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Unit 15: HRM Effectiveness

14. HR can contribute to reengineering processes by its effect on building commitment to Notes
reengineering, team building, changing the nature of work, and ....................... .
15. HR can hire people who can work in ....................... teams sharing their skills and expertise
freely.



Case Study Emotional Intelligence

P repared for the Consortium for Research on Emotional Intelligence in Organizations,
by Cary Cherniss, Ph.D. Rutgers University.
The US Air Force used the EQ-I to select recruiters (the Air Force's frontline HR personnel)
and found that the most successful recruiters scored significantly higher in the emotional
intelligence competencies of Assertiveness, Empathy, Happiness, and Emotional Self
Awareness. The Air Force also found that by using emotional intelligence to select
recruiters, they increased their ability to predict successful recruiters by nearly three-fold.
The immediate gain was a saving of $3 million annually. These gains resulted in the
Government Accounting Office submitting a report to Congress, which led to a request
that the Secretary of Defense order all branches of the armed forces to adopt this procedure
in recruitment and selection.
(The GAO report is titled, "Military Recruiting: The Department of Defense Could Improve
Its Recruiter Selection and Incentive Systems," and it was submitted to Congress January
30, 1998. Richard Handley and Reuven Bar-On provided this information.)

Experienced partners in a multinational consulting firm were assessed on the EI
competencies plus three others. Partners who scored above the median on 9 or more of the
20 competencies delivered $1.2 million more profit from their accounts than did other
partners - a 139 percent incremental gain (Boyatzis, 1999). An analysis of more than 300
top-level executives from fifteen global companies showed that six emotional competencies
distinguished stars from the average: Influence, Team Leadership, Organizational
Awareness, self-confidence, Achievement Drive, and Leadership (Spencer, L. M., Jr., 1997).

In jobs of medium complexity (sales clerks, mechanics), a top performer is 12 times more
productive than those at the bottom and 85 percent more productive than an average
performer. In the most complex jobs (insurance salespeople, account managers), a top
performer is 127 percent more productive than an average performer (Hunter, Schmidt, &
Judiesch, 1990). Competency research in over 200 companies and organizations worldwide
suggests that about one-third of this difference is due to technical skill and cognitive
ability while two-thirds is due to emotional competence (Goleman, 1998). (In top leadership
positions, over four-fifths of the difference is due to emotional competence.)
At L'Oreal, sales agents selected on the basis of certain emotional competencies significantly
outsold salespeople selected using the company's old selection procedure. On an annual
basis, salespeople selected on the basis of emotional competence sold $91,370 more than
other salespeople did, for a net revenue increase of $2,558,360. Salespeople selected on the
basis of emotional competence also had 63% less turnover during the first year than those
selected in the typical way (Spencer & Spencer, 1993; Spencer, McClelland, & Kelner, 1997).
Contd...

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