Formal Report on impact of Emotional Intelligence on Organization’s performance
This report details reasons for existence of detailed connection between E.I. and I.Q. which influences ability on work performance and at the same time influences capability building as well as attentiveness towards every task performed. This research scrutinized some social competencies within work place which were used in determining the extent to which individuals utilize aspects of love amongst themselves. Emotional intelligence forms part of ethics within organizations hence reinforcing social cohesion.
However, there are cases where managers fail in the process of integrating work spirit and personal lifestyles, this leads towards bad relations amongst junior employees. Integrating spiritual focus within organizational management contributes some level of orderliness. Information used in this report was obtained through interviewing a number of organizations within the marketplace.
Attention should be paid on level of productivity realized from organizations applying EI/IQ programs in recruitment process and those using other methods. This is since spiritual concepts associated with EI guarantee both skills and purpose on performance.
Introduction
There is necessity of investigation and explanation on employee experiences within work place context and the connection between their work accomplishment and spirituality. In such cases the concept of spirituality is drawn from the perspective of overall individual lifestyles.
Over the years there has been an indication on neglect and assumptions made concerning spiritual lives of employees, and this has led into imbalance between individual’s emotional, intellectual and spiritual aspects of daily lives. Equal importance should be attached on one’s emotional intelligence since it provides the basic point from which one can easily identify overall life purpose. Research reveals that excellence experienced in work performance and businesses are linked to individual spirituality.
However, in some cases there is always distinction between emotional intelligence, spirituality and performance where spirituality is only considered within theological contexts. There is the reality on the fact emotional intelligence plays an important role in articulation of workplace duties. This is since it contributes towards living a meaningful life. Emotional intelligence encompasses individual’s overall significance.
Purpose of the study
This study seeks to establish connections between emotions, intellect as well as personal spirituality which contribute towards peaceful and productive environment within work place. Emotional Intelligence and I.Q. are therefore important aspects considered for purposes of efficient management within work place.
Such experiences as high level of connectedness and meaningful relations leads towards development of hospitable environments capable of motivating individuals towards performance. Additionally, ability of workers to identify themselves with organization’s principles and objectives depends on their level of emotional intelligence as well as I.Q. levels. Scope of the study
Indeed, there is adequate literature presented in this study on the relationship amongst employees within organizations in a defined industry. This is mostly based on nature of prevailing circumstances or EI applied during recruitment process especially in the field of strategic management.
There is limited effort capable of providing what has been learned and efficiently explored on the process of generating relationships amongst organizations within defined industry. For instance, whenever scholars explore on how firms form alliances to maximize payments, they only emphasize on just one specific merit connected to the alliance like bringing resources together, or maximizing on learning.
The main objective of applying EI at work place is for the purposes of exploring how firms are able to earn and preserve employee rates. It is important to consider relational view with regard to how organizations benefit from competitive advantage. The theoretical framework of such review adds to the knowledge within the field of relational view and firm’s competitive advantage.
Source and methods
The study utilized use of qualitative method where data was collected through i-depth interviews. Focus groups were used in the process of obtaining information from students. In some instances secondary data was obtained from sources such as company websites, journals, newspapers and magazines.
Report organization
The report discusses about the impact of emotional intelligence at work place. It will focus on main reasons as to why firms agree to utilize EI within their various programs. Then there’s conclusion based on overall findings of the study.
Emotional Intelligence and Intelligence quotient in the workplace
Level of emotional intelligence is basically connected to level of integrity with which work is performed. There exists detailed connection between E.I. and I.Q. which influences ability to perform work and at the same time influence capability building as well as attentiveness towards every task performed. Social competencies within work place determine the extent to which individuals utilize aspects of love amongst themselves.
Emotional intelligence forms part of ethics within organizations hence reinforcing social cohesion. However, there are times cases where managers fail in the process of integrating work spirit and personal lifestyles, this leads towards bad relations amongst junior employees. Integrating spiritual focus within organizational management contributes some level of orderliness.
Leadership and organizational success
This serves the purposes of having capability on access and exploitation of new markets, this assists in boosting resource capabilities. Organizations in a joint venture can be owned by more than one parent company, making them so hard to manage. The parent companies owning such firms in joint venture may have conflicting goals or objectives, conflicting styles of management, and also competition for the scarce resources.
However, in such cases application of EI help firms with new business ideas hence assisting innovation of new products and services. Moreover, firms utilizing use of EI/IQ finds it easy to penetrate foreign markets based on rich professionalism amongst employees. Many organizations appreciate nature of contributions from joint ventures and have gone ahead to uplift barriers and restrictions which may limit smooth operations within organizations. Therefore, international joint ventures contribute heavily to foreign investments.
When a joint venture is owned by more than one parent firm, it is known as an equity venture. High level of employee Emotional intelligence boosts a firm’s ability to gain from complementary resources, thereby improving its economies of scale. In addition, the firm’s ability to come up with new products is boosted as it will be cheaper as compared when the firm is operating individually.
International joint ventures guide foreign firms in penetrating local markets which may look unfamiliar to foreign firms. In addition, the firm’s image is also boosted as many consumers want to be associated with creativity. There are other ways through which organizations access resources.
These include; licensing, signing of contracts, or forming alliances. Joint ventures are mainly preferred because they perform more than wholly owned subordinate firms. In addition, the success of a joint venture can be easily determined from the level of employee contributions. The amount of capital each partner contributes reveals level of professionalism amongst its employees. Joint ventures have distinct resources and capabilities that cannot be copied by competitors. This helps the joint venture to gain from economies of large scale.
Emotional intelligence and economic management
Scholars in the recent past have conducted studies focusing on the relevance of applying E.I. to an economy. This creates signals that individual EI really contributes towards entire performance of global economy. Generally, joint ventures have attracted hundreds of researchers who have made many publications.
However, these studies sometimes provide contradictory commendations, mainly due to the fact that some joint ventures are composed of parent firms having diversified work force. It is very important for these studies to focus more on the management aspect of the joint venture. Before forming a joint venture, it is appropriate for a firm to evaluate the strategic rationality for coming up with the joint venture.
The firm then should carefully select an appropriate partner. After selecting the partner, the firm will then negotiate and bargain the terms and conditions. Finally, the firm will sign the necessary documents and then proceed with the management of the venture. In fact, the decisions that firm managers make during the formation process of the venture will determine the future of the venture in terms of the level of performance.
These capital investments are transaction-specific and they foster product differentiation, thus, enhancing the quality of the products. Lastly, specificity according to human asset relates to the skills, expertise and talents which have been acquired as a result of long term relationships. For instance, the relationship created between a committed supplier and a dedicated buyer. Through constant interaction, alliances can be created; hence, the quality of the products will be enhanced in addition to the speed of completion of the processes.
The development of relation-specific skills between parties is very influential in enhancing competitive advantage and generating supernormal profits. In fact, the relation-specific investments and the performance of the firm are positively correlated. Creation of a healthy relationship between firms and their suppliers also has an effect on the overall performance of the firm; the performance is bound to increase.
The location of the firm also determines the overall performance of the firm; for instance, firms located next to one another will develop inter-firm cooperation, which will in turn improve the quality of their products. Great speed of product development, product differentiation, and reduced costs in the value chain enable relation-specific investments to give rise to relational rents. It can therefore be stated that higher relational rents are achieved when there is a good partnership between firms with regard to their investments.
Strategic management
One of the factors that limit the ability of associated firms to generate sufficient rents is the period of time in which the governance is in place to regulate against improper business behavior. The relation-specific rents have the ability to create congruous virtual rents, therefore, these kind of investments need to be safeguarded.
When these safeguards are in place and are effective, the associated firms feel comfortable in proceeding with the investments. In addition, when a firm is engaged in relation-specific investment, for instance, when it is acquiring customized machinery, it is required to meet a certain cost in advance. Durable relation-specific investments such as customized plants, are often more expensive than non-durable ones like simple tools.
Due to the fact that a number of investments have a fixed cost, the group of firms working together need to assess and evaluate the expected returns on the investment after the number of years it is expected to pay back, or after the period of the contract elapses. For example Japanese automakers prefer investing in durable relation-specific assets because of duration and nature of contract.
On the other hand, there are also concerns in the United States whereby the suppliers are very reluctant investing in relation-specific assets having a longer length of contract. Therefore it can be deduced that when length of contract is long enough to care for opportunism, more relational rents are generated from the invested relation-specific assets, and vice versa.
The second factor that limits the ability of associated firms to generate sufficient rents is the scale and the scope of transactions that take place between such associated firms. This comes with the capacity of giving preference to specialized assets as compared to general assets. Large firms with greater economies of scale have the potential to raise the level of their production by preferring to work with specialized assets to general assets.
Partner firms also have a tendency of increasing the size of transactions between them, thereby improving the level of efficiency that is connected to the inter-firm interactions. When this interaction between the partner firms is continuous, a stable relationship between the firms will be created, thereby making the firms to invest in specialized relation-specific assets.
Therefore, it can be pointed out that the frequency and the size of interaction among the partner firms will determine their ability to make efficient relational rents, given their investing in relation-specific assets. In a nutshell, the length of the payback period and the size of interactions among the partner firms really influence the firms’ abilities to make relational rents.
Spirituality in the workplace
Emotional intelligence is applicable within organizations through various ideas. Most researches done within this field focuses on leadership and quality of work within workplace. Workers capability to establish mutual trust and respect amongst other members are usually considered effective leaders. This is since such people are capable of providing solutions towards complex problems arising within organizations.
Adequate utilization of emotional intelligence also leads towards cost-effectiveness. Hiring staff based on emotional intelligence changes economic value of any organization according to research done by concerned bodies. For instance, the government Accounting office report to congress in the year 1998, revealed the nature of savings they accomplished when United States Force applied the use of Bar On’s Emotional Quotient Inventory (EQ-I) in recruiting process.
Their success was eminent and at the same time saved over three million dollars on annual basis. Training employees in the areas touching emotional and social competencies results into more positive impact within implemented programs compared to other similar programs where such guideline is not followed.
Further research shows that emotional intelligence is powerful than I.Q is some instances. This led to the conclusion that predictive nature of I.Q. applied when performing task within workplace does not guarantee higher results.
However, research done by longitudinal studies attached more importance on emotional intelligence. Success of individuals, whether in school or at work place rather depends upon their ability to handle frustrations, emotions as well as close relations. This shows that emotional intelligence provides foundation for emotional competencies considered crucial in job performances.
Conclusion
Innovations that happen in firms can be attributed to ideas from both the customers and the suppliers. A firm that constantly shares knowledge with partner firms, suppliers or customers is likely to innovate as compared to a firm that operates on its own. The process of knowledge transfer is therefore very instrumental in fostering innovation. Building a network is the first step to realize this process.
Firms dealing with biotechnology who do not have efficient networks find it very difficult to gain competitive advantage. Therefore, innovation requires a network for firms to be successful; otherwise it cannot be possible in just a single firm. The absorptive capacity of organizations can be greatly boosted when firms plan efficient inter-firm knowledge sharing routines.
This in turn increases the level of social communication and collaboration. The information sharing routines are very essential due to the fact that the transfer of information through technical know-how encompass a repeated process of information exchange. The exchange of information in such kind of set up is more successful when partners are directly connected and continuously engage in face to face communications.
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