Impact of Emotional Intelligence on Interpersonal Relationships and Organizational Effectiveness

Running head: BUSINESS COMMUNICATION
Business Communication:
Name of the Student:
Name of the University:
Author note:

1BUSINESS COMMUNICATION
Executive summary
Emotional intelligence, commonly known as EI or EQ (emotional quotient) is an important
factor in the modern business world. According to the professional, higher EQ is mostly
preferred by the organizations than higher IQ. This refers to ability of the individuals to
understand their own and others emotions and management ability to channelize them
accordingly to achieve higher and better performance. This report provides a detailed outline of
emotional intelligence and its impact on interpersonal relationships and organizational
effectiveness. It also highlights the process of development and measurement of EQ and its
appropriateness in recruitment and promotion. The aim of the report is to provide information
regarding emotional intelligence to the management team of Data Solutions and ways to improve
their performance.

2BUSINESS COMMUNICATION
Table of Contents
Introduction......................................................................................................................................3
Impact of emotional intelligence on interpersonal relationships at workplace...............................4
Impact of emotional intelligence on organisational effectiveness...................................................5
Development and measurement of emotional intelligence..............................................................5
Appropriateness of measuring emotional intelligence for the purposes of recruitment and
promotion.........................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

3BUSINESS COMMUNICATION
Introduction
Emotional Intelligence (EQ) refers to the ability of the individuals to recognize and
manage their own emotions as well as emotions of others. This term was coined by Michael
Beldoch in his 1964 paper and Daniel Goleman made it popular in his 1995 book of the same
name. Management of emotional intelligence includes the activities of discerning between
different types of emotions or feelings and labeling those appropriately, applying the emotion
related information to direct the behavior and managing and./or adjusting the emotions for
adapting to the circumstances to achieve the individuals as well as organisational goals
(Goleman, Boyatzis and McKee 2013). As stated by Zeidner, Matthews and Roberts (2012),
emotional intelligence of an individual includes three types of skills, namely, emotional
awareness; the capacity to harness the emotions and applying those in thinking and problem
solving in the organization; and the capability of managing emotions of his own and of others.
Emotional intelligence is thus based on various characteristics of the individuals, such as,
empathy, leadership skills, motivation skills, trust and confidence as well as overall intelligence
level. This report is aimed to provide an outline of emotional intelligence and its various aspects,
such as, its effectiveness on interpersonal relationships at the workplace and on the
organizational effectiveness, methods of its development and measurement. It will also provide
recommendations on the appropriateness of measuring emotional intelligence for the purposes of
recruitment and promotion in an organization like Data Solutions, working with big data
analytics. Thus, through this report, the implications of emotional intelligence on improving the
organizational performance will be highlighted.