Organization Executives And Emotional Intelligence Business Essay

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1.1 Introduction

Emotional intelligence is based on a long history of research and theory in personality, sociology as well as psychology. There has been an impressive and growing research panel that suggests that the abilities of emotional intelligence are important for success in many areas of personal and work life as well as Emotional Intelligence (EI) is more useful for effective performance of an organization for creating successful business leadership. Emotional intelligence is also at times referred to as emotional quotient or emotional literacy. "The concept of emotional intelligence was developed by Daniel Goleman, means you have a self-awareness that enables you to recognize feelings and helps you manage your emotions." So we can define it as the capacity to reason about emotions and to enhance thinking.

In the late 1980's, psychologists, evolutionary biologists, psychiatrists, computer scientists, and others had identified a number of human capacities involved in identifying and understanding emotions. Emotional intelligence can be compared and contrasted with a number of other parts of personality. These other parts are distinct from emotional intelligence both conceptually and empirically. Moreover, according to the Goleman a person may be high in emotional intelligence, they may be high or low in many of these other characteristics for example; Empathy, Emotional self-efficacy, Socio-emotional effectiveness, Socio-emotionally effective behavior.

Another model is Goleman's Five Emotional Competencies Model that divides emotional intelligence into five emotional competencies i.e., the ability to identify, capacity to manage one's emotions, control emotions or shift undesirable emotions, capacity to read and influence other people's emotions, ability to sustain interpersonal relationships.

Higher levels of EI are associated with better performance in the participative management, putting people at ease, self-awareness, balance between personal life and work, straight-forwardness, composure and decisiveness, building and mending relationships, confronting problem employees, change management.

1.2 Organizational Executives and Emotional Intelligence

In the June 21, 1999 Fortune article "Why CEOs Fail" authors Ram Charan and Geoffrey Colvin demonstrate that unsuccessful CEOs put strategy before people. Successful CEOs shine not in the arenas of planning or finances but in the area of emotional intelligence which has a direct bearing on execution.

No doubt that the cognitive ability and the job specific skills are very much required for the leaders but this does not undermine the importance of EI. It has been witnessed that the importance of EI is twice than the aforementioned abilities / competencies.

A huge difference between above average and average leaders in business is linked to Emotional Intelligence (EI). The abilities driving successful execution of vision are emotional competencies. If you want exceptional business results, you should develop EI abilities and skills in your employees. It's likely that emotional intelligence is going to continue to become even more important in the business world in the future than it is nowadays. As the baby boomer population approaches retirement age, companies are going to find themselves dealing with labor shortages the likes of which have never been seen before.

1.3 Models of Emotional Intelligence

There are different models of Emotional Intelligence given by different researchers. In the early 1990s, Mayer-Salovey model defines emotional intelligence as the capacity to understand emotional information and to reason with emotions. More specifically, they divide emotional intelligence abilities into four areas in their four branch model:

The capacity to accurately perceive emotions.

The capacity to use emotions to facilitate thinking.

The capacity to understand emotional meanings.

The capacity to manage emotions.

1.4 The Impact of EI on Organizational Effectiveness

Look deeply at almost any factor that influences organizational effectiveness, and you will find that emotional intelligence plays a role.

1.5 Future of Emotional Intelligence

The organizations that emphasize only on the IQ skills will be struggling for survival. These IQ skills have to be combined with the EI in order to deliver at the optimum levels. The concept of EI is now gaining grounds and organizations around the globe are conducting training sessions and seminars of their employees by professional consultants of EI in order to develop EI in their workforce so that in the coming times they are well equipped and perform better for the organization they work in.

It is thought that emotional intelligence is going to become more and more important in the future. Especially for the organizations that operate in economies where the labors supply will be short. These organizations will have to maintain a good labor force at all the times. Moreover, simultaneously the competition for holding a better work force than that of your competitor is going to get harsher, therefore the workers who think that they are not adequately treated shall switch to other organizations. So the best to hold the labor force would be to arouse the emotional intelligence in the philosophy of personal as well as organizational management.

1.6 Motivation for Study

At work place the performance and success depends on a lot of abilities, some of which are job specific while others are general, and the prior does not compensate the later and vice versa. Out of these general one is the subject chosen, that is the emotional intelligence. Emotional intelligence in today's work place has its significance that cannot be overcome or compensated by other general or job specific abilities. Emotional intelligence, as has been discussed earlier, deals with the behavioral aspects of the people. One may be very good at the job specific abilities and logic but at the same time he may be lacking the emotional intelligence to deal with the people around him. Now in order to deliver the optimum an individual has to be exceptionally well in all the aspects of his personality that includes both the abilities (general and specific) however most of the people think that if they are good in the job specific abilities they can achieve the optimum. This research project tries to explain the ways in which behavior can help achieve the optimum without ignoring the importance of the specific abilities. In short, this paper emphasizes on the ways and importance that how an individual can deliver the optimum and achieve the optimum by dealing in the right way with the people around him provided he has the job specific and the other general abilities as well. In today's world everything and everyone is connected, nothing operates in isolation and when connections are there then appropriately dealing with these connections is vital to the success and prosperity of the individual. Moreover by knowing and applying this philosophy an individual can strike a balance between his personal and professional life and put himself and those around him at ease.

Chapter 2

Literature Review

2.1 Emotional Intelligence

'Nowadays few terms are becoming popular each day and gaining more recognition and importance i.e. organizational commitment, effective performance management and employees feedback, job satisfaction and employment turnover because these are linked with the organizational performance. All these terms are related to HRM which is unfortunately the most mismanaged corporate asset from last two decades instead of paying more to retain than any other asset ant his can develop a sustainable competitive advantage for an organization, because in the next 15 years demand for the skilled labor will expand to about 33% and the 15% of the skilled employees vacate the positions over the next 10 years, so demand will raise and supply will diminish' (CHANBER ET AL, 1998). High performance leadership and emotional intelligence competence enables an organization to increase its ability to bring change and innovation to the workplace, leading to a sustainable outstanding future for the organization.

In order to increase the organizational commitment, job satisfaction, levels of effective performance management and improve the employee feedback development of an interpersonally effective culture that makes the organization flexible to bear the future economical end environmental turbulences is required. This kind of culture cannot be developed by hiring people only with higher Intelligence Quotient or with good leadership skills but with higher Emotional Quotient. Most of the leadership development program has incorporated EI or EQ interventions that are designed to:

Educate the managers / leaders about the emotional intelligence in the workplace.

Assess their relative strengths and weakness such as their Emotional Competencies Inventory (ECI) and personality profile.

Provide a framework and support to develop and enhance their ability to interact with others with greater emotional intelligence (Boyatzis and Burckle, 1999).

2.2 Intelligence types

Psychologists have discovered three types of intelligences and have grouped them mainly into three clusters:

abstract intelligence (the ability to understand and manipulate with verbal and mathematic symbols),

concrete intelligence (the ability to understand and manipulate with objects), and

Social intelligence (the ability to understand and relate to people).

2.3 Evolution of Emotional Intelligence

From an evolutionary point of view, an individual works on development of appropriate emotions so that he can communicate in a better way.

The EI study evolved from the contributions of Gardner and Williams and Sternberg. They gave broader approaches towards understanding of the intelligence.

The term "social intelligence" was coined in 1920 by E.L. Thorndike that described the art of getting along with other people.

The term "emotional intelligence" was coined by Salovey and Mayer in 1990 which also included Gardner's intra- and inter-personal concepts.

The term became really famous and popular in 1995, when Goleman wrote the book

Why It Can Matter More than IQ and this was the first time when its application in the real world business was sought. The book laid importance on the emotional intelligence for the businesses and careers to blossom.

2.4 Successful Business Leadership

Many organizations focus on revenue, profit, and growth as "Key" measures of success.  There are many silent indicators that determine the success of an organization in the long run. Failure of an organization is due to the ignorance for these factors. Revenue do not say anything about your base. Organizations should produce a balance of leading indicators and lagging indicators of success to minimize the discrepancies. Following are indicators of organizational success:

Communication Effectiveness

Customer And Supplier Relationships

Employee Satisfaction

Brand Image



Employee Competence

2.5 Five Components of Emotional Intelligence at Work

In Goleman's model of EI there are five key steps: self-awareness, self-regulation, self- motivation, empathy, and effective relationships where as each includes a set of different competencies. All the competencies to be successful are not necessary, but the two core competencies emotional self-awareness and accurate self-assessment are essential unlike others. He focused on how emotional intelligence operates at work with the help of following five components.

Self Awareness

Self Awareness is the ability to recognize ones moods, emotions and drives as well as his effect on others. Self-awareness must come first because if we do not know ourselves or what we are feeling, how can we possibly know the needs of others or understand someone else. The more we know about ourselves, the better we are able to control and choose what kind of behavior we will display in any given situation. To become more self-aware, one must follow these steps:

It is extremely important to know the difference between thoughts and feelings.

Name the feeling fear, anxiety, love, eagerness.

Be open to input from others

Self Regulation

Self Regulation is the ability to control/redirect disruptive impulses and moods the propensity to suspend judgment to think before acting. Following are some tips to improve self-regulation:

Monitor your self-talk

Accept responsibility for your emotional responses in your life.

Reframe an irritating situation into a problem-solving exercise.

Remove yourself from the situation and keep moving.


Motivation is a passion to work for reason that goes beyond money or status and a propensity to pursue goals with. Self-motivation is directing the power of our emotions toward a purpose that will motivate and inspire us. It is also visualizing the achievement of a goal and taking whatever the necessary steps are to get there. Various ways to improvise the self-motivation are:

Realize that you can control and choose what you are thinking and feeling. Increase your persistence by keeping things in perspective.

Connect goals with values to get energized. Keep your eyes on the goal and follow through.

The pursuit of knowledge will build on areas of strength. You will be more valuable.


Empathy is the ability to understand the emotional makeup of other people. Empathy is the capability to share and understand other's emotions and feelings. Some techniques for enhancing empathy are:

Look for nonverbal cues as well as listening for verbal ones. Studies show that words account for only 7% of communication. Tone and the speed of speech accounts for 38% of the message, while 55% is unspoken and revealed through body language, such as posture, eye contact, facial expressions, and so on.

Share and be honest about your feelings. Good communication leads to trust.

Right way of delivering opinion / criticism.

Trying to see a situation from other person's perspective.

Social Skills

Social Skills are the proficiency in managing relationships and building networks and it is an ability to find common ground and build rapport. Following are some EI techniques for more effective relationships at work:

Create an inspiring work environment.

Engage in creative brainstorming.

Be willing to coach others and be open to being coached yourself. By sharing your knowledge and expertise with other team members, you are nurturing the next generation.

Models of Emotional Intelligence

2.6.1 Model of Helen Taft discusses that there are four factors of Emotional Intelligence

Emotional Literacy - being honest to oneself and development of guidance form ones inner

Emotional Fitness - build ones authenticity and trust the relationships

Emotional Depth - developing character on basis of one's potency, integrity and aim.

Emotional Alchemy - to sense the opportunities that come one's way and making future

Ability Model Of Emotional Intelligence

The only ability model of emotional intelligence is that proposed by John Mayer and Peter Salovey. In whoch it has been proposed that individuals are different in regard to their ability to process emotional nature information.

Mayer and Salovey's conception of emotional intelligence is based within a model of intelligence, that is, it strives to define emotional intelligence within the bounds of set criteria for a this new intelligence (Mayer, Salovey, Caruso, & Sitarenios, 2003). It proposes that emotional intelligence is comprised of two areas:

Experiential (ability to perceive, respond, and manipulate emotional information without necessarily understanding it).

Strategic (ability to understand and manage emotions without necessarily perceiving feelings well or fully experiencing them). Each area is further divided into two branches that range from basic psychological processes to more complex processes integrating emotion and cognition.

Mixed Model Of Emotional Intelligence

Goleman's Model of Emotional intelligence (1995) is referred as Mixed Model because mixed models of emotional intelligence combine mental ability with personality characteristics such as optimism and well-being (Mayer, 1999). Goleman's definition of emotional intelligence proposes four broad domains of EQ which consist of 19 competencies:

Figure 2.1 Mixed Model of Emotional Intelligence

Goleman's Model of Emotional Intelligence


Emotional self awareness: reading your own emotions and recognizing the impact your emotions can have

Accurate self-assessment: knowing your strengths and bounds

Self-confidence: a realization of your worth and abilities


Emotional self-control: To be in control of the emotions that just pop out of your being and can be disturbing or in other words can have a negative impact on the situation

Transparency: Exhibiting that one is trust worthy and honest

Adaptability: Being able to adapt to the dynamic and ever changing situations and circumstances and delivering in the changed atmosphere as well

Achievement: In order to keep motivated

Initiative: This means that you should be eager and ready to seize the opportunities that come your way

Optimism: Taking things in a positive way and thinking positive

Social Awareness

Empathy: Seeing a situation from another person's perspective rather than just seeing everything from your own perspective

Organizational awareness: Being aware that what is actually and in fact going on in the organization covering all the aspects and including the political aspects as well

Service: Delivering to the customer to the best possible level and making sure that you are working in a good and a desirable manner

Relationship Management

Inspirational leadership: The personality of the leader should be so that people around him get inspired and motivated

Influence: Exerting a range of tactics to keep the persuasion up to the levels

Developing others: Support and strengthen the abilities of others via feedback and directing

Change catalyst: Pioneering, dealing, and chairing the new direction

Conflict management: Resolution of the hardships

Building bonds: Cropping and holding up a network of relationships

Teamwork and collaboration: Building teams, working together and co-operating to ech other

Generally speaking the factors mentioned by Goleman have proved to be key success factors in today's workplace. This has been evidenced by looking at organizations changing in this directions in the last two decades. Moreover, the shift towards the team development, customer focused jobs have given autonomy to the personnel even at lower levels.

The Six Seconds EQ Model  

Emotional intelligence is the ability of the individual to make mix of his feelings and thoughts in order to arrive at the optimal decisions which in turn form the basis for upbringing and maintaining good and effective relationships with others and oneself. To provide basis for practicing and learning the emotional intelligence a three part model was discovered in 1997 by the application of which one can learn and exercise the emotional intelligence in his day to day life. The aforementioned model has three pillars to it that include becoming more aware about your actions, doing things more intentionally and less unintentionally which means doing the thing which you actually want to do and finally do the things purposefully that means doing the thing with specific objectives in mind rather than doing things just for the sake of doing. Knowing One's Being

This means that vividly visualizing what one feels and in turn will do. Emotions are a kind of an ability a competency that allows one to collect the information accurately. Knowing one's being gives one the reason, gives one the answer to what. When one knows himself he is aware about his strengths and weaknesses, he is aware about what is he doing, he is aware about what he wants and finally he knows about what he wants to change. Choosing Oneself

Here the individual does what he from the inner feels and means to do. This makes one proactive rather than reactive. This provides the answers to how. It tells one how to respond, how to put these concepts to operation ways in which one can influence himself and others around him. Giving Oneself

In this the individual whenever does something, does it with a reason behind it, does it with some meaning in it. This gives purpose to the actions and the individual awaits the results or the feedback. This answers the why in one.

It will be noticed that this model is not an enlisted model, it is in form of a circle that makes it a process. Under these three pillars there are some competencies to learn.

These are measured through the Six Seconds Emotional Intelligence Assessment also abbreviated as SEI.

Figure 2.2 The Six Seconds EQ Model  

The base of EI rests on 'something to be'.  When a person is emotionally intelligent he is in a position to recognize the emotions more accurately for himself and for those around him. This helps him in coming up with decisions and helps him in making solutions to the problems he faces in his life.

2.7 Conceptual Framework and Scope

2.7.1 Emotional Intelligence and Organizational Effectiveness

Emotional intelligence influences organizational effectiveness for employee on almost every aspect including recruitment and retention, development of talent, teamwork, employee commitment, morale, and health, innovation, productivity, efficiency, sales, revenues, quality of service, customer loyalty, client or student outcomes.

Organizations are formed of departments of different functional areas and these departments are further divided into teams or groups with specific projects and then individual have assignments for accomplishing that project or to complete the operations process of the department. Thus on a whole if we link these things reverse to evaluate the level of individual efforts towards organizational success to see his / her contribution we can conclude the discrepancies to develop more competent employee. The successful business leadership refers to the sustainable leadership in the business industry to remain the market leader for a long run.

2.7.2 Relation of Emotional Intelligence with Organizational Successful Leadership

Figure 2.3 Flow Of Work For Contribution Of Emotional Intelligence For Organizational Success

Goleman believes that emotional intelligence is born and the competency to learn it also is dependent on that. Goleman's model of EI has been criticized in the research literature as mere "pop psychology" (Mayer, Roberts, & Barsade, 2008).

2.8 Organizations which have adopted the emotional intelligence









General Electrics




2.9 Criticism on measurement Issues

2.9.1 Ability based measures do not measure ability

It is criticized that EI, as measured by the MSCEIT, may only be measuring conformity.

2.9.2 Ability based measures measure knowledge instead of ability

Another criticism is that the MSCEIT "only tests the know how about the emotions which has no direct link to the ability that the tasks would be performed in accordance to the assessed aforementioned know how.

2.9.3 Susceptibility to faking good in self report measures

Faking good is also termed as socially desired responding which means a pattern of response wherein the subject represents itself with an overwhelming positive bias. However this bias is said to contaminate the responses on personality inventories, acts as a go between of relations between the measures of self report.

2.9.4 Performance at Job, Emotional Intelligence and Intelligence Quotient

The results of the researches conducted on relationship of the emotional intelligence and job performance shows mixed results. At times no relationship was witnessed while at others a disproportional relationship was witnessed which led to a new model the model that combined emotional intelligence and intelligence quotient.

2.10 Emotional Intelligence at Work

In a research David Mclelland found that personnel with high emotional intelligence performed 115 - 120% of what was expected of them in selling perspective. He further found that those who had higher levels of emotional intelligence got 33% more bonuses than those who had a lower level of emotional intelligence. However, this does not mean that intelligence quotient and job specific skills are not required, this only means that a combination of EI, IQ and skills can lead to delivery of the optimum. Emotional Intelligence deals with the cognitive aspects of life. The general trends of management like leadership, group performance, social exchange and managing change is supported by emotional intelligence today to raise the level of social and emotional competences.

It was Daniel Goleman who first brought the term "emotional intelligence" to a wide audience In his research at nearly 200 large, global companies, Goleman found that while the qualities traditionally associated with leadership such as intelligence, toughness, determination, and vision-are required for success, they are insufficient. These qualities may sound "soft" and unbusiness like, but Goleman found direct ties between emotional intelligence and measurable business results. Every businessperson knows a story about a highly intelligent, highly skilled executive who was promoted into a leadership position only to fail at the job. And they also know a story about someone with solid-but not extraordinary-intellectual abilities and technical skills who was promoted into a similar position and then soared.

But Goleman discovered that leaders who are effective have one crucial point common in them and that is the high degree of emotional intelligence in them. It's not that IQ and technical skills are irrelevant. They do matter, but mainly as "threshold capabilities"; that is, they are the entry-level requirements for executive positions. But Goleman's research, along with other recent studies, clearly shows that emotional intelligence 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. Self-awareness, optimism, and empathy can enhance satisfaction and productivity at work and in other aspects of life. When people realize that social and emotional abilities hold the key to greater career success, they become eager to develop those abilities. Simultaneously, as employers realize that the fact that the profitability is dependent on the EI of their employees, they become more willing to launch programs which will further increase it.

It is very important that managers understand that the emotional climate of a workplace. Attention to work, learning new tasks, speed of performance, problem solving, and creativity are all related to a positive work atmosphere, and the manager plays a significant role in setting a positive tone. Managers who create are not emotionally intelligent creates negative emotions in workers-fear, anxiety, embarrassment, self-consciousness, boredom, will negatively impact productivity. Therefore managers should be emotionally intelligent to be socially aware and sensitive to employee mood, and to develop strategies to insure positive emotional work climates. In today's workplace we see that the communication is open, people work in teams and respect each other. If a manager is emotionally intelligent he can understand the managed in a better way and motivate them to a greater extent. To be successful in business today one needs to understand the role and importance of emotional intelligence.

In a research it was found that CEOs that failed were those who at the time of hiring were hired on basis of their IQ, expertise and drive. However when it came to firing, these were fired because they did not have one element we have been discussing for long that is the EI. Get alerts when there is a new article from the DC Business Commentary Examiner. Read's

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The abilities that drive successful execution of vision - motivating, guiding, inspiring,

If organization wants exceptional business results, it must know more about EI of your team's, because these abilities or skills are not always inborn but can also be developed skills that can be developed.

2.11 Good Practices that Cultivate EI in the Workplace

Paving the Way

Assess the organization's needs

Assess the individual

Deliver assessments with care

Maximize learner choice

Encourage people to participate

Link learning goals to

personal values

Adjust expectations

Gauge readiness

Doing the Work of Change

Foster a positive relationship between the trainers and learners

Make change self-directed

Set clear goals in manageable steps.

Provide opportunities to practice

Coach monitor performance and give feedback

Rely on experiential methods

Use models Enhance insight

Evaluate the Change

• Evaluate

Encourage Transfer and Maintenance of Change

Encourage use of skills on the job

Develop an organizational culture that supports learning

2.12 Benefits of Emotional Intelligence

Chrissie Webber Define the emotional intelligence benefits as follow:


The surveys conducted worldwide revealed that the personnel that is emotionally more intelligent is more productive than those who are not of their level in emotional intelligence, keeping other factors constant. This has been more proven in the sales and service department than other department's reason being the efforts of this department are more quantifiable than that of others. It has also been noticed that in other departments too, the more emotionally intelligent personnel outperform the lesser emotionally intelligent.


The emotional intelligence in people also develops competency in them in their work environment. This competency helps them to be better professionals in comparison to those who either completely lack or are lesser emotionally intelligent than them. Development as good professionals is also helpful and beneficial for the organization.

2.12.3 Performance

When an individual knows about him or in other words when an individual is self aware his performance at his work place is also increased.


Emotional Intelligence levels of those who bring in the work also affect the turnover (Profitability) of a business. Whereas in past economic down turns organizations have downsized, research now shows that increasing the levels of emotional intelligence is a sound way of enhancing business stability or growth. There was no such increase in production for a group of matched supervisors who were not trained (Porras & Anderson, 1981).

Staff Recruitment & Retention

Generally emotional intelligence at the time of recruitment of personnel is ignored, however, if this emotional intelligence is made a part of the recruitment procedures right personnel shall be selected for the right desk and it is due to this that the organizations will save a lot which is generally ignored at the stage of recruitment. People who are not intelligent emotionally tend to be lesser productive and absenteeism is higher in them. All the positives of the emotionally intelligent cost the organization if it does not hire them, therefore EI can be a cost savior.

Stress Management

In today's workplace stress management is becoming more and more important day by day. Stress with the job is almost inevitable and the person who is victim of this has to cope with it otherwise it could be very harmful in both professional as well as personal contexts. Therefore everyone has to design his own ways of overcoming stress. A person who is emotionally intelligent is more able in this regard because he knows himself better that is he is self aware. Stress if not controlled within the bounds can be viral and contiguous.

Reduced Turnover

Researches and businesses show that if emotionally intelligent people are hired in an organization the turnover rate will be much lesser in comparison to the otherwise situation.

2.13 Leadership Skills & Emotional Intelligence

The answer to the questions that how emotional intelligence is related with the business. Leadership can be defined by the following areas.

Participative Management

Putting People at Ease


Balance between Personal Life and Work

Straightforwardness and Composure

Building and Mending Relationships

doing whatever it takes


Confronting Problem Employees

Change Management

2.14 What is the Future of EQ

The organizations that emphasize only on the IQ skills will be struggling for survival. These IQ skills have to be combined with the EI in order to deliver at the optimum levels. The concept of EI is now gaining grounds and organizations around the globe are conducting training sessions and seminars of their employees by professional consultants of EI in order to develop EI in their workforce so that in the coming times they are well equipped and perform better for the organization they work in.

It is thought that emotional intelligence is going to become more and more important in the future. Especially for the organizations that operate in economies where the labors supply will be short. These organizations will have to maintain a good labor force at all the times. Moreover, simultaneously the competition for holding a better work force than that of your competitor is going to get harsher, therefore the workers who think that they are not adequately treated shall switch to other organizations. So the best to hold the labor force would be to arouse the emotional intelligence in the philosophy of personal as well as organizational management.

Chapter 3

Research Design

Research methodology is the way and techniques the researcher will use while conducting the research. It defines the activities of the research that how research will be conducted and how the data collection will be made along with its analysis. Research methodology depends on the topic. As far as our research is concerned we are going to use analytical research. The topic chosen for research is not clear in its nature and it has not been taken up frequently.

3.1 Problem Statement

Keeping in mind banking industry is currently in recession and there is cut throat competition in the market so companies have to develop sustainable competitive advantage in a long run, this is only possible by equipping their employees with the skills to manage themselves and the work efficiently and effectively.

3.2 Purpose of the Dissertation

This research will be very helpful to understand the role and effectiveness of emotional intelligence for the banking industry. This research provides real time examples and the case solution to see the impact of implementation and development of emotional intelligence in the employees.

3.3 Variables

3.3.1 Dependent variable

Business leadership

Impact on employee development

Retention of Employees

Job Satisfaction and employee engagement


Financials (profits)

3.3.2 Independent Variable

Self Awareness

Self management

Social Awareness

Relationship management

3.4 Significance of the Study

This research will be very helpful to understand the role and effectiveness of Emotional intelligence for the banking industry. This research provides real time examples and the case solution to see the impact of implementation and development of emotional intelligence in the employees.

Research Questions

The basic problem which we are able to identify after reviewing the literature is the contribution of emotional intelligence in role in to develop a sustainable competitive advantage. Human capital war will be cutthroat for the talented employee in organization specifically for the banking industry which is based on the services as well as product portfolios. The research question is stated in the form of hypothesis:

H1: Emotional intelligence plays a significant role in creating successful business leadership.

HO: Emotional intelligence does not play any role in creating successful business leadership.


Data will be collected through both primary and secondary sources. In Primary sources of data we will gather data from the bankers through the questionnaire. Primary research is also at times known as the field research because it deals with collection of the data that has not already been collected or generated. It is actually involved with the collection of the original data in raw form directly about the subject matter. It is conducted because it is more up to date and purpose specific. Secondary source of data includes journals, articles, websites and other related available data.


Source of Data

Data will be collected through both primary and secondary sources. In Primary sources of data we will gather data from the bankers through the Questionnaire. Secondary source of data includes journals, articles, websites and other related available data.


Our sample would consist of two hundred employees from banking industry at executive positions.

Sampling Procedure

We had used convenience sampling depending upon the availability and consent of bankers meeting our sample criteria. Moreover the sampling procedure ensured that there is no room for any bias that could make the results of the research biased.

Data Analysis

Descriptive analysis will be used to interpret the data collected from the Bankers. Data will be recorded, summarized and analyzed properly after collection.



Because of the confidentially of the information at the top level, executives may not disclose detailed information about the issues discussed as well as resource and time constraints will be the limitation in conducting the research.

Ethical Issues

In the process of conducting this research project the researcher- respondent and researcher -researcher relationship will be according to professional practice and standards as well as it is assured that provided information will be confidential and there will no miss use of information and resources available.

Chapter 4

Analysis of Data


4.1 Self-Awareness

Self-awareness is the explicit understanding that one exists. It includes the concept that one exists as an individual, separate from other people, with private thoughts. It may also include the understanding that other people are similarly self-aware. Self-consciousness plays a large role in behavior, as it is common to act differently when people "lose one's self in a crowd". It is the basis for human traits, such as accountability. Results of our research show that fifty six percent of our sample size in fact had knowledge about the importance of self awareness and were self aware. They also believed that being self aware helps in delivering better.

4.2 Social Awareness

Social awareness is a consciousness shared within a society. It is the awareness of the problems that different societies and communities face on a day-to-day basis; to be conscious of the difficulties and hardships of society. Social consciousness brings moral implications. Often, people with an awakened social consciousness become socially active.

A socially conscious person tends to be empathetic towards others regardless of race, gender, ethnicity, disability, class, or sexual identity. Results of our research show that almost fifty two percent of the sample size knew about the importance of social awareness and were found to be socially aware. It was also deduced that those who supported this idea were better performers in comparison to those who were either ignorant or unsupportive of this idea.

4.3 Self Management

Self management means that an individual is in a position to control and manage his own emotions and adaptable to different situations and circumstances that comes his way. It is imperative for the leaders and manager to control and manage their emotions especially when it comes to managing and controlling their own values. Self-management requires the higher side levels of self awareness that means in order to manage yourself you should first of all be self aware. Self-management is very important for interaction and correspondence with those around you, especially at times of hardship, pressure, conflict and frustrations. Self management is linked to all qualities that require leaders to be coherent and focused on the achievement of goals that includes both short-term and long-term goals, irrespective of the fact that hindrances stand in the way. Our research revealed that around sixty percent of the sample size supported the concept of self management.

4.4 Relationship Management

The main aims in relationship management with the customers are to find out the new customers and retain the existing. It also emphasizes on increasing the volume to the existing customer that is making the customer from a smaller one to a big one.

Relationship with Boss is the most important part while working in a professional organization. It is considered to be very important if someone working in an organization which is highly professional and empowered. Usually bosses have their star employees working under them and he likes to delegates the authority to them, this concept is becoming obsolete in the highly competitive and growing market. It gave birth to more professionalism and decreases the biasness which ultimately increases the productivity and help to grow the organization. In our research it was revealed that in our sample the contribution of relationship with the boss is very high and is appreciated in the positive sense in delegating the authority to the immediate juniors and creates harmony among the team building process as much as seventy three percent.

4.5 Retention

Retaining the employees who deliver or who are key to issues is nowadays a challenge to organizations. This is required for the prosperity and survival of business in the long run and at times in the short run too. To retain employees it is imperative that they should be paid well that is at least above the level which they can get from any other organization and they should also be treated appropriately. Sixty eight percent of our sample size believed that employee retention is the key to success.

4.6 Stress

Stress is how the body reacts to a stressor, real or imagined, a stimulus that causes stress. Acute stressors affect an organism in the short term; chronic stressors over the longer term. Generally speaking, stress is related to both factors that includes internal and external. Later consists of the physical environment, including job, relationships with others, home, and all the situations, challenges, difficulties, and expectations one is confronted with on a daily basis. Internal factors determine your body's ability to respond to, and deal with, the external stress-inducing factors. An overwhelming majority of eighty three percent of our sample size believed in the harms of stress and was unsupportive of it (that is they believed that there should be no stress in job).

4.7 Job Satisfaction

Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance; methods include job rotation, job enlargement and job enrichment. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work groups. Forty seven percent of the sample showed that they were satisfied with the job.

4.8 Employee Engagement

Employee engagement at times is also termed as worker engagement. An engaged employee means an employee who is fully committed and has thrown himself in and works with enthusiasm and is fully involved in his work. Almost sixty percent of the sample size showed employee engagement. This shows the participative style at work place and highly motivated employees towards their jobs. This also shows that these employees are highly committed to their job and individual goal assignments.

4.9 Productivity

Productivity shows the end results or the outputs, whether they are achieved efficiently and effectively in the required time or not. Almost fifty seven percent showed high productivity towards the achievement of organizational objectives.


After conducting the research on the role of emotional intelligence in creating successful business leadership, we have concluded that emotional intelligence is a vital contributor towards the organizational success and creating successful business leadership in today's competitive and growing market conditions. We have concluded that those banks that have emotionally intelligent employees have outperformed those that do not have emotionally intelligent employees.

Presence of these personality traits in employees leads them to achieve their organizational goals and objectives through lowest employee turnover rate, higher job satisfaction and increased productivity. It has proved our hypothesis that emotional intelligence plays a significant role in creating successful business leadership.

The component wise agreement was as follows:

4.1 Self-Awareness 56%

4.2 Social Awareness 52%

4.3 Self Management 60%

4.4 Relationship Management 73%

4.5 Retention 68%

4.6 Stress 83%

4.7 Job Satisfaction 47%

4.8 Employee Engagement 60%

4.9 Productivity 57%

This dissertation helps in understanding the role of emotional importance and tells that how can it be a source of competitive advantage to the businesses specially banking industry. However, it only gives a persuasive and qualitative evidence of the fore mentioned.