The MBA guide to Emotional Intelligence and Social Networking

1. The MBA guidetoEmotional IntelligenceandSocial Networking Edited by Bud Labitan, MD, MBA and Tim Milan, MBA

2. 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.

3. 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)

4. 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.

5. 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.

6. 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 )

7. 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

8. 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.

10. Your E.I. “value-enhanced skills” may help in future Bargaining or Negotiations Zone of Agreement Seller’s SurplusBuyer’s Surplus S X B $ Seller’s RPBuyer’s RP Final Contract Price

11. 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.

12. The Self Talk Cycle SELF-TALK - Positive - Negative BEHAVIOUR SELF-REGARD ANTICIPATION OF THE FUTURE - Optimistic - Pessimistic

13. 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

14. Social CognitionPersuasive 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.

15. 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.

16. Social Interaction • Affiliation • Reading Nonverbal Behaviour. • Self Presentation (Impression Management) • Influence of Others • Helping or Hurting Others • Liking and Loving Others

17. 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).

18. Cialdini’s 6 Principles of Influence • Reciprocation • Consistency • Social Proof • Liking • Authority • Scarcity

19. 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.

20. 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)

21. 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.

22. 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.

23. Many to OneSocial Impact Theory • More forces, more total impact but each individual force has less influence. • Distance diminishes influence of source.

24. Social Impact Theory Blah, blah, blah. More targets, less influence on each one: diffusion of social impact.

25. 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.

26. Many-To-OneEffect on Behaviour • Social Loafing • May 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.

27. Many-To-OneEffect on Behaviour • Bystander Apathy • Bystander 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

28. 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

29. 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.

30. 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

31. 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

32. What isEmotional Intelligence? • Factors that are related to success in life • Helps us understand why some people do well in life while others fail • Distinct from IQ (Cognitive Intelligence)

33. What Emotional Intelligence Is Not • Cognitive Intelligence (IQ) • Aptitude • Achievement • Vocational Interest • Personality • Static - Results can change over time

34. EQ and Age

35. Problem Solving Ability to identify & define problems, and to generate & implement solutions: • Defining problem • Confident & motivated to tackle it • Multiple solutions • Decision to implement • Conscientious, disciplined, methodical, systematic & persistent in solving problems

36. 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

37. 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

38. 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.

39. There are many types of social networks at both the organization and personal level, ranging from family relationships to hobby groups Filial, Social, Religious Education Work-Related Geography-Related Political Interest Related • Personal / family contacts • Church contacts • Other social contacts (e.g., friends) • Classmates • Teachers / professors • Mentors / protégés • Bosses / subordinates • Clients, suppliers, other business contacts • Relationships with other workers • Neighbors • Town members • E.g., local govmnt, community involvement relationships • Political party / support group contacts • E.g., Lexington town council members • Personal relationships with people who share your interests • E.g., golf club buddies Personal Level • Relationships between families, social groups, churches • Relationships between schools, universities, research groups • Relationships between firms / organizations • Customers • Suppliers • Alliance partners • Financiers • Alumni • Auditors • Industry groups • Relationships between neighborhoods, towns, cities, etc. • Relationships between political bodies • Relationships between interest groups Group Level

40. However, the 4 main theories of social capital generally agree on 3 categories of benefits of developing and using social capital Benefits Example • 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 • A corporation is able to influence a supplier’s decision not to merge with another supplier Influence and Control • 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 • An individual is able to find out about unique job opportunities through a friend Information Trust and Solidarity • Trust is beneficial to enhancing increased group interaction and can facilitate certain types of information and knowledge flow within an organization • A corporation is able to influence a supplier’s decision not to merge with another supplier

41. The Virtuous Cycle of Social Capital Like many other forms of capital, and perhaps to a greater degree, social capital creates a self-reinforcing virtuous cycle Influence and Control • 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 SocialCapital Information Trust and Solidarity • Increased information leads to increased trust and solidarity • Increased trust and solidarity leads to increased information

42. Investing in social capital also entails risk. Cost / Inefficiencies • 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 Exclusivism / Cliqueism Excessive Claims • An individual with strong social capital can receive too many requests for assistance, information, and access to his or her capital from others

43. Developing Social CapitalPrinciples for Building and Using Social Capital Principle 1 • 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 Principle 2 • 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 Principle 3 • 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 Principle 4 Constantly expand your network--doing so will increase its value to you and to others

44. Developing Social CapitalIdentify Your Need for Networking Internal Stage 2: Internal and External Networks Required • Still need to cement external relationships • However, internal innovation and next generation service requires increased internal networking Type of Networks Required Stage 3: Network ClosureRequired, Look for GrowthOpportunities Stage 1: Extensive External Network Required • Viable revenue stream • Solid financing and investor relationships • Need to evaluate opportunity for new investment • Investors • Customers • Suppliers • Strategic business partners External Young Mature Firm Social Maturity Firms can also be evaluated against a social lifecycle where young, entrepreneurial firms require more extensive external networks than do mature, established firms The cycle begins again as the firm looks for new growth opportunities

45. PUCSOM: MBA Leadership Leaders define reality and provide hope. Ken Chenault, CEO American Express

46. Any Questions or Comments Thank You