s based on the notion that the ability of managers to understand and manage their own emotions and those of the people they work with is the key to better business performance. EI can be observed in five key areas: - knowing one's emotions; - managing emotions; - motivating oneself; - recognizing emotions in others; and – handling relationships. Transactional Theory: This focuses on the mutual benefits to leaders and followers from their relationships. Followers accept the leader's authority if they believe that persons offer real benefits. What the advocates of followership recognized was that to become an effective leader most people first have to learn how to be good followers. More than ever today, business executives have to operate as both leaders and followers in the daily round of their job. Transformational Theory is the other side of the leadership coin. It is based on the notion of self-motivation; it focuses on the commitment of the leader rather than the willing compliance of the followers. The transformational leader is self-selected. In the Fifth Discipline, Peter Senge claimed that successful companies of the future would be learning organizations. What would distinguish these learning organizations from the traditional controlling organizations would be mastery of certain key disciplines. These are: System thinking, Personal Mastery, Mental Models, Shared Vision and Team Learning. For the traditional company, the shift to becoming a learning organization poses huge challenges. In the learning organization managers are researchers and designers rather than controllers. Senge argues that managers should encourage employees to be open to new ideas, communicate frankly with each other, understand thoroughly how their companies operate, form a collective vision, and work together to achieve their goals. The basic principles of Top Quality Management (TQM): A fundamental change of emphasis from quality contro...