The effects of COVID 19 on organizations
Covid -19 has entered into the books of history as the worst widespread epidemic, and most significant threat to human life ever witnessed since time immemorial. The outbreak has virtually impacted every sphere of human life. Business have not been spared either. The epidemic has negatively impacted business organizations in different ways, leaving most of them virtually “bleeding” (Clover, 2020). The survival of a business organization now rests on management’s ability to employ prudent management approaches to lead and steer their organizations during this time of uncertainty.
Since the outbreak of Covid-19 in December of 2019, organizations have been adversely affected. Affected areas in organizations include supply and operations chain, workforce, liquidity and finance, strategies and brand, regulations, tax and trade, and crisis management and response, (Islam & Hu, 2019). Industrial statistics indicate over 70% of the business of business organizations globally have cut their production capacities and as a result, lost a considerable portion of their revenue (Clover, 2020). To survive, business organizations have been forced to rethink of better ways of doing business. Some of the organizations have down sized their work force, a significant others have been subjected to alternative ways of doing business such as leveraging on the power of technology to offer services.
Management approaches are advocated as critical tools for managing business organizations. Management approaches guidelines and framework that guide managers to effectively manage their organizations (Islam & Hu, 2012). Approaches to management include the contingency approach to management and the human relations approach to management. Ideally, the contingency approach to management refers to the notion that there is no single way to manage an organization since people, organizations and situations keep changing, (Garcia et al., 2017). Thus, managers should customize their leading, planning, organizing and controlling characteristics to fit a particular condition, which in this case is the Covid-19 pandemic (Gittell et al., 2009).The human relations approach to management, on the other hand, refers to the study of people’s behavior by the management (Boon et al., 2019). This approach requires managers to study and understand people in the context of work since they get things done with and through people.
To understand these two approaches, it is important to use situational management and multivariate analysis that enhance the effectiveness and efficiency of employees using Apple Inc. as a case study. Additionally, to create enthusiasm, creativity, and cooperation among people in an organizational context, Walmart’s case will come in handy. Managers must be proactive and reactive to respond to the organization’s dynamic needs and employees during times of uncertainty. Therefore, managers should integrate and apply contingency and human relationship theories effectively.
The contingency approach to management, also referred to as situational management, is commonly used due to its adaptive nature. Ideally, managers can use this approach to combat the earlier stated effects of Covid-19 because it does not assume a pre-designed structure. It adopts a structure that will help the organization adapt to the current environment (Islam & Hu, 2019). Therefore in the current times, managers can combat the supply and operation chain effects of Covid-19 by identifying alternative supply chains since new cases of the pandemic are emerging in various territories daily, and precaution measures should be put into account. If managers adopt this measure, they will use the adaptive characteristic of the contingency approach to management.
Another important and applicable principle and feature of the contingency approach is that it provides an insight into how organizations can adapt to the external and internal environment. Therefore it’s the question of how they can integrate the internal environment into the external environment and design an organizational information flow system. As a result of the pandemic, many organizations have resulted in instructing their employees to work at home and providing them with amenities such as laptops, office chairs and other equipment to integrate the internal environment to the external environment,(Gittell et al., 2009). Also, organizations adopt new communication channels such as Zoom meetings to continue with a constant flow of information during the pandemic.
One of the main features of the human relations approach is that managers must examine the interpersonal relationships among their employees keenly to understand employee behavior. Ideally, the importance of understanding these relationships is that employees form small informal groups that significantly influence workers’ performance and behavior (Gittell et al., 2019). Similarly, interpersonal relationships are important because employees re-act and act as members of a group, not as individuals.
The principle of the human relations approach used to achieve high motivation among employees by managers is good relations with employees, (Garcia et al.,2017). Employees need to feel recognized and included in the operations of an organization. Therefore, for managers to boost workers’ enthusiasm and creativity, they need to have a good relationship with them since employees are social beings and cannot be motivated by money alone, which is an economic incentive.
Due to the applicability and flexibility of the above-discussed approaches, organizations are widely using them to cope with the prevailing pandemic. In terms of contingency approach, organizations are integrating the internal environment to the external environment by availing office amenities to employees working remotely,(Islam & Hu, 2019). Consequently, in the human relations approach to management, managers motivate their employees and set up virtual centers to cater to their mental and physical wellness. Additionally, to boost creativity and enthusiasm among employees, managers use virtual platforms such as Zoom meetings to study and understand their employees and encourage their employees to stay safe, (Islam & Hu, 2019). Therefore the two approaches, if used effectively, managers can steer their organizations in the right direction even during the Covid-19 pandemic that has left many people in despair.
Managers can enhance the effectiveness and efficiency of employees by use of situational management approach. Similarly, some of the strengths of this approach are that managers can increase the efficiency and effectiveness of employees by thinking of all the possible factors that affect their workers such as the Covid-19 outbreak and adopt the best strategy that is beneficial to them and the organization,(Garcia et al., 2017). According to Boon et al. (2019), situation management follows a flexible design and therefore, it provides insights to organizations on how to adapt to challenging times.
However, the situational approach to management has its limitations. The approach suffers from inadequate information to make a conclusive decision. Researchers have found that the popular phrase used in this approach, any managerial action depends on the situation at hand, is insufficient due to its lack of guidelines on how to conduct management practices. Additionally, the contingency approach may be considered weak due to its complexity (Abba et al., 2018). Ideally, the approach is not as easy as it sounds. Before a manager can decide based on the situation at hand, he needs to analyze many factors that have multivariate dimensions. In most cases, managers that need a quick solution to a challenge will take the easy way out and not consider all factors. Thereby rendering the approach ineffective and weak,(Boon et al., 2019).
A great example of a corporation that uses the situation approach is Apple. Apple managers have designed ways that continue to bring value to their customers, employees and the organization at large during the Covid-19 pandemic. To cater to its employees’ safety, Apple closed its retail stores in the most affected areas and then resulted in selling its products on its online platforms (Clover, 2020). Similarly, to support its customers, Apple developed online support services via its website. All this was to minimize the risk of transmitting the virus among employees and customers in the Apple stores.
Additionally, some Apple employees are required to work remotely. However, there are those employees required to be on site. For those employees on-site, Apple rolled out temperature checks and health screenings to ensure that their employees are safe and avoid the threat of transmission,(Clover, 2020). Therefore, amidst all the effects of Covid-19, Apple Inc. continues to be in operation due to the adoption of the situation approach mode of management by its managers. Based on Clove (2020), the Apple Inc. has advised all its investors to look out for financial reports of the company in the company website instead of going to the Apple offices. This is an illustration of the situation approach since the company is devising mechanisms that help their investors, employees, customers and them to adapt to the current environment.
Regarding the human relations approach to management, managers are advised to adopt it due to its surmountable strengths. Ideally, by adopting this approach, managers will understand the behavior of their employees, which leads to better relations at work (Gittell et al., 2009). As a result, productivity and performance get a boost. Additionally, this approach is advantageous because, through the study of employees’ behavioral characteristics, managers identify ways to motivate their employees, leading to increased enthusiasm and creativity among the employees, (Boon et al., 2019). Proactive managers create and maintain good relationships with employees, and that is how they get things done effectively and efficiently by their workers.
Some of the limitations of the human relations approach include top management teams, do not support the approach,(Clover, 2020). Ideally, in many organizations, the cultivation of human relations is left to the personnel team only. Additionally, this approach is time-consuming since managers have to take time out of their schedule to study and understand their employees. Therefore before adopting this strategy, managers should understand these limitations and adopt methods of overcoming them.
A good example of an organization that is adopting the human relation approach to management during the Covid-19 pandemic is Walmart. Recently, Walmart issued bonuses worth $428 million to its employees ( Mayer, 2020). The purpose of the bonuses was to thank their workers for working during the Covid-19 epidemic. Additionally, the recent bonus was not the only bonus that the organization gave its employees; it also gave out bonuses in May and April. Ideally, by issuing bonuses, Walmart attempts to create good relations with its workers during the epidemic. Its employees, in return, feel appreciated and recognized by their organization, (Abba et al., 2018). Other companies have also adopted this strategy to try and motivate their employees to boost enthusiasm. Additional Walmart recently motivated their employees to form interpersonal relationships with each other while still maintaining social distance. To do that employees are required to form virtual groups with some of their workers and any manager needs to be present, (Garcia et al., 2017). The purpose of these groups is for employees to discuss the challenges that they are currently facing during the pandemic and provide solutions that will help everyone. Ideally these groups bring about cohesiveness in the organization and have an impact on the profitability since employees feel motivated and rejuvenated to work. Similarly, Walmart has introduced a virtual mental counseling center to take care of the mental wellness of their employees during the pandemic,(Gittell et al., 2009). Mental wellness of employees is important because it boosts their morale and Walmart is clearly taking care of that during the pandemic
In conclusion, the flexible nature of the contingency theory to management enables leaders to address challenges in the best way by aligning the approach to the prevailing situations. Additionally, the human relations approach helps leaders understand the needs of their employees and act accordingly during challenging situations. Therefore, the integration of these two approaches enables managers to become proactive and reactive in meeting the organization’s goals and the needs of their employees during volatile situations.