James moved his entire office into a conference room. As senior vice president of a major healthcare insurance firm, he could have simply sent emails or delegated the crisis management to others. Instead, when his group leader took medical leave during intense regulatory scrutiny, James recognized something that technical skills alone could not address: his team was panicking. By physically relocating himself to guide them through those turbulent weeks, James demonstrated what emotional intelligence (EQ) looks like in action.
This same principle drives the Master of Business Administration (MBA) – General online program at Arkansas State University (A-State). There, future leaders learn to combine analytical prowess with the emotional intelligence that separates good managers from transformational leaders.
What Is Emotional Intelligence and What Are Its Implications?
Emotional intelligence means recognizing and controlling your feelings while understanding how others feel and responding accordingly. Psychologist Daniel Goleman brought this concept into the corporate spotlight, showing that EQ often matters more than traditional IQ in determining leadership success. O.C. Tanner research indicates organizations that practice EQ are 107x more likely to thrive and that managers with high EQ retain 70% of their employees for five years or more.
Studies involving hundreds of organizations reveal that emotionally intelligent leaders create cascading organizational benefits, including higher performance levels, increased job satisfaction and reduced turnover. Teams led by emotionally intelligent managers show better engagement, stronger morale and more organizational citizenship behaviors.
Goleman’s report also focused on meta-analyses examining over 65,000 entrepreneurs found that those with higher EQ achieved superior financial success, firm growth and company size. EQ showed over twice the impact of traditional IQ on business outcomes.
The ripple effects extend beyond performance metrics. According to Goleman’s research, information technology employees working under empathetic managers reported fewer physical complaints like headaches and upset stomachs. When leaders manage their own emotions effectively and provide empathic support, their teams can withstand high stress levels without experiencing burnout.
Why Is EQ Important for Business Leaders?
Business leaders shape the emotional climate of organizations. Leaders lacking EQ create environments with lower engagement and higher turnover rates. Per Goleman’s report, an NBA study showed that players performed worse under abusive coaches, committing more fouls and scoring fewer points. Technical excellence means little if leaders cannot communicate effectively and empathetically with their teams.
The toxic boss phenomenon illustrates this principle clearly. Daniel Goleman’s global research consistently shows that bosses who can be difficult to work with often demonstrate low EQ traits, while beloved leaders exhibit empathy, supportiveness and approachability. Studies have shown show that transformational leaders use strong emotions to energize their followers, creating highly infectious excitement, enthusiasm and energy.
Why Is EQ Important in the Workplace?
Workplace dynamics revolve around emotional interactions between colleagues, managers and teams. Leaders who demonstrate EQ create healthy environments where innovation flourishes. Research reveals that employees who are criticized enter defensive brain modes, shutting down creativity and risk-taking behaviors. However, feedback emphasizing strengths activates more productive and open mental states.
Emotionally intelligent leaders recognize that their words carry amplified weight. What feels like mild feedback to a manager may be perceived as harsh criticism by an employee. Understanding this dynamic allows leaders to provide constructive guidance while fostering positive relationships and promoting growth mindsets. Research from the Center for Creative Leadership confirms this, revealing that managers who show more empathy toward direct reports rate as better performers by their bosses.
How to Improve Emotional Intelligence
Developing EQ requires deliberate practice across four core competencies: self-awareness, self-management, social awareness and relationship management. Self-awareness forms the foundation, requiring honest assessment of personal strengths, weaknesses and emotional patterns. Self-management involves regulating your emotional responses and maintaining composure in challenging situations while adapting to changing circumstances. Social awareness involves reading the emotional climate around you and understanding how relationships and power structures function.
Relationship management encompasses the ability to inspire through persuasive communication, build bonds and resolve conflicts effectively. Research reveals several proven strategies for strengthening emotional intelligence:
- Keep a daily journal, recording emotional responses to decisions, interactions and meetings.
- Undergo 360-degree assessments to compare self-perception with feedback from others.
- Practice active listening and focus entirely on the speakers.
- Pay attention to emotions, reflect on what prompts your strongest responses, and why.
- Embrace mindfulness and meditation to develop emotional regulation skills.
- Ask questions instead of making assumptions about others’ perspectives.
Building Your Leadership Future
The A-State online MBA curriculum emphasizes ethical leadership, international business perspective and decision-making methods that require emotional intelligence to implement successfully. The program’s focus on social responsibility naturally incorporates these principles through courses like Data Mining, Contemporary Marketing Issues and Promotional Strategy.
Decades of research have led to the development of these leadership principles. This curriculum prepares graduates who are prepared to exhibit high EQ and bring their organizations many leadership benefits.
Learn more about A-State’s online MBA – General program.