Understanding people and how they might react to certain situations or events, including new policies, procedures, and priorities, is a vital leadership competency. In addition, emotional intelligence involves a leader’s ability to recognize and understand his or her own emotions and typical reactions to certain people, situations, and 3/4 environments, and to adapt when necessary—for example, by staying calm when highly frustrated or when confronted in a hostile environment.

When a leader misinterprets the emotions of others, or his or her own emotional responses—particularly in difficult or crucial situations—negative reactions or outcomes can result and can have a cascading negative effect throughout the organization

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