Impact of EI on OrgEffect

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A Research Paper on “Culture Building” With special reference to The Impact of training of Emotional intelligence on Organizational Effectiveness Submitted to SECOND NATIONAL RESEARCH CONFERENCE ON CUSTOMER TRANSITION: Road to SustainabilityAt SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION NARHE-PUNE Submitted By Sujay Madhukar Khadilkar.  (B.E (Elect), M.B.A.) Asst. Professor, KIT’s IMER, Kolhapur (MAH) Co-Author Prof. Gururaj Dangre. (M.B.A.)

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A Research Paper on

“Culture Building”

With special reference to

“The Impact of training of Emotional intelligence on Organizational

Effectiveness”

 

Submitted to

“SECOND NATIONAL RESEARCH CONFERENCE

ON

CUSTOMER TRANSITION: Road to Sustainability”

At

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION

NARHE-PUNE

Submitted By

Sujay Madhukar Khadilkar.  (B.E (Elect), M.B.A.)

Asst. Professor, KIT’s IMER, Kolhapur (MAH)

Co-Author 

Prof. Gururaj Dangre.(M.B.A.)

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Sample size – 

Two separate groups are created namely active group and control group of 21students. Three sessions of 120 minutes are conducted on control group before assessingtheir response. Active group has not informed anything about the emotional intelligenceworkshop still their responses are taken into account.

Hypothesis – 

Knowledge of emotional intelligence has impact on the behavior of therespondents.

Pretesting – 

A pilot study is conductes with small size of respondents i.e. 5 to clarify over allquestionnaire . respondents provided comments on clarifying some of the items and facevalidity of the items in the questionnaire. The means of two groups are compared.

Assesment of Reliability – 

Reliability is assessed for confidence level of 95 and 99.T test is based upon t distribution as significance of difference between the means of twosamples and variance is not known and not required.Factors considered for Hypothsis testing :

1) Magnitude of the difference between two sample means.2) Size of samples.3) Variability of measurement with in samples.

Theoretical Perspective – 

Look deeply at almost any factor that influences organizational effectiveness, andyou will find that emotional intelligence plays a role. For instance, as this volume is being completed, the United States continues an unprecedented period of economic  prosperity and growth. The downside of this fortunate circumstance for manyorganizations is that it has become increasingly more difficult to retain good employees, particularly those with the skills that are important in the high-tech economy. So whataspects of an organization are most important for keeping good employees? A GallupOrganization study of two million employees at seven hundred companies found that howlong an employee stays at a company and how productive she is there is determined byher relationship with her immediate supervisor (Zipkin, 2000). Another study quantifiedthis effect further. Spherion, a staffing and consulting firm in Fort Lauderdale, Florida,and Lou Harris Associates, found that only 11 percent of the employees who rated their  bosses as excellent said that they were likely to look for a different job in the next year.However, 40 percent of those who rated their bosses as poor said they were likely toleave. In other words, people with good bosses are four times less likely to leave than arethose with poor bosses (Zipkin, 2000). What is it about bosses that influences their relationship with employees? What skills do bosses need to prevent employees fromleaving? The most effective bosses are those who have the ability to sense how their employees feel about their work situation and to intervene effectively when thoseemployees begin to feel discouraged or dissatisfied. Effective bosses are also able tomanage their own emotions, with the result that employees trust them and feel good

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about working with them. In short, bosses whose employees stay are bosses who managewith emotional intelligence. I ask employees and their bosses to identify the greatestchallenges their organizations face, they mention these concerns:• People need to cope with massive, rapid change.• People need to be more creative in order to drive innovation.

• People need to manage huge amounts of information.• The organization needs to increase customer loyalty.• People need to be more motivated and committed.• People need to work together better.• The organization needs to make better use of the special talents available in a diverseworkforce.• The organization needs to identify potential leaders in its ranks and prepare them tomove up.• The organization needs to identify and recruit top talent.• The organization needs to make good decisions about new markets, products, andstrategic alliances.

• The organization needs to prepare people for overseas assignments.These are the intense needs that face all organizations today, both public sector and private. And in virtually every case, emotional intelligence must play an importantrole in satisfying the need. For instance, coping with massive change involves, amongother things, the ability to perceive and understand the emotional impact of change onourselves and others. To be effective in helping their organizations manage change,leaders first need to be aware of and to manage their own feelings of anxiety anduncertainty (Bunker, 1997). Then they need to be aware of the emotional reactions of other organizational members and act to help people cope with those reactions. At thesame time in this process of coping effectively with massive change, other members of the organization need to be actively involved in monitoring and managing their emotionalreactions and those of others. Let us consider one other challenge, one that might seemless emotional than many of the others in the list. How might emotional intelligence playa role in helping organizational leaders make good decisions about new products,markets, and strategic alliances? Making such decisions involves much more thanemotional intelligence. Good data must be assembled, and these data must be analyzedusing the most sophisticated tools available. However, in the end, data almost never  produce a clear-cut answer. Many important variables can be quantified but not all.Analytical tools can organize most of the information needed for a clear and• Emotional intelligence has been found to be a predictor of life satisfaction, healthy psychological adaptation, positive interactions with peers and family, and higher parentalwarmth. Lower emotional intelligence has also been found to be associated with violent behavior, illegal use of drugs and alcohol, and participation in delinquent behavior.• Emotional intelligence has been extensively researched in workplace settings. It has been related to increased success among those who share similar positions (e.g., senior managers).Additionally, hiring individuals with higher levels of emotional intelligence aswell as training existing staff to be more emotionally intelligent has been associated withfinancial gains in the private sector. Training in emotional intelligence in the workplacecan occur at all levels, and several evaluated programs have found success in developingmore emotionally intelligent workforces.

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• The practical tips t become empathetic person at workplace – 

1. Listen to the others2. Don’t interrupt people

3. Increase the ability to understand others nonverbal communication4. Call the people by their name5. Be fully present when you are with people.6. Smile at people7. Encourage the people8. Show the people that you are caring for them9. Spend the time with people who works for you10. Be sensitive to diversity11. As much as you can hire the people who are empathetic

Emotional Intelligence at the WorkplaceAs previously discussed, advanced emotional intelligence can be beneficial in many areasof life. However, the application of its usefulness has been most frequently documentedin the professional workplace. Cherniss (2000) outlines four main reasons why theworkplace would be a logical setting for evaluating and improving emotional intelligencecompetencies:1. Emotional intelligence competencies are critical for success in most jobs.2. Many adults enter the workforce without the competencies necessary to succeed or excel at their job.3. Employers already have the established means and motivation for providing emotionalintelligence training.

4. Most adults spend the majority of their waking hours at work.A strong interest in the professional applications of emotional intelligence isapparent in the way organizations have embraced E.I. ideas. The American Society for Training and Development, for example, has published a volume describing guidelinesfor helping people in organizations cultivate emotional intelligence competencies whichdistinguish outstanding performers from average ones (Cherniss and Adler, 2000).As previously noted, considerable research in the emotional intelligence field has focused onleadership, a fundamental workplace quality. Even before research in the area of E.I. had begun, the Ohio State Leadership Studies reported that leaders who were able to establishmutual trust, respect, and certain warmth and rapport with members of their group weremore effective.(Fleishman and Harris, 1962). This result is not surprising given that many

researchers have argued that effective leadership fundamentally depends upon the leader'sability to solve the complex social problems which can arise in organizations (Mumford,Zaccaro, Harding, Jacobs, & Fleishman, 2000).

The cost-effectiveness of emotional intelligence in the workplace has been an areaof interest. Several studies have reported the economic value of hiring staff based onemotional intelligence. In a report to Congress, the Government Accounting Office(1998) outlined the amount saved when the United States Air Force used Bar One'sEmotional Quotient Inventory (EQ-I) to select program recruiters. By selecting those

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individuals who scored highest in emotional intelligence as recruiters, they increasedtheir ability to select successful recruiters by threefold and saved $3 million annually. Asimilar study by Boyatzis (1999) found that when partners in a multinational consultingfirm were assessed on E.I. competencies, partners who scored above the median on nineor more competencies delivered $1.2 million more profit than did other partners.

34 Cherniss and Goleman (1998) estimated that by not following trainingguidelines established to increase emotional intelligence in the workplace, industry in theUnited States is losing between $5.6 and $16.8 billion a year. They found that the impactof training employees in emotional and social competencies with programs whichfollowed their guidelines was higher than for other programs, and by not implementingthese programs companies were receiving less of an impact and consequently losingmoney.

Data Analysis & Interpretation – 

Figure 1 Responses to the questionnaire.

Q1 I am aware when I start to become angry or defensive.

Yes No

Response 13 8

Percentage 61.9 38.1

Q2 Dealing with others' anger, keep relaxed and goal-oriented.

Yes No

Response 11 10

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Percentage 52.39 47.61

Q3 remaining cheerful and enjoy working with new ideas

Yes No

Response 15 6

Percentage 71.43 28.57

Q4 Follow ing through on assignments, support others, and build trust.

Yes No

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Q6 using positive thinking even when in a conflict or in a difficult situation. 

Yes No

Response 12 9

Percentage 57.15 42.85

Q7 Feel and "see" things from another viewpoint.

Yes No

Response 13 8

Percentage 61.91 38.09

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Q8 Before making decision or take an action, listens to others' ideas.

Yes No

Response 18 3

Percentage 85.71 14.29

c

Q9 When communicate with others, help them to feel good.

Yes No

Response 16 5Percentage 76.19 23.81

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Q10 To resolve conflicts, encourage honest and peaceful discussion.

Yes No

Response 17 4

Percentage 80.95 19.05

Q11 Helping the people who holds different opinions to reach agreement.

Yes No

Response 9 11

Percentage 42.85 57.15

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Q12 When making changes, considers the feelings of others.

Yes No

Response 18 3

Percentage 85.71 14.29

Q13Aware of , when start to use negative thinking.

Yes No

Response 14 7

Percentage 66.67 33.33

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Q14 practice stress management to be calm and healthy.

Yes No

Response 4 17

Percentage 19.05 80.95

Q15 Have a good sense of humor.

Yes No

Response 13 8

Percentage 61.91 38.09

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ACTIVE GROUP CONTROL GROUP

Mean 12 Mean 13.2

Median 12 Median 13

Mode 13 Mode 13

Standard Deviation 3.817254062 Standard Deviation 4.161043825

Minimum 6 Minimum 4

Maximum 18 Maximum 18Sum 180 Sum 198

Count 15 Count 15

Data Analysis and Interpretation using SPSS – 

Table 1 : Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 Active 32.4772 8 59.78347 21.13665

Control 34.7951 8 66.13076 23.38076

Table 2 : Paired Samples Correlations

N Correlation Sig.

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Table 3 : Paired Samples Test

Paired Differences

t df 

Sig. (2-

tailed)Mean

Std.

Deviation

Std. Error 

Mean

95% Confidence

Interval

of the Difference

Lower Upper  

Pair 1 Active –

Control-2.31797 6.40953 2.26611 -7.67647 3.04052 -1.023 7 .340

T test for the difference of mean

Two independent samples in form of control group and active group are taken for the study. In this research two different samples are not significantly differ from eachother. Comparing the computed value of t with tabulated value of t decides thesignificance level value. In this research the calculations are made for 5% and 1% of thesignificance of value.Assumptions made for the difference of mean test – 

1) Parent population from which samples are drawn normally drawn are equallydistributed.

2) The two samples taken for the study are random in nature.3) Variance of both the cases are not known.

Inferences – 

The mean of control group is 32.47 and mean of active group is 34.79. The standarddeviation of control group is more than i.e. by 6.34 than the active group. In thehypothesis it was assumed that the behavior of the group of employees changes after getting the awareness of the emotional workshop which is evident from the figures fromthe table 1.From table 2, it is clear that correlation is equal to 1.Table 3 indicates that may be a chance of 2 tailed error in hypothesis.

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Findings and Conclusions – 

1. As the control group has less standard deviation than the active group, naturallythe performance of the control group is showing the improvement.

2. Active group was not able to understand the gravity of the questionnaire given tothem.

3. After the three sessions of 120 minutes, researcher was able to convey theimportance of EI to the tomorrow’s knowledge workers.4. The A.M. of control group is 13.2 while A.M. of active group is 12.5. Organizational effectiveness is possible only through the empowerment of the

employees and empowerment becomes reality when you train the employees.6. It is the job of the management to convert the employees into emotionally

intelligent employees who are empathetic and have self awareness, self management and self motivation.

Suggestions for Future Research and Application

The modern concept of emotional intelligence is in itself a youthful one. Muchwork has yet to be done to discover exactly what emotional intelligence encompasses andhow it would be most effectively applied. Future research on emotional intelligencemight focus on the following areas:

The relationship between emotional intelligence and personality is evident. Moreresearch is needed to determine the exact connection of emotional intelligence and personality constructs and if certain models or measures of emotional intelligence areaccounting for additional variance in performance or behavior over and above that of  personality factors. Research should consider the usefulness of constructs and measureswhich may only replicate or rename ideas which are already established. The validity of modeling emotional intelligence on cognitive intelligence. Considering .the debateregarding the validity and applicability of I.Q. tests, additional research is required toestablish if emotional intelligence (as proposed by Mayer and Salovey) is best modeledafter standard intelligence. The measurement of emotional intelligence. More research isrequired on the reliability and validity of the measures of emotional intelligence. Inaddition, future efforts might look at developing ability measures of Goleman andBar-On’s models of emotional intelligence, considering much of the criticismsurrounding the present measures of these constructs revolves around their self-reportformat. The extent to which emotional intelligence can be taught. As evidence exists bothfor and against the ability for emotional intelligence competencies to be developed, it isimportant that future research determine the extent that such learning may occur beforean organization invests considerable funds into a development program. Perhaps hiring55 on the basis of emotional intelligence may prove to be more effective then attemptingto develop its levels after the fact. The extent to which training in emotional intelligenceis more beneficial than other leadership or “people skills” training. If one takes the viewthat both personality traits and emotional intelligence traits are relatively stable over time,future research could examine whether programming in emotional intelligence accountsfor a greater improvement in performance than current programs in place which aim tostrengthen leadership characteristics.

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The effectiveness of emotional intelligence programs - Several programs touted toincrease the emotional intelligence of participants, which are available on the market, areyet to be evaluated. Program evaluation research is necessary in order to determine which programs are effective in general and in specific settings and situations.The role of emotional intelligence in the Public Service - Although a substantial amount

of research has been conducted on the role of emotional intelligence in private business,there is a lack of research examining emotional intelligence in the public service sector.The goals and dynamics of these institutions often differ, and it would be interesting toexamine whether or not emotional intelligence could make a comparable contribution tothe functioning of the Public Service of Canada.The role of emotional intelligence in corrections - Currently, the focus of emotionalintelligence literature in corrections is on the offenders. For instance, the Mayer-Salovey-Caruso Emotional Intelligence Test User’s Manual (Mayer, Salovey, & Caruso,2002) asserts that emotional intelligence plays a role in correctional settings in that lowemotional intelligence is often characteristic of correctional inmates. However, there is alack of literature surrounding the applicability of emotional intelligence to correctional

service workers both inside and outside of the institutions.The extent to which training in emotional intelligence is more beneficial thanother leadership or “people skills” training. If one takes the view that both personalitytraits and emotional intelligence traits are relatively stable over time, future researchcould examine whether programming in emotional intelligence accounts for a greater improvement in performance than current programs in place which aim to strengthenleadership characteristics.

Employee retention through the EI

EI programs gets the best out of employees i.e. personal competence it encourages theemployee to become self expressive. Once employee starts understanding the

importance of emotional management and controls the intensity and the nature of responses start showing from their behavior and attitude.

In 1st phase, EI improves the behavior and attitude but ultimately it helps the employeesto encourage the belongingness towards the organizations which is necessaryingredient for organizational effectiveness.

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Business Model developed by researcher – 

Functioning of proposed Business Model – 

EI is new and upcoming HR concept. From the research conducted, the business model isdeveloped. The feeling and sensing the need of EI in order to build the organizationeffectiveness becomes important for any organization.

Organizations, after feeling the need for improvement in employees performance startsfocusing on the execution of HR practices for the empowerment of employees.

Once three days or a week program on the EI is conducted. It is necessary to get the feed back of the employee so as to make the necessary changes and improvements in the program. The EI training is conducted in two phases and difference is measuredusing standard deviation.

Sense the need

of EI to build

the

organizational

effectiveness

EI

awareness

program (Plan

and Apply

phase)

Conduct EI

program

Train the

employees

again

Check the

performance of 

the employee

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References

S. Hein, Emotional Quotient for everybody; A practical guide to Emotional Intelligence.Aristotle Press, New York; 1996.

D. Goleman, Working with Emotional Intelligence. Bantam Books, New York; 1998.

Bar-On, R, and Parker, JDA (eds). The Handbook of Emotional Intelligence; Theory,Development, Assessment and Application at Home, School and in the Workplace.San Francisco; Jossey-Bass/Wiley, 2000.

H.G. Ginott, Between Parent and Child, Macmillan, New York; 1965.

C. Cohen, Raise your Child’s social IQ. Advantage Books, New York; 2000.

Goleman, D. Emotional Intelligence: Why It Can Matter More IQ New York: Bantam

Books, 1995.

A.McKee, D. Goleman and R.Boyatzis, “Primal Leadership: The hidden driver of great performance”, Harvard Business School Press, Bostan; 2001.

Goleman, D. “Leadership That Gets Results.”Harvard Business Review. March April2002.

Mayer, J.D., Salove, P, .Caruso, D.R, & Sitaraneos, G. Emotional Intelligence as astandard intelligence. Emotion, 2001, 232-242.

Bar-On, R. The Emotional Intelligence Inventory (EQ-I) Technical Manual. Multi-Health

Systems, Inc, Canada: 1997.

Dalip Singh, Emotional Intelligence at Work Response Books, New Delhi: 2001.