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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/7/31/2019 Neha Madaan MBA III Summer Training Project
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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_Group7/31/2019 Neha Madaan MBA III Summer Training Project
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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.
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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
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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