RESEARCH PAPER Understanding Emotional Intelligence in Business By Liliana Melo General Psychology SSY 101.6924 LaGuardia Community College, Long Island City May 31, 2007 2 Understanding Emotional Intelligence in Business TOPIC: Emotional Intelligence: the key to get a successful project. GENERAL PURPOSE: To explain emotional intelligence in the workplace, specifically in project management. THESIS: Emotional intelligence provides a lot of benefits for individuals as well as organizations; however, emotional intelligence affects leadership behavior in openness of communication and influences the conflict resolution style of project leaders. Outline I. INTRODUCTION: 1. 2. 3. 4. Concept of Intelligence Conceptualizing Emotion Definition of Emotional Intelligence The Origins of Emotional Intelligence II. Measuring Emotional Intelligence in Organizations 1. Methods of Measuring Emotional Intelligence 2. EI models and components III. APPLICATIONS OF EMOTIONAL INTELLIGENCE: 1. Generalities 2. Emotional Intelligence in the workplace 3. Improving Emotional Intelligence IV. EMOTIONAL INTELLIGENCE IN PROJECT MANAGEMENT 1. Leadership skills and emotional intelligence 2. Application of emotional intelligence in project management V. CONCLUSIONS 3 Emotional Intelligence Applied in Project Management "What really matters for success, character, happiness and life long achievements is a definite set of emotional skills your EQ - not just purely cognitive abilities that are measured by conventional IQ tests." - Daniel Goleman, Ph.D. - Intelligence surrounds everybody. According to the research “Cognitive Science by Luger (1995), Intelligence is present all the time, “more than the occurrence of artistic and creative brilliance, present in the moment-to-moment adaptation of systems to complex environments, in the recognition of patterns, and even in the retrieval of old memories.” It seems that even in the outlines of the modules and their aims it is implicit. What does intelligence mean? In 1995, American Psychological Association defined intelligence: Individuals differ from one another in their ability to understand complex ideas, to adapt effectively to the environment, to learn from experience, to engage in various forms of reasoning, to overcome obstacles by taking thought. Although these individual differences can be substantial, they are never entirely consistent: a given person’s intellectual performance will vary on different occasions, in different domains, as judged by different criteria. Concepts of "intelligence" are attempts to clarify and organize this complex set of phenomena. Although considerable clarity has been achieved in some areas, no such conceptualization has yet answered all the important questions and none commands universal assent. Indeed, when two dozen prominent theorists were recently asked to define intelligence, they gave two dozen somewhat different definitions. Individuals differ from one another in their ability to understand complex ideas, to adapt effectively to the environment, to learn from experience, to engage in various forms of reasoning, to overcome obstacles by taking thought. In fact, intelligence concepts are efforts to explain and organize this complex set of intelligence. Theories of intelligence have evolved through a model succession to understand and measure intelligence, but some theories explain that emotions and feelings influence intelligence. Also, the psychologists found a distinction between intelligence and knowledge in the area of cognition (i.e. IQ). The researches demonstrate that IQ is a reliable measure of cognitive capacity, and is stable over time. Thus, Goleman clarifies: "IQ washes out when it comes to predicting who, among a talented pool of candidates within an intellectually demanding profession will become the strongest leader;” so traditional measures of intelligence, such as the IQ test, fail to fully explain cognitive ability. The psychologist, Cherniss and Goleman in their article “Correcting common misconceptions about emotional intelligence” say that “questions about the relative contribution of EI and IQ arose from a considerable body of previous research suggesting that IQ accounts for a relatively small amount of the variance in important life outcomes.” Only in recent years have people begun to appreciate the powerful links between emotional intelligence and their success. Ever heard the question “If you’re so smart, why 4 aren’t you rich?”. Nowadays, people know that emotional intelligence matters twice as much as cognitive abilities such as IQ or technical expertise. The influence of emotional intelligence on popular culture and the academic community has been rapid and widespread. The psychologist, Peter Salovey and John Mayer, describe “qualities like understanding one's own emotions, empathy for the feelings of others, and managing one's emotions. In addition to grade point average, IQ, and other standardized testing, emotional intelligence (EQ) is being described as a new and better way of measuring an individual's chance of success in life. The higher your EQ, the greater your ability to manage your feelings and deal effectively with others, the greater your chances is for a happier life”. Thus, everyone is primarily emotional. Everything that people does, or refrains from doing, is triggered by their deeper emotions. So what does emotional intelligence mean? According to Meyer and Salovey, Emotional Intelligence refers to the capacity to recognize our own feelings and those of others, for motivating ourselves, and for managing emotions well in us and in our relationships. Also, Emotional intelligence includes the ability to regulate one’s emotions and to use them to make good decisions and act effectively. So, Emotional Intelligence (EI) provides the bedrock for many competencies that are critical for effective performance in the workplace. MODELS Salovey, Mayer, Caruso Six Seconds Bar-on Q-Metrics SELF-AWARENESS Perceive Understand Know yourself Intrapersonal SELF-MANAGEMENT Regulate Choose yourself Interpersonal General Mood Stress Management Sense Understand Table 1 A comparison of EQ Models SELF-DIRECTION Generate Give yourself Adaptability Apply History Issue: The first psychologists that began to write and think about intelligence focused on cognitive aspects of intelligence such as memory and problem-solving. However, the first time for “emotional intelligence" was when Charles Darwin theorized a broader emotional social intelligence used for survival and adaptation in humans. In 1920, E. L. Thorndike used the term "social intelligence" to describe the skill of getting along with other people. As early as 1940 Wechsler referred to “non-intellective” as well as “intellective” elements. In fact, intelligence is influences by affective, personal, and social factors. 5 Furthermore, as early as 1943 Wechsler was proposing that the non-intellective abilities are essential for predicting one’s ability to succeed in life. In the article “Emotional Intelligence: What it is and Why it Matters” by Cary Cherniss, in 1958, Wechsler defined intelligence as “the aggregate or global capacity of the individual to act purposefully, to think rationally, and to deal effectively with his environment”. Wechsler was not the only researcher who saw non-cognitive aspects of intelligence to be important for adaptation and success. In 1975, Howard Gardner began the formulation of the idea for "Multiple Intelligences." He identified eight types of intelligence; later two more were added, including both interpersonal intelligence and intrapersonal intelligence. Also, Gardner proposed that “intrapersonal” and “interpersonal” intelligences are as important as the type of intelligence typically measured by IQ and related tests in 1983. Research on the concept originated with Peter Salovey and John Mayer starting in the late 1980s. In 1990, their seminal paper (1990) defined the concept as intelligence. Mayer and Salovey continue to research the concept. There are numerous other assessments of emotional intelligence each advocating different models and measures. Early 1990s, there was a long tradition of research on the role of noncognitive factors in helping people to succeed in both life and the workplace. The current work on emotional intelligence builds on this foundation. However, the application of emotional intelligence to business was popularized by Daniel Goleman in 1995 through his books and articles. MEASURING EMOTIONAL INTELLIGENCE Methods of Measuring Emotional Intelligence Measures of emotional intelligence are available to help people better understand their emotional strengths and weaknesses. Measuring Emotional Intelligent help to determine if we are independent from our own feelings and ability to adjust ourselves to them, have ability to recognize, name and direct our feelings, discern the grades of feelings and use them in positive way, and, as a consummation, can derive actions from it. According to Julie B. Thibodeaux in her article “What Is Your Emotional Intelligence Quotient?” explains IQ is the best measure of human potential. However, researchers have found that this isn't necessarily the case. Recently, the concept of emotional intelligence quotient (EQ) has been introduced as a greater predictor of success. 6 Figure 1 EQ: Emotional Quotient a. Self Report: Some tests use a self-report method. Self-report is the most common way to measure things such as personality traits. Personality traits include warmth, empathy, and anxiety. Self-report tests have been around for decades and they serve a very useful purpose; for example, this approach is akin to asking us a series of questions about our intelligence: are we very smart? , are we good at solving problems? Or do we have a large vocabulary? b. Other Report: If emotional intelligence is all about “people skills”, why not ask other people what they think of us? On the face of it, this seems to be a legitimate means of testing emotional intelligence. In fact, observers, let's say team members, are given a form to complete about us. These are some examples of questions that they may be asked: are you able to read people well?, Do we manage emotions effectively? Or do we understand our emotions? But these ratings of our behavior are based upon their own observations, as well as their own biases. Emotional Intelligence Components: Emotions are our feelings; hence, emotional intelligence is our life. Emotional intelligence does not only measure emotions or intelligence. According to Dunn, components of emotional intelligence which can be regarded as key to success in life are as follows: 7 Self-awareness and self-honesty Knowledge about causes of emotions Self-regulation and modulation of one’s emotions Empathy Motivation and good decision-making Ability to analyze and understand relationships Intuitiveness Creative and flexible thinking Integrated self Balanced life One has to concede to the fact that emotional intelligence is environmental in nature and can be learned and increased over lifetime of an individual. Number of personal, social and personality factors seems to affect emotional intelligence to a great extent. APPLICATIONS OF EMOTIONAL INTELLIGENCE In the technical Research “Bringing Emotional Intelligence to the Workplace” by Cary Cherniss and Daniel Goleman, the researchers found that the interest in "emotional intelligence" has increased the assumption to apply emotional intelligence to improve the social and emotional competence of adult workers. According to Cherniss and Goleman, “Social and emotional learning is different from cognitive and technical learning, and it requires a different approach to training and development” (1). In fact, through the report, 22 guidelines for developing emotional intelligence in organizations were based on the best knowledge available on how to promote social and emotional learning. Moreover, the business community has embraced the concept of emotional intelligence and its importance ever since Daniel Goleman’s best-selling book. The challenge that lies ahead is to demonstrate that such competencies can be acquired and when they are, that they significantly impact employee performance. Otherwise, new researches applied in corporations that adopted emotional intelligence training have shown that “EI” can be learned and it is effective. When programs are implemented, improvements in productivity and profits are displayed. In effect, some authors have claimed that emotional intelligence predicts success at work, at school, and in relationships, as well as or better than IQ. 8 Emotional Intelligence in the workplace: In working with Emotional Intelligence, Goleman applies the emotional intelligence concept to the workplace setting. His analysis is based on the emotionally intelligent worker is skilled in two key areas he presents in his emotional competence framework. These are "personal competence" - how we manage ourselves, and "social competence" - how we manage relationships. Each part has specific competencies according to the table No. 2 table below. PERSONAL COMPETENCE SOCIAL COMPETENCE Self Awareness Empathy (of internal states, preferences, resources, (awareness of others feelings, needs, and and intuitions) concerns) Self Regulation Social Skills (of internal states, impulses, and resources) (adept at inducing desirable responses in Motivation others) (tendencies that facilitate reaching goals) Table 2 Goleman’s emotional competence framework According to Goleman: At best IQ contributes about 20% to the factors that determine life success, which leaves 80% to other forces...No one can yet say exactly how much of the variability from person to person in life's course it accounts for. But what data exist suggest it can be as powerful, and at times more powerful, than IQ." In the promotional materials for their own emotional intelligence test, the originators of the concept, Mayer and Salovey, provide the following clarification regarding the role of emotional intelligence: "In some ways, interest in Emotional Intelligence has been due in part to a backlash against claims that general intelligence - IQ - is the key to success. We know that IQ does predict academic achievement and occupational status, but it still only predicts about 20% of personal variation in these areas. Psychologists have yet to understand what predicts the other 80% of success in these areas of life. We believe that Emotional Intelligence is one of the abilities which are related to life success, but we are as yet unable to determine just how important Emotional Intelligence is. So, where does Emotional Intelligence fit in? Despite popular reports to the contrary, there are few relevant studies on the matter to date. Our best guess is that Emotional Intelligence will make a unique contribution in the 5% to 10% range. It makes sense that Emotional Intelligence plays a role in our friendships, parenting, and intimate relationships. Our research, to date, is just beginning to examine these issues in depth. We can say that emotional intelligence may lead to personal and professional success has generated a great deal of excitement among the general public, managers, academics, and business consultants alike. In fact, the concept of leadership has both social and emotional components. Social intelligence appears to tap the social component found in leadership. Mayer and Salovey suggested that the emotional intelligence and social intelligence constructs overlap since the power of both emotional and 9 social intelligence to account for variance in self-reported leadership experiences. So, social intelligence appears to play a principal role in leadership. Improving Emotional Intelligence: Today, many books have been written about Emotional Intelligence and its application and how to improve EI, telling us how to get in touch with our emotions. The importance of improving our emotional intelligence is based on our emotions since they enable us to experience life as well as are considered the most powerful factors in determining how we act, make decisions, set personal boundaries, and communicate with others. In order to better understand and control our emotions, we can improve the quality of our lives applied the follows: 1. Take responsibility for our emotions and our happiness. 2. Examine our own feelings rather than the actions or motives of other people. 3. Develop constructive coping skills for specific moods. Learn to relax when our emotions are running high and to get up and move when you are feeling down. 4. Make hunting for the silver lining a game. Look for the humor or life lesson in a negative situation. 5. Be honest with ourselves. Acknowledge our negative feelings, look for their source, and come up with a way to solve the underlying problem. 6. Show respect by respecting other people's feelings. 7. Avoid people who invalidate you or don't respect our feelings. 8. Listen twice as much as you speak. 9. Pay attention to non-verbal communication. We communicate with our whole selves. Watch faces, listen to tone of voice, and take note of body language. 10. Realize that improving our emotional intelligence will take time and patience. EMOTIONAL INTELLIGENCE IN PROJECT MANAGEMENT In today's competitive business environment, companies implement strategic initiatives through projects in order to improve their profits and survive. The projects consist of cross-functional teams that are formed to utilize individual expertise. A project manager whose primary responsibility is to achieve project objectives leads these individuals. Because of the aspects of a project, the role of the project manager is critical to project success and the performance of the team members as well as stakeholders. Some 10 researches have demonstrated that there is a special link between leadership style, emotional intelligence, and the success of complex projects. According to the conference “Project Manager’s Competence in Emotional Intelligence”, Dr. Lew Ireland explains the importance of the project manager role in the success of their projects: Availability of people to staff a project is important, but more important is how the staff is managed to get the best performance possible. Tapping the potential and motivating individuals and teams to work toward a common goal is a job for the project manager. More often than not, the project manager is more qualified to manage the technical progress of the project than to lead the team to deliver the best product in the most efficient manner. Also, Dr. Ireland explains the impact that environment affects the performance of the project manager . Sometime we work for others because we are told that is our job and other times we work for others purely because we want to be associated with that person. Those who we would rather not work for often give offense through their personal management style. Those we want to work for treat us well and are consistently fair in their dealings with us. Perhaps, the difference could be called possessing emotional intelligence competence. Doing a job that is worthwhile and being led by a person who always seems to be in control of himself or herself is a comfortable environment although the tasks may be difficult and the workdays long. This environment is created by people working together as a team toward a common goal. The results indicated that emotional intelligence affects leadership behavior in openness of communication. Project leaders displaying High emotional intelligence tend to use more open communication with their subordinates. Another finding revealed that emotional intelligence influences the conflict resolution style of project leaders. Project leaders with high emotional intelligence have a tendency to use accommodating and collaborative styles. In fact, emotional intelligence motivates project leaders to promote harmony, and to resolve conflicts with win-win situations. Leadership skills and emotional intelligence Research show that 67% of the essential competencies required for effective leadership today are motional competencies. Emotionally intelligent leaders are more likely to achieve results and are effective in dealing with the complexity involved in leading change and organizational transformation. Transformational leadership arouses emotion and taps into the emotional and spiritual resources of an organization. It provides the emotional glue that causes organizations and the people in them to excel. Overall emotional intelligence and the understanding emotions task of emotional intelligence are found to relate significantly with the inspirational motivation component of transformational leadership. In addition, the strategic area of emotional intelligence is to relate significantly with the attributed idealized 11 influence and individual consideration components of transformational leadership. Project management provides business with a vehicle to implement change. Therefore, to adapt to changing business and environmental conditions, organizations require their project managers to lead strategic initiatives or projects. By identifying leadership styles and emotional abilities that increase the probability of successfully completing complex projects, this study provides organizations and their project managers with professional and career development opportunities. Application of emotional intelligence in project management Technical knowledge alone just isn’t enough to bring the toughest projects in successfully. Emotional Intelligence for Project Managers introduces managers to the basic concepts of emotional intelligence and shows how they can apply them to their project goals, even if project managers already recognize the role and value of emotions in the workplace (the way relationships influence the way decisions are made and work gets done). Also, Emotional Intelligence for Project Managers offers them the tools and guidance they need to take their E.I. to a higher level, bringing projects in on time and under budget by changing the way they interact with your people. According to Dr. Ireland, project managers should consider the following aspects in order to improve their performance through their projects: Project managers must build trust with others through actions that demonstrate honesty and integrity. Honesty and integrity are vital traits to build upon through consistently holding to the truth. One lie can destroy future trust. Do not be like the fellow who was known to bend the truth most of the time. When he told the truth once, it was considered an “honest mistake.” Project managers must be committed to achieving the project’s goals and must motivate others while practicing self-motivation. Commitment to the project’s goals comprises completing the project as planned or getting relief from the requirements. One boss defined commitment as “deliver,” “obtain forgiveness,” or “send your death certificate.” Project managers must effectively communicate with different levels of workers and managers. A good communicator knows when to speak and when to listen. Being assertive in arguments and using the proper tone to emphasize items is essential to convey the message. Listening to others and understanding the context as well as the meaning of what is being said is important to ensure effective communication. Negotiation skills are important to achieve project goals. Negotiation is a planned activity that attempts to obtain a win-win situation where both sides gain and there are no losers. The best outcome is when all parties are pleased with the agreement reached. Finally, Dr. Ireland explains the Project managers can improve on their emotional intelligence competence: studying new model of project management; having a mentor to assimilate the experience and good judgment of a successful senior person; capitalizing on personal strengths and improving on weaknesses. 12 CONCLUSION In conclusion, Emotional intelligence (EI) is “the ability to accurately identify and understand one’s own emotional reactions and those of others, and to regulate one’s emotions and to use them to make good decisions and act effectively” according to Goleman. In fact, the application of the emotional intelligence has competencies that make the biggest difference in individual performance at work since they are based on EI. For instance, EI can be improved at any age; several programs for doing so have been developed and found to be effective. However, improving EI takes considerable time and effort. In some ways, emotional intelligence really is not new since EI is based on a long history of research and theory in personality and social. Moreover, Emotional intelligence provides a lot of benefits for individuals as well as organizations. Some studies have been focused on exploring the benefits of emotional intelligence for project leadership and conflict management and resolution, being more useful and interesting to consider how important it is for effective performance at work, especially, its application in project management. 13 REFERENCES Athena Consulting and Outsourcing. 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