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9609 · 7.3.3

Emotional intelligence (Emotional Quotient, EQ) — practice questions

Practice and worked examples for 9609 Emotional intelligence (Emotional Quotient, EQ). Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

Division head publicly criticises project manager in team meeting over a missed deadline; two team members resign next month citing 'toxic culture.' Analyse using the EQ framework.

Show solution outline

Self-awareness lacking: The leader does not see the humiliating impact of their public criticism on the project manager and the wider team's morale.

Self-regulation failure: The leader chose public anger and blame over a private, constructive feedback session. This is a reactive, emotional response.

Empathy missing: The leader fails to consider the reasons for the delay (e.g., supplier issues, unforeseen technical problems) and the project manager's perspective. They jump straight to blame.

Social skills damaged: This action has eroded trust and psychological safety. The resignations are a direct consequence. Remaining staff are likely to be disengaged and fearful, linking to motivational theories (e.g., Mayo's social needs are not being met).

Recommended Action: The business should provide 1:1 coaching for the leader focusing on EQ development, implement feedback training for all managers, and use 360-degree reviews to monitor behavioural change and prevent future incidents.

Worked example 2

A manufacturing firm, 'AutoParts Ltd', has 200 factory employees. It faces high staff turnover and low morale. The Operations Manager, known for a low-EQ, autocratic style, is replaced. The new manager receives EQ training. Analyse the financial impact of this change over one year using the data below.

Data (Year 1 - Low EQ Manager):

  • Labour Turnover: 40 employees left.
  • Recruitment & training cost per new employee: 2,500.2,500.

Data (Year 2 - High EQ Manager):

  • Labour Turnover: 10 employees left.
  • Recruitment & training cost per new employee: 2,500.2,500.
  • Cost of EQ leadership training for new manager: 5,000.5,000.
Show solution outline

Step 1: Calculate Labour Turnover Rate for both years. The formula for labour turnover rate is: (Number of employees leaving / Average number of employees) x 100.

  • Year 1 (Low EQ): 40200×100%=20%\frac{40}{200} \times 100\% = 20\%
  • Year 2 (High EQ): 10200×100%=5%\frac{10}{200} \times 100\% = 5\% Analysis: The change in leadership style, indicative of higher EQ, led to a significant reduction in the turnover rate from 20% to 5%.

Step 2: Calculate Total Recruitment Costs for both years. This is the cost incurred to replace the employees who left.

  • Year 1 Costs: 40 employees at $2,500 each. 40×2500=10000040 \times 2500 = 100000 Total cost: 100,000.100,000.
  • Year 2 Costs: 10 employees at $2,500 each. 10×2500=2500010 \times 2500 = 25000 Total cost: 25,000.25,000. *Analysis: The direct financial cost of high turnover under the low-EQ manager was 100,000.∗100,000.*

Step 3: Calculate the Net Financial Benefit. This compares the savings from reduced turnover against the cost of the EQ training.

  • Savings in recruitment costs: 100000−25000=75000100000 - 25000 = 75000 Savings: 75,000.75,000.
  • Cost of EQ training: 5,0005,000
  • Net Financial Benefit: 75000−5000=7000075000 - 5000 = 70000 Net benefit: 70,000.70,000.

Conclusion: The investment in a high-EQ manager and their associated training yielded a net financial benefit of $70,000 in the first year. This is due to a drastic reduction in labour turnover costs. This calculation demonstrates the tangible, positive impact of high emotional intelligence on a company's bottom line by fostering a more stable and positive work environment.

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