Emotional Intelligence or Emotional Quotient - Literature review Example

BUSINESS PSYCHOLOGY: THE CRITICAL PERSPECTIVES AND RELATIONSHIP OF AN EMPLOYEES EMOTIONAL QUOTIENT (EQ) TOWARDS THEIR WORK PERFORMANCE Critical aspects of a company lies on production, efficiency and leadership, so in hiring employees, an employees’ EQ is more critical since the higher an employees EQ, the more likely they will achieve high levels of job performance. Introduction Emotional Intelligence or Emotional Quotient (EQ) has now become a very critical factor in the workplace today. More than just smart heads and high IQ people, companies and businesses today takes more than just desks, ledgers, machines and materials to make a business work. More than anything else, businesses need people. People are needed to make a company grow, people who are working together, not necessarily on the same department or in the same building, but people pulling together so that the organization operates efficiently and can continue running the business. But sometimes, people are being funny or uncooperative. They do not pull or group together, and sometimes fail to manage their full share of load. The study of Emotional Intelligence (EQ) is important and useful especially in businesses because it tends to analyze and identify why people do what they do, think as they do and think as they do; with their abilities, motives, disappointments, ambitions, queer streaks. More than just their minds, people with high EQ has a strong ability to use their senses and do creative thinking which enables them to work more efficiently and a personality to get along with which is fit to become a good leader. These people fit into work groups and high memory of personal details that make them understand another person much better. With more and more companies adapting the EQ test and used it as basis upon hiring their employees, we have to know if this is really effective. Is high EQ more preferable than high IQ? It is said that The higher the employees’ EQ, the more likely they will achieve high levels of job performance. The lower the EQ, the lower the chance of good job performance. Literature Review According to Joshua Freedman (2006): “ world leading organizations, including the US Air Force, American Express, 3M, and Motorola, are adopting EQ practices into organizational development and human resources. Likewise, leading educators, hospitals, psychologists and coaches are using EQ tools to create positive results and meet pressing educational, family, health and social needs. This became so because EQ has increased in practical value that today, it has a significant role in business operation and in training for business careers.” (pg. 2) EQ test is useful for the employer, to have as detailed as possible a knowledge about his company’s human forces or social forces in business. According to Liard and Liard (1979) business life has to be efficient, has to be competitive and also has to show a profit. A practical person in business should understand these forces and cooperate with the best of them. The value of high EQ that fills in the human nature of business life will make it easier, quicker and more successful. Microsoft ® Encarta ® (2006) prove Sternberg’s Theory further that “successfully intelligent” people knows how to use their strengths and weaknesses by excelling in their strengths to cover up for their weaknesses. They are able to balance the three areas of intelligence which are Analytic, Creative and Practical Intelligence to further develop their abilities in order to achieve success in life. Emotional Intelligence Quotient Defined Wikipedia (2007) describes EQ as: “an ability, capacity, or skill to perceive, assess, and manage the emotions of one’s self, of others, and of groups. In recent years, a number of theorists have proposed the existence of emotional intelligence that is complementary to the type of intelligence measured by IQ tests.” American psychologists Peter Salovey and John Mayer, who together introduced the concept in 1990, define emotional intelligence as the ability to perceive, understand, express, and regulate emotions. Emotionally intelligent people can use their emotions to guide thoughts and behavior and can accurately read others’ emotions. (Microsoft ® Encarta ®, 2006) The growing popularity of EQ made EQ Today (2002) ask the world’s top experts and researchers to explain emotional intelligence: “The conclusion: There is an intelligence based on emotion, and people who have this capacity are less depressed, healthier, more employable, and have better relationships.” Intelligence Quotient (IQ) Defined Intelligence quotient, or IQ, is a number used to indicate a person’s intelligence. A2psychology (2002) explained that a person’s IQ is based on a comparison of his or her score on an intelligence test with the scores of others on the same test which tests the memory, reasoning, ability to remember meanings and definitions, facts and speed in mathematical equations. The result of the level of understanding and performance of such test which is arranged in order of difficulty determines an person's mental age. These became the basis for educators and psychologists in understanding the ability of a person whether academically or psychologically. With this, IQ tests influence educators and employers decision in determining whether a person is admitted to college, graduate school, or professional school. In connection to Sternberg’s Theory about intelligence, analytical intelligence can be measured under IQ. Since the discovery of IQ tests, they have been widely used all over the world by psychologists, teachers and companies. As explained in Microsoft ® Encarta ® (2006): “Intelligence tests are helpful in the selection of individuals for complex jobs requiring advanced skills. The major reason intelligence tests work in job selection is that they predict who will learn new information required for the job. To a lesser extent, they predict who will make “smart” decisions on the job.” Comparison of EQ and IQ IQ scores had been a good basis of academic achievement in elementary and secondary school. Infact, it had been the predictor for the companies for a long time as to which employee will make a smart decision. IQ scores had been the company’s basis for promotions and salary increase. Microsoft Encarta (2006) explained that: “ Intelligence tests correlate with measures of accomplishment other than academic success, such as occupational status, income, job performance, and other measures of vocational success. However, IQ scores do not predict occupational success as well as they predict academic success.” Studies have shown that 75% or more portion in occupational success are due to factors other than intelligence since only 25% or less of the individual differences in occupational success are due to IQ. Intelligence tests are taken by thousands of people every year since it is a prerequisite in all schools and universities for high school and college educations and even Civil Service Exams for admission of a job in the government. However, this theory had been questioned by psychologists and education experts today whether these tests are an accurate way of measuring who will succeed or fail in school and later in life. People with high EQ may or may not perform well on standard IQ tests. Gale (1998) pointed out that: “the correspondence between IQ and academic performance is less consistent at higher levels of education, and many have questioned the ability of IQ tests to predict success later in life.” The tests don’t measure many of the qualities necessary for achievement in the world of work, such as persistence, self-confidence, motivation, and interpersonal skills, or the ability to set priorities and to allocate one’s time and effort efficiently. In addition, IQ tests does not reflect the creativity and intuition responsible for great achievements in both science and the arts where creativity is practiced when it involves the ability to envision multiple solutions to a problem, which, when compared to IQ tests, requires only a single answer or solution to a problem. Single answer to a solution of a problem penalizes creative thinkers because it looks like a trap with nowhere to go. Goleman (2005) once said that: “If a company has the competencies that flow from self-awareness and self regulation, motivation and empathy, leadership skills and open communication, it should prove more resilient no matter what the future brings.” A common core of personal and social abilities has proven to be the key ingredient in people’s success: emotional intelligence. He additionally said that: “As work becomes more complex and collaborative, companies where people work together best have a competitive edge and high Emotional intelligence carries much more weight than IQ in determining who emerges as a leader.” Successful, Influential and High EQ Personality Before, high IQ of employees had been the employers basis for hiring the companies future leaders but just the same as how Thomas Aquinas revived the Aristotelian ideas by establishing Christian Science because of his belief that reasoning can lead to God, Emotional Intelligence (EQ) is now more important and useful especially in businesses because it tends to analyze and identify why people do what they do, think as they do and think as they do; with their abilities, motives, disappointments, ambitions, queer streaks. The successful business person is almost always efficiency minded through and through whether he is the boss or not. He keeps a close eye on the efficiency, and the personal efficiency of those working with him. According to Herrera (2006): “IQ is quickly losing ground to EQ when it comes to predicting a lawyer’s success. While IQ is, and always will be, a key component of every lawyer’s performance, it does not predict who will succeed in life and who will not.” Moreover, supervisors and executives are generally rated on still more EQ qualities such as winning cooperation, handling people, suitable use of language and accepting suggestions and criticisms. This proves that the higher the position you can attain, the higher EQ qualities, tests and evaluation that you have passed. An employee with more promotional possibilities shows high EQ for higher executives take on more social responsibilities at each step on the way up. According to Bradberry, T. & Greaves, J. (2005a), 16 hours of work can make a person feel 465 emotions in a day with (2005b) 90% top performers tested to have high EQ and only 20% high EQ individuals being rated as low performers. Eduard Morato (2007) who's serving as the Dean of Institute at Asian Institute of Management (AIM) said as he discussed the growing number of MBA students: “Graduates have functional skills but firms look for leadership (...) I commissioned a survey of corporations who regularly recruited MBA from our school (...) asked what they were looking for in our graduates (...) and the top answers were leadership qualities, people skills, character and personality and values. The fifth answer is Strategic Management.” (pg. B2) Rather than IQ, companies and corporations now opt for high EQ individuals to work for them. This is because, high EQ employees are more productive, have great job performance and good leaders. High EQ employees and leaders are worker-centered which had higher producing work groups. And as we all know, companies aims for high productions at low cost and less turnovers. Companies, whose AIM graduates did not meet their expectations cited the graduates inability to translate ideas into implementable programs, and their doing and people skills, which reflects characteristics of low EQ. Conclusion EQ ratings are almost always taken with high importance in a company. During a company's periodic reviews of individual efficiency, the boss, supervisor or head of the company watch work ways and attitudes of employees. According to Laird and Laird (1979) employees are rated according to desirable qualities or social characteristics such as cooperation, communication and appearance. This shows that individual efficiency is not based on high IQ but rather based on the qualities of high EQ. Production is also influenced by the friendly interaction of members of a work group. An employees level of EQ is tied in with friendliness because it shapes its interaction of people towards each other. High EQ of employees encourage warm and friendly atmosphere in the work place. On the other hand, employees with low EQ will be cold and aloof towards its co-workers. This will hinder the productivity of a worker with low EQ and increase the rate of absenteeism, thus, absenteeism is an outcome of an employee with low EQ. With this, managers will think that unnecessary absence from work shows irresponsibility. The human emotions shape the interactions of people to each other. With the types of people in one company, considering warm or friendly and cold or aloof, those employees with high EQ will stand out and be more productive than the others. References a2psychology. (2002). Intelligence Quotient. Retrieved April 26, 2007 from http://www.a2zpsychology.com/a2z%20guide/intelligence_quotient.htm Bradberry, T. & Greaves, J.(2005a). The Emotional Intelligence QuickBook. New York, Fireside (2005b). The Emotional Intelligence Appraisal Technical Manual. San Diego Emotional intelligence. (2007, February 2). In Wikipedia, The Free Encyclopedia. Retrieved April 26, 2007, from http://en.wikipedia.org/w/index.php?title=Emotional_intelligence&oldid =105122752 EQ Today. (2002). EQ What? Definitions and History of Emotional Intelligence. Six Seconds. Retrieved April 26, 2007 from http://eqtoday.com/02/emotional.php Freedman, Joshua. (2006). EQ: At the Heart of Performance. The Business Case for Emotional Intelligence. Retrieved April 26, 2007 from http://www.renewalgroup.com/new/EQ_Heart.pdf Gale, Thompson. (1998). Intelligence Quotient (IQ) Health Article. Healthline Networks, Inc. Retrieved April 26, 2007 from http://www.healthline.com/galecontent/intelligence- quotient-iq Goleman, Daniel. (2005). Working with Emotional Intelligence. Microsoft® Encarta® 2006 [CD]. Redmond, WA: Microsoft Corporation, 2005. Herrera, Lexi. (2006) EQ Predicts A Lawyer’s Success Better Than IQ. The Complete Lawyer [online]. Vol. 2 Num. 5. Retrieved April 26, 2007 from: http://www.thecompletelawyer.com/volume2/issue5/article.php?ppaid=386 Liard, D and Liard E. (1979). Practical Business Psychology. Tokyo Japan. Kogakusha Company, Ltd. Microsoft Encarta. (2006). Theory of Intelligence [Electronic Version]. Retrieved April 26, 2007 from Microsoft Encarta 2006 database Morato, Eduardo. (2007) Where are MBA Programs Going?. Business Monday Daily Inquirer. Volume 22/No. 38 Read More