Emotional intelligence helps managers in three key ways: 1) It assists them in understanding employees and building strong relationships, 2) It enhances decision making and strategy formation, and 3) It raises awareness to adapt to changes and boost competitiveness. Studies found managers with high emotional intelligence had better performance. Developing it can benefit both individuals and organizations, especially during difficult times.

1. Emotional Intelligence 1
The Value of Emotional Intelligence in
Managerial Decision Making
Lan Xie
BUSAD 240
Professor Brooks
April 20, 2009

2. Emotional Intelligence 2
A Table of Contents
Introduction:
A. A study of Johnson & Johnson Consumer & Personal Care Group
B. Definition of emotional intelligence
C. Brief history of emotional intelligence
D. Thesis statement
Body:
A. Emotional intelligence assists managers in understanding and relating well to employees
(1) Self-assessment
(2) Communication
(3) Empathy
(4) Example of PAETEC
B. Emotional intelligence also enhances managers to make wise choices and form strategies
to implement these goals
(1) Sound decision
(2) Forming strategies
(3) Implement
(4) Example of Campbell
C. Emotional intelligence helps managers raise the awareness of their performance and build
up organizational competitive advantage
(1) Awareness
(2) Innovation
(3) Adaptability
(4) Example of Louis Vuitton Company
Conclusion:
A. Restate the thesis statement
B. What I learned
C. Recommendation

3. Emotional Intelligence 3
An Executive Summary

4. Emotional Intelligence 4
The Value of Emotional Intelligence in
Managerial Decision Making
A study was conducted on three hundred and fifty-eight Managers across the Johnson &
Johnson Consumer & Personal Care Group globally to assess if there are leadership
competencies that differentiate high performers from average performers. More than fourteen
hundred employees took part in a one hundred and eighty three question survey testing
Emotional Intelligence. Then participants are coded for performance rating, potential code,
gender, functional group and regional area. Results show that the highest performing managers
have significantly more “emotional intelligence” than other managers. This study supports the
position that emotional competence differentiates successful leaders. High performing managers
at the Johnson & Johnson Consumer and Personal Care Group were seen to possess significantly
higher levels of Self-Awareness, Self-Management capability, Social Skills, and Organizational
leadership, which are all considered part of the Emotional Intelligence domain (Cavallo
&Brienza, 2001).
What is emotional intelligence? According to the definition of our text book that
emotional intelligence (EI) is an ability or skill to understand and manage one’s own mood
and emotions and the moods and emotions of others. (text) The most distant roots of
emotional intelligence can be traced to Darwin’s early work on the importance of emotional
expression for the survival of the fittest. The traditional definition of intelligence is based on
the cognitive aspects such as memory and problem solving. In the early 1900s, influential
researcher in intelligences study had begun to realize the importance of the non-cognitive
aspects. The famous researchers Peter Salovey and Jack Mayer created The Ability-Base
Model in 1990, which proposed four types of abilities: perceiving emotions, using emotions,

5. Emotional Intelligence 5
understanding emotions, and managing emotions. Daniel Goleman became aware of Salovey
and Mayer’s work and introduced The Emotional Competencies Model in 1995 which
outlines four main EI constructs: self awareness, self management, social awareness, and
relationship management.(wiki) Goleman argues that competencies based on emotional
intelligence play a far greater role in performance in the workplace than intellect or technical
skill. Indeed, emotional intelligence is the distinguishing competency of 85 % of the top
leaders, while IQ and technical skills account for just 15% (The Irish Times). Managers with
high levels of emotional intelligence are more likely to be successful in their career. It is not
surprising then that organizations have become increasingly interested in helping their staff,
particularly those in leadership positions, to develop their emotional intelligence
competencies. Emotional intelligence has become a crucial part in Management. Good work
relationship, sound decision-making, and awareness are the three major values of emotional
intelligence in managerial decision making.
Emotional intelligence assists managers in understanding and relating well to
employees. Managers with honest self-assessments will not be quickly irritated with others
and stay calm while facing a crisis. They will try their best to create harmony in their work
stations and be able to accept realistic criticism. Managers with high emotional intelligence
realize their emotions will affect how they treat others and how others respond to them.
Research shows that an employee will be more wiling to approach a manager with a far-
fetched idea if he feels that the manager is in a good mood. When managers are in a terrible
mood, employees will try to avoid them at all cost.() The ability to recognize another person’s
feelings accurately enable managers to develop better communication skill. Effective
communication is the key element for a business to succeed. Without good communication

6. Emotional Intelligence 6
skills, managers will often feel stressed, and employees’ feelings get hurt. Eventually,
misunderstanding leads to a low morale and low productivity. Empathy works when good
communication and understanding are bonded together. It is a very important aspect of
emotional intelligence. Managers with empathy skills enable them to have closer relationships
with their employees and have a great power to influence and motivate employees in positive
ways. Moreover, managers will get the support they need from their employees. For example,
PAETEC Communications was founded in 1998 with less than 20 employees and revenues of
only $150,000; by 2004, it had 1,000 employees and $360 million in revenues. The principle
at PAETEC is that the employees come first. CEO Arunas Chesonis believes that if the
company takes good care of the employees, the employees will take good care of the
customers. Chesonis holds a conference every two weeks to keep his employees up to date. At
PAETEC employees are expected to share their knowledge with everyone and have open
communications. PAETEC celebrates holidays with employees, their families, and
customers.(ch3) CEO Chesonis realizes that his employees are very valuable and important
assets to the company. Chesonis has created a friendly working environment with respect,
equality, admiration, recognition and care for his employees. The employees are highly
motivated and committed to provide the best service to their customers. A good relationship
leads to improved cooperation, fairness, and overall group performance.
Emotional intelligence also enhances managers to make wise choices and form strategies
to implement these goals. In an uncertain competitive environment, managers with high
emotional intelligence can engage in thorough planning to find a strategy that will allow them to
compete effectively. Managers with low emotional intelligence may “spend more time than they
can afford to in analysis, may not demonstrate the courage to make choices, may avoid taking

7. Emotional Intelligence 7
responsibility, and may lack the commitment to execute a decision fully”( By Jeffrey E.
Auerbach, Ph.D.). A good plan builds commitment and the right course of actions to attain a
goal. The outcome of planning is a strategy. Formulating strategy requires managers to indentify
organizational strengths, weaknesses, opportunities and threats. After performing a SWOT
analysis, managers need to allocate responsibilities to specific individuals or groups, and take
right actions to pursue the goal. The following is an example of how Douglas Conant, CEO of
Campbell Soup, finding strategies to turn around the performance of the troubled food products
maker in the 2000s. One of Conant’s first actions was to instigate a thorough SWOT planning
exercise. This analysis identified the growth of organic and health foods. His internal analysis
identified major weaknesses such as: the use outdated machinery to manufacture soups and high
levels of staffing. He also observed that Campbell is afraid to take the risks necessary in the fast-
changing food industry. Using this information Conant decided that Campbell needed to modify
its core products to make them more appealing to the health conscious consumers. To further
increase the sales, Campbell needs to appear in more food outlets such as: college dining halls,
cafeteria and other mass eateries. Finally, Conant decided to give the responsibility of bringing
new kinds of soups, salsas, and chocolates to lower managers. He hoped that in this way he can
speed up the flow of new products to the market. All of these positive changes have made a
significant difference in Campbell’s performance.() Conant’s emotional and intuitive traits help
him to focus on the goal.
Emotional intelligence helps managers raise the awareness of their performance and build
up an organizational competitive advantage. The world has been changing more rapidly than
ever before; managers with high emotional intelligence are able to watch for changes and adapt
themselves to these changes in the global environment. Moreover, they are capable in taking the

8. Emotional Intelligence 8
right actions to produce more efficient and effective goods or services to compete with global
companies. They understand that although sometimes what has happened is beyond their control,
they look at the bright side and remain passionate about their jobs. When they encounter
frustration at work, they remain calm and understand the negative aspect is just part of the
learning process. Managers with high emotional intelligence feel employees’ pain. They care and
listen to the employees’ concerns and worries. On the other side, when employees feel cared and
empowered, they are willing to contribute their talent and perform a high level of commitment to
the company. Emotional intelligence has the potential to contribute encouraging and supporting
creativity and enhance a competitive advantage. Modern information systems and technology has
helped organizations achieve a competitive advantage. A good example is the Louis Vuitton
handbags and accessories company. All teams work on one product at a time, a team with 24
members produces about 120 handbags per day. Teams are encouraged to suggest improvements,
and are kept up to date on product selling prices and popularity. To ensure motivation, team
members are given bonuses for their performance. By being involved in all aspects of the goods
they produce, employees have the skills and autonomy to ensure that all goods produced live up
to the Vuitton brand name (text). The strong sense of awareness in its performance and
innovation greatly help Vuitton build up strong competitive advantage.
I strongly agree with the emotional intelligence theory. Emotional intelligence is very
important and useful to everyone. As you see, emotional intelligence is vital in business sectors.
It also helps us do our school work well if we start to develop and improve our emotional
intelligence. Moreover, emotional intelligence will help us succeed in our future careers. I am
really excited about what I have learned about the emotional intelligence so far and am willing to
apply it in my family with my two bright daughters. I would love to see the emotional

9. Emotional Intelligence 9
intelligence empower their abilities. They become more creative, happy, caring and have strong
positive personality to pursue their goals. I would recommend that educators start to nurture
students with emotional intelligence and integrate these ideas into their teaching; mothers use
emotional intelligence to build up positive and healty relationships with their children and live
happily together.
Today's leaders have A strong emotional intelligence can help build
positive relationships with colleagues and improve performance

10. Emotional Intelligence 10
The good news is, you can learn or improve your emotional skills ...
even in the presence of stress,quot;
to have the right values, behaviours and emotions in order to develop
and enhance their competitive edge,quot; says Herman.
Obviously, it's easy to play leader when the times are easy; but in
periods of distress and duress, leaders actually have to lead. After all,
true leadership is action, not just a title.
empathy-to succeed and excel once on the job. This is particularly true
when leading in an uncertain economic environment.
Once subordinates become convinced that you care, they will follow
your lead and repay you with their trust, their loyalty and their best
efforts--in spite of all their worries.
Empathy is a lifeline that can pull your team though rough economic
waters. As supervisor, it's your job to be the anchor at the other end of
the lifeline.
3. Communicate early and often. When times are tough, it pays to open
up, not button up. Transparency builds credibility which translates into
trust.
The worse the economy becomes, the more important it is to keep
everyone in the loop. That's why the best supervisors tell employees the
truth--all of it. They tell all those involved what's going on, what to
expect, what they (individually and collectively) can do about it and
what's next.
Knowledge is power. Shared knowledge is power multiplied. Full
disclosure builds collaboration, credibility, respect, trust and loyalty.
These are the secret weapons it takes to survive and thrive in bad times.
References

11. Emotional Intelligence 11
Gareth R. Jones., & Jennifer M. George. (2006). Contemporary management. New York: The
McGraw – Hill Companies, Inc.
By: Kathleen Cavallo
Corporate Consulting Group
and
Dottie Brienza
Formally of Johnson & Johnson Consumer Companies
Publication Date: 2001
www.corpconsultinggroup.com