Decades of research has shown that emotional intelligenceplays a significant role in determining the success of leaders. It ranks well above many other qualities such as traditional knowledge, IQ, and management skills.Daniel Goleman, the author of Working withEmotional Intelligence, reports that when IQ scores are correlated with performance, it only accounts for about 25% of how well people perform in their careers.That leaves 75% of career success correlated to Emotional Intelligence. Goleman reports that it is even higher for leaders. Today’s business environment is under critical global competition and frequent change is one that will certainly test leader’s effectiveness. Leaders with emotional intelligence can understand themselves very well and have the ability to put themselves in someone else's situation. They help to develop the people in their team, maintain a positive outlook, and provide their teams with a long-term vision for success, even during challenging times, help the organization to greater success. This paper tries tothrow some light on the importanceof emotional intelligence to leaders in the present business organizations to catch the word of success in the global competition.