What is an important criterion to determine success in business – Intelligence Quotient vs. Emotional Quotient? The debate of importance between IQ and EQ has been going on for quite some time. Some argue that IQ has been standardized over number of years and hence is a pretty good indicator of a person’s ability to deal with the challenges of business. On the other hand, there are people who make a case that IQ has nothing to do with the success of failure in business. It is how you deal with your own emotions and those of others that helps you succeed in business. So who is right? What is more important IQ or EQ? Let’s understand what they are and how they help a person succeed.
Intelligence Quotient (IQ)
IQ was invented in the early 20th century. Since then it has been the most common professional measure of person’s intelligence. It has been used in number of situations to determine person’ intelligence and his ability to perform certain tasks.
Due to 1971 ruling from US Supreme Court companies are barred from using IQ tests for hiring employees unless they are specifically related the job employees are required to perform. Because of which majority of companies do not administer these tests during job interview and instead resort to behavioral questions and tests. Companies can however use these tests to determine the performance of employees after they have been hired.
According to report published by Harvard Business Review IQ tests predict the performance of managers to a limited extent. They can measure someone’s vocabulary knowledge, or arithmetic and spatial skills, but many of those skills are not directly applicable to the workplace.
Emotional Intelligence (EQ)
As the name suggests emotional intelligence does not really deal with person’s intelligence as such. According to Harvard education professor Howard Gardner “Your EQ is the level of your ability to understand other people, what motivates them and how to work cooperatively with them.” Proponents of EQ argue that EQ is far more important than IQ in dealing with people in everyday lives.
Psychologist Daniel Goleman popularized the term “emotional intelligence” in the book Emotional Intelligence published in 1995. Goleman developed a five-part model of what constitutes EQ as described below.
- Self-awareness – This is the ability to recognize and identify personal emotions, moods and drives. It also includes the effect on others.
- Self-regulation- An important part of EQ is the ability to control or deflect impulses or moods that may disrupt emotions. Also included in self-regulation is the propensity to think before acting and removing extreme emotions from judgment.
- Motivation – This component involves setting clear goals and pushing toward achieving them. Having a positive attitude and forward drive is also included.
- Empathy – This category describes how people recognize the feelings of others and what they do with those feelings. Individuals with high empathy will offer corresponding responses to those they care about and love.
- Social skills – The final part of EQ involves the interpersonal skills people use on a daily basis. This includes collaboration, cooperation, conflict management, influence on others and handling change.
IQ vs. EQ in Business
According to a 2014 article published by the University of Pennsylvania’s Wharton School, almost 20 percent of companies are now measuring EQ in the hiring or promotion process. In many ways, the personality tests that are widely used by companies such as Google and Amazon are different forms of EQ tests. They are useful in determining the fit of an employee with a particular job function or other team members.
Several academic institutions are now providing programs that combine IQ and EQ. For example, Campbellsville University offer online business programs, including an online MBA with specializations such as human resource management, prepare students to achieve leadership roles in their careers.