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EMOTIONAL INTELLIGENCE AND BUSINESS LEADERS
Why is it that not all intelligent people succeed? Moreover, what accounts for theinstances wherein people of average intelligence succeed when their more intelligent
counterparts fall short? The answer comes in the form of emotional intelligence.
In the last two decades there has been a compelling shift in the understanding of what
makes for success. Organizational researchers have come to recognize an overwhelming needfor, and the importance of understanding the human facet of the organization; most especially in
global operations. Moreover, before a leader can understand and effectively lead others, the
leader must first understand and be comfortable with him or herself.
Depending on the source reviewed, emotional intelligence is also denoted as EQ or EI.In this paper, we refer to emotional intelligence primarily as EQ. EQ-i is used when the
emotional intelligence tool is referred to. Regardless though of how it is referred to, emotionalintelligence (EQ) is concerned with understanding oneself and others, relating to people, and
adapting to and coping with the immediate surroundings to be more successful in dealing withenvironmental demands. EQ is a dynamic tool which continues changing with time, perspective,
individual or environment.
In the 1920s, Thorndike introduced the concept of social intelligence. This wasexplored less rigorously than IQ or Personality Type until the 1980s when Gardner wrote aboutthe possibility of multiple intelligences andthe propensity for personal intelligence. Aroundthe same time, Bar-On contributed with the emotional quotient or EQ by developing thetheoretical framework for an Emotional Quotient Inventory (EQ-i) which, for the first time,
allowed for the quantitative measurement of EQ scales. In 1990, Salovey and Mayer coined thephrase emotional intelligence which was the first conceptualized of the idea itself. Then, theconcept of Emotional Intelligence (EQ) was popularized largely by Goleman (1995) in his
publication of the same name.
EQ AND PERFORMANCE
Mayer, Salovey, Caruso & Stiarenios (2001) say that research demonstrates that EQ is acentral predictor of significant outcomes . The work of Web (2009) looks at a range ofliterature on emotional intelligence. He concludes that his broad literature survey acknowledges
that EQ has more predictive integrity than IQ when it comes to performance.
Some very interesting numbers come from Bradberry and Grieves (2009) research usingtheir version of an EQ indicator, known as the Emotional Intelligence Appraisal Test that has
tested over 500,000 people over the last decade. Their finding calculates that EQ accounts for58% of performance in all types of jobs.
They also account that people with the highest IQs outperform those with average ones
just 20% of the time. Conversely, those with average IQ tend to outperform their higherIQ counterparts 70% of the time. Additionally, 90% of high performers are also high in
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EQ while 20% of low performers are high in EQ One of the highlights comes from a largestudy done with the U.S. Air Force that wascited in a report to a U.S. Congressional Sub-committee. This study pegged recruiters scores toactual job performance. It was found that those with high EQ scores were 2.7 times more likely
to succeed and 95% percent met or exceeded their quotas . As a result of further useof the EQ-i, retention rates increased by 92% worldwide; at a cost savings to the Air Force of anestimated $2.7 million.
Emotional intelligence is not only linked to individual performance. Druskat and Wolff(2001) present research that implies that EQ has a team application as well. They found that
individual EQ has a group analog that, when developed, leads to an increase in performance. Their study shows that emotionally intelligent teams are among the most effective of
teams. Furthermore, any team can grow in emotional intelligence because EQ skills can be
learned.
TRADITIONAL DIMENSIONS OF LEADERSHIP
The three dimensions (IQ, Personality type, and EQ) form the cornerstones of superior
leadership. It is apparent that leadership cannot rely on only one dimension. Like a threeleggedstool a suitable balance must be struck. This balance leads to stability and increased
performance.
Cognitive IntelligenceCognitive Intelligence is measured as the intelligence quotient or IQ. IQ is well known
and has been used for a used for over a century. It is the basic toolkit that most leaders seem tobe
expected to possess.
Personality Type
DIMENSIONS OF EMOTIONAL INTELLIGENCE
The EQ-i tool provides the global business leader with the means to understandherself/himself better. Using this understanding of self, the global leader can employ it to
betterguide diverse global operations, workforces and cultural entities for the achievement of
common strategic and business operation goals.
The EQ-i tool measures fifteen elements of emotional well being. These are grouped intofive major composites as noted below (Bar-On, 1997, Bar-On, Maree, and Elias, 2007; Stein &
Book, 2006).
1. Intrapersonal Compositea. Self-Regardb. Emotional Self-Awareness
c. Assertiveness
d. Independencee. Self-Actualization
2. Interpersonal Composite
a. Empathy
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b. Social Responsibility
c. Interpersonal Relationship
3. Stress Management Compositea. Stress Tolerance
b. Impulse Control
4. Adaptability Compositea. Reality Testingb. Flexibility
c. Problem Solving
5. General Mood Compositea. Optimism
b. Happiness
Thus, global business leaders should learn as much about themselves as possible. They
should constantly assess and reassess their basic capabilities, their personalities and their
knowledge bases. Moreover, they must ensure that they have a cohesive understanding of thebusiness itself and the market that it services. Effective global leaders have a developed
emotional intelligence (EQ). Their EQ awareness will allow them the ability to maintain the
balances needed for better global leadership in the business world of today and tomorrow.