Neha Madaan MBA III Summer Training Project

7/31/2019 Neha Madaan MBA III Summer Training Project

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A PROJECT REPORT

ON

STRESS MANAGEMENT

Summer Training ProjectSubmitted in the partial fulfillment of the requirement for the award of the

Degree of Master of Business Administration

20082010

Submitted by: Under Guidance of:

Neha Madaan Dr. Vandana Raghava

Bharati Vidyapeeth University, School of Distance Education,

Academic Study Center: BVIMR, New Delhi


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STUDENT UNDERTAKING

I Neha Madaan have completed the Summer Training Project titled Stress

Management in Royal Bank of Scotland under the guidance of Dr. Vandana

Raghava in the partial fulfillment of the requirement for the award of degree of

Master of Business Administration ofBVU, SDE, Academic Study Center BVIMR,

New Delhi. This is an original piece of work & I have neither copied and nor

submitted it earlier elsewhere.

Neha Madaan

(Students signature)


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CERTIFICATE

This is to certify that the Summer Training Project titled Stress Management is an

academic work done by Neha Madaan submitted in the partial fulfillment of the

requirement for the award of the Degree of Master of Business Administration

from BVU, SDE, Academic Study Center BVIMR, New Delhi under my

guidance & direction. To the best of my knowledge and belief the data & information

presented by him/her in the project has not been submitted earlier.

Dr. Vandana Raghava

(ASSOCIATE OFFICER)


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CERTIFICATE

This is to certify that the Summer Training Project titled Stress Management is an

academic work done by Neha Madaan submitted in the partial fulfillment of the

requirement for the award of the Degree of Master of Business Administration

from BVU, SDE, Academic Study Center BVIMR, New Delhi.

Dr. SACHIN S. VERNEKAR

(DIRECTOR)


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ACKNOWLEDGEMENT

It gives me immense pleasure, having done a project on an interesting and

knowledgeable topic - Stress Management at Royal bank Of Scotland(RBS). This

project requires hard work, sincerity and devotion which I tried my best to put in this

project and in turn gained a lot of knowledge and confidence from the same.

I express my sincere gratitude to our Director Sir, Dr. Sachin. S. Vernekar , for

providing such an excellent atmosphere in our campus. My over riding debt is to my

respectful faculty guide Dr. Vandana Raghava,Bharati Vidyapeeth University, for

his extensive guidance, cooperation and support at each step of preparing this research

project.

Neha Madaan

(Student Signature)


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PREFACE

Headhunters are increasingly looking at emotional intelligence as a factor in

determining the suitability of a prospective employee. Successful executives who

display a high degree of emotional intelligence coupled with a good sense of humour

are able to function more efficiently under pressure than their colleagues who lack the

quality.

Empathy and the ability to walk in the management team's shoes has been known for

decades to lead to success. It serves absolutely no purpose if one places an

academically well- qualified manager in a position where he or she has to deal with

people without having at least adequate people skills. Nine times out of 10, the

executive with well-developed people skills, who is optimistic about life and his/her

job and who is capable of confronting failure or adversity with a smile and a positive

attitude, is the one who succeeds.

The ability to manage feelings and handle stress was another aspect of emotional

intelligence that had been found to be important for success. A study of shop

managers in a US retail chain found that the ability to handle stress predicted net

profits, sales per square meter, sales per employee, and per dollar of inventory

investment.

We are all familiar with the tyrannical megalomaniacs who ruled their empires with a

fist of steel in times past. In the 21st Century however, their days are numbered and

managers now have to imbue their staff with loyalty and enthusiasm by example.

There was an experiment that was conducted at a well-known American university

where a number of volunteers played the role of managers who came together in a

group to allocate bonuses to their subordinates.A trained actor was planted among

them. The actor always spoke first. In some groups the actor projected cheerful

enthusiasm, in others relaxed warmth, in others depressed sluggishness, and in still

others hostile irritability.

The results indicated that the actor was able to infect the group with his emotion, and

good feelings led to improved co-operation, fairness, and overall group performance.

In fact, objective measures indicated that the cheerful groups were better able to

distribute the money fairly, and in a way that helped the organization.


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Researchers at Harvard University discovered over two decades ago that people who

were best at identifying others' emotions were more successful in both their work and

social lives.

Current interest in "emotional intelligence" has raised the question of whether it is

possible to improve the social and emotional competence of adult workers. Research

in training and development, sports psychology, and behavior change suggests that it

is possible, but the typical approach used in corporate training programs usually is

flawed. Social and emotional learning is different from cognitive and technical

learning, and it requires a different approach to impart through training and

development.

This report presents guidelines for developing emotional intelligence in organizations,

based on the best knowledge available on how to promote social and emotional

learning.

The concept of Emotional Quotient and Emotional Intelligence has been linked to

Stress and Stress Management. Over a period of time, most organizations develop a

culture that strongly affects the way people view their place of work, its management,

and its primary purposes. Culture in organizations is defined as the values, traditions,

expectations of behavior, and common feelings of both managers and employees.

Large, sophisticated companies have deliberately developed specific cultures for

many years. IBM, Hewlett-Packard, General Electric, Procter and Gamble, Xerox and

a host of other large organizations reinforce values of excellence, innovation, high

expectations of all members of the staff, and service to customers.

Human relations in organizations with well-defined, positive cultures are nearly

always better than in those that pay little attention to the values of the organization.

Just as families with well-defined values tend to have less stress and more productive

members, so do work organizations. In todays world of rapid and continuous change,

increasing numbers of companies are beginning to realize the value of developing

cultures that enhance quality, service and customer satisfaction. The base to being

able to develop all of these lies in the Motivation and Emotional Wellness of its

workforce.

The culture of an Organization, the stress levels prevalent and the Emotional Quotient

of individuals can play important roles in the kind of Business Morality or Ethical


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TABLE OF CONTENTS

EXECUTIVE SUMMARY____________________________________________14

INDUSTRY PROFILE_______________________________________________16

COMPANY PROFILE_______________________________________________17

BRIEF INTRODUCTION____________________________________________21

HOW ARE THEY INTER-RELATED__________________________________23

RESEARCH METHODOLOGY_______________________________________24

1. Questionnaire Development Process____________________________________25

2. Cross Sectional______________________________________________________25

3. Sampling Technique_________________________________________________25

4. Sample Size________________________________________________________25

5. Data Collection_____________________________________________________25

6. Methods Used in Data Collection_______________________________________26

CONCEPTUAL DISSCUSSION_______________________________________29

1.EMOTIONAL QUOTIENT/EMOTIONAL INTELLIGENCE____________30

1.1 A Framework of Emotional Competencies___________________________32

1.2 Relation between EQ/EI of a Leader And the Organizations Climate_____34

1.3 Emotional Intelligence and Organizational Effectiveness________________35

1.4 Evidential Proof of Emotional Intelligence at Work____________________39

1.5 Guidelines for Effective Social and Emotional Learning: An Overview____41

2. STRESS_________________________________________________________43

2.1 Organizational Climate-An Overview_______________________________43

2.2 What Is Stress? ________________________________________________44

Topic Page Number


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2.3 Emotionally Induced Stress________________________________________46

2.4 Organizational Effects of Stress____________________________________46

2.5 Individual Coping Verses Organizational Management Of Stress_________46

2.6 Methods of Dealing with Stress by the Individual Employee_____________47

2.7 Stress Self- Analysis______________________________________________48

2.8 How do you communicate With Yourself? ___________________________48

2.9 Methods of Dealing with Stress on an Organizational Wide Level________49

2.10 How to Change the Organization to Prevent Job StresS_______________51

2.11 Comprehensive Approach-Most Effective___________________________51

DATA ANALYSIS__________________________________________________66

FINDINGS________________________________________________________79

RECOMMENDATIONS____________________________________________80

CONCLUSION____________________________________________________82

ANNEXURE______________________________________________________83


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LIST OF GRAPHS

NO. TITLE PAGE NO.

CHAPTER 4

1 Figure showing whether the organization has

inspirational leaders

67

2 Figure showing the ratio of assigning teams according to

emotional quotient compatibility.

68

3 Figure showing periodical visits of the top management

to their team members.

69

4 Figure showing opinion of the employees regarding top

level management.

70

5 Figure showing whether the employees are happy with

the quantum of interdepartmental co-operation and co-

ordination in this organization.

71

6 Figure showing whether innovative ideas are recognized

and adequately rewarded in this organization.

72

7 Figure showing whether the employees are happy with

the level of transparency in the organization

73

8 Figure showing employees opinion about not have a

grievance handling mechanism to redress employee

complaints.

74

9 Figure showing the steps taken by organization to

minimize stress.

75

10 Figure showing employees opinion about organizations

stated ethical stands reflected in the ground realities of

day-to day work.

76

11 Figure showing whether the organizations employees

are adequately equipped to resolve any ethical

dilemmas.

77


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EXECUTIVE SUMMARY

In todays world, Organizations are increasingly realizing that their greatest

competitive advantage is the kind of employees they have on-board. Employee

retention and employee motivation are key drivers of productivity and hence long

term viability of the company itself. At the same time, with the kind of demands our

modern world and its technology place on us, employees are reaching the burn-out

stage faster than ever before.

In such an environment, it becomes essential for employers to understand the

profound significance of Employee-Wellness. Here Human Resources, Training &

Development and Leadership Support can play significant roles.

The three topics covered in this report are all very much an area of concern in

Corporate India and require focused attention. Employees will be more productive

and innovative if they work in an environment that is congenial to their emotional-

wellness. Hence understanding Emotional Quotient of an individual and how it affects

his/her approach to work-related situations will help in creating intra and inter team

synergy. Reducing or removing triggers to negative Stress and promoting only

positive stress will directly be proportional to the attrition and burn-out rates. In the

same vein, promoting an Organizational culture which appropriately combines the

individuals values and principals with those of the organization, will ensure a work

space where employees feel less bogged down by Ethical dilemmas and generates a

public good-will which can directly result in a higher bottom-line.


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CHAPTER1

INTRODUCTION


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INDUSTRY PROFILE-BANKING INDUSTRY

The Banking Industry was once a simple and reliable business that took deposits

from investors at a lower interest rate and loaned it out to borrowers at a higher rate.

However deregulation and technology led to a revolution in the Banking Industry that

saw it transformed. Banks have become global industrial powerhouses that have

created ever more complex products that use risk and securitisation in models that

only PhD students can understand. Through technology development, banking

services have become available 24 hours a day, 365 days a week, through ATMs, at

online banking, and in electronically enabled exchanges where everything from stocks

to currency futures contracts can be traded.

The Banking Industry at its core provides access to credit. In the lenders case, this

includes access to their own savings and investments, and interest payments on those

amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a

competitive interest rate.

Banking services include transactional services, such as verification of account

details, account balance details and the transfer of funds, as well as advisory services,

that help individuals and institutions to properly plan and manage their finances.

Online banking channels have become key in the last 10 years.

BANKING INDUSTRY IN INDIA

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks

(that is with the Government of India holding a stake), 31 private banks (these do not

have government stake; they may be publicly listed and traded on stock exchanges)

and 38 foreign banks. They have a combined network of over 53,000 branches and

49,000 ATMs. According to a report by ICRA Limited, a rating agency, the public

sector banks hold over 75 percent of total assets of the banking industry, with the

private and foreign banks holding 18.2% and 6.5% respectively
http://www.economywatch.com/banking/http://www.economywatch.com/banking/http://www.economywatch.com/banking/http://www.economywatch.com/banking/http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://www.economywatch.com/banking/http://www.economywatch.com/banking/http://www.economywatch.com/banking/http://www.economywatch.com/banking/


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COMPANY PROFILE

The Royal Bank of Scotland plc is one of the retail banking subsidiaries of the

Royal Bank of Scotland Group plc, and together with NatWest and Ulster Bank,

provides branch banking facilities throughout the British Isles. Royal Bank of

Scotland has around 700 branches, mainly in Scotland though there are branches in

many larger towns and cities throughout England and Wales.

It is one of the leading banks in United Kingdom,after HSBC Holdings plc and

Lloyds TSB Group plc.RBS offers current account, credit cards,

Mortages,loans,insurance,digital banking services to Personal, Corporate ,Business

customers. Royal Bank is currently headquarted in Scotland ,employs more 135,400

people.

RBS-INDIA:

They operate in all the main business and financial centres across India with around

28 branches supporting more than 1.3 million customers. Their support division has

global hubs, based in Chennai and Delhi, providing technology and other back office

services.

Moreover, RBS has an extensive global presence and strong relationships with

corporations, financial institutions and governments in Europe, North America and

Asia Pacific. They bring considerable strength in equities, corporate finance/advisory,

emerging markets and transaction banking.

The bank history in India goes back to 1921 and since then they have expanded their

coverage across the country, with more than 3,000 staff in Kolkata, Mumbai, New

Delhi, Chennai, Pune, Baroda, Hyderabad, Bengaluru, NOIDA, Gurgaon and Surat.

Royal Bank of Scotland key competitors

CitiGroup

Deutsche Bank

HSBC Holdings
http://en.wikipedia.org/wiki/Royal_Bank_of_Scotland_Grouphttp://en.wikipedia.org/wiki/NatWesthttp://en.wikipedia.org/wiki/Ulster_Bankhttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Waleshttp://en.wikipedia.org/wiki/Waleshttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Ulster_Bankhttp://en.wikipedia.org/wiki/NatWesthttp://en.wikipedia.org/wiki/Royal_Bank_of_Scotland_Group


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Barclays Bank

Royal Bank of Scotland core products

Royal Bank of Scotland offers four types of product -Personal Banking,private

Banking,Business banking,Corporate Banking.

Royal Bank of Scotland was rated as the No.1 main high street bank for customer

satifaction.

Providing world-class products and services:

RBS bring together global reach, strong research capabilities and deep market

knowledge to offer you a full-spectrum of tailored advisory, financing and operational

products and services including:

Cash management Project finance Trade services Proprietary trading Debt market research Broking Mergers and acquisitions advisory Indian equity capital markets research

RBS RETAIL BUSINESS

RBS brand serves more than three million customers and they deliver this through a

650-strong branch network. Their NatWest brand provides a full range of banking

products and services to more than 7.5 million personal customers through 1640

branches.


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With a focus on providing great customer service and an emphasis on treating the

customers fairly, there are a fantastic range of career opportunities from Customer

Facing Service & Sales through to Area and Regional Managers

Financial Planning

They provide RBS and NatWest customers with a comprehensive range of regulated

products to meet their financial planning needs. Here you will find exciting career

opportunities, particularly for Financial Planning Managers.

Private Banking

Within Private Banking they have several different channels all working

independently to support affluent customers. There are great career opportunities in

this business, including Private Banking Managers.

Retail Products

Retail Products is responsible for the new product development, commercial

management and proposition development of the Retail Banking product range.

SWOT ANAYSIS OF RBS

STRENGTH

Brand Name Capital Structure Vast Business Competent Employees

WEAKNESS

Poor Laundering Protection


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Vulnerable to phishing Attacks Infrastructural Bottlenecks Stress of Loan

OPPORTUNITIES

Widespread Domestic & International Market. Economies of scale

Technological advancement

Growth rate is 30%. "The market is expected to grow to $700 billion by the end of2010 in India.

THREATS

Competition Global recession Lack of resources Government Policies

The Objectives of this survey at RBS were:

To understand an organizations awareness regarding the Emotional Quotient of itsemployees and giving an insight towards the impact of stress on their performance.

To help employees increase their Emotional Quotient and develop ways to cope upwith stress.

To understand the implications of Ethical Management and its role in Organizationalculture, employee morale and productivity.


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With these objectives in mind, I tried to give my structured and theoretical knowledge

a practical form. I conducted this study in four simple steps:

1. Understanding the Focus Areas: This was done by studying in depth the concepts ofEmotional Quotient, Stress and Ethical Management from a number of books,

journals and online H.R. Sites.

2. Surveying the opinions of the employees with respect to the issues under study: Thiswas done by creating a Research Design which was Descriptive and Cross Sectional

in nature. A well-structured questionnaire was then developed and administered to a

sample size of Employees. (Senior Management=4, middle/junior-middle

management=6, relatively new employees at the entry level=7)

3. Evaluation: In this step the results of the survey were represented graphically andinterpretations on areas of improvement were provided.

4. Conclusion & Recommendations: Suggestions to effect positive changes were thenmade.


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BRIEF INTRODUCTION

Emotional Quotient/Emotional Intelligence:

Emotional intelligence is a persons ability to understand their own emotions and

those of others, and to act appropriately using these emotions.

Stress:

Stress is the reaction to an inappropriate amount of pressure or responsibility when

the individual being subjected to these feels inadequate and unable to cope.

Stress has many causes, and affects people in a variety of ways. In the workplace,

stress can have devastating effects, not just on the individual but on the organization

as a whole. Where an employee is suffering any combination of the emotional,

physical and behavioral symptoms which stress induces, performance will clearly

suffer, and this in turn may well affect others within the organization.

Business Ethics & Ethical Management:

Because there are so many different opinions and ideas about what business ethics

are, there is no set definition. There are many different aspects and ideas that ininvolved in business ethics including, hiring policies, book keeping methods, and

customer relations. However, according to the, Websters New Universal Unabridged

Dictionary, the definition of business is, a person, partnership, engaged in commerce

manufacturing or a service; profit-seeking enterprise or concern. The definition of

ethics is, the rules of conduct recognized in respect to a particular class of human

actions or a particular group, culture, etc. Because of these two definitions we can

assume that the definition of business ethics would be something similar to, the rules

of conduct that relate to a person or group of people in a company.


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Levels ofpassiontowardsonesideologies

/valuesdirectlyaffectsEthicalBehavior.

EQdirectlyaffectsones

sensitivity

to stressand onesability tocope with

it.

HOW THE THREE ARE INTER-RELATED

Diagram 1: Relationships between Emotional Quotient, Stress and Business Ethics

EMOTIONAL QUOTIENT

(Individuals with EQ compatible with their colleagues/teams will

be more productive than those with incompatible EQ levels)

EMPLOYEE PRODUCTIVITY

STRESS ETHICAL MANAGEMENT


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CHAPTER2

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

1. Questionnaire Development Process

The questionnaire was designed which contained questions which were multiple

choice type and questions requiring descriptive answers. The questionnaire was

developed to be well structured and follows a proper sequence / flow.

2. Cross Sectional

Cross sectional study was undertaken, with a sample of elements from a given

population. Senior Management, middle/junior-middle management and relatively

new employees at the entry level were all included in the sample size.

3. Sampling Technique

Simple Random Sampling:

The simple random technique was followed for approaching the employees in each of

the cross sectional groups under study.

4. Sample Size

A sample of 17 was selected for the research to be conducted.

5. Data Collection

Primary Source: Questionnaire administered individually on a one-on-one basis.

Secondary Source: Websites like:

(a) www.apa.org

(b) www.eqa.org/busi.htm

(c) www.rbs.com

Primary Data: Primary data are generated when a particular problem and hand is

investigated by the researcher employing mail questionnaire, telephone survey,

personal interviews, observations, and experiments.

Secondary Data: It included the reference from books and web sites.
http://www.eqa.org/busi.htmhttp://www.eqa.org/busi.htm


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METHOD USED IN COLLECTION OF DATA

1. Personal Interview: In personal interview, the investigator questions therespondents in a face-to-face meeting. Personal interviews may be conducted

on a door-to-door basis or in public places such as shopping centers. The

usual approach for the interviewer is to identify himself to a potential

respondent and attempt to secure the respondent's co-operation in answering a

list of predetermined questions. These answers may be tape-recorded or

written down by the interviewer.

Advantages

a. It requires relatively shorter period of time to complete.b. Researcher can procure many different types of information.c. The amount of information procured on each aspects is larger.d. The results can be projected to the relevant universe with a greater degree of

accuracy.

Disadvantages

a. The cost per completed interview is relatively higher as compared to othermethods.

b. The investigator may have to face relatively more difficulties in administeringthe interview schedule.

c. The investigators themselves may involve in cheating which is very difficultto detect.

2. Telephone Survey: In telephone survey, prospective respondents are

telephoned, usually at homes, and asked to answer a series of questions over the

telephone.


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This form of the survey technique has become more popular in recent years in

advanced countries more people are having telephones at their houses.

Advantages

a. It can be conducted at a lower cost as compared with personal interviews.b. The interviews can be completed very quickly. Thus, speed is the most

significant advantage.

Disadvantages

a. The information on each aspect can be obtained to a limited extent.b. Visual aids cannot be used.c. It is difficult to keep respondents on the phone for any length of time if the

survey is not of keen interest to them.

TYPE OF SAMPLING USED

We used non-probability type of sampling.

In non-probability sampling, the chance of any particular unit in the population being

selected is unknown. Since randomness is not involved in the selection process, an

estimate of the sampling error cannot be made. But this does not mean that the

findings obtained from non-probability sampling are of questionable value. If

properly conducted their findings can be as accurate as those obtained fromprobability sampling.

Convenience Sampling

As the name implies, a convenience sample is one chosen purely for expedience (e.g.,

items are selected because they are easy or cheap to find and measure.


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While few analysts would find credibility in conclusions from such extreme cases, the

inappropriateness of using convenience sampling to estimate universe values is not

widely recognized. The major problem with this (and other non-probability method)

is that one is unable to draw objective inference about a rigorously defined universe.

In practice, it is often found that the response given by "convenient" items in a

universe differ significantly from the responses given by universe items that are less

accessible. As a result, unless one is dealing with a known highly homogeneous

universe (virtually all items responding alike), convenience sampling should not be

used to estimate universe values.

Sample Size

The sample size taken in the project work is 100. The area selected is New Delhi and

its surrounding area. Convenience sampling method was used in this study because of

the constraints like cost and time.


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CHAPTER3

CONCEPTUAL DISCUSSIONS


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1. EMOTIONAL QUOTIENT/EMOTIONAL INTELLIGENCE:

For most of this century, scientists have worshipped the hardware of the brain and the

software of the mind; the messy powers of the heart were left to the poets. But

cognitive theory could simply not explain the questions we wonder about most: why

some people just seem to have a gift for living well; why the smartest kid in the class

will probably not end up the richest; why we like some people virtually on sight and

distrust others; why some people remain buoyant in the face of troubles that would

sink a less resilient soul. What qualities of the mind or spirit, in short, determine who

succeeds?

The phrase "emotional intelligence" was coined by Yale psychologist Peter Salovey

and the University of New Hampshire's John Mayer five years ago to describe

qualities like understanding one's own feelings, empathy for the feelings of others and

"the regulation of emotion in a way that enhances living."

Emotional intelligence is a persons ability to understand their own emotions and

those of others, and to act appropriately using these emotions.

Perhaps the most visible emotional skills, the ones we recognize most readily, are the

"people skills" like empathy, graciousness, the ability to read a social situation.

Researchers believe that about 90% of emotional communication is nonverbal.

Research suggests that a persons emotional intelligence (EQ) might be a greater

predictor of success than his or her intellectual intelligence (IQ), despite an

assumption that people with high IQs will naturally accomplish more in life.

Organizations of all kinds often prize "being rational", whereas they do not esteem

"being emotional". But even in the most "rational" of decisions, emotions persist: howelse do we decide which criteria to use for evaluating the options in making a

decision. Emotions also play a role in making a final decision between equally good

choices.

Individuals with below average EQ sometimes have trouble recognizing and

understanding their feelings. They are not always able to express their feelings in the

most appropriate manner. They often have doubts and concerns about who they really

are. They do not have much confidence in themselves and in their abilities. In most
http://en.wikipedia.org/wiki/Rationalityhttp://en.wikipedia.org/wiki/Rationality


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circumstances, they have a difficult time showing love, empathy and compassion for

other people. In general, they are not comfortable with intimacy.

They also have trouble communicating with other people. They struggle with getting

in tune with themselves and those around them. They may sometimes say the wrong

thing at the wrong moment. They sometimes find it hard to show their anger or deal

with anger directed at them. At times they are unable to stand up for themselves when

hurt or they are handle confrontation inappropriately. They may have trouble

admitting when they are wrong; and when they do make mistakes, they are often

uncomfortable apologizing to those they hurt.

In the corporate world, according to personnel executives, Intelligence Quotient gets

you hired, but Emotional Quotient gets you promoted. Goleman, author of Emotional

Intelligence: why it matters more than IQ likes to tell of a manager at AT&T's Bell

Labs, a think tank for brilliant engineers in New Jersey, who was asked to rank his top

performers. They weren't the ones with the highest IQs; they were the ones whose E-

mail got answered. Those workers who were good collaborators and networkers and

popular with colleagues were more likely to get the cooperation they needed to reach

their goals than the socially awkward, lone-wolf geniuses.

When David Campbell and others at the Center for Creative Leadership in the United

States of America studied "derailed executives," the rising stars who flamed out, the

researchers found that these executives failed most often because of "an interpersonal

flaw" rather than a technical inability. Interviews with top executives in the U.S. and

Europe turned up nine so-called fatal flaws, many of them classic emotional failings,

such as "poor working relations," being "authoritarian" or "too ambitious" and having

"conflict with upper management."

At the center's executive-leadership seminars across the country, managers come to

get emotionally retooled. When they get through it, it helps them know what other

people think of them."

Especially significant in an Organizational context is the fact that people with below

average EQ may also have low levels of self-worth. They do not like challenges or

commitment and are afraid of change. They have a difficult time staying motivated

and focused when they have set unattainable goals for themselves. They are fairly


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pessimistic about themselves and their future. This all leads to a fairly less productive

and poorly motivated employee.

However, one great thing about emotional intelligence is that its fluid! A person can

increase their EQ at any point of their life. Thus in an Organizational Scenario, it is

essential to identify peoples emotional quotient and work on increasing the same if

required.

People with below average EQ can start by learning how to identify their emotions

and take responsibility for them. There are many resources to help. From an

Organizational perspective, such employees can undergo Training/ workshops where

they can learn about EQ and social skills. Supplemental to this can be anger

management courses and communication skills courses. It is very advantageous (both

to an organization and an individual employee) if an Organization is able to provide

an in-house counselor to deal with helping an employee increase their Emotional

Intelligence. This may seem like it will take up a lot of time and resources but the

long term value is that an Organization creates a Emotionally-Healthy workforce that

is more motivated, productive and innovative. Also when the average EQ index of the

workforce is above average, then this creates an Organizational environment where

effective communication and free flow of ideas can take place, thus resulting isgreater synergies.

1.1 A Framework of Emotional Competencies

Emotional competencies are learned abilities: having Social Awareness or skill at

managing relationship does not guarantee we have mastered the additional learning

required to handle a customer adeptly or to resolve a conflict-just that we have thepotential to become skilled at these competencies.

Emotional competencies are job skills that can, and indeed must, be learned. An

underlying Emotional Intelligence (EI) ability is necessary, though not sufficient, to

manifest competence in any one of the four EI domains, or clusters (i.e.: Self

Awareness, Social Awareness, Self Regulation and Relationship Management).

Consider the IQ corollary that a student can have excellent spatial abilities yet never

learn geometry. So too can a person be highly empathic yet poor at handling


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customers if he or she has not learned competence in customer service. Although our

emotional intelligence determines our potential for learning the practical skills that

underlie the four EI clusters, our emotional competence shows how much of that

potential we have realized by learning and mastering skills and translating intelligence

into on-the-job capabilities.

Figure 1 presents the Emotional Intelligence framework given by Goleman. Twenty

competencies nest in four clusters of general EI abilities. The framework illustrates,

for example, that we cannot demonstrate the competencies of trustworthiness and

conscientiousness without mastery of the fundamental ability of Self-Management or

the Competencies of Influence, Communication, Conflict Management, and so on

without a handle on Managing Relationships.

Diagram 2: Emotional Intelligence framework given by Goleman

SelfPersonal Competence

OtherSocial competence

Recognition

Self-Awareness-Emotional self-awareness- Accurate self-assessment- Self-confidence

Social Awareness- Empathy- Service orientation- Organizational

awareness

RegulationSelf-Management

Relationship Management Developing others Influence

Communication Conflict management Leadership Change catalyst Building bonds Teamwork Self-control Trustworthiness Conscientiousness Adaptability Achievement drive Initiative and collaboration


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1.2. Relation between EQ/EI of a Leader and the Organizations

climate:

The link between EI strengths in a leader and the organization's climate is important

for EI theory. A Hay/McBer analysis of data on 3,781 executives, correlated with

climate surveys filled out by those who worked for them, suggests that 50 to 70

percent of employees' perception of working climate is linked to the EI characteristics

of the leader. Research drawing on that same database sheds light on the role of EI

competencies in leadership effectiveness, identifying how six distinct styles of EI-

based leadership affect climate. Four styles-the visionary (sometimes called the

"authoritative"), the affiliative, the democratic, and the coaching-generally drive

climate in a positive direction. Two styles-the coercive and the pace-setting tend to

drive climate downward, particularly when leaders overuse them (though each of

these two can have positive impact if applied in appropriate situations). The table

below summarizes these effects.

Diagram 3: Link between EI strengths in a leader and the organization's climate

Leadership

Style

EI CompetenciesImpact

On

Climate

Objective When Appropriate

Coercive

Drive to achieve;

initiative,

emotional self-

control

Stronglynegative

Immediatecompliance

In a crisis, to kick-start aturnaround, or with problememployees.

Authoritative

Self-confidence;

empathy; change

catalyst

Moststrongly

positive

Mobilize othersto follow a

vision.

When change requires a newvision, or when a clear

direction is needed.

Affiliative

Empathy, building

bonds; conflict

management

Highlypositive

Createharmony

To heal rifts in a team or tomotivate during stressfultimes.

Democratic

Collaboration;

team leadership;

communication

Highlypositive

Buildcommitmentthroughparticipation.

To build buy-in or consensus,or to get valuable input fromemployees.


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Pacesetting

Conscientiousness;

drive to achieve;

initiative

Highlynegative

Perform tasksto a highstandard.

To get quick results from ahighly motivated andcompetent team.

Coaching

Developing others;

empathy;

emotional self-

awareness

Highlypositive

Build strengthsfor the future.

To help an employee improveperformance or develop long-term strengths.

1.3. Emotional intelligence and organizational effectiveness

Emotional intelligence influences organizational effectiveness in a number of areas:

Employee 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

The influence of EI begins with the retention and recruitment of talent. The extent to

which candidates emotional intelligence is considered in making top executive hiring


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decisions has a significant impact on the ultimate success or failure of those

executives. The emotional intelligence of the persons doing the hiring is also crucial

for good hiring decisions.

Emotional intelligence also affects the development of talent. The emotional

intelligence of the mentor, boss, or peer will influence the potential of a relationship

with that person for helping organizational members develop and use the talent that is

crucial for organizational effectiveness.

Thus far we have been discussing individual emotional intelligence. However, it is

also possible to think of emotional intelligence as a group-level phenomenon. There

are emotionally intelligent groups as well as emotionally intelligent individuals.

Druskat and Wolff suggest that emotionally intelligent teams display the kinds of

cooperation, commitment, and creativity that are increasingly important for

organizational effectiveness. Furthermore, they show that although the emotional

intelligence of individual members contributes to the level of emotional intelligence

found in the team, there are other sources of group EI as well. Also, just as individual

EI contributes to the EI of the group, group EI contributes to the EI of group

members. People who are members of emotionally intelligent groups become more

emotionally intelligent individuals.

Many of these ways that EI influences organizational effectiveness are subtle and

difficult to measure.


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Sources of EI in Organizations

Diagram 4.

A MODEL OF EMOTIONAL INTELLIGENCE AND ORGANIZATIONAL

EFFECTIVENESS

If individual and group emotional intelligence contribute to organizational

effectiveness, what in the organization contributes to individual and group emotional

intelligence? Such a question is especially important for anyone who wishes to

harness the power of emotional intelligence for organizational improvement.

Diagram 4 presents a model that points to some broad factors in organizations that

contribute to emotional intelligence. Those who wish to help individuals and groups

become more emotionally intelligent can use this model as a starting point.

Emotional intelligence, as Goleman (1995) pointed out in his first book on the topic,

emerges primarily through relationships. At the same time, emotional intelligenceaffects the quality of relationships.


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Both formally arranged relationships and naturally occurring relationships in

organizations contribute to emotional intelligence. Relationships can help people

become more emotionally intelligent even when they are not set up for that purpose.

The model suggests that ultimately any attempts to improve emotional intelligence in

organizations will depend on relationships. Even formal training interventions or

human resource policies will affect emotional intelligence through their effect on

relationships among individuals and groups in the organization.

The left-hand portion of the model (Diagram 4), illustrates three organizational factors

that are interrelated. Each of these factors influences emotional intelligence through

its impact on relationships, and each factor influences the other two.

How the emotional intelligence of organizational leadership influences organizational

effectiveness through its impact on organizational climate. At the same time, the HR

functions of recruitment and selection, training and development, and management

performance have a strong impact on leadership EI . However, leadership in turn will

influence the extent to which HR functions are effective in helping organizational

members increase their EI.

Leaders who lack EI provide poor models for the development of EI in others, and

they are unlikely to provide the kind of support and encouragement necessary for

effective EI promotion efforts.

The model suggests two important implications for practice. First, any effort to

improve the EI of organizational members will ultimately fail unless it affects

naturally occurring relationships among those members. Formal, off-site training

programs can have value, for example, but only if they lead to sustained changes

in interpersonal and inter-group relationships back in the organization.

The second important implication is that interventions that focus on only one part of

the model are not likely to be very effective. So, for instance, a training program

designed to help organizational members become more emotionally intelligent will be

of limited value by itself because it targets only one part of the modelHR functions.

Such training efforts will succeed only if the organizational leadership and culture

support them.


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1.4. Evidential proof of Emotional Intelligence at work.

An analysis of more than 300 top-level executives from fifteen global companiesshowed that six emotional competencies distinguished stars from the average:

Influence, Team Leadership, Organizational Awareness, self-confidence,

Achievement Drive, and Leadership (Spencer, L. M., Jr., 1997).

In a national insurance company, insurance sales agents who were weak in emotionalcompetencies such as self-confidence, initiative, and empathy sold policies with an

average premium of $54,000. Those who were very strong in at least 5 of 8 key

emotional competencies sold policies worth $114,000 (Hay/McBer Research and

Innovation Group, 1997).

Research by the Center for Creative Leadership has found that the primary causes ofderailment in executives involve deficits in emotional competence. The three primary

ones are difficulty in handling change, not being able to work well in a team, and poor

interpersonal relations.

After supervisors in a manufacturing plant received training in emotionalcompetencies such as how to listen better and help employees resolve problems on

their own, lost-time accidents were reduced by 50 percent, formal grievances werereduced from an average of 15 per year to 3 per year, and the plant exceeded

productivity goals by $250,000 (Pesuric & Byham, 1996). In another manufacturing

plant where supervisors received similar training, production increased 17 percent.

There was no such increase in production for a group of matched supervisors who

were not trained (Porras & Anderson, 1981).

One of the foundations of emotional competence -- accurate self-assessment -- wasassociated with superior performance among several hundred managers from 12different organizations (Boyatzis, 1982).

Optimism is another emotional competence that leads to increased productivity. Newsalesmen at Met Life who scored high on a test of "learned optimism" sold 37 percent

more life insurance in their first two years than pessimists (Seligman, 1990).

A study of 130 executives found that how well people handled their own emotionsdetermined how much people around them preferred to deal with them (Walter V.

Clarke Associates, 1997).


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Financial advisors at American Express whose managers completed the EmotionalCompetence training program were compared to an equal number whose managers

had not. During the year following training, the advisors of trained managers grew

their businesses by 18.1% compared to 16.2% for those whose managers were

untrained.


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1.5. Guidelines for Effective Social and Emotional Learning: An

Overview

The guidelines for social and emotional training are presented schematically in the

figure below. They are arranged in the form of a flow chart that describes the optimal

process for helping individuals to increase their emotional competence in personal

and interpersonal contexts.

Diagram 5: The Optimal Process for Developing Emotional Intelligence.


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The flow chart suggests that there are four basic phases to the training process. The

first occurs even before the individual begins formal training. This initial phase,

which is crucial for effective social and emotional learning, involves preparation for

change. This preparation occurs at both the organizational and individual levels. The

second phase, training, covers the change process itself. It includes the processes that

help people change the way in which they view the world and deal with its social and

emotional demands. The third phase, transfer and maintenance, addresses what

happens following the formal training experience. The final phase involves

evaluation. Given the current state of knowledge about social and emotional learning,

the complexity of programs designed to promote such learning and the great

unevenness in the effectiveness of existing programs, evaluation always should be

part of the process.

The guidelines also suggest that the preparation and transfer-and-maintenance phases

of the training process are especially important. Yet too often these phases are

neglected in practice.

Organizations increasingly are providing training and development that is explicitly

labeled as "emotional intelligence" or "emotional competence" training. However, the

guidelines presented here apply to any development effort in which personal andsocial learning is a goal. This would include most management and executive

development efforts as well as training in supervisory skills, diversity, teamwork,

leadership, conflict management, stress management, sales, customer relations, etc.

Ideally, efforts to develop emotional competence would include all the elements we

have identified here, but we realize that it often will not be practical to do so.

Fortunately, the effect of adhering to the guidelines is multiplicative and synergistic:

the more guidelines that trainers can follow, the greater and more lasting will be their

impact.

If the current interest in promoting emotional intelligence at work is to be a serious,

sustained effort, rather than just another management fad, it is important that

practitioners try to follow guidelines based on the best available research. Only when

the training is based on sound, empirically based methods will its promise be realized.


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2. STRESS

2.1. Organizational ClimateAn Overview

Along with trust and confidence as well as job depth and scope, organizational

climate is also important in building effective work environments, as defined earlier,

organizational culture relates to the primary values of most people in a given

organization. It is what most members believe their organization represents. Hewlett-

Packard is well known for its values of excellence and openness, and McDonald

restaurant for uniformity of quality and prices. Each has its own culture. Climate in an

organization refers to the emotional tone that may exist in a total organization or in

any of its parts.

Organizational climate is often compared to weather. Some climates are stormy,

others calm, chilly, hazy, or foggy. More often, however, climate may be adversarial,

acquiescent or collegial:

1. Adversarial climates are characterized by hostility and resentment. Employees mayperceive a strong we-they relationship with management. They feel managers have

little concern for their real job difficulties and work to make life difficult for

employees. In some cases, adversarial climates develop between groups ofemployees. An example is an organization with a strong pro-union faction and equally

strong anti-union group. Both identify the effect of the other as destructive,

depressing, and often counterproductive. Management beliefs usually set the tone for

organizational climate. Adversarial relationships usually develop because of

management insensitivity to employee feelings and needs.

2. Acquiescent climates are widespread, especially in large organizations. Employeeshave little strong identity with their organization other than viewing it as a place ofemployment. They neither dislike nor especially like their jobs. Usually they have

adequate pay for their assignments, good personal benefits, and a management that

rarely praises or reprimands. Typically, employees report to work, perform required

tasks, and find few incentives for excellence other than their own feelings of self-

worth. Management does not encourage nor discourage effort unless there is an

unusual event or change. Government bureaucracies are frequently seen as having

acquiescent climates.


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3. Collegial climates are based on mutual feelings of trust and confidence betweenmanagers and employees. Both view their roles as partners in assuring organizational

success. There is typically an absence of fear and a high degree of voluntary

cooperation. Managers want and expect employees to use more than their skills and

energy. Ideas, innovation, and suggestions are encouraged. In collegial organizations,

all members strongly identify with both the cultural values and the specific

performance goals they mutually develop.

When an individual is unable to attain a goal because of a perceived barrier,

frustration results, Frustration takes place when efforts to satisfy a need are blocked

before the desired goal is reached. The barrier may be in the situation or environment,

such as the typewriter that breaks in the middle of typing a term paper. The barriermay be personal to the individual, such as a tendency to procrastinate when faced

with a difficult deadline. Frustration is an individual condition based on individual

perception and not a characteristic of the external environment.

Frustration is often regarded as undesirable because of its destructive effects. These

effects frequently occupy our attention; we tend to overlook those situations in which

frustration results in positive outcomes. Frustrations can cause individuals to become

more effective in attaining personal and organizational goals.

Stress management has recently become a subject of intense interest. Although it has

increased dramatically, there is still much that is not known. For most people, dealing

with conflict and overcoming frustration produce high levels of stress. Everyone

experiences stress or pressure as they cope with day-to-day problems. Employees

must deal with stress that results from the demands of their jobs and their managers.

Job related stress can result in undesirable effects for both organizations and

individuals. Mild forms of stress may produce discomfort, indigestion, fatigue, and

headaches. However, avoiding all stress is undesirable, if not impossible. Moderate

amounts of stress tend to increase performance and result in higher levels of

achievement. Stress that is effectively managed by an individual is a positive force.

The amount and type of stress that is most desirable depends on the individuals

ability to handle pressure situations. As a result, the goal of stress management is to

use stress as a natural and productive force.


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2.2. What is Stress?

Stress is the nonspecific response of the body to any demand made on it that results in

the individual preparing to take action. In everyday terms, people know the feelings

that result from stress. Conflict and frustration produce stress as the individual

attempts to adapt to pressures. Stress is the normal reaction of the individual to adapt

to the demands of the environment. It is a necessary part of life; without it there are no

challenges, no learning, and no achievements.

Keep in mind that situations producing undesirable levels of stress for one individual

may be the source of major satisfaction for another. Stress can result from:

Being conscientious and hardworking Working under the pressure of deadlines Having to make difficult decisions Dealing with complex interpersonal relations and interpersonal conflict. Accelerated social and technological changes Demands to adapt to newness.

Stress can result anytime individuals face a situation that requires a change in

behavior or a higher level of activity. Anything that occurs that puts an individual off

balance or increases the need to do something can produce stress.

Although different factors result in stress in different people, the following are typical

causes of stress:

Physical factors such as excessive heat, cold, noise, vibrations, air pollution, and light.

Interpersonal relations with demanding or distressed individuals such as a dissatisfiedcustomer, the employee who is angry about disciplinary action, the individual who

demands that something be done faster, or individuals who want others to solve their

problems.

Organizational and job requirements such as risk of physical injury, dull jobs,deadlines, extreme responsibility, making high-risk decisions, fear of losing job,

performance failure, and time pressures. Physical and interpersonal factors can also

produce stress in organizations.


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Some individuals may experience pressure because they are too conscientious and

work too hard. Individuals who are willing to impose demanding deadlines on

themselves may experience the negative effects of stress. Situations that involve

significant changes can create stressful conditions. Social, technological, and

economic changes can produce high levels of stress for many people. When change or

novelty leaves people uncertain and confused about what is going on, their stress

increases.

2.3. Emotionally Induced Stress

Stress can result from the way individuals emotionally respond to situations. In

emotionally induced stress, the individual develops expectations that something

undesirable will happen. Although emotionally induced stress can be classified in a

number of ways, the following types are most common:

1. Emotional responses to time pressures. Individuals experience the pressure ofdeadlines. They may believe that they must do something right now, be obsessed

with using time, or try to make every minute count.

2. Emotional responses to future events. The individual experiences anxiety about whatwill happen in the future, anticipates the worst possible outcome of future events, and

is fearful or worried about the future.

3. Emotional responses to threatening situations. When situations are perceived to bebeyond ones control and there is the possibility of undesirable outcomes, stress can

result. Threatening situations can involve past events that an individual feels guilty

about.

4. Emotional responses to interpersonal relations. Dealing with unpleasant people canproduce high levels of anxiety. Also, simply too much contact with other people can

result in interaction overload

2.4. Organizational Effects of Stress

As a result of the behaviors of individuals experiencing high stress, organizations can

be affected in a number of ways. These include absenteeism, lower productivity,


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interpersonal conflict, accidents, turnover, job dissatisfaction, and antagonism at

work.

2.5. Individual Coping Verses Organizational Management of Stress

Nearly everyone agrees that job stress results from the interaction of the worker and

the conditions of work. Views differ, however, on the importance of worker

characteristics versus working conditions as the primary cause of job stress. These

differing viewpoints are important because they suggest different ways to prevent

stress at work.

According to one school of thought, differences in individual characteristics such aspersonality and coping style are most important in predicting whether certain job

conditions will result in stress-in other words, what is stressful for one person may not

be a problem for someone else. This viewpoint leads to prevention strategies that

focus on workers and ways to help them cope with demanding job conditions.

Although the importance of individual differences cannot be ignored, scientific

evidence suggests that certain working conditions are stressful to most people.

Excessive workload demands and conflicting expectations are good examples ofOrganization wide prevalent causes of stress. Such evidence argues for a greater

emphasis on working conditions as the key source of job stress, and for job redesign

as a primary prevention strategy.

We examine both approaches to stress management.

2.6. Methods Of Dealing With Stress By The Individual EmployeeIndividuals attempt to adjust and cope with stress through a wide variety of behaviors.

Individuals should develop reactions to stress that allow them to be productive and

avoid the undesirable consequences of stress.

An individual can take a number of approaches to control stress. There is no one most

effective approach. What works for one individual may not be effective for another. A

basic principle in any action to reduce stress is that individuals must obtain and

maintain control of their behavior.


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The following are three approaches that can form the basis for an effective strategy

to control stress.

1. Avoid high-pressure situations that produce unacceptable levels of stress. For

example, dont accept unnecessary additional responsibility. Dont volunteer to serve

on committees. Dont go to the shopping mall when it is crowded. Dont make

unnecessary trips to bad weather.

2. Manage situations to control the amount of stress and pressure. Delegate some ofthe responsibility to someone else. Get deadlines extended. Obtain additional

resources. Plan alternative courses of action in case the situation changes.

3. React less intensely to situations. Although it is easier said than done, a morerelaxed response to pressure situations can produce significant reductions in stress. A

technique that has been found useful is to ask yourself, what is the worst thing that

could happen? and if this is important enough to get upset about? one manager put

the following sign on his desk to help put situations in a realistic perspective:

I am not responsible for all the problems of the world.

2.7. Stress Self-Analysis

A desirable approach is for individuals to identify what is a reasonable level of stress

and what is too much stress for them. In analyzing and controlling stress, answering

the following questions may be useful:

How much stress can I handle? What kinds of stress do I have difficulty handling? What kinds of stress can I avoid by removing myself from situations? What kinds of stress can I control by managing the situation? What situations should I respond to with less intensity? How can I maintain reasonable levels of stress while achieving my personal goals?

For controlled stress living, individuals need to continually evaluate stress levels and

control the total stress in their life by adapting to situations and maintaining a balance

in their activities.


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Recognition of employees for good work performance Opportunities for career development An organizational culture that values the individual worker Management actions that are consistent with organizational values

Developing a Stress-free Healthy Workplace: What Leaders Can Do

Emotionally intelligent leadership appears to be one key contributor to the

development of a psychologically healthy workplace. Leaders can directly influence

morale, retention, commitment, satisfaction and perceptions of stress. A variety ofapproaches exist for emotionally intelligent leaders to consider employing in the

development of a healthy workplace.

These include:

Gather feedback about strengths/development areas from other senior team leaders,direct reports and internal/external stakeholders by using a multi-rater feedback

instrument

Conduct a senior leadership team analysis of strengths/development areas usinginterviews or team based multi-rater feedback tools

Conduct annual employee engagement surveys to better understand how leaders canchange policies, procedures, processes, systems and management practices to enhance

satisfaction

Employ a department wide balanced scorecard to measure and monitor internalcustomer satisfaction of talent within your department

Constructively and consistently manage the performance of under performing talent Create and utilize employee teams to increase participation of employees in problem

solving, decision making and planning processes

Analyze exit interviews for trends and develop strategies to increase retention of highpotential talent


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Support and implement work balance and family friendly policies, procedures andprograms to enhance engagement (e.g., telecommuting, child care, flex time,

wellness/health promotion programs)

Despite some recent criticisms about EI (confusion about the definition, diverseapproach to measurement, overstated claims, overlap with personality), developing

highly effective leaders who are involvement oriented, relationship focused and

capable of managing his/her emotions appear to have strong associations with both

performance and retention of high potential talent.

Despite exactly how EI is conceptualized and measured, effective leadership makes adifference to the bottom line and will continue to be important for companies to be

competitive in a global market today.

2.10. How to Change the Organization to Prevent Job Stress

Ensure that the workload is in line with workers' capabilities and resources. Design jobs to provide meaning, stimulation, and opportunities for workers to use

their skills.

Clearly define workers' roles and responsibilities. Give workers opportunities to participate in decisions and actions affecting their jobs. Improve communications-reduce uncertainty about career development and future

employment prospects.

Provide opportunities for social interaction among workers. Establish work schedules that are compatible with demands and responsibilities

outside the job.

2.11. Comprehensive ApproachMost Effective

As discussed above there are essentially two approaches to reduce stress:

Stress Management by Individuals: Here the Organization can help by providing

stress management training and an employee assistance program (EAP) to improve


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the ability of workers to cope with difficult work situations. Stress management

programs teach workers about the nature and sources of stress, the effects of stress on

health, and personal skills to reduce stress-for example, time management or

relaxation exercises. (EAPs provide individual counseling for employees with both

work and personal problems.) Stress management training may rapidly reduce stress

symptoms such as anxiety and sleep disturbances; it also has the advantage of being

inexpensive and easy to implement. However, stress management programs have two

major disadvantages:

The beneficial effects on stress symptoms are often short-lived. They often ignore important root causes of stress because they focus on the worker

and not the environment.

Organizational Change: In contrast to stress management training and EAP

programs, Stress can be handled at an Organizational level by bringing in a consultant

to recommend ways to improve working conditions. This approach is the most direct

way to reduce stress at work. It involves the identification of stressful aspects of work

(e.g., excessive workload, conflicting expectations) and the design of strategies to

reduce or eliminate the identified stressors. The advantage of this approach is that it

deals directly with the root causes of stress at work. However, managers are

sometimes uncomfortable with this approach because it can involve changes in work

routines or production schedules, or changes in the organizational structure.

As a general rule, actions to reduce job stress should give top priority to

organizational change to improve working conditions. But even the most

conscientious efforts to improve working conditions are unlikely to eliminate stress

completely for all workers. For this reason, a combination of organizational change

and stress management is often the most useful approach for preventing stress at

work.


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2.12. Stress Prevention Programs: Example

A small service organization, a department head in a small public service

organization sensed an escalating level of tension and deteriorating morale among her

staff. Job dissatisfaction and health symptoms such as headaches also seemed to be on

the rise. Suspecting that stress was a developing problem in the department, she

decided to hold a series of all-hands meetings with employees in the different work

units of the department to explore this concern further. These meetings could be best

described as brainstorming sessions where individual employees freely expressed

their views about the scope and sources of stress in their units and the measures that

might be implemented to bring the problem under control.

Using the information collected in these meetings and in meetings with middle

managers, she concluded that a serious problem probably existed and that quick

action was needed. Because she was relatively unfamiliar with the job stress field, she

decided to seek help from a faculty member at a local university who taught courses

on job stress and organizational behavior.

After reviewing the information collected at the brainstorming sessions, they decided

it would be useful for the faculty member to conduct informal classes to raise

awareness about job stress-its causes, effects, and prevention-for all workers and

managers in the department. It was also decided that a survey would be useful to

obtain a more reliable picture of problematic job conditions and stress-related health

complaints in the department. The faculty member used information from the

meetings with workers and managers to design the survey. The faculty member was

also involved in the distribution and collection of the anonymous survey to ensure that

workers felt free to respond honestly and openly about what was bothering them. He

then helped the department head analyze and interpret the data.

Analysis of the survey data suggested that three types of job conditions were linked to

stress complaints among workers:

Unrealistic deadlines Low levels of support from supervisors Lack of worker involvement in decision-making.


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Having pinpointed these problems, the department head developed and prioritized a

list of corrective measures for implementation. Examples of these actions included (1)

greater participation of employees in work scheduling to reduce unrealistic deadlines

and (2) more frequent meetings between workers and managers to keep supervisors

and workers updated on developing problems.


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4. ETHICAL MANAGEMENT

3.1. What is Business Ethics?

Simply put, ethics involves learning what is right or wrong, and then doing the right

thing -- but "the right thing" is not nearly as straightforward as conveyed in a great

deal of business ethics literature. The concept of Business ethics per-se has come to

mean various things to various people, but generally it's coming to know what it right

or wrong in the workplace and doing what's right -- this is in regard to effects of

products/services and in relationships with stakeholders.

Attention to ethics in the workplace sensitizes leaders and staff to how they shouldact. Perhaps most important, attention to ethics in the workplaces helps ensure that

when leaders and managers are struggling in times of crises and confusion, they retain

a strong moral compass. However, attention to business ethics provides numerous

other benefits, as well (these benefits are listed later in this thesis report).

Many people think that business ethics, with its continuing attention to "doing the

right thing," only asserts the obvious ("be good," "don't lie," etc.), and so these peopledon't take business ethics seriously. For many of us, these principles of the obvious

can go right out the door during times of stress. Consequently, business ethics can be

strong preventative medicine. Anyway, there are many other benefits of managing

ethics in the workplace. These benefits are explained later in this document.

3.2. Two Broad Areas of Business Ethics

1. Managerial mischief. Madsen and Shafritz, in their book "Essentials of BusinessEthics, further explain that "managerial mischief" includes "illegal, unethical, or

questionable practices of individual managers or organizations, as well as the causes

of such behaviors and remedies to eradicate them." There has been a great deal

written about managerial mischief, leading many to believe that business ethics is

merely a matter of preaching the basics of what is right and wrong. More often,

though, business ethics is a matter of dealing with dilemmas that have no clear

indication of what is right or wrong.


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2. Moral mazes. The other broad area of business ethics is "moral mazes ofmanagement" and includes the numerous ethical problems that managers must deal

with on a daily basis, such as potential conflicts of interest, wrongful use of resources,

mismanagement of contracts and agreements, etc.

3.3. Myths about Business Ethics

Business ethics in the workplace is about prioritizing moral values for the workplace

and ensuring behaviors are aligned with those values -- it's values management. Yet,

myths abound about business ethics. Some of these myths arise from general

confusion about the notion of ethics. Other myths arise from narrow or simplistic

views of ethical dilemmas.

a. Myth: Business ethics is more a matter of religion than management: Alteringpeople's values or souls isn't the aim of an organizational ethics program -- managing

values and conflict among them is.

b. Myth: Our employees are ethical so we don't need attention to business ethics.Most of the ethical dilemmas faced by managers in the workplace are highly complex.

Wallace explains that one knows when they have a significant ethical conflict whenthere is presence of a) significant value conflicts among differing interests, b) real

alternatives that are equality justifiable and c) significant consequences on

"stakeholders" in the situation. Kirrane mentions that when the topic of business

ethics comes up, people are quick to speak of the Golden Rule, honesty and courtesy.

But when presented with complex ethical dilemmas, most people realize there's a

wide "gray area" when trying to apply ethical principles.

c. Myth: Business ethics is a discipline best led by philosophers, academics andtheologians. However, business ethics is a management discipline with a

programmatic approach that includes several practical tools. Ethics management

programs have practical applications in other areas of management areas, as well.

d. Myth: Business ethics is superfluous -- it only asserts the obvious: "do good!"Many people react that codes of ethics, or lists of ethical values to which the

organization aspires, are rather superfluous because they represent values to which


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everyone should naturally aspire. However, the value of a codes of ethics to an

organization is its priority and focus regarding certain ethical values in that

workplace. For example, its obvious that all people should be honest. However, if an

organization is struggling around continuing occasions of deceit in the workplace, a

priority on honesty is very timely -- and honesty should be listed in that organizations

code of ethics.

e. Myth: Business ethics is a matter of the good guys preaching to the bad guys.Some writers do seem to claim a moral high ground while lamenting the poor

condition of business and its leaders. However, those people well versed in managing

organizations realize that good people can take bad actions, particularly when stressed

or confused. (Stress or confusion are not excuses for unethical actions -- they arereasons.) Managing ethics in the workplace includes all of us working together to help

each other remain ethical and to work through confusing and stressful ethical

dilemmas.

f. Myth: Business ethics in the new policeperson on the block. Many believebusiness ethics is a recent phenomenon because of increased attention to the topic in

popular and management literature. However, business ethics was written about even

2,000 years ago -- at least since Cicero wrote about the topic in his On Duties.Business ethics has gotten more attention recently because of the social responsibility

movement that started in the 1960s.

g. Myth: Ethics can't be managed. Actually, ethics is always "managed" -- but, toooften, indirectly. For example, the behavior of the organization's founder or current

leader is a strong moral influence, or directive if you will, on behavior or employees

in the workplace. Strategic priorities (profit maximization, expanding market share,

cutting costs, etc.) can be very strong influences on morality. Laws, regulations and

rules directly influence behaviors to be more ethical, usually in a manner that

improves the general good and/or minimizes harm to the community.

h. Myth: Business ethics and social responsibility are the same thing. The socialresponsibility movement is one aspect of the overall discipline of business ethics.

Besides which Business Ethics attempts to find a way to determine responsibility in

business dealings, the identification of important business and social issues, and a

critique of business.


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9. Overall benefits of ethics program: Managing ethical values in the workplace

legitimizes managerial actions, strengthens the coherence and balance of the

organizations culture, improves trust in relationships between individuals and groups,

supports greater consistency in standards and qualities of products, and cultivates

greater sensitivity to the impact of the enterprises values and messages.

10. Last - and most important -- formal attention to ethics in the workplace is the right

thing to do.

3.5 Ethics Management Programs: An Overview

3.5.1 About Ethics Management Programs

Organizations can manage ethics in their workplaces by establishing an ethics

management program. Typically, ethics programs convey corporate values, often

using codes and policies to guide decisions and behavior, and can include extensive

training and evaluating, depending on the organization. They provide guidance in

ethical dilemmas. Balancing competing values and reconciling them is a basic

purpose of an ethics management program.

3.5.2. Benefits of Managing Ethics as a Program

There are numerous benefits in formally managing ethics as an ongoing program,

rather than as a one-shot effort when it appears to be needed. Ethics programs:

Establish organizational roles to manage ethics Schedule ongoing assessment of ethics requirements Establish required operating values and behaviors Align organizational behaviors with operating values Develop awareness and sensitivity to ethical issues Integrate ethical guidelines to decision making Structure mechanisms to resolving ethical dilemmas

Facilitate ongoing evaluation and updates to the program


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Help convince employees that attention to ethics is not just a knee-jerk reaction doneto get out of trouble or improve public image

3.6. Guidelines for Managing Ethics in the Workplace

The following guidelines ensure the ethics management program is operated in a

meaningful fashion:

1. Recognize that managing ethics is a process: The ethics programs do havedeliverables. However, the most important aspect from an ethics management

program is the process of reflection and dialogue that produces these deliverables.

2. The bottom line of an ethics program is accomplishing preferred behaviors in theworkplace

3. The best way to handle ethical dilemmas is to avoid their occurrence in the first place.4. Make ethics decisions in groups, and make decisions public, as appropriate.5. Integrate ethics management with other management practices.6. Use cross-functional teams when developing and implementing the ethics

management program.

7. Value forgiveness. This may sound rather religious or preachy to some, but itsprobably the most important component of any management practice. An ethics

management program may at first actually increase the number of ethical issues to be

dealt with because people are more sensitive to their occurrence. Consequently, there

may be more occasions to address peoples unethical behavior. The most important

ingredient for remaining ethical is trying to be ethical. Therefore, help people

recognize and addr

Neha Madaan MBA III Summer Training Project

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