Role of Emotional Intelligence in Business

Businesses have evolved a long way from being perceived as a mechanical setup, where a group of individuals used their knowledge about market and finances to earn profits. Today, the role of an individual's emotional state on his professional success is being widely recognized. Studies have revealed that it is not just a high intelligence quotient that is required to be a successful businessman. Rather, individuals who have high emotional intelligence are found to make better leaders and decision makers, and hence, the most successful professionals.

What is Emotional Intelligence

Emotional intelligence refers to one's ability to recognize and understand the emotions of oneself as well as those of others. A person who has a high emotional intelligence is aware of the fact that emotions affect every aspect of one's life, be it personal or professional. He has good control over one's emotions and is able to address every problem in a cool and logical way. Not only does he understand his own emotions, but he is also sensitive to others feelings. Such people are sympathetic to those around them, and are able to inspire and influence decisions and performance of those they work with. Hence an emotionally intelligent individual is an asset for a company.

Emotional Intelligence in Business

Conflict Management

Running a business involves the efforts of a large number of people working together. Most of these people come from different social and economic backgrounds. Hence, each has a different way of approaching a problem at the workplace. This often creates conflicts, even among those individuals who are working in the same team. In such a scenario, if one of the individuals has a high emotional intelligence, he will be in a better position to handle the conflicting views of his colleague. Since such people have control over their emotions, they are able to stay calm and think clearly. Due to their sympathetic demeanor, their detractors tend to become calmer and make efforts to find solutions to the problem in an amicable way. The net result is that not only does the conflict at hand get resolved peacefully, but due to improved relations between the employees, the probability of a future problem spiraling out of control also gets minimized.

Decision-making Abilities

Businesses carry inherent risks, and all successful businessmen will agree that it is only the ability to take the right decision during times of crisis that can save the day. A person with high emotional intelligence is more stable and can maintain a balanced disposition when under pressure. He is in a better position to listen and understand the opinions of the different members of the team, and take the right decision.

Improved Managerial Skills

Emotional intelligence is specially useful for managers in organizations, as they have to deal with a workforce that comes from varied backgrounds and ethics. Managers who possess high levels of emotional intelligence know the importance of lending a patient ear to every individual in his company and of treating them with respect. Such managers are held in high regard by the employees and hence are more successful in resolving conflicts among employees than those professionals who treat their staff in an authoritarian way.

It should be remembered that in the world of business, no one is entitled to become a leader by birth or by virtue of being in a position of power. The right to lead is bestowed upon an individual by people who work with him, because of his understanding attitude coupled with the ability to take right decisions. It has been observed that individuals with high emotional intelligence, who have all the qualities to be good leaders, are successful managers, and are usually the ones that get promoted to higher executive positions.

Retaining the Workforce

One the mantras of running a successful business is hiring and retaining a qualified and efficient work force. With the baby boomer population entering retirement age, labor shortage will become one of the pressing problems of businesses. Moreover, competition for hiring the best professionals is becoming stiffer day by day. Qualified individuals have an array of jobs to choose from. In such a scenario, only those companies that make their employees feel that they are valued in the organization, can attract efficient professionals and retain their experienced workforce.

Businesses can't be carried out from boardrooms, discussing excel sheets that project the annual growth of a company. It is important to understand that the minds that actually execute all the policies of a company, can work best only when they are completely satisfied at the workplace. Hence, if a company wants to run successfully, it has to appreciate the role of emotional intelligence in business.