The MBA guideto

Emotional Intelligenceand

Social Networking

Edited by

Bud Labitan, MD, MBA and Tim Milan, MBA

Our Goal

Provide a summary of Emotional Intelligenceand Social Networking ideas that promote an increased level of win-win networking interaction among Purdue University Calumet School of Management MBA and MBAE Faculty, Students and Alumni.

E I ?...WHAT IS IT?

EI is a different way of measuring intelligence. EI is knowing your feelings and recognizing their

influence in the decision making process. EI is being able to identify and manage your

moods to control your impulses. EI is staying motivated, hopeful and optimistic

when you experience setbacks. EI is recognizing what people around you are

feeling and reacting to it positively.(empathy)

The 6 Key Skills of Emotional Intelligence

Self Awareness Empathy Managing Emotions Communication Cooperation Conflict Resolution

Social Skills refer to getting along with people, managing emotions and relationships, effective communication, persuasion, and leadership.

MANAGING EMOTIONS

Understand how hope can be an asset. Understand what happens when emotions get the

upper hand. Know how to pause and judge a moment for

appropriateness. Find ways to deal with anger, fear, anxiety and

sadness. Learn how to channel emotions to a positive end.

COMMUNICATION:

Good communication skills foster quality relationships.

Being able to authentically express personal concerns without anger or passivity is a key asset.

Enthusiasm, optimism, pessimism and negativity are all contagious.

What feelings are being communicated to others? How? ( body language, tone of voice, inflection )

COOPERATION: Know how and when to take the lead and when

to follow. Learn how to value others’ contributions and

encourage participation. Recognize the consequences of decisions and

actions. Follow through on commitments. Take responsibility for your own actions. REMEMBER: Effective leadership is the art of

helping people work toward common goals- NOT DOMINATION

RESOLVING CONFLICT:

Understand the mechanisms at work. People in conflict are usually locked into a

self perpetuating emotional spiral. Usually the declared subject of conflict is

NOT the key issue. Need to learn how to use the skills

previously discussed to resolve conflict.

Your E.I. “value-enhanced skills” may help in future Bargaining or Negotiations

S X B $

Seller’s RP Buyer’s RP

Final Contract Price

Zone of Agreement

Seller’s Surplus Buyer’s Surplus

Shaping Attitudes

Beliefs, feelings and judgments about situations, ideas and objects are formed over time.

Based on direct experience, therefore learned.

Genetic physiological makeup may create a predisposition to acquire certain attitudes. These are more resistant to change.

The Self Talk Cycle

SELF-TALK SELF-TALK - Positive

- Negative

ANTICIPATION ANTICIPATION OF THE FUTUREOF THE FUTURE - Optimistic - Pessimistic

SELF-REGARDSELF-REGARDBEHAVIOURBEHAVIOUR

Influences on Attitudes

Shared Perceptions Social comparison leads to reevaluation of our

beliefs, and it increases media influence.

Consistent Information Inconsistent information makes us uncomfortable. Must be consistent across different modalities and

time. Tend to be much influenced by first impressions

Social Cognition Persuasive Communication

Central Route: We focus on the message. Reasoned, rational arguments are more effective.

Peripheral Route: We are distracted by noise, other thoughts, etc. Personality and credibility of messenger, appeal to

emotions are more effective.

Cognitive Dissonance

State of tension when two or more cognitions are psychologically inconsistent.

Competing cognitions. Internal conflict between values, attitudes and beliefs (Festinger,

1957). Subjective and it makes us uncomfortable.

Can lead to attitude or behavior change. Act to relieve the discomfort of the dissonant cognitions.

Social Interaction

Affiliation Reading Nonverbal Behaviour. Self Presentation (Impression Management)

Influence of Others Helping or Hurting Others Liking and Loving Others

One-To-One Interactions

Influence/Compliance Principles (Cialdini, 1975):

Foot-in-the-door techniques—once they agree to a small request . . .

Door-in-the-face technique—start big and back off (reciprocity principle).

Four walls technique—once they say “yes” a couple of times . . . (telemarketing).

Low ball techniques—once they’re committed . . . (car sales, bait and switch).

Cialdini’s 6 Principles of Influence

1. Reciprocation

2. Consistency

3. Social Proof

4. Liking

5. Authority

6. Scarcity

One-To-One InteractionsCompliance Principles

Comparison of FID and DIF techniques (Harrari et al., 1980)—all significantly different: FID—33.3% compliance DIF—78.0% compliance Control—56.8% compliance.

Among college faculty, starting larger and reducing request (DIF) works best.

Faculty respond least well to the moderate request when it’s preceded by a smaller one. Better to just ask for the larger.

One-To-One InteractionsObedience and Conformity

Social conformity Milgram’s famous experiments (early 1960s)

“Just following orders.”Ethical issues.Applications to real world situations

Hofling, et al. (1966) Rank & Jacobson (1977)

Many-To-One InteractionsExisting within Social Forces

We act differently with others than we would alone.

Kurt Lewin (1st social psychologist) Behaviour is the function of the person interacting

with the environment. Developed Social Field Theory based on physics.

We exist in a field of active forces. Internal forces—desires, goals, abilities. External forces—pressure from others, responsibility,

obligations.

Many-To-One InteractionsExisting within Social Forces

Bibb Latane Social Impact Theory—We can measure the effect

of forces that act on an individual (pulse, blushing, beliefs, values, attitudes, cognitions).

The impact is multiplicative and depends on: Strength of the force—importance to individual. Immediacy of the force—how close, either physically or

psychologically. Number of forces, including those at a distance.

Many to OneSocial Impact Theory

• More forces, more total impact but each individual force has less influence.

• Distance diminishes influence of source.

Social Impact Theory

Blah, blah, blah.

More targets, less influence on each one: diffusion of social impact.

Many-To-OneEffect on Performance

Effect of an audience Social facilitation—improved performance of simple

tasks or when highly skilled. Social inhibition—impaired performance of complex

tasks or when unskilled.

Presence of others is arousing Yerkes-Dodson: optimal level of arousal for each

individual. Performance peaks at optimum level of arousal.

Many-To-OneEffect on Behaviour

Social LoafingMay work less hard in a group (Latane’s

shouting study).Tend not to pull our weight in a group if

individual performance cannot be identified.

Many-To-OneEffect on Behaviour

Bystander ApathyBystander Effect: Reluctance to come to the

aid of someone in trouble when there are others around. Like social loafing.

Affected by Diffusion of responsibility Social inhibition Ambiguity Pluralistic ignorance

Many-To-ManyHow We Behave in Crowds

People in crowds do things they would not do when alone.

Social restraint--conforming to social norms. Deindividuation

Lose self-awareness, individuality Zimbardo’s prison study Mob mentality

Social PsychologyOne-To-Many: Leadership

Social psychology tries to study leadership objectively:Studies of the personal characteristics of

people perceived as strong leaders.Some commonalities. Good leaders are

perceived as: More intelligent. More outgoing. More dominant.

Today’s Environment

Pressure to grow Downsizing corporate cultures have gone from vertical

to horizontal Internal and external competition Increased work hours Increase in technological complexity Collaborative partnerships are replacing the old

command-and-control hierarchy Higher level of stress Lack of balance in life

Why Leaders Fail

Rigidity: They are unable to adapt to change.They are unable to take in or respond to feedback about the traits they need to change.

Poor Relationships: They alienate those they work with by being too harshly critical, manipulative, insensitive, overly demanding or untrustworthy

Study by Centre for Creative Leadership

What isEmotional Intelligence?

Factors that are related to success in life Helps us understand why some people do well in life while others failDistinct from IQ (Cognitive Intelligence)

What Emotional Intelligence Is Not

Cognitive Intelligence (IQ)AptitudeAchievementVocational InterestPersonalityStatic - Results can change over time

EQ and Age

90

92

94

96

98

100

102

104

Problem Solving

Defining problemConfident & motivated to tackle itMultiple solutionsDecision to implementConscientious, disciplined, methodical,

systematic & persistent in solving problems

Ability to identify & define problems, and to generate & implement solutions:

Social Responsibility

Acting responsibly, having a social conscience & concern for others

Co-operative, contributing & constructive member of one’s social or work group

Ability to do things for others

Social Networking Summary Historically, academics have explained individual success based

primarily on human capital (e.g., education, knowledge and skills, etc.)—”what you know” While this remains important, people also realize the importance of “who you know”

People and companies that think carefully about networking can realize key benefits

Access to new information, knowledge and opportunities Access to other forms of capital, most notably financial capital

There are several principles that help people and organizations build “social capital”

Creating a plan to build one’s network, or “pattern of connections” Avoiding unethical or improper use of networking

Networking is not always beneficial, as there are some liabilities with establishing social relationships

Cliques

Generally speaking, networking builds social capital. Social capital is the value of a social network of contacts. The value of a network depends primarily on

its structure the quality of relationships between its members the resources to which its members have access the resources which flow through the network (information,etc.)

Actors, including individuals and groups / organizations, can increase the value of their social networks by being careful about the content, pattern, and quality of their networks.

Generally speaking, networking builds social capital. Social capital is the value of a social network of contacts. The value of a network depends primarily on

its structure the quality of relationships between its members the resources to which its members have access the resources which flow through the network (information,etc.)

Actors, including individuals and groups / organizations, can increase the value of their social networks by being careful about the content, pattern, and quality of their networks.

There are many types of social networks at both the organization and personal level, ranging from family relationships to hobby groups

Work-RelatedWork-Related Geography-Related

Geography-Related

Mentors / protégésBosses / subordinates Clients, suppliers,

other business contacts

Relationships with other workers

NeighborsTown membersE.g., local govmnt,

community involvement relationships

Per

son

al L

evel

Per

son

al L

evel

Relationships between firms / organizations

Customers Suppliers Alliance partners Financiers Alumni Auditors Industry groups

Relationships between neighborhoods, towns, cities, etc.

Gro

up

Lev

elG

rou

p L

evel

Filial, Social, Religious

Filial, Social, Religious

Personal / family contacts

Church contactsOther social

contacts (e.g., friends)

Relationships between families, social groups, churches

PoliticalPolitical

Political party / support group contacts

E.g., Lexington town council members

Relationships between political bodies

Interest RelatedInterest Related

Personal relationships with people who share your interests

E.g., golf club buddies

Relationships between interest groups

EducationEducation

ClassmatesTeachers /

professors

Relationships between schools, universities, research groups

However, the 4 main theories of social capital generally agree on 3 categories of benefits of developing and using social capital

Influence and Control

Influence and Control

Ability to influence the actions of other people or organizations

In some instances, ability to control the actions of other people or organizations

Allows the holder of capital to get other people or organization to do what he or she wants them to do

InformationInformation

Can provide holder of social capital with information that is difficult or impossible to find elsewhere (assymetric information)

Often this kind of information can improve decision making, or provide unique opportunities

Trust and SolidarityTrust and Solidarity

Trust is beneficial to enhancing increased group interaction and can facilitate certain types of information and knowledge flow within an organization

Benefits Example

A corporation is able to influence a supplier’s decision not to merge with another supplier

An individual is able to find out about unique job opportunities through a friend

A corporation is able to influence a supplier’s decision not to merge with another supplier

The Virtuous Cycle of Social Capital

Influence and Control

Influence and Control

InformationInformation Trust and SolidarityTrust and Solidarity

Like many other forms of capital, and perhaps to a greater degree, social capital creates a self-reinforcing virtuous cycle

SocialCapital

• Increased information leads to increased influence and control

• Increased influence and control leads to increased information

• Increased trust and solidarity leads to increased influence and control

• Increased influence and control leads to increased trust and solidarity

• Increased information leads to increased trust and solidarity

• Increased trust and solidarity leads to increased information

Cost / Inefficiencies

Cost / Inefficiencies

Exclusivism / Cliqueism

Exclusivism / Cliqueism

Excessive Claims

Excessive Claims

• As with all forms of capital, investment in social capital may not always be cost efficient. An actor may secure higher returns by investing in other forms of capital

• The development of particularly tight social networks can often lead to an “clique” effect, where actors outside of the network feel unfairly excluded

• An individual with strong social capital can receive too many requests for assistance, information, and access to his or her capital from others

Investing in social capital also entails risk.

Developing Social CapitalPrinciples for Building and Using Social Capital

Principle 1Principle 1Principle 1Principle 1

Principle 3Principle 3Principle 3Principle 3

Principle 4Principle 4Principle 4Principle 4

Principle 2Principle 2Principle 2Principle 2

Constantly expand your network--doing so will increase its value to you and to others

Become aware of the structure and pattern of your network and identify opportunities to broker valuable connections

• Identify unique groups and contacts that you have• Develop plans to expand your network in key areas

Develop strong relationships with key members of your network but realize the importance of weaker relationships

• It is often best to develop very strong relationships with only a core group of individuals

• Develop “lighter” relationships with a very broad network--as broad ass possible

Treat your network with care• Start networking early• Develop a core group of contacts and develop deep friendships with them• Keep your network’s best interest at heart• Access your network frequently• Provide network members with valuable information, service

Firms can also be evaluated against a social lifecycle where young, entrepreneurial firms require more extensive external networks than do mature, established firms

Developing Social CapitalIdentify Your Need for Networking

Young MatureFirm Social Maturity

Type of Networks Required

External

Internal

Stage 1: Extensive External Network Required

Investors Customers Suppliers Strategic business

partners

Stage 2: Internal and External

Networks Required

Viable revenue stream

Solid financing and investor relationships

Need to evaluate opportunity for new investment

Stage 3: Network ClosureRequired, Look for Growth

Opportunities

Still need to cement external relationships

However, internal innovation and next generation service requires increased internal networking

The cycle begins again as the firm

looks for new growth

opportunities

PUCSOM: MBA Leadership

Leaders define reality and provide hope.

Ken Chenault, CEO American Express

Thank You

Any Questions or Comments