Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Higher Emotional Intelligence leads to better decision-making

20.11.2013
The anxiety people feel making investment decisions may have more to do with the traffic they dealt with earlier than the potential consequences they face with the investment, but not if the decision-maker has high emotional intelligence a recent study published in Psychological Science suggests.
The study shows that understanding the source and relevance of emotions influences how much sway they have over individuals' decision-making and can affect the willingness to take risks.

"People often make decisions that are influenced by emotions that have nothing to do with the decisions they are making," says Stéphane Côté, a professor at the University of Toronto’s Rotman School of Management, who co-wrote the study with lead researcher Jeremy Yip of the Wharton School of the University of Pennsylvania. "Research has found that we fall prey to this all the time.

"People are driving and it's frustrating," says Prof. Côté. "They get to work and the emotions they felt in their car influences what they do in their offices. Or they invest money based on emotions that stem from things unrelated to their investments. But our investigation reveals that if they have emotional intelligence, they are protected from these biases."

The study's first experiment showed that participants with lower levels of emotional understanding allowed anxiety unrelated to decisions they were making concerning risk influence these decisions. Those with higher emotional intelligence did not.

A separate experiment involving the willingness to sign up for a flu clinic found that people with lower levels of emotional intelligence can also block unrelated emotions from influencing their decisions about risk, simply by making them aware that their anxiety was not related to the decisions at hand.

"The findings suggest that an emotionally intelligent approach to making decisions is if you're feeling anxious because of something unrelated to the decisions, to not make the decisions right away," suggests Prof. Côté.

The findings likely apply not only to negative emotions a person may experience but positive ones too, such as excitement. And far from suggesting people should try to rid themselves of all emotional influence in their decision-making, the paper points out that learning to pay attention only to those feelings that are relevant to the decisions being made is what counts.

"People who are emotionally intelligent don't remove all emotions from their decision-making," says Prof. Côté. “They remove emotions that have nothing to do with the decision.”

For the latest thinking on business, management and economics from the Rotman School of Management, visit www.rotman.utoronto.ca/FacultyAndResearch/NewThinking.aspx.

The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world’s most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves. For more information, visit www.rotman.utoronto.ca.

For more information:

Ken McGuffin
Manager, Media Relations
Rotman School of Management
University of Toronto
Voice 416.946.3818
E-mail mcguffin@rotman.utoronto.ca
Follow Rotman on Twitter @rotmanschool
Watch Rotman on You Tube www.youtube.com/rotmanschool

Ken McGuffin | EurekAlert!
Further information:
http://www.rotman.utoronto.ca

More articles from Studies and Analyses:

nachricht Rutgers-led innovation could spur faster, cheaper, nano-based manufacturing
14.02.2018 | Rutgers University

nachricht New study from the University of Halle: How climate change alters plant growth
12.01.2018 | Martin-Luther-Universität Halle-Wittenberg

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: In best circles: First integrated circuit from self-assembled polymer

For the first time, a team of researchers at the Max-Planck Institute (MPI) for Polymer Research in Mainz, Germany, has succeeded in making an integrated circuit (IC) from just a monolayer of a semiconducting polymer via a bottom-up, self-assembly approach.

In the self-assembly process, the semiconducting polymer arranges itself into an ordered monolayer in a transistor. The transistors are binary switches used...

Im Focus: Demonstration of a single molecule piezoelectric effect

Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale

Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...

Im Focus: Hybrid optics bring color imaging using ultrathin metalenses into focus

For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.

But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...

Im Focus: Stem cell divisions in the adult brain seen for the first time

Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.

The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...

Im Focus: Interference as a new method for cooling quantum devices

Theoretical physicists propose to use negative interference to control heat flow in quantum devices. Study published in Physical Review Letters

Quantum computer parts are sensitive and need to be cooled to very low temperatures. Their tiny size makes them particularly susceptible to a temperature...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

2nd International Conference on High Temperature Shape Memory Alloys (HTSMAs)

15.02.2018 | Event News

Aachen DC Grid Summit 2018

13.02.2018 | Event News

How Global Climate Policy Can Learn from the Energy Transition

12.02.2018 | Event News

 
Latest News

Contacting the molecular world through graphene nanoribbons

19.02.2018 | Materials Sciences

When Proteins Shake Hands

19.02.2018 | Materials Sciences

Cells communicate in a dynamic code

19.02.2018 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>