Organisation behavior Essay Example | Topics and Well Written Essays - 2000 words

Organisation behavior - Essay Example This is because an organization entails a gamut of emotions – from elation to distress, and frustration (Ashkanasy, 2003, 9-54). There is often pressure to meet deadlines leading to stress and frustration. Thus, it is only by handling such varied emotions that can help the employees in achieving their desired organizational goals, with ease. A happy mind and mood, can think better – leading to productive decision making and successful accomplishments of organizational objectives. There is a growing fascination and interest among researchers and managers alike, on the subject of Emotional Intelligence and the role it plays in enhancing job performance of employees in organizations. The claim can be substantiated with the wide amount of literature linking emotional intelligence and job performance (Barsade, Brief, Spataro, 2003) in organizational context. In the earlier times, the aspect of emotional intelligence was rarely mentioned in literature on organizational studie s (Martin, Knopoff, Beckman, 1998, 429) however, the scenario has changed drastically over the years, and "employee emotions" are now recognized and acknowledged as an integral and inseparable part of their performance, leading to valuable contributions in organizations (Ashkanasy, Zerbe and Hartel, 2005). Definitions: According to Wharam (2009, 11), Emotional Intelligence is: â€Å"The potential to be aware of and use one's own emotions in communication with oneself and others and to manage and motivate oneself and others through understanding emotions† According to According to Goleman (2006, 189) "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 our relationships". According to Sparrow & Knight (2009, 29) emotional intelligence entails use of the following key elements: -ability to identify feelings; pay attention to others emotions; give importance to the way others feel about things; and consider ones' feelings in decision making. Analysis The development of literature focusing on the relevance and influence of emotional intelligence on job performance, has broadened the visions of managers regarding the skills and abilities which are perceived as necessary for particular job types. Emotional intelligence is a critical element, particularly in an organizational setting, since it can play an important role in various key tasks such as hiring (Murphy, 2006). It has been established through research that people with high emotional intelligence quotient fare better than those with a low EQ. This significant discovery has helped managers understand the reasons behind the failure of certain academically high achieving employees in jobs requiring inter-personal skills. Emotional intelligence is known to improve the emotional and interpersonal skills of employees, which is required in managerial jobs (Lombardo, Ruderman, & McCauley, 1988, 199-216). On the basis of various studies conducted over the years, it has been established that employee performance is directly related to their emotions, i.e. positive or negative. Negative emotions such as anger, fear or distress were observed to have a negative impact on their performance and effectiveness on the job. Such negative feelings tend to distract the employees from their tasks at hand, resulting in unproductive work (Elfenbein

Credit Default Swaps and Their Role in the 2008 Global Financial Essay

Credit Default Swaps and Their Role in the 2008 Global Financial Crisis - Essay Example They contributed to the financial crisis, but they were not the sole cause. Banks as well adopted the wrong investment vehicles that increased their potential risks. Further more, the interconnectedness within the financial institutions made the risks to spill over to from one financial institution to the other. Also, the manner in which assets were valued was not effective. It disregarded depreciation and other market forces affecting the prices of assets. Risk management models were not effective in helping to minimize risky lending. Changes in government regulation were also a major factor contributing to the crisis. The complexity of financial instruments and mathematical models for risk management made them ineffective. People had the wrong speculations in regard to the sustainability of high market prices for houses. The prices later dropped leading to enormous losses. Dishonesty was also a major failure in the operations of the credit rating agencies. On the other hand, there were few players in a large market, making their financial status a major determinant of the market strength. The housing policies aimed at facilitating home ownership led to a housing boom in these years. People applied for mortgage that was easily accessible especially due to the low interest rates that had been lowered in order to ensure that the low income borrowers could acquire homes through mortgage. Many people invested in them instead of the original idea of residential houses. Many subprime mortgages were issued with most of them ending up with unqualified borrowers who could not repay. The current financial crisis in the United States began back in 2007. This global financial crisis came several decades after the Great Depression that occurred between 1929 and 1941. Housing policies were put in place in 1937, with the housing act aimed at making houses affordable to the low income earners. This was to be achieved through offering long term loans at