IMPACT OF COVID – 19 ON
ORGANISATIONAL BEHAVIOUR
Dr. JOSSIL NAZARETH
DECEMBER 8, 2020
MHA 1ST SEM
202803022
Introduction
The impacts of COVID-19 (Corona Virus Disease – 2019) on workers
and workplaces worldwide have been dramatic, to say the least. The
coronavirus disease (COVID-19) pandemic, which originated in
Wuhan, China, has quickly spread to various countries, with many
cases reported worldwide. As of December 6, 2020, India has reported
a total of 95,040,40 positive cases so far, out of which 4,032,48
(4.24%) are active cases, 91,007,92 (95.75%) patients have been
discharged, and the cases reported to be dead are 1,401,82 (1.47%).1
The current pandemic of COVID - 19 is caused by a virus named SARS
– CoV - 2 (Severe Acute Respiratory Syndrome – Coronavirus 2). This
belongs to a large family of viruses, namely coronavirus, many of
which cause respiratory illnesses in humans extending from the
common cold to more uncommon and severe illnesses like the Severe
Acute Respiratory Syndrome (SARS) and the Middle East respiratory
syndrome (MERS), both of which have high mortality rates and were
first detected back in 2003 and 2012, respectively.2
The first human cases of COVID-19 were first reported from Hubei
province, Wuhan City, China, in December 2019. COVID - 19 is said to
be originated from a recombination of coronaviruses from a bat and a
pangolin.3 The common symptoms of the disease include fever, sore
throat, myalgia, and a headache. Human to human transmission of the
disease was confirmed on January 20, 2020, through two cases in
Guangdong province in China.4
In order to curb the virus' spread, a nationwide lockdown of
businesses across the globe was implemented. This generated a wide
array of unique and fundamental challenges for both employers and
1
Ministry of Health and Family Welfare, India: COVID-19 Data
WHO: Origin of COVID-19
3
Probable Pangolin Origin of SARS-CoV-2 Associated with the COVID-19 Outbreak. DOI:
10.1016/j.cub.2020.03.022
4
National Health Commission of People’s Republic of China
2
1|Impact of COVID -19 on Organisational Behaviour
employees everywhere. At the individual level, populations of
shutdown-affected employees were turned overnight into work from
home employees, "essential" workers (e.g., emergency room medical
personnel and grocery staff), or furloughed or laid-off employees.
Whereas on the organizational level, economic shutdowns and related
governmental activities most likely appear to change some industries
fundamentally and further accelerate trends that were already
underway for others.5
In addition to the immediate effects of COVID-19 for various
workplace ethics and arrangements, there is also likely to be a wide
range of economic and social costs of the pandemic for employees,
including those who lost jobs as well as those who retained their job.
The two main sectors that are largely affected (both positively and
negatively) are the healthcare industry and the IT (Information
Technology) industry, as a large chunk of the population were heavily
reliant on these two during the pandemic.
Impact on IT industry
Microsoft Corp. made a declaration on October 27, 2020, the results
for the quarter that completed on September 30, 2020, as compared
to the corresponding period of last financial year:6
· Income was $37.2 billion and expanded 12%.
· Working pay was $15.9 billion and expanded 25%.
· Net income was $13.9 billion and expanded 30%.
· Diluted earnings per share was $1.82 and expanded by 32%.
5
COVID-19 and the Workplace: Implications, Issues, and Insights for Future Research and Action: Harvard
Business School
6
https://www.microsoft.com/en-us/Investor/earnings/FY-2021-Q1/press-release-webcast
2|Impact of COVID -19 on Organisational Behaviour
Demand for their cloud offerings drove a solid start to the financial
year, with their commercial cloud revenue-generating $15.2 billion,
up 31% year over year.
Revenue in Productivity and Business Processes was $12.3 billion and
expanded 11%, with the following business highlights:
· Office Commercial items and cloud services revenue expanded 9%
driven by Office 365 Commercial revenue growth of 21% (up 20% in
constant currency).
· Office Customer products and cloud services revenue expanded by
13%, and Microsoft 365 endorsers expanded to 45.3 million.
This demand for IT services rose quickly, with Work From Home
(WFH) being mandated across various countries, causing a lot of
companies and employees to invest in technology. A Gartner (2020)
study of 229 Human Resources (HR) offices (800 participants) showed
that around half of the businesses had more than 80% of their
representatives working from home amid the early stages of the
COVID-19 spread. The requirement for millions of workers to WFH in
reaction to COVID-19 has accelerated recent remote work patterns
encouraged by the rise of network and communication
technologies.”7
Yet as a large number of workers are forced to work from home, many
face challenges due to trivial issues such as not having space in one's
own house to attend their work. Employees who don’t have their own
place to live and have to share an accommodation with others also
have to face a larger set of challenges since they need to navigate
others' space as well.
Employees often find it challenging to maintain a work-life balance
while working from home.8 The confinement of workers during this
pandemic has further complicated the issue. While WFH sounds
7
https://www.gartner.com/en/newsroom/press-releases/2020-03-19-gartner-hr-survey-reveals-88--oforganizations-have-e
8
Ramarajan & Reid (2013): Shattering the Myth of Separate Worlds
3|Impact of COVID -19 on Organisational Behaviour
appealing as it offers a safe harbour, the lack of separation between
one's work and home – and the absence of commutes to provide a
transition between the two domains – can become a burden too.
COVID-19 has substantially contributed to a greater risk of employees
experiencing job “burnout” – a chronic stress syndrome, which
includes chronic feelings of exhaustion and tiredness and a distant
attitude toward work.9 Moreover, the continuous exposure to COVID19 news adds to the stress – passively and repetitively focusing on
symptoms of distress and on the conceivable causes and
consequences of these symptoms.
With this ongoing crisis requiring millions of employees across
different hierarchical levels to work from home, it has been noted that
leadership can also work well from a distance.10 Virtual Teams have
been growing exponentially and gaining momentum. Prior research
has shown that virtual teamwork tends to lack the communication
richness available to face-to-face collaboration and that traditional
teamwork problems such as conflict and coordination tend to escalate
rather quickly in virtual group meetings.11
A study of 3 million people by Harvard Business School confirms what
work-from-home employees already know – they are working longer
and attending more meetings.12 An analysis of the meetings and
emails of 3.1 million people in 16 different cities found that the
average workday timings increased by 8.2 percent (48.5 minutes)
during the early pandemic weeks. Employees also participated in
more meetings, than they did before COVID-19 sent many workers
home. The general consensus was that one would always be on Zoom,
interacting or attending a meeting. People found it difficult to find
their own physical space and adjust to these new patterns of work.
9
Demerouti et al. (2010): Oldenburg Burnout Inventory
Antonakis & Atwater (2002): Leader Distance: A review and proposed theory
11
Martins, Gilson, & Maynard (2004): Virtual Teams
12
https://hbswk.hbs.edu/item/you-re-right-you-are-working-longer-and-attending-more-meetings
10
4|Impact of COVID -19 on Organisational Behaviour
Moreover, with the “unlock” occurring across the country due to a
steady decline in cases across various states, certain new rules and
norms have been implemented. These include maintaining social
distancing while working, wearing masks appropriately, avoiding
lunch while at office or at a workplace. Though it might seem trivial
and quite necessary considering the crisis, it has been quite
challenging for many.
There are guidelines and restrictions to the number of people who can
attend a meeting, spatiation among employees so as to avoid crossinfection – which in turn can hamper productivity to an extent as these
employees are only available on a virtual basis.
On the other hand, technology has helped to keep the work ongoing
while in a crisis. Managers have now become more tolerant of having
their employees working remotely. Potentially, the time wasted now
is less.
Emergent Changes in Work Practices and their implications:13
Work From Home (WFH)
Virtual Teams
Virtual Leadership and
Management
Employers have become more
open to adapting the practice
post-pandemic.
Many employees have been
forced to work virtually for team
projects causing them to
navigate the direct and indirect
conflicts that may result in
performance losses.
Managers are now faced with
new challenges to supervise and
cultivate the development of
their subordinates from a much
greater distance than usual.
13
COVID-19 and the Workplace: Implications, Issues, and Insights for Future Research and Action: Harvard
Business School
5|Impact of COVID -19 on Organisational Behaviour
Unemployment and Layoffs
There are direct and indirect
costs experienced by those who
remain working in organizations
that have laid-off workers.
Impact on Health Sector
As of 2020, India's total healthcare expenditure, out-of-pocket and
public, is at 3.6% of the Gross Domestic Product (GDP).14 In
comparison, the average for Organisation for Economic Co-operation
and Development (OECD) countries in 2018 was at 8.8% of the GDP.
The ongoing crisis due to the pandemic is a stringent reminder of the
importance of investing in the healthcare sector for any country,
especially for India.
The government total per capita spending on healthcare has nearly
multiplied from ₹1,008 per person in financial year 2015 to ₹1,944 in
financial year 2020, but is still considered to be significantly low. The
overall expenditure by the Centre and States for FY20 was ₹2.6 trillion,
or 1.29% of the GDP.15 This includes establishment expenditure
comprising of wages, gross budgetary support to many medical
institutions and hospitals, and transfers to states under centrally
sponsored schemes such as Ayushman Bharat. Of the overall public
expenditure, the Centre's share has been 25%. Through the last five
years, the overall public expenditure on health has risen at 15%
Compound Annual Growth Rate (CAGR), much of this is due to pay
hikes.
India currently has 8.5 hospital beds and eight physicians per 10,000
people.16 An staggering increase in the number of cases from 470 in
March 2020, to over four lakhs by May 2020 is seen within a span of
14
Organisation for Economic Co-operation and Development
India’s economy needs big dose of health spending. https://www.livemint.com/news/india/india-seconomy-needs-big-dose-of-health-spending-11586365603651.html
16
Organisation for Economic Co-operation and Development
15
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merely three months. While certain public policy measures have
been implemented to limit the spread of COVID-19, the measures
have caused a significant operational disruption for many
organisations, especially those in the Indian healthcare industry.
Supply-chain failures, staff quarantine, and sudden reductions in
customer demand have generated serious complications for various
organisations across a wider range of sectors than initially anticipated.
Despite the current crisis being a healthcare issue, the private
healthcare system in India continues to reel under the
negative impact of COVID-19. There has been a large reduction in both
in-patient and out-patient footfall for private hospital chains—be it a
single specialty, multi-specialty, tertiary-care hospitals, or even
diagnostics businesses, during this lockdown.
The COVID-19 lockdown meant that people rescheduled their elective
surgeries; it also dried up the usually steady inflow of people with
chronic illnesses like hypertension, diabetes etc that need regular infacility interventions such as dialysis, chemotherapy, blood
transfusions, etc. Apart from this, a ban on international flights by the
government has resulted in foreign patients from visiting the country
for their surgeries.
The additional need to sanitize the hospital premises and give
protective gear to healthcare staff added a new element to their usual
costs. The staff had to be quarantined regularly, making the
workforce sparse, as they started working on rotational shifts, and
some hospitals had to offer monetary bonuses to staff to encourage
them to continue to work despite the risks involved.
Finally, the decision of the Indian government to clamp down on the
prices for the treatment of COVID - 19 and force hospitals to reserve
beds for the same also harmed their bottom-line. Fortis Healthcare's
revenues from COVID-19 treatment accounted for 8% of its revenues
so far according to a group's officials media briefing in the month of
7|Impact of COVID -19 on Organisational Behaviour
August 2020. Its bed occupancy rate in pre-COVID times was
approximately 65-70%, but had slumped to 51% in July 2020.17
As it is, the doctor to population ratio of India is low, and this crisis
added to the already existing burden. The hospitals began deputing all
their doctors, regardless of their specialty, for COVID – 19 duties. This
was predominantly seen in medical colleges across the country,
wherein postgraduate students and interns were made to work in
COVID – 19 wards. As a result, many doctors and healthcare personnel
felt burnt out.
Conclusion
The pandemic workforce has created an incredible challenge for
managers. COVID-19 is now recognized for changing the way we work
in crucial ways. For case, COVID-19 unexpectedly quickened the speed
of changes related with working outside of co-located workplaces.
Virtual work practices are likely to remain or rather increase as
organizations realize the cost-savings from organizing labor with less
full-time representatives and more temporary workers associated
technologically – and maybe with a lesser office space in light of the
health risks known to be related with ordinary open-plan workplaces.
The challenges for people working in this way are clear: more of us
ought to learn to work in ways far diverse than how individuals did in
past eras. In this regard, COVID-19 makes clear how powerless we are
as representatives and managers.18
As numerous businesses around the world will be restructured or
disappear due to the pandemic, employees will be retrained or laidoff and the financial, social-psychological, and health costs of these
activities are likely to be monstrous. Without a doubt, the impacts of
17
https://www.business-standard.com/article/current-affairs/covid-19-impact-private-hospitals-runninglosses-despite-high-prices-120092300233_1.html
18
COVID-19 and the Workplace: Implications, Issues, and Insights for Future Research and Action: Harvard
Business School
8|Impact of COVID -19 on Organisational Behaviour
the pandemic will influence a few groups of specialists more
unequivocally than others, for example, based on their age, race and
ethnicity, sexual orientation, or identity.
An understanding of how these sudden rising changes unfurl is critical
for healthcare professionals who are charting ways forward to address
(e.g., with new interventions) the requirements of vulnerable
categories of workers.19 For instance, workers living alone may have
exceptionally diverse virtual working needs and schedules than
workers living with family individuals.
Moreover, authoritarian or bossy leaders may face diverse challenges
in spurring their workers in virtual situations than more participative
and empathic group leaders, and hence have distinctive training and
development needs.
At last, in managing with remote working populations, HR experts
must create new performance management and appraisal
frameworks whereas occupational health staff ought to be prepared
to recognize and address mental health issues in remote working
populations – and be able to offer online counsel and treatment.
Few suggestions made by Raffaella Sadun, a professor of Business
Administration in the Strategy Unit at Harvard Business School
include:20
• Empathize with workers’ special circumstances. Supervisors ought
to know what their workers are juggling to provide the proper
professional support.
19
COVID-19 and the Workplace: Implications, Issues, and Insights for Future Research and Action: Harvard
Business School
20
https://hbswk.hbs.edu/item/you-re-right-you-are-working-longer-and-attending-more-meetings
9|Impact of COVID -19 on Organisational Behaviour
• Focus on yield, not hours. It’s essentially outlandish to track how
workers are really utilizing their time. Instead, supervisors ought to
focus on the quality of their work.
• Expect wide contrasts in efficiency over representatives, for now.
Whereas a few individuals find working from home energizing,
numerous workers likely won’t be able to be as successful as they
would be under ordinary conditions.
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