Page 176 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

Introduction:

Recent years have witnessed a growing recognition of the critical role emotional intelligence (EQ) plays in

fostering successful workplaces. Beyond mere buzzword status, EQ emerges as a powerful tool for building
strong teams, optimizing performance, and cultivating a culture of mutual respect and understanding. This

paper delves into the specific reasons why EQ is crucial for Human Resources (HR) professionals and how it

can be leveraged to create a thriving work environment.

By prioritizing EQ, HR professionals can cultivate an environment where trust and empathy flourish. Teams

become more collaborative and supportive, fostering a sense of well-being and individual success. Open
communication and constructive feedback become the norm, driving personal and collective growth.

Recognizing and understanding emotions allows for tailored communication styles, leading to clear and

productive interactions. Ultimately, a workforce empowered by EQ translates into motivated and engaged
teams, working cohesively towards shared goals, and achieving tangible results. Therefore, investing in EQ

through targeted HR practices is not just a trendy notion, but a strategic investment in the future of any
organization, empowering employees to excel within a thriving work environment.

The unspoken agreement between employee and organization, the psychological contract, shapes expectations
and obligations, impacting morale, engagement, and turnover. This research delves into its dynamics,

exploring how communication, culture, and experiences shape it, how it evolves over time, and the

consequences of violations. By understanding these dynamics, organizations can foster transparency, build
trust, and create mutually beneficial contracts, enhancing employee well-being and optimizing performance.

This paper examines key factors, explores change, analyses consequences, and proposes strategies for
managing these critical agreements.

Emotional intelligence (EI) and the dynamics of psychological contracts in HR are intricately linked, shaping
employee experience, motivation, and performance. High EI HR professionals can build trust and

transparency, effectively manage expectations, and navigate conflicts, all of which impact how employees

perceive and experience their psychological contract – the unwritten understanding of mutual obligations
between them and the organization.

Conversely, positive psychological contracts, where expectations are met and fulfilled, foster emotional well-
being, engagement, and create opportunities for EI development. This creates a virtuous cycle, where strong

EI skills contribute to a supportive and collaborative culture, further enhancing both individual and collective

EI. Ultimately, prioritizing both fosters a win-win situation for both employees and organizations, leading to
reduced turnover, improved performance, and a strong employer brand.

Research Background:

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