Emotional Intelligence for Effective Inter Personal Relationships What is Emotional Intelligence : an ability or capacity to perceive, assess, and manage the emotions of one’s self, and of others. Role of Emotions: Emotions play a critical role in organizations where there is a need for people to work in groups or teams. A leader who is strong in mind and thoughtful can perceive, observe and direct the emotions of the team members through proper channels. Such a leader is said to be “emotionally intelligent”. No! It is not about intelligence quotient but emotional intelligence. Empathy is the ultimate quality expected in leaders and managers rather than being rated high in the IQ scale.The capacity to perceive, scrutinize and manage one’s own emotions and that of others is one major factor of advantage in the concept of emotional intelligence. An emotionally intelligent person can institutionalize and manage change as well as make powerful decisions. Grooming of Human Mind and Skills: Human resource management throws up a real challenge to corporate organizations, where human minds and skills have to be groomed for the purpose of transcending their performance to remarkable levels in order to satisfy the production requirements. This is possible only when an organization has a leader who can draft and amalgamate the process of relationship management and skill development without a glitch for the benefit of the organization . Transformational leadership with constructive attitude and open approach is well appreciated and accepted by the worker force. What are the distinct features of emotional intelligence? High perception Being insightful Sensitive to the needs and requirements of the employees Self-control Self-awareness Open communication Empathy Change management skills Effective decision making Ever sanguine Instrumental in developing interpersonal skills Breaks the conventional rules Aggressive and daring in his approach Socially popular and easily gain acceptance Motivation driver The rational quotient behind emotional intelligence helps people to think and act smart even during nerve-racking situations.Emotional intelligence helps people to think and act in a logical manner in stressful situations that can divert their energy into positive thinking. A leader with high emotional intelligence can work efficiently with his team members. The spirit of exuberance from the leader acts as a positive signal and takes the pressure off the employees’ mind. It is this ability to identify and understand the emotions of people working under him makes him a comrade rather than a commando. Why EI is Necessary? Emotional intelligence is necessary for top level executives at management level to stand out and succeed. An ordinary employee who does mundane job everyday is expected to be technically sound and well-trained. The same criterion can never be applied to a manager or a chief executive who is bound to manage both formal and informal teams working under the same roof. Only persons who are emotionally sound can uphold the proceedings with dynamism and verve. By motivating human personnel you can get things done in a smooth manner: Give them a fresh start to prove themselves in case if they fail at the first attempt Anger management of self/others Channelize the emotions of self/others and create positive vibes Perceive the problems from various angles to get a complete picture Understanding the root of the problem Treating work as fun Thinking out of the box – parallel thinking and creative thinking must be encouraged amongst the employee group. People with high emotional intelligence are the ones needed in business community as big corporate organizations always find it difficult to manage human resource. The management has to devise a system that takes into account the intricacies of human mind and assigning right people to handle the perplexities....

Centralization and De-Centralization Concepts CENTRALIZATION: The term “centralization” has several meanings: Centralization of Performance: Say, if the operations of a company is restricted to a single geographical location, it characterizes centralization of performance. Departmental Centralization: Specialized activities are carried out by a single department, say, maintenance of a whole plant, staff recruitment by HR department etc., Centralization as an aspect of management: This implies restricted delegation and exclusivity of decision-making by the top management. According to Allen, “Centralization is the systematic and consistent reservation of authority at central point in an organization.” According to Weihrich and Koontz, “Centralization (as an aspect of management) is the tendency to restrict delegation of decision-making. What are the special circumstances that force the managers to reserve authority and centralize decision making powers? 1.       To facilitate personal leadership 2.       To provide for integration 3.       To handle emergencies 4.       To utilize resources effectively and instantaneously. DECENTRALISATION: It is the tendency to disperse decision making authority in a structured and organized manner. It can be viewed as a philosophy rather than a principle where-in “discretion” plays a major role in deciding which decisions to push down into the organization structure and which to hold near the top. Capital expenditure, Investment analysis and major policy decisions have to be dealt with, by the top management. It is the systematic effort to delegate to the lowest levels of authority except that which can be exercised at central points. TYPES OF DECENTRALIZATION: Three approaches to the concept are: 1.       PROFIT CENTRES 2.       COST EXPENSE CENTRES 3.       INVESTMENT CENTRES Profit Centre: Here the organization is split into divisions on a “product basis” and is given full authority to handle its own scheduled operations, right from placing orders to negotiating the sale of its finished products. Cost Expense Centre: Whenever it is easy to determine the cost of operations, cost centres are established. Cost centres run on “budgets” which acts as a control tool to run the units within the specified budgetary limits. Investment Centre: Useful in the case of big multi-product enterprises where product performance is measured by decentralizing the investment aspect. Each strategic business unit is responsible for the acquisition, use and disposition of fixed resources. Advantages of Decentralization: Managers and executives are relieved form excessive work pressure Even low level employees are involved in decision making thus bringing the decision making process closer to the scene of action. It facilitates product-diversification Creates an opportunity for learning Ensures effective control When a big organization is divided into relatively smaller units, it becomes flexible and also effects close control. Disadvantages of Decentralization:  ·         Conflict arises between people belonging to different levels of the organization ·         Rising cost ·         Lack of co-ordination between production and marketing departments ·         No defined leadership Contingency Factors in Decentralizing: 1.       Organizational goals 2.       Organizational size 3.       Geographical dispersion 4.       Technical complexity of tasks 5.       Time frame of discussions and decisions 6.       Subordinates’ take on issues 7.       Planning and control procedures 8.       Environmental factors 9.       Knowledge and experience of managers Effective Decentralization can be accomplished by ·         Establishing appropriate centralization ·         Developing efficient managers ·         Proper provision for communication and co-ordination ·         Establishing adequate controls Top management must be willing to delegate authority towards decision making; Middle management must be willing to accept responsibility that is being delegated. Only then effective decentralization is...