What challenges do leaders in organizations face post COVID

 In this pandemic situation all the organizations are operating in a very uncertain and challenging environment and facing huge ups and downs in every aspect. After the lockdown most organizations are converting to new operational life styles by creating new procedures, processes and mandates to face in times of uncertainty. (Mukherji, 2020)

In this COVID 19 pandemic situation organizations are experiencing for decreased demand and shrinking of markets (Mukherji, 2020). The main reason for that is customers are restricted only to purchase the most essential stuff and not to purchase non-essential goods and services from organizations due to their decreased income due to loss of employment and salary cut downs. For organizations, this causes for reduction in their revenue and profits. That is a major threat to the survival of the organizations. However, if they want to get rid of this disastrous situation by making profits, the leaders must use different strategies to reduce the cost of the organization, such as restructuring, downsizing, hold of new investments, projects, research & development expenses and holding of new recruitments etc. (Mukherji, 2020). All of these actions are effective for a short time period and it will be giving long term side effects to the organizations. If they stop or reduce activities like research and development during that time, then there will be long term effect on the organization since research & development is very important to every organization to move forward. When reducing workforce, organizations will be losing the trained skilled personnel as well as the goodwill of the organization.

In the new operational lifestyle of the organizations, the “working from home” concept is initiated. When employees are working from home, the leaders need to look into the workers’ productivity and the challenges they are facing in the work at home environment. Many workers are taking the work at home concept as a blessing because they are enjoying the financial benefits of reducing time and cost of transportation.  However, this work from home concept also has disadvantages. Leaders may have difficulties in monitoring the work done by employees effectively when they are working remotely. In the work at home process workers will automatically increase amount of distraction. Concentration level will decrease due to family member’s disturbances, noises, poor internet connectivity, technological issue, old PC etc. At that time leaders may face problems in gaining expected productivity from the employees. Therefore, immediate responses for those type of issues should be provided by the leadership. When the co-workers are remotely working the telecommunication cost will also be increased but when work at office environment employees can talk or discuss with each other physically without telecommunication costs. Therefore, leaders should consider about the additional costs of employees. Another main challenge to the employees in the work at home process is unlimited workload. That increases the employees’ stress level and will impact to the mental health. In that case leaders should capable enough to delegate work through employees in a way that does not compromise to a dissatisfaction which may cause reducing the productivity of employees.  However, they have to mainly focus their attention on the productivity as well as employee’s mental health and motivation when work at home. (Mukherji, 2020)

In the post COVID work life, leaders face uncertainty and fear as another challenge. Uncertainty of the economy, anxiety of family members, loss of employment and loss of mental health are some of the examples that can be happened because of these types of pandemics. As  humans, all  search for security and if  feel uncertainty and fear, that increases stress, anxiety and powerlessness. When stress levels are increased it will lead to a wide range of psychological problems (Harper et al. 2020). Leading of people in a crisis, will be more challenging and that will need more respect and clear vision. When leaders lead with respect and understanding ,employees feel powerful and certainty. As a summary leader have to motivate and inspire subordinates during a pandemic situation. However, sometimes leaders have to make difficult decisions like changing organizational cultures and work patterns, which have to be carefully planned. If leaders mismanage those decisions, it will create uncertainty and resistance to the management. (Locklear, J., 2020)

Another challenge to leaders in facing the post COVID pandemic is technological barriers of the organizations. When lockdowns and travel restrictions are imposed, it is impossible to have face to face meetings. Then organizations move out to convene virtual meeting such as zoom, Microsoft Teams and Google meet. That helps to maintain social distance etiquette.  Some leaders have to automate some services using artificial intelligence and machine learning. That helps to resource allocations and keeps organizations alive in this problematic time of period. Some organizations used high speed internet connections such as 5G to control machinery in the different geographical locations.  Low latency network solutions are helpful to organizations to start their operations remotely. On the other hand, Cyber security is one of the major threats that leaders should consider during post COVID. As a new lifestyle people are forced to work remotely. In normal circumstances home networks and personal laptops do not maintain security practices. Then all data may become totally vulnerable. Cybercriminals spread viruses using fake domains and phishing emails. As a summary lack of technology gives more challenges to leaders of the organization.

The COVID crisis is changing day by day. Leaders have to face to rapidly changing environment. Then processes and workflows of the organization need to be changed according to the requirements of the live environment. In the post COVID environment, leaders have to get more actions according to short term activities, but those activities may have created impact on long term business plans. When leaders face rapidly changing environmental issues due this COVID crisis sometimes the direction of the business may be changed. The vision, mission and core values of the organization will be affected. Some organizations may have to change their product range too. When we take a garment manufacturing organization, they could not conduct their usual garment manufacturing since orders were cancelled, export of garments were stopped. However, instead of that they started manufacturing of personal protection things such as face masks, gloves, medical gowns, aprons and overall etc. which are essential and have very high demand. Further, many organizations started remote working environments to face these issues. In short, adjust the operational activities avoiding harmful effects to core of the organization in this rapidly changing environment due to COVID, is a big challenge to the leaders.

Business continuity is one of the major challenges faced by leaders in service-oriented organizations. Leaders should ensure the continuity of the business during this pandemic situation and emergency schedules are essential. Under these circumstances leaders have to identify priorities and decide what the critical and important services are and what the impact to the business is if service providing there is break up. Then they should prioritize the services which should  be provided and allocate required resources needed to continue to provide services without any disturbances. Further they should prepare organization to face for the further development of crisis situation and should implement innovative changes that can be moved to sustainable solutions which can ensure the continuity of the organization.

 Managing of financial situation of the organization is one of the major challenges the leader will face in this post COVID situation. When lockdown is imposed, business operations are at a standstill, demand is reduced, supply chain disruptions occur. But organizations should honour its short term liquidity requirements such as monthly salary payments of employees , utility bill payments and loan repayment commitments etc. although organizations receive zero income. This situation cannot be continued even though the organizations have cash reserves.   All these things lead to liquidity issues. The traditional crisis response methods to overcome these financial issues are not sufficient to face this Covid pandemic situation. Therefore leaders should develop practical treasury plans by consulting experts and should act decisively to mitigate risks and avoid liquidity issues of the business by acting tactfully and strategically.

As a conclusion all the global organizations and leaders face this pandemic crisis without any choice. Organizations are not ready for this kind of fluctuations of the market.  Decisions of the organization’s leaders should be helpful to cross this COVID situation. These hard situations make a platform to leaders to judge their own decisiveness and risk-taking abilities. Post COVID, it is very tricky phase of any organization that need to understand carefully and consolidation be given using organizational strategy, structure, process and culture. Leaders take decisions without direct effects on those four dimensions. Modern organization uses flat structure then Leaders have to interact with teams to get organizational decisions. However, those situations generate conflict within the organizations (Denis, Lamothe, & Langley, 2001). In that situation leaders have to go against the preference then leader need to recognize what is the contravening information that will come in the discussion with employees. (Maitlis & Sonenshein, 2010). However, there is limited knowledge about how to tackle this type of unprecedented challengers in ongoing crisis (Locklear, J., 2020). Finally, when uncertainty and ambiguity of crisis organization leader and employees experience emotional situations and different definitions to organizations events. (Sobral, Carvalho, Lagowska, Furtado, & Grobman, 2020) leaders need to show empathy towards employees and show they are concerned about employee’s situations.

 By Dinitha Senarath | 2012229

 Reference

Harper, C. A., Satchell, L. P., Fido, D., & Latzman, R. D. (2020). Functional fear predicts public health compliance in the COVID-19 pandemic. International Journal of Mental Health Addiction. https://doi. org/10.1007/s11469-020-00281-5.

Mukherji, S., 2020. Challenges For Organisations And Leaders In A Post-Covid World | Forbes India. [online] Forbes India. Available at: <https://www.forbesindia.com/article/coronavirus/challenges-for-organisations-and-leaders-in-a-postcovid-world/59973/1> [Accessed 29 September 2020].

Locklear, J., 2020. Addressing Everyday Management Challenges In A Post Covid-19 World. [online] Training Journal. Available at: <https://www.trainingjournal.com/articles/features/addressing-everyday-management-challenges-post-covid-19-world> [Accessed 29 September 2020].

Denis, J.-L., Lamothe, L. & Langley, A. (2001). The dynamics of collective leadership and strategic change in pluralistic organizations. Academy of Management Journal, 44(4), 809-837. https://doi.org/10.5465/3069417

Maitlis, S., & Sonenshein, S. (2010). Sensemaking in crisis and change: Inspiration and insights from Weick (1988). Journal of Management Studies, 47(3), 551-580. https://doi.org/10.1111/j.1467-6486.2010.00908.x

Lagowska, U., Sobral, F. and Furtado, L., 2020. Leadership under Crises: A Research Agenda for the Post-COVID-19 Era. BAR - Brazilian Administration Review, 17(2).

Locklear, J., 2020. Addressing Everyday Management Challenges In A Post Covid-19 World. [online] Training Journal. Available at: <https://www.trainingjournal.com/articles/features/addressing-everyday-management-challenges-post-covid-19-world> [Accessed 29 September 2020].

Sobral, F., Carvalho, J., Łagowska, U., Furtado, L. & Grobman, M. (2020). Better safe than sorry: leadership sensemaking in the time of COVID-19. Revista de Administraçâo Pública, in press. Retrieved from http://bibliotecadigital.fgv.br/ojs/index.php/rap/article/view/81706/77920

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