Page 1 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 01

Jsnuary 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 910

Impact of Emotional Intelligence on Better Decision Making of Employees

Working in Organizations.

Dr. Sherry

Assistant Professor

DPGITM, Gurugram (HR.)

Abstract: This paper focuses on how emotional intelligence helps the employees in taking

better decision relating to their career and personal lives. It stresses on how employees strike a

balance between their personal and professional live by making the correct decision as the use of

emotional intelligence makes a person sensitive as well as intelligent.

Keywords: Emotional Intelligence, Decision Making, Organization, Stress Level.

Introduction: Due to ever increasing

demands of market, increasing complexities

and stress level of employees, emotional

intelligence is gaining importance in the

organizations. Nowadays human resource is

considered to be an asset rather than a

liability. Emotional Intelligence makes a

person sensitive and intelligent in order to

handle the real life problems. Emotional

Intelligence helps in brining emotions to the

workplace. In earlier days, employees were

treated as machines and hence there was no

emphasis on the motives and feelings of an

employee. When emotions are not given due

importance, it leads to decrease in

production, increased accidental rates, and

incremental change in attrition rate of the

employees which resultantly impacts the

efficiency and effectiveness of the

organization. The productivity of an

employee decreases when their thoughts,

emotions and feelings are misaligned.

Today, many organizations are focusing on

both EQ and IQ for making important

decisions involving hiring and promotions.

Training employees in emotional

intelligence leads to increased social and

motivational level of an employee which

makes him face the stress level arising due

to changes in environment. In this rapidly

changing environment emotional

intelligence helps an organization to gain

competitive edge. Thus, it can be concluded

that earlier the focus of the organizations

was on the financial aspect, but recently the

emphasis has shifted to the psychological

parameters of the employees.

REVIEW OF LITERATURE: Emotional Intelligence-

Page 2 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 01

Jsnuary 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 911

Thorndike (1920) brought forward

the idea of social knowledge, the capacity to

comprehend and to oversee men and women

in their relations. The idea of emotional

intelligence got its significance from social

intelligence. Bar-On model developed by

Bar-On in 1980 underlined the significance

of social and emotional intelligence in

understanding oneself and others. Bar-on

likewise enunciated the idea of social and

emotional intelligence in managing other

individuals and adapting to every day issues,

difficulties and requests. He emphasized the

idea of being practical, useful and adaptable

to manage issues promptly.

Bar-On model (1980) describes that

human beings are required to be emotionally

and socially intelligent for understanding

and expressing themselves efficiently so as

to be able to relate to others for successfully

dealing with the daily demands and

pressures. The model emphasized the

requirements for an individual, to be flexible

and realistic in their approach to cope with

immediate situation, solve problems and

make decisions.

Gardner (1983) added the idea of

multiple intelligence. According to him,

intrapersonal and interpersonal were two

types of intelligence which laid the

foundation of different models developed on

emotional intelligence. He asserted that

individuals are enriched with numerous sorts

of knowledge which ought to be given due

thought and significance. Hence, arranging

an extraordinary blend of knowledge is a

very difficult issue.

Salovey and Mayer (1990) stressed

the need of managing one's feelings. The

people who are equipped with the power of

managing their emotions are more inclined

to accomplish their objectives and

destinations. Such individuals have the

capacity to guide and spur other individuals

much better than the individuals who neglect

to control their feelings. Emotional

intelligence enables an individual to

understand and read other individual in

social context and to detect the emotional

reactions. Emotional intelligence helps in

regulation and control of such emotions

carefully which is very critical for effective

leadership and team performance.

Goleman (1995) advanced the idea

of Emotional Intelligence by arguing that

our perspective and comprehension of

human knowledge is excessively narrow and

tightening. He explained that emotional

intelligence assumes a critical part in an

individual’s reasoning choices and

Page 3 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 01

Jsnuary 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 912

procedures. Feelings and reasons are

constantly adjusted by our brain when we

settle on choices in a complex situation. In

1998, Goleman composed another book on

Emotional Intelligence, Working with

Emotional Intelligence, in which he stressed

the importance of emotional intelligence in a

working environment. He focuses on the

crucial role of emotional intelligence in

managing feeling, interactions and

communications. He stressed the fact that

extraordinary individuals are imbued with

exceptional passionate insight which helps

them achieve higher aims in life.

Boyatzis (2008) opined that

successful directors and pioneers are

endowed with techniques and capabilities

which concentrate on learning social,

psychological and emotional capabilities,

which in turn, predicts efficiency and

effectiveness in professional, administration

and leadership roles in various segments of

the society and the organization.

Moulding, (2002) stresses that in

earlier times IQ was the only parameter of

success. But nowadays individuals with high

IQ levels fail and the people with modest IQ

perform surprisingly well in order to

improve the leadership qualities, the

emotional aspect of the brain should be

given due importance and one should know

how to use emotions in an effective manner.

In today’s worlds mere dependence on IQ

can get one entry into the organization but to

become an effective leader, an individual is

required to be emotionally intelligent.

Mayer, Salovey & Caruso (2008)

stress that some individuals display a greater

capacity to process the information about

emotions and accordingly they are in a

better position to guide their behaviour and

thinking processes to function well than

those of others.

Dulewicz & Higgs (2000) supported

that EQ construct could be more effectively

measured by “performance analysis rather

than classic paper and pen test method. He

stresses that the both IQ and EQ combined

together are the powerful and better

predictors of success than either of them

alone.

Emmerling & Boyatzis (2012) found

that social and emotional intelligence serve

as valid and reliable approach in assessing

and developing individuals of diverse

cultures and backgrounds.

Fredrickson (2001) suggested that

experiencing positive emotions serves a