PART – 1

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COMPANY PROFILE

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Apollo Hospitals Overview:

It is often said that nothing happens, unless there is a dream

first. At the genesis of the Apollo story there was a dream. A dream
so powerful, that it helped transform the medical landscape in
India.
The dream nurtured and grew within Dr. Prathap C Reddy,
the founder Chairman of Apollo Hospitals, until the point of
inflection happened in 1983. A young man succumbing to an ailing
heart was what it took to ignite Dr. Reddy's vision into a reality - a
vision where quality healthcare was given, where the pursuit of
clinical excellence was daily endeavor, India a hub in the medical
tourism map and where the Apollo family touches and enriches
lives every minute, every day.
Apollo Hospitals started as a 150 bed hospital in Chennai in
1983, amidst much skepticism. India in the early 80's was not the
easiest place for private enterprise. Moreover private healthcare
institutions were unknown and they were not doing cutting edge
work. Presently, after 25 years it is an amazing story of success,
achievement and most importantly, dreams realized.
As Apollo Hospitals has made colossal strides to reach
where it is, more and more facets of the founding vision have
turned to reality. Today Apollo Hospitals is not just one of the
country's premier healthcare providers but has also played a
pioneering role in helping India become a center-of-excellence in
global healthcare.

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 The Apollo Hospitals group today includes over 7500 beds
across 43 hospitals in India and overseas, neighborhood diagnostic
clinics, an extensive chain of Apollo Pharmacies, medical BPO and
health insurance services and clinical research divisions that are
working on the cutting edge of medical science.
However the largest achievement of the Apollo Group has
been to take quality healthcare to across the length and breadth of
India. Of touching 10 million lives and giving hope to an entire
segment of the Indian population who did not have an option
beyond limited medical infrastructure.
Apollo has succeeded in being more than just a quality
healthcare provider. It has been a major player in scripting the
medical landscape of the nation. This is primarily because the
group has continuously been at the helm of several game-changing
innovations in Indian healthcare.
By the start of the new millennium, Apollo Hospitals Group
had become an integrated healthcare organization with owned and
managed hospitals, diagnostic clinics, dispensing pharmacies and
consultancy services. In addition, the group's service offerings
include healthcare at the patient's doorstep, clinical & diagnostic
services, medical business process outsourcing, third party
administration services and heath insurance. To enhance
performance and service to customers, the company also makes
available the services to support the business of healthcare;
telemedicine services, education and training programmes &
research services and a host of not- for- profit projects.

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Across the healthcare spectrum

Apollo Hospitals

Apollo Hospitals Enterprise Limited has over 7500 beds

across 43 hospitals in India, rest of Asia and Africa. The hospitals
are multi specialty tertiary care facilities with centre-of-excellence
in medical disciplines including cardiology, cardio-thoracic
surgery, gastroenterology, orthopedics & joint replacement
surgery, neurology, critical care medicine, nephrology, oncology,
hand & micro surgery and reproductive medicine.

Apollo Global Projects Consultancy

Apollo offers project and operations management

consultancy services with the support of operational and functional
specialists. The pre & post commissioning consultancy services
include feasibility studies, strategic planning, infrastructure
consultation, human resource recruitment, training and medical
equipment consultancy, management contracts, establishment of
medical and administrative protocols etc.

Apollo Health and Lifestyle Limited (AHLL)

Apollo Health and Lifestyle Limited, has established over

100 Apollo Clinics across the country, is an integrated model and
offers facilities for specialist consultations, diagnostics, preventive
health checks and 24-hour Pharmacy, all under one roof.

Through Apollo Health and Lifestyle Limited, a wholly

owned subsidiary of Apollo Hospitals Enterprise Ltd - the flagship
parent company, the Apollo Hospitals Group is establishing a large
network of The Apollo Clinics across the country. As a part of the
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group's objective to expand its operations overseas, a number of
similar clinics are being set up in neighboring countries as well.

In its bid to bring world-class primary healthcare services to

the Indian sub-continent, the company is ably guided by Mr. Ratan
Jalan, as Chief Executive Officer. With more than two decades of
experience in varied areas like information technology, advertising
and healthcare, Mr. Jalan has put together a young team of some of
the brightest professionals from different backgrounds such as
franchising, retailing, logistics and project management.

The Apollo Clinic has been conceived with the sole aim of
bringing quality healthcare to more people and in more regions
than has ever been attempted before. The Apollo Clinic business
model is expected to reach system wide revenue of more than Rs 6
billion by 2006.

APOLLO CLINICS

Apollo Hospitals introduced the concept of The Apollo

Clinic to ensure that quality healthcare is available to more people
and in more regions than has ever been attempted before. Through
its subsidiary - Apollo Health and Lifestyle Limited - the Group
has embarked on a strategic initiative to establish a network of 250
Apollo Clinics in India and overseas.

On the 26th of April 2002, the very first of The Apollo

Clinic was inaugurated at Janakpuri, New Delhi.

Today, there are almost 50 Apollo Clinics already

operational in cities like Agra, Ahmedabad, Allahabad, Bangalore,
Bhopal, Chandigarh, Chennai, Delhi, Ghaziabad, Guwahati,

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Gurgaon, Howrah, Jaipur, Jamshedpur, Kolkata, Ludhiana and
Siliguri. Almost 80 franchise in different parts of India and
overseas have already been awarded.

The Concept behind the Apollo Clinic

The Apollo Clinic has been set up with the objective of

addressing the day-to-day healthcare needs of a typical family, by
providing them with a range of superior quality healthcare services
- under one roof and at affordable prices.

This includes consultation with specialists and super-

specialists, comprehensive diagnostic services, dentistry
procedures, a range of Preventive Health Check packages,
telemedicine and a 24-hour pharmacy.

Design and Ambience

By its very design, The Apollo Clinic creates an ideal

experience for a patient. The following are some of the features
that ensure a unique experience an Apollo Clinic:

 Right architectural inputs ensure a warm and reassuring

ambience

 Impeccable hygiene

 World-class facilities

 The convenience of having all services under one roof

 Caring medical specialists

 High investment in training of personnel, at various levels,

to deliver superior customer service
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  Range of Services

Specialist Consultation

The Apollo Clinic offers consultation with some of the finest

doctors from almost all areas of medical specializations, which
include:

1. Cardiology

2. Dermatology

3. Diet Counseling

4. Gynecology/Obstetrics

5. Orthopedics

6. Pediatrics

7. Pulmonology

Diagnostics Services

Customers can avail of a comprehensive range of diagnostic

services that include all kinds of laboratory tests, radiology and
imaging (X-ray, Ultrasound) as well as specialized diagnostics
such as ECHO, ECG, TMT and PFT. Facilities for a range of
dentistry procedures are also available. The use of state-of-the-art
equipment ensures accurate test results and, therefore, the correct
diagnosis and treatment.

Additionally, telemedicine services available within the

Clinics allow patients to connect to and seek opinions from an

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expert panel of doctors from Apollo Hospitals. Significant
investment in information technology and a customized Clinic
Management Software Solution developed by Wipro Healthcare IT
Limited ensure seamless operations and added convenience for the
customer.

In a nutshell, The Apollo Clinic vision epitomizes

commitment to deliver quality healthcare with a human touch, at a
price that is affordable.

CORPORATE TIE UP

The Apollo clinic and the AHLL have tie up with the various
companies .The clinic has approached some companies which have
tie up already with AHLL and also a few more other companies the
details are as shown below.

COMPANIES WHICH HAVE TIE UP WITH THE APPOLO

CLINIC

1. Wipro 2.TCS
3. HCL 4. Samsung
5. APC 6. Schneider electric
7. HP 8. 3M
9. RS electronic 10.Xsysys
11.Woodstock Ambience 12.PMC sierra

COMPANIES WHICH HAVE TIE UP WITH THE AHLL

1. MOTOROLA ABB

2. CITI BANK APC

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 3. GE CENTURION

5. HSBC DELL

6. PHILLIPS ERICSON

7. AMERICAN EXPRESS GMR

8. COKE HCL

9. GLAXO HP

10. RELIANCE IIM-B

11. TATA JII

19. BHARATHI L&T

20. HUL RBI

PIE CHART SHOWING APOLLO GROUPS TIE UP WITH

CORPORATES

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 TIEUP

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TIE UP WITH CLINIC

TIE UP WITH AHLL
COMMON TIE UP

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Apollo Pharmacy

Apollo Pharmacy is India's first and largest branded

pharmacy network; with over 750 retail outlets in key locations
across the country. The group adds one pharmacy every 23 hours.

Apollo Hospitals Education and Research Foundation

(AHERF)

AHERF was set up to establish, maintain and support

educational institutions in promoting medical, paramedical and
hospital management courses. The Institute offers over 18 post
graduate teaching programmes, including ones certified by the
Royal College of Edinburgh. Med Varsity Online Limited is
backed by two giants; Apollo in medicine and NIIT Limited in the
field of electronic-education. Med Varsity has developed in-house,
over 1500 hours of medical content that is accessible to the medical
community, anytime and anywhere. The research division currently
undertakes diverse projects from clinical trials in multiple locations

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to molecular biology, stem cell transplants, epidemiological
studies, and in the future identification of genetic Biomarkers.

Apollo Telemedicine Networking Foundation

In 1999, Apollo launched its first model Telemedicine Unit

at Aragonda village in the Chittoor district. Since then, Apollo has
witnessed a steady growth in terms of delivering quality healthcare
and reaching out to the masses. Telemedicine is a potent means of
harnessing telecommunication technology to deliver healthcare and
education to patients in regions that are geographically less
accessible. It also saves time and the cost of travel to access quality
care. Apollo has pioneered the concept of telemedicine in India and
Asia, and has over 100 telemedicine centers in India and overseas.

Apollo Insurance Company Limited

Apollo DKV is a joint venture of the Apollo Hospitals

Group and DKV AG, Europe's largest private health insurer and a
Munich Re Group company. The company offers innovative health
insurance, wellness solutions and disease management to meet
customer needs.

INSURANCE COMPANIES HAVING TIE-UP WITH

APOLLO GROUPS

1. HDFC

2. AVIVA
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 3. ICICI PRUDENTIAL

4. BIRLA SUN LIFE INSURANCE

5. TTK EALTH CARE SERVICES

6. LIFE KONNECT

7. MEDI ASSIST

8. UNITED HEALTHCARE

9. DLF

Apollo Wellness Plus

Apollo Hospitals launched the first Wellness Centre at

Apollo Hospitals Chennai in Feb 2005. Wellness Plus is the perfect
blend of modern and complementary medicine like aromatherapy,
yoga, and meditation that fits the modern lifestyle.

Apollo Reach Hospitals

An endeavor to bring world class healthcare to semi urban

and rural India - every Apollo Reach Hospitals will be a specialty
hospital, designed to complement existing private and public
healthcare facilities in the proposed towns and villages.
Construction of hospitals, procurement of land and identification of
cities are underway to set up the first phase of 25 Apollo Reach
Hospitals over the next two years across India. With initial bed
strength of 100 - 150 beds, each Apollo Reach Hospital can be
ramped up to a 200 bedded specialty hospital.

Medical Milestones of the Apollo Hospitals Group

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 Employs over 4000 specialists and super-specialists and 3000
medical officers spanning over55 clinical departments in patient
care

 Achieved a 99.6% success rate in cardiac bypass surgeries, over

91% of these were beating heart surgeries

 Conducted over 100,000 cardiac surgeries - one of only 10

hospitals in the world to achieve these volumes

 First Indian hospital group to introduce new techniques in

Coronary Angioplasty, Stereotactic Radiotherapy and Radio
surgery

 Performed over 7,50,000 major surgeries and over 10,00,000

minor surgical procedures with exceptional clinical outcomes

 Pioneered orthopedic procedures like hip and knee

replacements, the Illizarov procedure and the Birmingham hip
re-surfacing technique

 First hospital group to bring the 320 Slice CT- Angio scan
system and the 64 Slice CT-Angio scan system to India

 First hospital group in South-East Asia to introduce the 16 Slice

PET-CT Scan

 First to perform liver, multi-organ and cord blood transplants in

India

 Equipped with the largest and most sophisticated sleep

laboratory in the world

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 Introduced the most advanced Cyber Knife® Robotic Radio
Surgery System in Asia Pacific, the world’s first and only
robotic radio surgery system designed to treat tumors anywhere
in the body with sub-millimeter accuracy.

Apollo Pharmacy is a part of Apollo Hospitals - Asia's largest

healthcare group.

Apollo Hospitals Group

With over 7,500 beds in 35 hospitals, a string of nursing and

hospital management colleges, and dual lifeline services, viz.
pharmacies and diagnostic clinics, Apollo provides a network of
healthcare assurance across Asia. Apollo Hospitals is a healthcare
powerhouse you can trust with your life.

Apollo Pharmacy

The first Apollo pharmacy opened in Chennai in 1983. Since

then, the pharmacy has served over one corer customers throughout
their pharmacy chain. Their retailing experience, customer-focused
service and brand values make them the preferred partner for their
medical|\health needs.

They provide a wide range of pharmacy, surgical,

disposables, anti-cancer, life saving and general healthcare
products and nutritional supplements.

Their priority is to stock an entire range of pharmaceutical

and medical products, and delivering them efficiently to our
customers. Their back up facility helps them serve our customers
with critical medicines. The vast pharmacy network enables them

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to provide medicine support to our customers even when they are
on move for their treatments.

Apollo Pharmacy’s Customers

Their customers include a large number of individual

consumers besides leading hospitals and clinics, corporate houses
and Government bodies across the country. Apollo Pharmacy is
currently operating in 17 states including Andaman & Nicobar and
is expanding to serve customers in more locations in the country.
Apollo Pharmacy has tied up with ITC E-choupals (Choupal Sagar)
and Godrej Aadhaar to provide quality medicines to rural India.
Apollo Pharmacies also cater to the needs of consumers residing
overseas.

Highlights of Apollo Pharmacy

 The largest pharmacy chain - over 300 outlets across India,

open 24 hours.

 Genuine medicines from leading manufacturers.

 Wide range of pharmacy, surgical & disposables, anti-cancer,

life saving and general healthcare products.

 Innovation in Pharmacy services like personalized pharmacy-

refilling services.

 Free health insurance on purchase at any Apollo Pharmacy*.

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 We comply with the rules described by Drugs & Cosmetics Act
of 1948.

 Outlets manned by qualified and trained pharmacist.

 The controlled temperature helps in maintaining quality of

medicines and their efficacy on consumption.

 Computerized billing discloses the expiry date and batch

numbers of medicines.

Quality

Quality is the cornerstone of our existence. Their experience in

pharmacy operations management over the last 2 decades and are
committed to delivering best service in the industry. At Apollo
Pharmacy, they believe in adhering to the highest quality standards,
while serving their consumers.

 Genuine medicines

They assure delivery of only genuine medicines to their

customers.

 24-hour customer support

Apollo Pharmacy caters to a large consumer base, through its

24-hour pharmacy services.

 Refilling of prescriptions

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 For patients who consume medicines on regular basis can avail
prescription refilling service on request.

 Well stocked Pharmacy

They cater to an entire category of products in pharmacy,

surgical, disposables, anti-cancer, life saving and general
healthcare products.

 Manned by competent staff

Knowledgeable pharmacists staff our outlets round the clock.

 Computerized system

The entire supply chain mechanism is computerized; hence

redundancies are managed effectively. The system also
discloses expiry date and batch numbers for medicines.

 Cold chain maintenance

Drugs are stocked according to prescribed temperature

standards, thereby retaining their quality and effectiveness on
consumption.

 Protocols

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 Rules and regulations prescribed by the Drugs & Cosmetics Act
of 1948 for Pharmacy Management is strictly followed by
Apollo Pharmacy

 International quality certification

Apollo Pharmacy is JCI accredited

PHARMACY LOCATOR

Apollo Pharmacy is the largest retail pharmacy chain in

India. They have over 740 Plus outlets across India, in 17 states
including Andaman & Nicobar Islands. Our 24-hour pharmacy
chain offers a variety of retail formats to suit customer
requirements.

To find an Apollo Pharmacy near you, choose the region and city
therein.

VALUE ADDED SERVICES

They believe in offering its customers unparalleled retail

experience. To enhance their customer's experience Apollo
Pharmacy has introduced schemes like free health insurance, free
delivery of prescriptions, round-the-clock service and more.

(1). 24-hour service

Apollo Pharmacy is geared up to cater to the Medication

needs of our customers round the clock. Our 24-hour pharmacies

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dispense service benefits to our customers when it is most needed.

(2). Friendly pharmacist

Every Apollo Pharmacy outlet is manned by their own

competent pharmacist, who's always there to help customers with
their medication needs.

(3). Free Reminder Service

Friendly reminder call facility about the medication is also

available on basis of patient request.

(4). Helpline services

For any queries related to your medication, please call our

helpline service numbers in any location across the country.

(5). Free health camps

Periodic free health camps are also available at their network

Apollo Pharmacy.

(6). Free Health Insurance

Free Health Insurance of Rs.20, 000/-, once your purchases

cross Rs.6, 000/- a year.

(7). Health newsletters

Free Health Newsletters for patients.

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Industry Profile

Health care industry trends manifest an upward growth

but several areas need to be attended to for enhancing health care
services for the common man.

Different countries like Indonesia, Russia, Mexico, Brazil,

India, Turkey and China comprise approximately 1/5th of the
worldwide health care sales. Health care industry trends also
suggest that the medical related conditions in the developing
countries which are chronic in nature will be similar to the ones
existing in the developed countries. In order to meet international
standards, the existing health care industry is required to alter the
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mode of operation for generation of higher revenue and greater
contribution to the Gross Domestic Product of the country.

Facts about the health care industry trends:

 The cost related to health care was seen to rise in the recent
past.
 It has been anticipated that the elderly & sick people will
impose considerable stress on the health care sector.
 The total number of different health care programs and different
health care insurance coverage’s are likely to increase in the
coming years. There has been an escalation in the medical plans
from 42.5 million in the year 2006. The health care industry
trends also show that it is likely to attain 70.2 million in the year
2025.
 The health care industry trends also indicate that the expenses
for preventive measures is negligible as compared to the amount
spent on treating chronic diseases which accounts for 70% of
the fund used for health care.

Health care industry trends suggest changes in the following

spheres:

 The companies manufacturing medicines provide health care

plans
 More stress is to be laid on prevention than treatments

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 Sufficient supply of the essential health care products should be
made available to the consumers to meet the demand of the
health care industry.
 Health care industry trends manifest an upward growth but
several areas need to be attended for enhancing health care
services for the common man.

Pharmaceutical Industry in India

Pharmaceutical Industry in India is one of the largest and

most advanced among the developing countries. It provides
employment to millions and ensures that essential drugs at
affordable prices are available to the vast population of India.
Indian Pharmaceutical Industry has attained wide ranging
capabilities in the complex field of drug manufacture and
technology. From simple pain killers to sophisticated antibiotics
and complex cardiac compounds, almost every type of drug is now
made indigenously.

Indian Parma Industry is playing a key role in promoting and

sustaining development in the vital field of medicines. Around
70% of the country's demand for bulk drugs, drug intermediates,
pharmaceutical formulations, chemicals, tablets, capsules, orals
and vaccines is met by Indian pharmaceutical industry. A number
of Indian pharmaceutical companies adhere to highest quality
standards and are approved by regulatory authorities in USA &
UK.

Indian Pharmaceutical sector is highly fragmented with more

than 20,000 registered units and is very top heavy. The leading 250
pharmaceutical companies control 70% of the market with market
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leader holding nearly 7% of the market share. There are also Five
Central Public Sector Units that manufacture drugs. These units
produce complete range of pharmaceuticals, which include
medicines ready for consumption by patients and about 350 bulk
drugs, i.e., chemicals having therapeutic value and used for
production of pharmaceutical formulations. India is largely self-
sufficient in case of formulations. More than 85% of the
formulations produced in the country are sold in the domestic
market. Some life saving, new generation under-patent
formulations are imported, by MNCs, which they market in India.
Over 60% of India's bulk drug production is exported. The balance
is sold locally to other formulators.

Pharmaceutical Industry in India has been de-licensed and

industrial licensing for most of the drugs and pharmaceutical
products has been done away with. Manufacturers are now free to
produce any drug duly approved by the Drug Control Authority.
Indian pharmaceutical industry got a major boost with the signing
of General Agreement on Tariffs and Trade in January 2005 with
which India began recognizing global patents. After recognizing
the global patent regime the Indian Parma market became a sought
after destination for foreign players.

India holds the lion's share of the world's contract research

business as activity in the Pharmacy market continues to explode in
this region. Over 15 prominent contract research organizations
(CROs) are now operating in India attracted by her ability to offer
efficient R&D on a low-cost basis. Thirty five per cent of business
is in the field of new drug discovery and the rest 65 per cent of
business is in the clinical trials arena. India offers a huge cost
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advantage in the clinical trials domain compared to Western
countries. The cost of hiring a chemist in India is one-fifth of the
cost of hiring a chemist in the West.

The future of Indian pharmaceutical sector looks extremely

positive. Indian Pharma companies are vying for the branded
generic drug space to register their global presence. Several Indian
pharmaceutical companies have acquired companies in the US and
Europe and many others are raising funds to do so. For example,
Ranbaxy acquired Romania's Terapia, Ethimed NV of Belgium and
GSK's generic business Allen SpA in Italy. Dr Reddy's acquired
German generic drug maker Betapharm. Companies like Glenmark
Pharma, Lupin, Aurobindo and Jubilant Organosys are on the
lookout for lucrative acquisitions

The Indian pharmaceutical industry currently tops the

chart amongst India's science-based industries with wide ranging
capabilities in the complex field of drug manufacture and
technology. A highly organized sector, the Indian pharmaceutical
industry is estimated to be worth $ 4.5 billion, growing at about
Eight to Nine percent annually. It ranks very high amongst all the
third world countries, in terms of technology, quality and the vast
range of medicines that are manufactured. It ranges from simple
headache pills to sophisticated antibiotics and complex cardiac
compounds; almost every type of medicine is now made in the
Indian pharmaceutical industry.

The Indian pharmaceutical sector is highly fragmented with

more than 20,000 registered units. It has expanded drastically in
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the last two decades. The Pharmaceutical and Chemical industry
in India is an extremely fragmented market with severe price
competition and government price control. The Pharmaceutical
industry in India meets around 70% of the country's demand for
bulk drugs, drug intermediates, pharmaceutical formulations,
chemicals, tablets, capsules, orals and injectibles. There are
approximately 250 large units and about 8000 Small Scale Units,
which form the core of the pharmaceutical industry in India
(including 5 Central Public Sector Units).

ADVANTAGES IN INDIA

 Competent workforce: India possesses a skillful work force

with high managerial and technical competence.

 Cost-effective chemical synthesis: The track record for

development, particularly in the area of improved cost-
beneficial chemical synthesis for various drug molecules is
excellent.

 Legal & Financial Framework: India is a democratic country

with a solid legal framework and strong financial markets.
There is already an established international industry and
business community.

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 Information & Technology: It has a good network of world-
class educational institutions and established strengths in
Information Technology.

 Globalization: The country is committed to a free market

economy and globalization. Above all, it has a 70 million
middle class market, which is constantly growing.

 Consolidation: After many years, the international

pharmaceutical industry has discovered great opportunities in
India. The process of consolidation, which has become a
popular phenomenon in the world pharmaceutical industry, has
started taking place in the Indian pharmaceutical industry as
well. The Indian pharmaceutical industry which is worth US
$ 3.1 billion is growing at the rate of 14 percent per annum

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 PART- 2
PROJECT OVERVIEW

2.1 Introduction:

Modern technology and globalization has led the human race

into a zooming life where the risks involved are high. Most people
in organizations today undergo motions of crumbling trust, jarring
uncertainly, stifled creativity, fear of insecurity. Increased
competition and fast pace life has created a loop hole in our life.

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 Many people in organization have told that they do not
think it appropriate to ‘bring’ their feelings to work- just think
about this comment. Can anyone not bring their feelings to work?

The time has come for Managers in organization to

recognize that the emotional channel is one that remains untapped
when we appeal solely to the rational and logical functions of the
brain. How, for instance , do anybody encourage someone to
change to take on a new procedure or a new way of working or a
new colleague, if one cannot fully understand the emotional impact
of change on people? How can they choose appropriate actions
until they have read the emotional undertones of a particular
situation? Where Emotional intelligence call for recognizing and
understanding of these issues in the organizations because
emotions are contagious, and a single person can influence the
emotional tone of a group by modeling. It calls upon the employees
to increase their emotional self-awareness, emotional expression,
creativity, increase tolerance, increase trust and integrity, improve
relations within and across the organization and thereby increase
the performance of each employee and the organization as a whole.

Emotion:

The word ‘Emotion’ is derived from Latin word “émovere”

which means the ‘spirit that moves’ an individual. Emotions refer
to a feeling state (including physiological responses and cognition)
that conveys information about relationships. According to Stephen
P. Robbins Emotions are intense feelings that are directed towards
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someone or something, and are considered to be critical factors in
employee’s behavior.

Intelligence:

Intelligence refers to the capacity to reason validly about the

information. David Wechsler define Intelligence as the aggregate
or global capacity of an individual to act purposefully, to think
rationally, and to deal with his environment

According to the Webster’s dictionary ” intelligence” is the

ability to learn or understand from experience, mental ability,
ability to respond successfully to a new situation, any degree of
cleverness, shrewdness etc.

What is Emotional Intelligence?

Emotional Intelligence (EI), often measured as an Emotional

intelligence Quotient (EQ), is a term that describes the ability,
capacity, skill, a self perceived ability, to identify, assess, and
manage the emotions of one’s self, of others, and of groups. At the
most, general level of Emotional Intelligence refers to the ability
to recognize and regulate emotions in ourselves and others, Peter
Salovey and John Mayer, who originally used the term “Emotional
Intelligence” in published writing, initially defined Emotional
Intelligence as “A form of Intelligence that involves the ability to
monitor one’s own and others’ feelings and emotions, to
discriminate among them and to use this information to guide one’s
thinking and actions”(Peter Salovey & john Mayer 1990)

Later they revised this definition as

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 “The ability to perceive the emotion, integrate emotion to
facilitate thought, understand emotions, and to regulate emotions to
promote personal growth” (Peter Salovey & john Mayer 1997)

Daniel Goleman, pioneer in the study of EI, pointed out that

“Emotional Intelligence refers to the capacity for

recognizing our own feelings and those of others, for motivating
ourselves, and for managing emotions well in ourselves and in our
relationships” (Goleman, 1999; Kemper, 1999).

Emotional Intelligence:

Emotional Intelligence is considered as a mental ability that

involves the ability to reason validly with the emotional
information, and the actions of emotions to enhance thought.
Emotional Intelligence is a form of social intelligence that involves
the ability to monitor one’s own and other’s feelings and emotions,
to discriminate among them, and to use this information to guide
one’s thinking and action. It includes the ability to accurately
perceive emotions, to access and generate emotions so as to assist
thought, to understand emotions and emotional knowledge, and to
reflectively regulate emotions so as to promote emotional and
intellectual growth. Emotional intelligence refers to an ability to
recognize the meanings of emotion and their relationships and to
reason and problem-solve on the basis of them. It is involved in the
capacity to perceive emotions, assimilate emotion-related feelings,
understand the information of those emotions, and manage them.
Emotional intelligence is a part of human personality, and
personality provides the context in which emotional intelligence
operates. Generally speaking, emotional intelligence improves an
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individual's psychosocial adjustment with effective group living.
The higher emotional intelligence indicates a better social and
group living.

Emotional Intelligence is a master aptitude, a capacity that

profoundly affects all other abilities, either facilitating or
interfering with them (Daniel Goleman).

Emotional Intelligence improves individual and

organizational performance. It plays a significant role in the kind of
work an employee produces, and the relationship he or she enjoys
in the organization (Goleman, 1997; Cooper& Sawaf, 1997). Every
employee shares a variety of social relations in his or her
organizations. Co- workers, supervisors, subordinates, suppliers,
customers, clients and other stakeholders constitute the social
relation spectrum of an organization. It is sad but true in
organizations today employees need someone who understands
them. Today employees are feeling the heat of the fast paced
corporate life is becoming increasingly mechanistic and they need
someone to understand them and their expectations from the
organization.

Psychological Dimensions of Emotional intelligence:

An emotionally balanced worker is more required for modern
industrial organizations to be competitive and target oriented that
on par with the requirement of the market economy especially in
tough times. Emotionally balanced workers have the attributes of
emotional intelligence, which includes self-awareness, self-
confidence, transparency, adaptability, optimism, empathy,
inspirational leadership and conflict management, mark the
32
employees who excel. This indicates that the emotional intelligence
rest on the pillars of competency, maturity and Sensitivity

1. Emotional Competency: This indicates one's ability and

capacity to effectively respond to emotional stimuli elicited
by various situations, having high self-esteem and optimism
etc.

2. Emotional Maturity: This refers to one’s ability and

capacity to effectively evaluate emotions of self and others,
balancing state of heart and mind, adaptability and flexibility
etc.

3. Emotional Sensitivity: This indicates one's ability and

capacity to effectively understanding intensity of emotional
arousal, managing the immediate environment etc.

Components of Emotional Intelligence at Work:

Emotional intelligence describes the abilities that are distinct

from academic intelligence but are also complementary to them:
The main components of emotional intelligence are as follows:

(a) Self-Awareness: Self awareness is the first component of

emotional intelligence. Self awareness having a deep
understanding of one’s emotions. Strengths, weakness, needs and
drives.

33
(b) Self- Regulation: Self- regulation, which is like an ongoing
inner conversation, is the component of emotional intelligence that
frees one from being prisoners of their feelings. People engaged in
such a conversation feel bad moods and emotional impulses just as
everyone else does, but they find ways to regulate and manage
even their negative emotions.

(c) Motivation: Be able to channel emotions to achieve a

particular goal or objective, be ready to postpone immediate
gratification, preparing yourself systematically to be productive in
even your simple tasks and activities to achieve your higher goals,
to persist amidst frustration and generate initiative without external
pressure

(d) Empathy: Empathy measures the ability to take an interest in

people and to actively listen to their views, problems and concerns.
They take a close interest in those they work with and their
customers. They understand the importance of involving people to
get their commitment.

(e) Social Skill: The first three components of emotional

intelligence are all self management skills. The last two, empathy
and social skill, concerns a person’s ability to manage relationships
with others. Social skills involve the ability to build relationships
and communicate effectively with others, hey lead groups and
teams well and enjoy social situations.

Importance of Emotional Intelligence at Work

Emotional intelligence is a set competency, which direct and

control one's feelings towards work and performance at work. The
set of competencies is the ability of the individual being to control
34
and manage his or her moods and impulses, which contribute to
best of situational outcomes. Understanding one's own moods and
impulses of others or any situation helps one to respond and behave
accordance with expectations. In a work situation workers effective
use of skill and knowledge in time depends on the effective
regulation of emotions at work and his readiness to contribute to
best in their target accomplishment. Knowing one's emotions and
feelings as they occur, and tuning one-self to the changed situation,
requires the emotional competency, emotional maturity and
emotional sensitivity that determine the success of adaptability and
adjustment with the changed scenario. In a work situation, since it
involves group of people with different ideas, suggestions, and
opinions, effective conglomeration of all these determine the best
outcome. Here the emotional intelligence plays a significant role at
work. We can ask many questions in this context. Why do some
people more involved in their work? Why do some people always
create problems to the management and organization? Why some
people show their personality structure that in tune with the
organizational expectation. Why some people show their self-
interest more than organizational interest. In many cases the
answer to the questions lies on emotional intelligence than
organizational factors.

SELF EFFICACY (SE):

Of all the thoughts that affect human functioning, and

standing at the very core of social cognitive theory, is self-efficacy.
It beliefs,

35
"People's judgments of their capabilities to organize and execute
courses of action required attaining designated types of
performances”.

Self-efficacy beliefs provide the foundation for human

motivation, well-being, and personal accomplishment. This is
because unless people believe that their actions can produce the
outcomes they desire, they have little incentive to act or to
persevere in the face of difficulties. Much empirical evidence now
supports Bandura's contention that self-efficacy beliefs touch
virtually every aspect of people's lives - whether they think
productively, self-debilitating, pessimistically or optimistically;
how well they motivate themselves and persevere in the face of
adversities; their vulnerability to stress and depression, and the life
choices they make. Self-efficacy is also a critical determinant of
self-regulation. For example a person with high self-efficacy may
engage in more health related activity when an illness occurs,
whereas a person with low self-efficacy would harbor the feelings
of hopelessness. Self-efficacy differs from self-concept in the
sense; it is a context specific assessment of one’s competencies to
perform a specific task or range of tasks in a given domain. It is an
individual’s judgment of his or her capabilities to perform given
actions. Self-concept is a cognitive appraisal across various
dimensions that individuals attribute to themselves. It is typically
accompanied by self-evaluation, judgment or self-worth.

Self –Efficacy:

Definition:

Albert Bandura defined self efficacy (SE) as

36
“It is the belief in one’s capabilities to organize and executive the
sources of action required to manage prospective situations”
(1986).

According to him, self efficacy is a person’s belief in his or

her capability to successfully perform a particular task. Together
with the goals that people set, self-efficacy is one on the most
powerful motivational predictors of how well a person will perform
at almost any endeavour. A person’s self-efficacy is a strong
determinant of their effort, persistence, strategizing, as well as their
subsequent training and job performance. Besides being highly
predictive, self efficacy can also be developed in order to harness
its performance enhancing benefits. After outlining the nature of
self-efficacy and how it leads to performance and other work
related outcomes, the measurement and sources of self-efficacy
will be discussed.

Nature of Self-Efficacy:

Though self-efficacy pertains to specific tasks, people may

simultaneously have high self efficacy for some tasks and low self
efficacy for others. For example, a manager may have high self-
efficacy for the technical aspects of his or her role, such as
management accounting, but low self-efficacy for other aspects,
such as dealing with employee’s performance problems.

37
 As Self-efficacy is more specific and circumscribed than
self-confidence or self esteem, it is generally also more readily
developed than self confidence or self esteem. Self- efficacy is also
a much stronger predictor of how efficiently people will perform a
given task either their self-confidence or self-esteem. People are
inclined to become anxious or depressed when they perceive
themselves unable to manage aversive events or gain what they
value highly.

Thus, self-efficacy is also related to the expertise of stress

and occupational burnout. Specifically, low self-efficacy can
readily lead to a sense of helplessness and hopelessness about
one’s capability to learn how to cope more effectively with the
challenges and demands of one’s work. When, this occurs, low
self-efficacy can be distressing and depressing, thereby preventing
even highly talented individuals forms performing effectively.

Measurement of Self-Efficacy

Self-efficacy is task-specific; so there is no single

standardized measure of self-efficacy. Rather, measures need to be
developed that gauge an individual’s self-assessed capacity to
either (a) achieve a certain outcome on a particular task (outcome
self efficacy), or (b) engage in the processes likely to lead to a
certain, desired outcome (process self-efficacy).. The key point
here is that measures of self efficacy are most informative,
predictive, and useful for addressing areas where self-efficacy is
lacking or when they are highly focused on specific behaviors,
tasks, or objectives.

The Impact of EI on Organizational Effectiveness

38
 Look deeply at almost any factor that influences
organizational effectiveness, and you will find that emotional
intelligence plays a role. For instance, the downside of the
fortunate circumstance for many organizations is that it has become
increasingly more difficult to retain good employees, particularly
those with the skills that are important in the high-tech economy.
So what aspects of an organization are most important for keeping
good employees? A Gallup Organization study of two million
employees at seven hundred companies found that how long an
employee stays at a company and how productive he\she is
determined by his\her relationship with his\her immediate
supervisor (Zipkin, 2000). Another study quantified this effect
further. Spherion, a staffing and consulting firm found that only 11
percent of the employees who rated their bosses as excellent said
that they were likely to look for a different job in the next year.
However, 40 percent of those who rated their bosses as poor said
they were likely to leave. In other words, people with good bosses
are four times less likely to leave than are those with poor bosses
(Zipkin, 2000).

What is it about bosses that influence their relationship with

employees? What skills do bosses need to prevent employees from
leaving? The most effective bosses are those who have the ability
to sense how their employees feel about their work situation and to
intervene effectively when those employees begin to feel
discouraged or dissatisfied. Effective bosses are also able to
manage their own emotions, with the result that employees trust
them and feel good about working with them. In short, bosses
whose employees stay are bosses who manage with emotional

39
intelligence. According the employees view the greatest challenges
their organizations face today are,

 People need to cope with massive, rapid change.

 People need to be more creative in order to drive innovation.

 People need to manage huge amounts of information.

 The organization needs to increase customer loyalty.

 People need to be more motivated and committed.

 People need to work together better.

 The organization needs to make better use of the special

talents available in a diverse workforce.

 The organization needs to identify potential leaders in its

ranks and prepare them to move up.

 The organization needs to identify and recruit top talent.

 The organization needs to make good decisions about new

markets, products, and strategic alliances.

 The organization needs to prepare people for overseas

assignments.

These are the intense needs that all the organizations face today,
both public sector and private. And in virtually every case,
emotional intelligence must play an important role in satisfying the
need. For instance, coping with massive change involves, among
other things, the ability to perceive and understand the emotional
impact of change on ourselves and others. To be effective in
40
helping their organizations manage change, leaders first need to be
aware of and to manage their own feelings of anxiety and
uncertainty (Bunker, 1997). Then they need to be aware of the
emotional reactions of other organizational members and act to
help people cope with those reactions. At the same time in this
process of coping effectively with massive change, other members
of the organization need to be actively involved in monitoring and
managing their emotional reactions and those of others.

The influence of EI begins with the retention and recruitment of

talent. For instance, as the extent to which candidates’ emotional
intelligence is considered in making top executive hiring decisions
has a significant impact on the ultimate success or failure of those
executives. The emotional intelligence of the persons who is hiring
is also crucial for good hiring decisions. Emotional intelligence
also affects the development of talent. The emotional intelligence
of the mentor, boss, or peer will influence the potential of a
relationship with that person for helping organizational members
develop and use the talent that is crucial for organizational
effectiveness.

If individual and group emotional intelligence contribute to

organizational effectiveness, what in the organization contributes
to individual and group emotional intelligence? Such a question is
especially important for anyone who wishes to harness the power
of emotional intelligence for organizational improvement. Figure
1.1 model suggest few points to some broad factors in
organizations that contribute to emotional intelligence. Those who

41
wish to help individuals and groups become more emotionally
intelligent can use this model as a starting point

FIGURE SHOWS A MODEL OF EMORTIONAL

INTELLIGENCE AND ORGANIZATIONAL
EFFECTIVENESS

Individual
Emotional
Intelligenc
e

Organizati
onal
Relationshi
Effectivene
ps
ss

Group
Emotional
Intelligenc
e

Emotional intelligence, as Goleman (1995) pointed out in his

first book on the topic, emerges primarily through relationships. At
the same time, emotional intelligence affects the quality of
relationships. Both formally arranged relationships and naturally
occurring relationships in organizations contribute to emotional
intelligence. Relationships can help people become more
emotionally intelligent even when they are not set up for that
purpose. The model suggests that ultimately any attempts to
improve emotional intelligence in organizations will depend on
relationships. Even formal training interventions or human
resource policies will affect emotional intelligence through their

42
effect on relationships among individuals and groups in the
organization.

The left-hand portion of the model (Figure 1.1), illustrates

three organizational factors that are interrelated. Each of these
factors influences emotional intelligence through its impact on
relationships, and each factor influence the other two. Goleman
pointed out that how the emotional intelligence of organizational
leadership influences organizational effectiveness through its
impact on organizational climate.

At the same time, the HR functions of recruitment and

selection, training and development, and management performance
have a strong impact on leadership EI. However, leadership in turn
will influence the extent to which HR functions are effective in
helping organizational members increase their EI. Generally
speaking leaders who lack EI provide poor models for the
development of EI in others, and they are unlikely to provide the
kind of support and encouragement necessary for effective EI
promotion efforts. The model suggests two important implications
for practice.

 First, any effort to improve the EI of organizational members

will ultimately fail unless it affects naturally occurring
relationships among those members. Formal, off-site training
programs can have value, for example, but only if they lead
to sustained changes in interpersonal and intergroup
relationships back in the organization.

43
  The second important implication is that interventions that
focus on only one part of the model are not likely to be very
effective. So, for instance, a training program designed to
help organizational members become more emotionally
intelligent will be of limited value by itself because it targets
only one part of the model—HR functions. Such training
efforts will succeed only if the organizational leadership and
culture support them.

Emotional intelligence, as Goleman (1995a) pointed out in his

first book on the topic, emerges primarily through relationships. At
the same time, emotional intelligence affects the quality of
relationships. Both formally arranged relationships and naturally
occurring relationships in organizations contribute to emotional
intelligence. Relationships can help people become more
emotionally intelligent even when they are not set up for that
purpose. The model suggests that ultimately any attempts to
improve emotional intelligence in organizations will depend on
relationships. Even formal training interventions or human
resource policies will affect emotional intelligence through their
effect on relationships among individuals and groups in the
organization.

The left-hand portion of the model (Figure 1.1), illustrates three

organizational factors that are interrelated. Each of these factors
influences emotional intelligence through its impact on
relationships, and each factor influence the other two. Goleman
pointed out that how the emotional intelligence of organizational

44
leadership influences organizational effectiveness through its
impact on organizational climate.

At the same time, the HR functions of recruitment and

selection, training and development, and management performance
have a strong impact on leadership EI. However, leadership in turn
will influence the extent to which HR functions are effective in
helping organizational members increase their EI. Generally
speaking leaders who lack EI provide poor models for the
development of EI in others, and they are unlikely to provide the
kind of support and encouragement necessary for effective EI
promotion efforts. The model suggests two important implications
for practice.

 First, any effort to improve the EI of organizational members

will ultimately fail unless it affects naturally occurring
relationships among those members. Formal, off-site training
programs can have value, for example, but only if they lead
to sustained changes in interpersonal and intergroup
relationships back in the organization.

 The second important implication is that interventions that

focus on only one part of the model are not likely to be very
effective. So, for instance, a training program designed to
help organizational members become more emotionally
intelligent will be of limited value by itself because it targets
only one part of the model—HR functions. Such training
efforts will succeed only if the organizational leadership and
culture support them.
45
Review of Literature

Historical Background of Emotional Intelligence:

Looking back at the historical roots of emotional

intelligence, it is found that when psychologists began to research
intelligence, they focused on non-emotional aspects such as
intellect, memory, academic skills etc. however, there were
researchers who recognized early that the emotional aspects such
as feelings, moods and non-cognition were equally important.
46
 Thorndike (1920) had long ago identified a dimension of
intelligence and named it social intelligence. He described social
intelligence as the ability to understand and manage human beings
to act wisely. His references to social intelligence included three
elements- the individual’s attitudes towards society such as
polities, economics, science and values such as honesty; social
knowledge such as being well versed in contemporary issues and
general knowledge about society; and the individual’s capacity for
social adjustment such as interpersonal relations and family
bonding. It may be noticed that the third element of Thorndike’s
definition of social intelligence did contain elements like ability to
‘deal with people’ and ‘introversion and extroversion’ types of
personality which is more akin to today’s emotional intelligence.
Thus it may be inferred that Thorndike did refer to emotional
aspects of intelligence in his definition of social intelligence way
back in 1920. His contentions are of great scientific help to the
modern researchers trying to establish the construct validity of
emotional intelligence.

Wechsler (1940) defined intelligence as ‘the aggregate or

global capacity of the individual to act purposefully, to think
rationally, and to deal effectively with his environment.’ He too
referred to intellective and non intellective abilities. Wechsler
proposed that the non intellective abilities i.e. emotional abilities
are essential to determine one’s ability to succeed in life. He found
emotional intelligence to be an integrated of an individual’s
personality development. However his views on emotional abilities
did not attract much attention and psychologist emphasized more
on intellectual abilities.

47
 Gardner (1993) began to write about ‘multiple intelligence’
and proposed that ‘interpersonal’ and ‘intrapersonal’ intelligence
are as important as rational academic intelligence. Gardner referred
to interpersonal intelligence which related to people who are
leaders among their peers and are good at communicating. They
seem to understand others’ feelings and motivations and possess
interpersonal intelligence.

In 1990, Dr. Peter Salovey of Yale and Dr. John Mayer of

the university of New Hampshire began publishing articles about
something they called “emotional intelligence”. They tested how
well people could identify emotions in faces, abstract designs and
colors, and from these studies, they believed that they discovered a
sort of universal aptitude of emotions. They eventually published
an article in which they outlined what emotional intelligence was
drawing together under one umbrella a series of what seemed
unrelated skills.

It wasn’t until 1995, however when the New York Times

science writer Daniel Goleman wrote a popular book called
‘Emotional Intelligence’ ; ‘why it can matter more than IQ’, that
the idea of emotional intelligence became a prominent topic to be
discussed, researched and practiced. What has happed is a
paradigm shift in American culture, particularly in the areas of
education and corporate business where Goleman’s book and a
follow up book called ‘Working With Emotional Intelligence’;- has
shaken up the old order and brought the entrenched mid century
ways of teaching and business under scrutiny.

48
 The idea of emotional intelligence lies in a handful of basic
principles. Emotionally intelligent people, Goleman says, have the
ability to marshal or control their own emotional impulses (or, at
least, more so than those who are not emotionally intelligent); they
have self awareness to know what they are feeling, and are able to
think about and express those things; they have empathy for the
feelings of others and insight into how others think; they can do
things like delay gratification; they are optimistic and generally
think and act positively even in the midst of turmoil and chaos, and
most importantly they understand the dynamics of the group to
which they belong.

Newton (2002, 12-35) summarizes that EI is about

perceiving and understanding personal feelings and those of others;
it is about the ability to recognize emotions and acting on them in a
reflective manner. Using EI reactions are shaped by thoughts rather
than feelings. And that basically means that an individual is aware
of his or her emotions and does not react emotionally but in a
thoughtful manner,

LeDoux’s (1992) research shows that there can be an

emotional response to a situation before the body understands what
is happening and has time to react; an explanation by Goleman
(1995) can be obtained from figure 2. This means that before one
has the thought of how to respond to a situation, an emotional
response could have already taken place. Goleman (1995, 13-16)
points out that emotion can lead to impassioned actions, a kind of
emotional hijacking, that one might regret later. This makes the
task of understanding emotions so important and is a reason why
one tries to manage them; no leader or anyone at the workplace
49
wants to be in a situation where one is reacting in a heated manner.
Emmerling and Goleman (2003) argue that leadership requires a
high level of cognitive ability in order to process the complexity of
information leaders face daily. New brain research (LeDoux, 1998)
suggests that the emotional and cognitive systems in the brain are
far more integrated than originally believed. Further, trust is
becoming so scarce that those managers and organizations that

Bibb and Kourdi, (2004) EI can help to improve cognitive

ability and create trust; it can handle the positive and negative
emotions at work like satisfaction, exhilaration, pride, anger,
frustration and anxiety (Newton, 2002, 354). EQ Today (2004)
researched intelligence based on emotion and discovered that
people who have this capacity are less depressed, healthier, more
employable, and form better relationships. Therefore, it seems
good to be in control of emotions, acknowledging an instinctive
emotional response, stepping out of the situation for a moment and
then using rational thoughts to response.

However, it should not be left unmentioned that there are

critics of EI such as Woodruffe (2000, 2001). The main arguments
are that the principles and ideas of EI are not new but put together
under the new label of EI. Emotions have been used within
relationships since the beginning of mankind and EI reflects
nothing else than being aware of one’s tacit knowledge. After an
examination of the views and definitions of EI, there is a
discussion of how commitment is created in the workplace. Then,
there is a discussion on the creation of competitive advantage.
Finally there will be a focus on the influence EI can have on

50
commitment and whether its use can lead to a competitive
advantage.

Stefan Anitei (2007) has published a paper on relationship

between Emotional Intelligence and the age group, where it has
been found that there is no significant relationship between the age
and the emotional intelligence because “many young people are
wiser than the older” but some of the aspects of emotional
intelligence can be developed with age for example., self-
awareness(“know yourself”) increased slightly with age, so age has
proven mildly predictive for self-awareness, because many young
people has high self-awareness and many older have not developed
this ability.

Lorenzo Fariselli, Massimiliano Ghini, Joshua Freedman

The relationship between the female sex and the emotional

competencies are closely linked since childhood due to a
socialization that is in closer touch with the following their
nauseas,

.Lorenzo, Fariselli, et. al.,has published a white paper on

Emotional Intelligence and Age in the recent past and concluded
that there is a very minimal relationship between the age factors
and the emotional intelligence level of the people, and they also
pointed out that there are certain components of EI can be related
to age, and that can be developed over a course of period.

51
History of Self-Efficacy

Albert Bandura's concept of self-efficacy developed within

his studies of human social cognition theories. Bandura's early
research focused on the 'extraordinary symbolizing capacity of
humans'. He theorizes that people draw on these symbolic
capabilities to understand their environments by purposeful
actions, cognitively solve problems, develop reflective thoughts
and effectively communicate with others. Bandura argues that
when people symbolize their experiences, it give structure,
meaning, and continuity to their lives (Pajeres,2002).

Another distinctive quality of social cognitive theory, and an

important point in this theory, is that Bandura singles out the
capacity for self directedness and forethought (that people plan a
course of action, and set challenges and goals that guide their
future activities). He argues that after we adopt some personal
standard, our subsequent actions, behavior, and motivation are
regulated by the positive and negative consequences of those
standards. We all engage in things hat provide some form of
satisfaction and self worth, and tend to shy away from actions that
devalue the 'self' (Pajeres, 2002).

Self-reflection capabilities concerning efficacy is featured

prominently in social cognitive theory. Bandura argues that the
system of self-efficacy is the very foundation of human
motivations and personal achievements. Bandura's rationale is like
this: If people don't believe they can achieve a desired outcome
from their actions, they have little to no incentive to act, or
continue action when presented with difficulties. Bandura's reseach
credits personal efficacy with motivation, perseverance,
52
vulnerability, life decisions/choices, and even stress (Pajeres,
2002).

Bandura's explicit connects self-efficacy with people's

motivations and actions, arguing that what people believe
influences motivation and actions, regardless of whether or not the
belief is 'objectively true' (Pajeres,2002).

Bandura therefore argues, that behavior can be predicted by

predicting perceived self efficacy (a person's beliefs about the
capabilities) over actual accomplishments, as self-efficacy
determines what people will do with their knowledge and skills.
Behavior can sometimes differ widely from actual capabilities
because of the importance of perceived self-efficacy (Pajeres,
2002).

For instance, talented individuals may suffer from extreme

self-doubt, although they are quite capable of performing and
exceeding the assigned task, while on the other hand, some
individuals are extremely confident about what they can
accomplish despite their credentials and limited skills. Beliefs and
reality are not a perfect match, yet individuals are usually guided
by their beliefs. Remembering all of this, self-efficacy is said to
predict a person's accomplishments than their previous attainments,
credentials, or knowledge (Pajeres, 2002).

Bandura does not argue that large amounts of self-efficacy (high

confidence) can counteract limited skills and knowledge!

Self-efficacy can be different, in different areas of life, so it is

important to remember that efficacy is task specific! (Pajeres 2002)

53
 The assumption that children's self-beliefs are inextricably
tied to their thinking and functioning seems so sound, so obvious,
and so commonsensical one might well think that research on
academic motivation and achievement (research on why students
do the things they do in school and why they achieve or fail to
achieve) should naturally focus, at least in great part, on the things
that children come to believe about themselves. In other words, one
would think that, if psychologists are interested in understanding
the reasons why students select some activities and avoid others,
why they succeed in some academic pursuits and fail at others, or
why they are filled with either anticipation or panic at the thought
of doing this or that task, then researchers should quite carefully
investigate the things and ways that students believe about
themselves. As Jerome Bruner (1997) has argued, "if agency and
esteem are central to the construction of a concept of Self, then the
ordinary practices of school need to be examined with a view to
what contribution they make to these two crucial ingredients of
personhood."

54
2.2 OBJECTIVES OF THE STUDY

The present study is attempted to study “The Impact of

Emotional Intelligence in Organizational Effectiveness in
Apollo Pharmacy “with the following specific objectives.

1. To measure the Emotional intelligence of the employees.

2. To determine the factors influencing the emotional
intelligence and effectiveness of work.
3. To analyze the impact of Emotional intelligence on
occupational self-efficacy of the employees.
4. To identify the constraints in organizational effectiveness
and suggest the appropriate coping strategies.

55
HYPOTHESES

1. There is no significant relationship between Emotional

Intelligence and Self-Efficacy

SCOPE OF THE STUDY

This study will be helpful to analyze the ways and means of

how emotional intelligence improves the organizational efficiency.
This will also investigate the relationship between emotional
intelligence and self- efficacy of the employees. Besides, the study
will identify the constrains and possible coping mechanisms for
effectiveness of work culture in organization

LIMITATIONS
56
  The present study is confined into only the 60 employees.
The data and information are pertained to the period of 2009
and are collected by self-report method only.

 The time span is limited so there is no possibilities for the

extensive study

2.3 METHODOLOGY

This study aims at understanding the relationship between the

Emotional intelligence and Organizational effectiveness, earlier
(Chapter1 Introduction) EI has been defined as

“Emotional Intelligence refers to the capacity for recognizing

our own feelings and those of others, for motivating ourselves, and
for managing emotions well in ourselves and in our relationships”
(Goleman, 1999; Kemper, 1999).

In addition to EI the study covered the Self Efficacy as another

variable which might have effect on the organizational
performance.

The data were collected by using a questionnaire and a scale to

measure EI and another scale to measure SE

Measurement of EI

57
 As defined earlier EI consists of the following variables like
self awareness, self actualization, social awareness based on this, a
point 5 Likert type of scale was constructed where the respondent
answers to what extent he\she agrees or disagrees with the
statement. Accordingly the scale consisted of 12 items covering the
above variables, the scoring was done as follows, the answer (very
Often) is given 5 points and the answer (very rarely) is given 1,
hence the total score on the EI scale will range from 12 to 60, 12
being the lowest and 60 being highest, respondents getting 60 is
considered suppose to have Low emotional intelligence has
compared to the another respondent who have scored 12. For
comparative purpose the means of all the respondents have been
taken and studied with Age, Occupation, Work Experience, Marital
Status and Self-Efficacy

Measurement of Self-Efficacy

As discussed earlier in Introduction part Self Efficacy

consists of the following factors. Like and based on these factors a
5 point scale was constructed where the respondent answers to
what extent he\she agrees or disagrees with the statement.
Accordingly the scale consisted of 10 questions which covering the
above factors. The scoring was done as follows, the answer very
often is given 5 points, and the answer very rarely is given 1, hence
the total score of SE scale range from 10 to 50, 10 being the lowest
and 50 being the highest, respondents getting 50 is considered as
supposed to have high Self Efficacy and has compared to the
another respondent who scored 10. For comparative purpose the
means of all the respondents have been taken and studied with

58
Age, Occupation, Work Experience, and Marital Status, Emotional
Intelligence.

Data Collection

Primary Data

The primary data is collected from 60 respondents through a

survey method by distributing questionnaire. The questionnaire
consist of three sections, which includes

(a). Section 1: Personal information

(b). Section 2: A set of Questions to measure SE

(c) Section 3: A set of Questions to measure EI

The profile of the respondents is listed in the analysis part.

Secondary Data

The secondary data which consists of information already

exists in records. This data have been collected directly from the
company’s annual report, magazines and journals and web portal,
company’s website as well as from the previous work done by
other researchers on the similar topic.

The information on organization effectiveness was collected

foe the last one year through discussion with the HR department on
the following aspects;

(a) Employee turnover

(b) Expansion process

59
 (c) Organizational Performance in terms of profitability,
expansion process and employee welfare schemes

Sample size:

A sample of 60 respondents were selected by using simple

random sampling method

Analysis of Data:

The data was analyzed and interpreted by using the

“Percentage” method. In addition correlation was used to find out
the relation ship between the Self-Efficacy and Emotional
Intelligence.

DATA ANALYSIS AND INTERPRETATION

2.4.1 Respondents by Gender

Gender Total Percentage

Male 41 68.33

Female 19 31.67

Total 60 100

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Table 2. 4.1 shows that the majority of the respondents (68.33%)
are Male, as compared to the female respondents (31.67%)

2.4.2 Respondents by Age

Age Male Female Total

21 to 30 25(41.67) 17(28.33) 42
31 to 40 12(20) 2(3.33) 14
41 to 50 2(3.33) 0 2
Above 50 2(3.33) 0 2
Total 41 19 60

Figures in parenthesis are percentage

61
Table 2.4.2 indicates that majority of the respondents (70%) belong
to the age group of 21 to 30 yrs out of which 41.67 % are Male,
28.33% are Female.

No female respondents were in the age group of 41 and above. A

rough look at the company’s staff strength indicates that there are
more male employees than females and also the younger age
group. Probably, since the pharmacy is less than 10 years, the
company was more looking for younger generation than the older
ones. This view can be taken based on the common experience that
if the organization is very old and long standing one can find the
employees belonging to various age groups i.e., the older ones.

62
2.4.3 Respondents by Marital Status

Marital Status Male Female Total

Married 18(30) 8(13.33) 26(43.33)

Unmarried 23(38.33) 11(18.34) 34(56.67)

Total 41 19 60
Figures in parenthesis are percentage

63
Table 2.4.3 indicates that 56.67% of the respondents are Unmarried
and 43.33% of the respondents are married

It can be seen from the table most of female respondents are

unmarried indicating that they could in the younger age group. As
seen in table 2.4.2 since it is of a recent origin (10 years) it could
attract more of younger employees than the older one.

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2.4.4 Respondents by Work Experience

Work Experience Male Female Total

0 to 2 9(15) 5(8.33) 14(23.33)
2 to 4 9(15) 8(13.33) 17(28.33)
4 to 6 10(21.67) 2(3.33) 12(25)
6 & above 13(21.67) 4(6.67) 17(28.34)
Total 41 19 60
Figures in parenthesis are percentage

65
Table 2.4.4 explains that 28.33% of respondents belong to 2 to 4 &
6 & above years of experience respectively. It may also be noticed
that 48.33% belong to 4 & above years of experience in the same
organization.

66
2.4.5 Respondents by Annual Income

Annual Income Male Female Total

1 to 2 Lacs 20(33.33) 8(13.33) 28(46.66)
2 to 5 Lacs 18(30) 10(16.66) 28(46.66)
5 & above 3(5) 1(1.67) 4(6.67)
Total 41 19 60
Figures in parenthesis are percentage

67
Table 2.4.5 shows that 93.33% of respondents fall under the
catogery of those who receive 1 to 2 lacs & 2 to 5 lacs as their
annual income. These figures when compared with the age
distribution shown in Table 4.2 indicate that there are more of
youonger generation in the pharmacy industry than higher age
groups. This trend is shown in earilar tables also.

68
2.4.6 Comparison of Gender Vs SES, EIS (Mean Score)

Gender SES EIS

Male 38.63 29.56

Female 38.26 29.26

69
Table 2.4.6 and the following graph show that there is no much
difference in the level of Self-efficacy and Emotional Intelligence
among the male and female respondents. However it is found that
the respondents have high level of emotional Intelligence and
lower level of

2.4.7 Comparison of Age Vs Self Efficacy (Mean Score)

Age Male Female

21 to 30 39.52 39.47
31 to 40 37.5 36.5
41 to 50 37 0
50 & above 36 0

70
The above table shows that as the age of the respondents increases
their level of self efficacy goes down

With reference to the table (2.4.2) the majority of the

respondents fall in 21 to 30 yrs of age category has high self
efficacy. With reference to this we may conclude that the level of
self efficacy is more among the youngsters

2.4.8 Comparision of Age Vs EIS (Mean Score)

Age Male Female

21 to 30 30.16 28.58
31 to 40 28 35
41 to 50 32 0
50 & above 29 0

71
The Graph for the Table 2.4.8 shows that

(1) In case of Males as age increases their emotioally

intelligence also increases

(2) In case of Female as the age increases the reverse happens

namely viz., emotional intelligence comes down

The above analysis clearely shows that Males have higher

emotionall Intelligence than Females as the age increases

72
2.4.9 Comparision of Work Experience Vs SES (Mean Score)

Work Experience Male(SES) Female(SES)

0 to 2 38.78 39
2 to 4 38.444 37.85
4 to 6 43.5 43.5
6 & above 37.46 35.5

73
Table 2.4.9 shows that there is no significant difference in the level
of self efficacy between male and female respondents, as their
experience increases

The above Table & graph show that the degree of self efficacy
decreases when their experience increases

74
2.4.10 Comparison of Work Experience Vs EIS (Mean Score)

Work Experience Male (EIS) Female(EIS)

0 to 2 29.56 30
2 to 4 32.22 26.25
4 to 6 34 37
6 & above 29.61 32

75
From the above table & graph it may be inferred that males who
have work experience of 2 to 6 years have higher level of
Emotional Intelligence compared to males who have 0 to 2 and 6
& above years of experience

It may also be seen that females who have work experience 2 to 4

years have higher level of emtional Intelligence than others. The
results seem to agee with the results of the study done by Stefan
Anitei ( Emotional Intelligence Vs Age, 2007)

76
2.4.11 Comparison of Annual Income VS SES (Mean Score)

Annual Income Male (SES) Female (SES)

1 to 2 lac 38.2 38.375
2 to 5 38.78 38.1
5 & above 40.67 39

77
Table 2.4.11 shows that as the level of income increases the self
efficacy of Male is more when compared to Female respondents

The above graphs shows that the level of self efficacy increases
when the income level of the respondents increases both in male
and female.

2.4.12 Comparison of Annual Income Vs EIS( Mean Score)

Annual Income Male Female

1 to 2 lac 30.3 28.375

2 to 5 28.78 29.5

5 & above 29.33 34

78
Table 2.4.12 shows that as the level of income increases the level
of Emotional Intelligence increases in case of Male when
compared to Female respondents

This observation is also seen in the graph where the red line
(indicating Females)

Is shooting up to 34 indicates that Females are less emotionally

intelligences than the males

79
The above table & graph show that if the income level of male
increases their level of emotional intelligence goes up, and if the
income level of the female increases their level of emotional
intelligence comes down

2.4.13 Comparison of Marital Status Vs SES (Mean Score)

Marital Status Male (SES) Female (SES)

Unmarried 39.6 39.54
Married 37.39 36.5

80
The above table & graph shows that the level of Self-Efficacy is
high among the respondents who are unmarried compared to the
married respondents

2.4.14 Comparison of Marital Status Vs EIS (Mean Score)

Marital status Male (EIS) Female (EIS)

Unmarried 30.78 27.18

Married 28 32.12

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 The above Graph shows that Married male resspondents are
emotinally stronger than the respondents who are unmarried, In
case of female respondents unmarried respondents emotinally
strong when compared to married

2.4.15 Boxplot Showing Relationship between SES score Vs

Age,Work experience(Mean Score Comparison)

82
 Average Self-Efficacy Score vs Age, Work Experience

Average Self-Efficacy Score

45

40

35

30

Work Experience 2 4 6 6 2 4 6 6 2 4 6 6 2 4 6 6
to to to ove to to to ve to to to ve to to to ve
0 2 4 b 0 2 4 bo 0 2 4 bo 0 2 4 bo
a a a a
Age
30 40 50 50
to to to ov
e
21 31 41 ab

From the above graph it may be seen that the respondents between
the age group 21 to 30 yrs and having 4 to 6 yrs of experience are
more self-efficacious compared to other age groups.

It may be inferred that Self-Efficacy does not increase as age

increases. It may be viewed that as experience and age increases
there could a moulding of the self-efficacy factor in interacting
with others

2.4.16. Boxplot Showing Relationship between EIS score Vs

Age,Work experience(Mean Score Comparison)

83
 Boxplot of EIS vs Age, Work Experience

40

35
EIS

30

25

20

Work Experience 2 4 6 6 2 4 6 6 2 4 6 6 2 4 6 6
to to to ove to to to ove to to to ove to to to ove
0 2 4 b 0 2 4 b 0 2 4 b 0 2 4 b
a a a a
Age
30 40 50 50
to to to ov
e
21 31 41 ab

From the above graph it may seen that the respondents who fall in
age group of 21 to 40 and 2 to 6 years of experience have high
emotional intelligence when compared with others

It may also seen that people who fall in age group of 21 to 30 are
having low emotional intelligence

It may also infer that the results may seem to agree with the results
of study done by Stefan Anitei reference (Emotional Intelligence
Vs Age, 2007)

2.4.17. Correlation

An attempt was made to study the relationship between self

efficacy and Emotional Intelligence. A null hypothesis has been
framed as follows:
84
Ho: There is no significant relationship between Self-Efficacy and
Emotional Intelligence

Pearson’s correlation method was worked out to find out the

relationship between the respondents Self-Efficacy Average Score
and Emotional Intelligence Average Score. The correlation result
shows that there is a negative correlation between Self-Efficacy
and the Emotional Intelligence (-0.230) of the respondents with p-
value of 0.077

So Ho is rejected.

It is inferred from the above analysis that is a significant

relationship between the Self-Efficacy and Emotional Intelligence
but the degree of impact is very minimal and negative

2.4.18 Qualitative Analysis of the Organization Effectiveness

It was experienced that at least 10 employees on an average

in the younger age group, unmarried leave the organization every
month which amounts to about 120 in a year. It is quite high
turnover. When this is compared with the available primary data it
85
indicated that a respondent belongs to this age are having low
emotional intelligence and this could be one of the reasons for high
turnover.

It was also said that in last 10 months Apollo pharmacy has

opened around 20 outlets in and around Tamil Nadu

Middle age group employees are very comfortable with the

Apollo pharmacy’s working environment.

In recent years the company’s has posted a 25 % growth in

revenue vise. From the available information it may be concluded
that the performance of the organization seem to be on an average.
This inference is arrived that in the present situation pharmacy is
an industry which grows leap and bound. Particularly the brand
name of “Apollo” carries weight in the medical and paramedical
circles of the country. They are able to compete with the external
environment of similar companies. However the progress they have
made in pharmaceutical industry is not commensurate with the
brand name, it may be inferred that the internal environment need
to be analyzed and critically evaluated. This study of EI indicates
that there is a need to look at the internal environment particularly
of the personnel for better performance that leads to organizational
effectiveness.

Conclusions:

The following conclusions are drawn form the study

1. Demographic profile of the respondents

(a) Majority of the respondents are Males

86
 (b) A large percentage of respondents are in the age
group of 21-30 years

(c) Most of the respondents have work experience of

>2 years and <6 years

(d) The annual income of majority of the respondents

are in range of 1 to 2 lacs per annum

(e) Majority of the respondents are unmarried

2. Emotional Intelligence was found to be almost similar for

both males than females; very negligible difference was
found.

3. Self-Efficacy was found to have very less difference

between the male and female respondents.

4. The relationship between age and SES shows that the

younger age group are more self-efficacious than the
older age group

5. Males have higher Emotional Intelligence level than the

Female respondents in the Middle level age group( 31 to
40)

6. Respondents who have 4 to 6 years of work experience

are highly self-efficacious than the others.

7. It is found that males who have 2 to 6 of work experience

have lower level of Emotional Intelligence compared to
males who have 0 to 2 and 6 & above years of experience

8. It is concluded that if the income level of male increases

their level of emotional intelligence goes up, and if the
87
 income level of the female increases their level of
emotional intelligence comes down

9. It is found that Self-Efficacy is high among the

respondents who are unmarried compared to the married
respondents

10. It is found that Married male resspondents are

emotinally stronger than the respondents who are
unmarried, In case of female respondents unmarried
respondents emotinally strong when compared to married

11. It is found that the respondents between the age group 21

to 30 yrs and having 4 to 6 yrs of experience are more
self-efficacious compared to other age groups.

12.It is found that that the respondents who fall in age group
of 21 to 40 and 2 to 6 years of experience have high
emotional intelligence when compared with others

88
Recommendation:

(a) For organization effectiveness employees commitment

and continues of employees is essential, hence it is
recommended that selection procedure must be based on
certain test and EI could be one among the battery of
test.

(b) The components of the EI could form part of the

measurement during selections

(c) Middle age group people with experience can be given

first preference in the selection process

(d) Motivation and Self-actualization are the two important

components of EI, this could be emphasized in the
selection process

(e) Management has to plan more developmental activities

for the middle age group employees

(f) The younger age group people have to be trained and

measures have to be taken to retain them.

89
 PART – 3

90
3.1 SECTION: I

PERSONAL INFORMATION

1). Name: ___________________________________

2) Gender: (a) Male (b) Female

3) Age Group:

(a) Below 20 (b) 21-30 (c) 31-40

(d) 41-50 c) 50 & above

4) Work Experience

a) 0 to 2 yrs b) 2 to 4 yrs c) 4 to 6 yrs

d) 6 & above

5) Marital status:

(a) Married (b) Unmarried

6) Annual Income:

(a) 1-2 lacs (b) 2-5 lacs (c) 5 & above

91
SI.NO Statements Very Often Sometimes Rarely Very
Often Rarely

I am confident to demonstrate my skills

1. and knowledge especially in tough times
I have alternative for the every process
2. which I do
I communicate effectively with my
3. colleagues\peers
I can self-reflect on how my personnel
feelings, thoughts, attitudes and values
4 influence my own practice

I am open towards learn and grow

5.
I intervene (get involve) myself with groups
6. for effective performance

I can solve most of my problems at work, If

7. I analyze it

If I am trapped anywhere, I am confident

8. that I can think of a solution to come out of
that
I am confident at admitting my mistakes at
9. work
I remain calm when I am facing difficult
10. situation with my coping mechanism
SECTION: II

QUESTIONS TO MEASURE SELF-EFFICACY

92
SECTION

SI.NO Statements
Very Often Sometimes Rarely Very
Often Rarely
I feel uneasy when I have a new
1. comer in my group?

When I compare myself with others

2. I feel inferior?

I feel uneasy when I am expected to

3. show affection\ love?

I am not sure that I Will handle an

4. autocratic boss?

I feel disturbed by very

5. minute things

I end up in mess when I am asked to

6. do anything under urgency

Even when I do my best, I feel

7 guilty about the things that were not
done perfectly.
I am ashamed about how I look or
8 behave.

I carry my domestic problems to

9 work place

10 I will not feel stressful when I am

dumped with work?
11 I feel difficult to work in a new
environment.
I will not appreciate my
12 colleague \subordinate for his\her
excellent performance
QUESTIONS TO MEASURE EMOTIONALINTELLIGENCE

93
BIBLIOGRAPHY- REFERENCE:

1. Bandura, A (1995) Exercise of personal and collective

efficacy in changing societies. In A.
Bandura (Ed.),Self-efficacy in changing
societies (pp. 1-45).Cambridge
University Press

2. Bandura, A. (1977). Self-efficacy: Toward a unifying theory

of behavioral change. Psychological
Review, 84, 191-215.

3. Bull, F. C., Holt C. Understanding the effects of printed

L., Kreuter M. W., health education materials: which
and Clark, E. M. features lead to which outcomes?.
(2001) Journal of Health Communication, 6,
265-279.

4. Craig Talbot (2004) A Review of Literature Regarding Self-

Efficacy

5. Cary Cherniss Emotional Intelligence and

Organizational Effectiveness

6. Heslin, P.A., & Self-Efficacy

Klehe, U.C. (2006)

94
 7. Mayer, J. D., Caruso, Emotional intelligence meets traditional
D., & Salovey, P. standards for intelligence. Intelligence,
(1999) 27, 267-298.

8. Mayer, J. D., Models of emotional intelligence. In R.

Salovey, P., & J. Sternberg (Ed.). Handbook of
Caruso, D. R. (2000) Intelligence (pp. 396-420). Cambridge,
England: Cambridge University Press.

9. S. G. Rogelberg (Ed.) Encyclopedia of

Industrial/Organizational
Psychology( Vol 2.,pp 705 -708)

10. Thorndike, E.L. Intelligence and its uses. Harper's

(1920) Magazine, 140, 227-235.

11. Volker Ballueder Influence of Emotional Intelligence on

the Performance of Organization
12. Yvonne Stys & A Review of Emotional Intelligence
Shelley L. Brown literature and Implications of Correction

13. Stefan Anitei Emotional Intelligence Vs Age (2007)

Website:

www.apollopharmacy.com

www.6seconds.org

Portal:

www.google.com

95
3.4 References:

1. AHLL : Apollo Hospitals and Lifestyle limited

2. AHERF : Apollo Hospitals Education and Research Foundation

3. EI : Emotional Intelligence

4. EQ : Emotional Quotient

5. SE : Self-Efficacy

96