Securitiy,good returns andtransparencyVision to realize commoninterest and to createvalues, promoting variousIR activities such as an IRroad show, conferences,one-on-one meetings, aline tour and performanceresult meetings based onactive communicationwith shareholders andinvestorsEngage withshareholders andanalysts throughwell-definedchannels, includingour annual generalmeeting and otherevents, keepshareholders and theinvestmentcommunityinformed about ourprogress as a group,including providingopportunities forregular dialogue andfeedback.C6Third Parties –(Suppliers,Contractors,Vendors,Distributors etc.)based practicesThe Company helpssuppliers andvendors increasetheir capabilitythrough varioustraining sessions,vendor meets andsurveyEthical Sourcing,Sams Clubcollaborate withNGOs andgovernment leadersto verify theproducts sold areproduced in a waythat providesdignity and respectfor workers in thesupply chainGood RelationshipManagement withthird parties withspecial focus onsuppliersRange of support to 1st-tier suppliers, 2nd and3rd-tier suppliersprovided in areas ofproduction innovation,R&D collaboration,renovating inefficientprocesses, funding, andHR development,Establishing Fair TradePractices, Major supportactivities for suppliersFocus on six keythemes for thirdparties: consistentstandards andpriorities; fewersuppliers to enabledeeper, longer-termrelationships;detailed andsystematic selectionof contractors; clearand specificcontracts; intensiveoversight andverification; andassurance thatsupplier personnelare competent.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)44Biographical Sketch: Dr. Sehba Husain is currently working as the Assistant Professor inJICM, Bhopal and is specialized in Management of Human Resources. With her high interestin research she has won number of awards for academic and research excellence.The study unveils both similarities and differences between the practices companieshave adopted for various constructs. When on one hand companies use same approach of EIto attract its stakeholders, the other hand they use these strategies in different combinationsand compositions. For example Tata Steel relies more upon CSR based initiatives whereasWalmart uses limited CSR tools. The table shows how companies in the sample implementstrategies which directly target fundamental human emotions. Any stakeholder in thebusiness assures his participation in company’s business only when he finds his interests andmotives associated with that business. Similarly stakeholders who are not directly associatedwith business like communities and societies accept business as the part of the system onlywhen it confirms certain required ethical and concerned behavior. As a matter of fact thisassociation of motives and social acceptance is based upon how effectively companies cansatisfy emotions of the parties concerned.When we talk about satisfaction of emotions of the human resources of the company,various human resource based practices make employees feel full of joy, ecstasy, gaiety,bliss, elation, delight, happiness and all this sort of positive emotions. Similarly whenconsumer buys a product other than fulfillment of his utility, he also wants to satisfy hisemotional needs associated with the products. Companies therefore try hard to ensure tosatisfy some more consumer emotions like – fondness, attraction, adoration, sentimentality,caring etc. along with all positive emotions discussed above in case of HR. Governments,communities and society need companies to behave in most responsible way so as to avoidall sort of negative externalities caused by businesses. These parties also have their motivesassociated directly or indirectly with the business which when fulfilled or unfulfilled result inpositive or negative generation of emotions. Investors, shareholders when investing inbusiness expect to earn money or share company’s profit and as they play very significantrole in business growth they should also be confirmed of proper returns on their investments.Third parties like suppliers, vendors, contractors etc. also have their motives associated withthe business and every party finally needs positive fulfillment of the motives they have withthe business.Emotions are basically the outcomes of the motives. Motives or our expectationsdecide the emotions we feel and experience. If motives are fulfilled the absolute way theywill result in positive emotions which confirm the positive behavior too. For example ifmotives of employees are fulfilled, their productivity will enhance, if it happens withconsumers their brand loyalty will get strong, investors and shareholders will make moreinvestments more frequently and third parties also perform the way they are expected to. Thisis what a business needs to be successful. All stakeholders when perform with full motivationbusinesses grow more quickly and this is the lesson which new, small and medium scaleentrepreneurs should learn.Small and medium enterprises in India contribute to 22% of GDP. Despite this greatcontribution it is felt that small and medium enterprises in India face number of problemsincluding strong competition with multinational corporations. Apart from the benefits ofeconomies of scale, MNCs as discussed in our comparative analysis use great level ofemotional intelligence to ensure sustainable business growth. Taking that comparativeanalysis as the pilot study, 360 Degree Emotional Intelligence Model of Business
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)45Development has been developed to guide new, small and medium level entrepreneurs to thepath of sustainable business growth and development.Figure 1: 360 Degree EI Implementation Business ModelThe model is based on the assumption that all stakeholders in the business have almost equalcontribution in business growth and development. Considering it as the 360 degree coverage,the area of 60 degrees has been allotted to each segment of stakeholders which is shown inthe comparative table as various constructs. The model suggests that entrepreneurs should useEI with all stakeholders in almost equal amount to have synchronized functioning. Allbusiness stakeholders function under the umbrella of EI. EI based strategies should beimplemented to manage emotions of all stakeholders as contribution of every singlestakeholder is equally important. And this is what big Fortune 500 companies are doing.
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)465. CONCLUSIONS AND SUGGESTIONSThe study tries to set instance before new, small and medium entrepreneurs to helpthem to achieve fast and sustainable growth with the use of EI. In order to reach to thepurpose we investigate the EI based strategies big corporations implement. This study hasbeen divided in two parts. One, the comparative analysis of five global fortune 500companies to know the ways big companies are using EI to achieve competitive advantage inbusiness and second, on the basis of findings of the comparative analysis, develop thebusiness model for new, small and medium enterprises.Comparative study of corporations show how similar companies are in using EIpractices to manage relationships with all their stakeholders. Study also revealed that thesecompanies use EI strategies in different combination and compositions. Some companies aremore concerned about their consumers and use more EI based practices to attract themwhereas some companies put more emphasis on the emotional satisfaction of theiremployees. Hence companies are similar and in a way different the way they use EI as a toolto achieve competitive advantage. Scientific methods are used to make the comparisonswhich empirically prove the findings of the study. The investigation clears that use ofemotional intelligent practices is a common feature all successful companies have. And hencea suggestive ‘360 Degree EI Implementation Business Model’ is developed for new, smalland medium enterprises to achieve fast sustainable growth. Model suggests that just like bigsuccessful fortune 500 companies, new, small and medium scale entrepreneurs should alsouse EI as the tool to achieve competitive advantage. This model is expected to help theseentrepreneurs ensure smooth business functioning with high level cooperation from the sideof all business stakeholders.6. REFERENCES1. British Petroleum (2011). Annual Report and Form 20-F 2011[pdf]. Available from:<http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/bpin2011/downloads/BP_Annual_Report_and_Form_20F_2011.pdf> [Accessed 18th April 2012]2. CNN Money (2012). Fortune Global 500. Available from<http://money.cnn.com/magazines/fortune/global500/2012/full_list/> [Accessed 12thSeptember 2012]3. G.W. Allport (1966). Traits Revisited. American Psychologist, Vol 21(1), Jan 1966, 1-104. Goleman Daniel (1995) Emotional Intelligence, Bantam Books5. Goleman Daniel (2004) What Makes a Leader, Harvard Business Review, Best of HBR1998. Available from: <http://hbr.org/2004/01/what-makes-a-leader/ar/1> [Accessed:14th December 2012]6. Graham R. Gibbs and Celia Taylor (2010) How and What to Code. Online QDA.Available from: <http://onlineqda.hud.ac.uk/Intro_QDA/how_what_to_code.php.>[Accessed 24th March 2012]7. Samsung SDI (2012) SDI and Stakeholders. Available from:<http://www.samsungsdi.com/sustain/s2_1.jsp> [Accessed 17th October 2012]8. Stephen R. Covey (1989). The Seven Habits of Highly Effective People. Free Press9. Tata Steel (2012). 105th Annual Report: The Cornerstones of Sustainability [pdf].Available from:
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)47http://www.tatasteel.com/investors/annual-report-2011-12/html/templates/pdf/full/Tata%20AR%202011-12_Final_18.7.2012.pdf> [Accessed 25th April 2012]10. Tim Marshall (2011) Nurturing a twenty first century workforce. Feature11. Toyota (2003). Social and Economic Aspects. Available from:<http://www.toyota.co.jp/en/environmental_rep/03/shakai_sokumen.html> [ Accessed9th January 2013]12. Travis Bradberry, Jean Greaves (2009). The Business Case for Emotional Intelligence[pdf], Talent Smart Inc .Availabe from:<https://www.talentsmart.com/media/uploads/pdfs/The_Business_Case_For_EQ.pdf>[Accessed 2nd January 2012]13. Travis Bradberry, Jean Greaves (2010) Emotional Intelligence 2.0, Brilliance Audio onCD Unabridged; Unabridged14. WalMart (2012). Walmart 2012 Annual Report [pdf]. Available from:<www.walmartstores.com/sites/annual-report/2012/>. [Accessed 12th January 2013]15. WalMart (2012). Global Responsibility. Available from:http://corporate.walmart.com/global-responsibility/ [Accessed 10thNovember 2012]16. Prof. Dr Slobodan Stefanović and Prof. Dr Radoje Cvejić, “Linear Programming of BasicEconomic Parameters used at Reengineering in Small and Medium Enterprises”,International Journal of Management (IJM), Volume 4, Issue 2, 2013, pp. 31 - 43, ISSNPrint: 0976-6502, ISSN Online: 0976-6510.