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Evaluate Short-Term Liquidity
Evaluate Short-Term Liquidity
Evaluate Short-Term Liquidity
outbreak on employees’ mental health and moderating factors that may mitigate or aggravate
these effects, I have developed a list of considerations and recommendations for workplaces,
mainly for managers and for human resource management practitioners. In this context, I suggest
that organizations should develop a short- and long-term organizational plan, based on the
following recommendations:
Need to determine how the COVID-19 crisis affects budgets and business plans
Companies will want to stress-test financial plans for multiple scenarios to understand the
potential impact on financial performance and assess how long the impact may continue. If the
impact is material and former budget assumptions and business plans are no longer relevant,
companies should revise them to remain agile. Where the business is significantly impacted,
companies will need to consider minimum operating requirements, including key dependencies
of workforce, vendors, location and technology.
Communicate with relevant stakeholders
Clear, transparent and timely communications are necessary when creating a platform to reshape
the business and to secure ongoing support from customers, employees, suppliers, creditors,
investors and regulatory authorities.
Customers
Companies will want to keep customers apprised of any impacts to product or service delivery. If
contractual obligations cannot be met as a result of supplier or production disruption, it is
important to maintain open lines of communication to revisit timelines or invoke “force majeure”
or “act of God” clauses. Such proactive action will help to mitigate punitive damages or
liabilities associated with disrupted customer obligations.
Employees
For employees, communications plans should try to find the balance between caution and
maintaining a business-as-usual mindset.
Suppliers
Companies need maintain regular contact with suppliers regarding their capability to deliver
goods and services during the COVID-19 crisis and their recovery plans, so that the company
can consider alternative supply chain options in a timely manner.
Creditors and investors
Companies will want to review terms and conditions on loan contracts to identify sensitive debts
and avoid vital technical debt breaches. These reviews will have the added benefit of giving
companies a chance to proactively manage the dialogue and communications with creditors
regarding any necessary amendments to existing terms or refinancing arrangements.
Government and regulators
When communicating with relevant stakeholders, companies will want to consult with their legal
teams for advice on potential liabilities and with their business units regarding how to manage
communications around ongoing breaches and collection of proof, if any.
Training
Training is also essential during and after the pandemic. It is considered as a protective factor
against mental health issues. It helps to educate employees about the necessary behaviors and
their importance in the prevention of viral spread. COVID-19 is an unexpected crisis, managers
need to be coached and trained on how to properly manage it, which may reduce their level of
stress. They also need to be trained on how they should manage virtual teams, considering the
context of teleworking, in order to be able to support their team members.
Social support
Social support at work is largely documented in the literature as a protective factor against
workplace mental health issues. The development and implementation of mental health support
and services are crucial to prevent mental health outcomes of COVID-19. In order to mitigate the
potential negative impact of quarantine, social isolation, fear of contagion and uncertainty on
employees, managers should foster a supportive environment in the workplace.
Continuous improvement:
Companies that engage in organizational development commit to continually improving their
business and offerings. The OD process creates a continuous cycle of improvement whereby
strategies are planned, implemented, evaluated, improved and monitored. Organizational
development is a proactive approach that embraces change (internal and external) and leverages
it for renewal.
Increased communication:
One of the key advantages to OD is increased communication, feedback and interaction within
the organization. The goal of improving communication is to align all employees to shared
company goals and values. Candid communication also leads to increased understanding of the
need for change within the organization. Communication is open across all levels of the
organization and relevant feedback is recurrently shared for improvement.
Employee development:
Organizational development focuses on increased communication to influence employees to
bring about desired changes. The need for employee development stems from constant industry
and market changes. This causes an organization to regularly enhance employee skills to meet
evolving market requirements. This is achieved through a program of learning, training,
skills/competency enhancement and work process improvements.
Increased profit
Organizational development affects the bottom line in a variety of ways. Through raised
innovation and productivity, efficiency and profits are increased. Costs are also reduced by
minimizing employee turnover and absenteeism. As OD aligns objectives and focuses on
development, product/service quality and employee satisfaction are increased. The culture shift
to one of continuous improvement gives the company a distinct advantage in the competitive
marketplace.
Crisis
The recent financial crisis obviously created many changes in the financial services industry as
organizations attempted to survive.
Performance Gaps
The organization's goals and objectives are not being met or other organizational needs are not
being satisfied. Changes are required to close these gaps.
New Technology
Identification of new technology and more efficient and economical methods to perform work.
Identification of Opportunities
Opportunities are identified in the market place that the organization needs to pursue in order to
increase its competitiveness.
Sounds Good
Another reason organization may institute certain changes is that other organizations are doing
so (such as the old quality circles and re-engineering fads). It sounds good, so the organization
tries it.
Planned Abandonment
Changes as a result of abandoning declining products, markets, or subsidiaries and allocating
resources to innovation and new opportunities.
Successful change of any magnitude will go through all eight stages, usually in the sequence
shown, although it should be clearly understood that the steps can significantly overlap, and in
most cases recycling through the steps will occur. Therefore, it is very important to ensure that
all of the necessary resources are in place to ensure the completion of each stage. Much more is
involved than a) gathering data, b) identifying options, c) analyzing, and d) choosing – the
watchwords of management. Instead, leadership must be shown. Rather than focusing
exclusively on planning, budgeting, organizing, staffing, controlling, and problem-solving,
leadership is a set of processes that creates organizations in the first place or adapts them to
significantly changing circumstances. Leadership defines what the future should look like, aligns
people with that vision, and inspires them to make it happen despite obstacles.
Organization Development is an effort (1) planned, (2) organization- wide, and (3) managed
from the top, to (4) increase organization effectiveness and health through (5) planned
interventions in the organizations "processes,” using behavioral-science knowledge.
PAST TRENDS OF OD
People used to learn in classrooms
Laboratory training
Leaders were identified on the basis of experience, tenure and business Performance
Increase Focus on Productivity
Employees were not treated as assets
One Person One job
Low Performance was tolerated
Employees were given negative motivation like fears and punishments
Little acknowledgement Focuses on short term results
THE ECONOMY
Cultural diversity – Governments face the difficult choice of preserving their culture ant the
risk of being left out of the global economy.
Income distribution – globalization of the economy is closely related to an increasing
concentration of wealth in relatively few individuals, corporation and nations.
Ecological sustainability – there are increasingly clear warnings that the ecosystem no longer
can be treated as a factor of production and that success cannot be defined as the accumulation of
wealth and material goods at the expense of the environment.
THE WORKFORCE
Diverse – organizations, whether they operate primarily in their home country or abroad, will
need to develop policies and operating styles that embrace the changing cultural, ethnic, gender
and age diversity of the workforce.
Educated – the workforce is becoming more educated. A more educated workforce demands
higher wages, more involvement in decision making and continued investment of knowledge and
skills.
Contingent – the continued high rate of downsizings, re-engineering efforts, and mergers and
acquisitions are forcing the workforce to become more contingent and less loyal.
TECHNOLOGY
Internet – the backbone of global economy.
E-commerce – an economy that knows no boundaries. It involves buying and selling products
and services over the internet.
Two types of E-commerce relevant to OD’s Future
Business-to-consumer – garners much attention and awareness because it is how the public
participates in E-commerce.
Business-to-business – more complex
ORGANISATION
Organization involves increasingly networked and knowledge-based nature of organizations. The
interventions help organizations become more streamlined and flexible, more capable of
improving themselves continuously in response to economic and other trends and more effective.
Networks – are highly adaptable and can disband and reform along different task or market lines
as the circumstances demand.
➢More interdisciplinary