LEADING THROUGH CRISIS OR MANAGING REACTION?
In the constantly evolving global landscape, organizations face complex challenges that demand agile and innovative responses to ensure their survival and growth. From adapting to digital transformation to creating inclusive and sustainable work environments, the demands are diverse and urgent. In this context, leaders often find themselves reacting to crises as they arise, rather than adopting a proactive approach to anticipate and address challenges.
The ethical evolution of work in the 20th century redefined organizational dynamics, making employees more susceptible to the influence of reactive management practices. According to Richard Sennett in “The Corrosion of Character,” changes in working conditions and the resulting precarization leave employees vulnerable, leading them to react to crises instead of proactively managing them.
As organizations adapt to the contemporary landscape of ongoing urgency, they often adopt reactive management strategies, focused on solving problems as they arise rather than proactively addressing them. This approach can blind leaders to the underlying exploration of issues, leading them to promote an environment of “organizational positivity.” This concept of “organizational positivity” refers to an excessive emphasis on maintaining an atmosphere of optimism and motivation, often at the expense of recognizing and addressing the real difficulties faced by employees.
By insisting on an overly positive view, leaders may create a culture where criticism and problems are minimized or ignored, masking reality and preventing the identification and resolution of underlying issues. As a result, reactive management becomes the norm, with leaders dealing with the effects of crises rather than addressing their root causes, perpetuating a cycle of constant response instead of effective problem resolution.
Not surprisingly, in the organizational environment, the climate can become toxic, tainted by pressure to maintain an image of success and personal fulfillment, influenced mainly by organizational discourses that dictate norms of behavior and conduct. This often leads employees to focus on adapting to the standards set by the company rather than proactively facing challenges. When the emphasis is on complying with a culture of superficial optimism, employees may feel discouraged from raising issues or proposing innovative solutions, perpetuating the reactive approach and compromising long-term organizational effectiveness. Edgar Schein, in “Organizational Culture and Leadership,” emphasizes how organizational culture profoundly impacts how employees respond to crises.
Furthermore, the arsenal of management strategies often obscures a subtle process of psychological manipulation, leading employees to compromise their work ethic for various reasons, whether out of fear, conformity, or in pursuit of tangible and intangible benefits such as recognition, promotions, or financial stability. This reactive dynamic undermines employees’ ability to act proactively in the face of organizational challenges. By prioritizing superficial solutions and short-term rewards, organizations may inadvertently encourage a vicious cycle of reactivity and superficiality that compromises their long-term success.
As David Graeber reminds us in “Bullshit Jobs,” this manipulation can create a disconnect between workers and their sense of purpose, resulting in a demotivated and reactive workforce. For example, a case that comes to mind is when I was hired to work on organizational climate in a company where the environment constantly encouraged employees to meet short-term goals, without considering the medium and long-term impacts of their actions. In the medium term, this motivation turned into a nightmare. This resulted in high levels of stress, demotivation, and turnover, with employees losing their sense of purpose and personal fulfillment. When I interviewed them, I quickly realized a consensus in which most of them felt like replaceable parts in a corporate machine, leading to a culture of conformity and lack of innovation, each doing their own thing in pursuit of results. This lack of connection to the organization’s larger purpose led to a conflicted, disengaged, and reactive workforce, unable to effectively respond to emerging challenges. All of this experience illustrates how psychological manipulation in the workplace can undermine not only employees’ work ethic but also their emotional well-being and their ability to contribute significantly to the organization’s success, contaminating the entire organizational climate.
In this article, I highlight the prevalence of reactive leadership in organizations, showing how crises are often merely managed in response to them, rather than adopting a proactive approach to prevent and address them. In the era of liquid employees, it is common for organizations to seek temporary and superficial solutions to emerging problems. However, to truly transform this dynamic, it is crucial for leaders and managers to adopt a collaborative, humanized, and proactive approach, anticipating challenges, promoting a culture of values, and preparing their teams to face adversities with resilience and innovation. Zygmunt Bauman, in “Liquid Modernity,” emphasizes the importance of flexibility and continuous adaptation for organizational survival in a constantly changing world.
OBSERVING CONTEMPORARY WORK CONTEXT: IMPOSING IDEOLOGICAL LIQUID LEADERSHIP
Observing the context of contemporary work, the problematic imposition of cultivating liquid leaders emerges, shifting conflicts from the collective organizational level to the individual psychological level. This results in insecurity, psychological suffering, professional burnout, and other issues compromising employees’ mental health. This ideology, as an instrument of control and domination in service of capitalism, displaces conflicts from the collective organizational level to the individual psychological level, resulting in insecurity, psychological suffering, professional burnout, psychosomatic disturbances, and depression and anxiety crises. The compromise of employees’ mental health, due to the demand to put out fires in organizations, is evidenced by a variety of studies in areas such as neuroscience, epidemiology, economics, politics, social sciences, and psychology.
The structure of this text is carefully organized into four distinct parts, each focused on crucial aspects of leadership in times of crisis and organizational transformation. In the first part, I explore the need to Avoid a Limited Perspective, highlighting the importance of a holistic view of organizational culture and climate to ensure an effective response to adversities. Next, in the second part, the discussion turns to understanding and being aware of the trap of Yielding to the Seduction of the Comfort Zone, emphasizing the importance of delegating responsibilities and valuing employees’ autonomy. In the third part, I address the challenge of Excessive Centralization in Reaction, examining how excessive centralization of decisions can undermine the organization’s agility and adaptability. Finally, the concluding considerations emphasize the potentially harmful impact of liquid ideology on individuals and the importance of preserving employees’ identity and well-being amidst organizational changes.
AVOIDING A LIMITED PERSPECTIVE
The human brain has a natural tendency to focus on immediate threats, a fundamental survival mechanism. When faced with challenges within organizations, such as operational crises or disruptive changes, leaders often find themselves immersed in the urgency of the moment, dealing only with the immediate problems before them. This instinctive response can limit their vision and prevent them from seeing beyond immediate issues. To overcome this cognitive trap, leaders need to deliberately broaden their perspective, absorbing not only what is immediately within their field of vision but also the broader context within organizations, and this begins with a clear view of organizational culture.
This implies recognizing the importance of organizational culture as a determining factor in how employees face day-to-day challenges and make decisions. Organizational culture is a set of values, beliefs, norms, and practices that shape behavior and interactions within the company. By understanding and valuing organizational culture, leaders can create a healthy and stimulating work environment where employees feel motivated and empowered to contribute their best performance.
All of this directly impacts the emotion and feeling of each part of this organizational system. This involves understanding the interconnections between different areas and departments, anticipating possible ramifications of their decisions, and considering the needs and concerns of all stakeholders involved. A recent and relevant example can be seen in the global response to the COVID-19 pandemic within organizations. Public health leaders, corporate executives, and human resources managers were challenged to adopt a broad and multifaceted view of the situation, considering not only immediate safety measures and business continuity but also the long-term impacts on employee health and well-being, the demands of the constantly changing market, and emerging opportunities for innovation and digital transformation. This comprehensive approach was crucial for many companies to successfully overcome differences, coordinate an effective response, and mitigate the adverse effects of the pandemic, highlighting the importance of leadership that goes beyond immediate reaction and embraces a strategic and future-oriented vision.
By recognizing and valuing organizational culture, leaders can promote a climate of trust, collaboration, and innovation, where employees feel motivated and empowered to contribute their best performance. This not only strengthens the organization’s resilience to external challenges but also promotes a healthier and more rewarding work environment for all involved. Therefore, avoiding a limited perspective and investing in understanding and strengthening organizational culture and climate are essential steps for the long-term sustainable success of any company.
FOR LEADERS: AVOIDING THE SEDUCTION OF THE COMFORT ZONE
For leaders who have risen within a company or remained in a single sector, managing a crisis may initially seem exciting. The trap lies in returning to their operational comfort zone, where adrenaline flows during decision-making and action implementation. There’s a momentary sense of providing tangible value directly linked to their own emotion and sentiment. This excitement is comparable to a glycemic and dopaminergic peak; however, this approach can be detrimental in the long run, undermining the organization’s conscious ability to adapt and innovate in response to emerging challenges followed by a sudden drop from pleasure to frustration.
Leading during a crisis demands a long-term vision, contrasting with the focus on immediate management. It’s essential to anticipate the challenges that will arise in the weeks, months, and even years ahead, preparing the company for forthcoming changes. This requires a collaborative environment where responsibilities are delegated and trust in employees is upheld during difficult decisions, offering support and guidance based on their expertise, resisting the temptation to take total control or engage in micromanagement.
A practical example I witnessed was in a software technology company that faced a security crisis when hacked. After numerous sessions and training, the leaders learned that instead of succumbing to the seduction of controlling every aspect of the crisis response, they began to adopt a collaborative approach, trusting and empowering their crisis response teams. They provided adequate resources and necessary guidance, enabling professionals to make agile decisions in the heat of the moment while maintaining a focus on preventive measures and long-term solutions. To achieve this, they engaged everyone directly and indirectly involved, mobilizing the company for a digital awareness process. The result was a more effective and resilient crisis response, which not only restored the company’s security but also strengthened the organizational climate, collaboration, and trust among team members, better preparing them to face future challenges.
Furthermore, it’s essential for leaders to recognize the importance of trusting and empowering their crisis response teams. Instead of micromanaging every aspect of the crisis response, it’s crucial to provide adequate resources aligned with market reality, appropriate guidance, and support, allowing professionals to assume their responsibilities and make conscious and agile decisions in the heat of the moment.
Another point worth reinforcing, present in environments where leaders succumb to the “Seduction of the Comfort Zone,” relates to behavioral issues. It’s crucial for leaders to recognize and mitigate sabotaging behaviors that may arise during a crisis, such as the tendency to highlight only the negative aspects of the situation or obsess over irrelevant details.
Promoting a culture of transparency, trust, and collaboration is essential to overcome these challenges and ensure that the company can not only survive but also thrive in adversity. In other words, it’s worth recalling Shirzad Chamine’s book, “Positive Intelligence,” which brilliantly emphasizes common behavioral deviations in the workplace, often produced by the company’s own culture and which are important to recognize their masked presence in different types of controllers during a crisis. For example, the Critic tends to highlight only the negative aspects of the situation, while the Insistent may overload with tasks and neglect the overall strategy. The Hyper-Achiever may excessively focus on immediate results, ignoring long-term impacts, while the Hyper-Rational may lose sight of the emotions and well-being of the team. The Hypervigilant may become overly concerned with details, failing to see the big picture. All of this gives the leader a false sense of power and consequently pleasure. But, in reality, it’s a pure illusion of control.
Leaders must be mindful of these behaviors and adopt strategies to mitigate their impact, promoting a culture of transparency, trust, and collaboration to overcome challenges effectively. Resisting the seduction of management and embracing a collaborative leadership mindset during crises is essential to ensure that the company can not only survive but also thrive in the face of unforeseen challenges that may arise.
EXCESS CENTRALIZATION IN RESPONSE
In contemporary business dynamics, especially in times of crisis, ranging from agile teams to a sudden drop in sales or a supply chain disruption, it’s common to observe leaders facing the challenge of controlling every aspect of the situation. This behavior can result in the creation of new bureaucratic processes and excessive centralization of decisions, undermining the agility and responsiveness of the organization.
The solution to this impasse lies in a paradigm shift, prioritizing order over excessive control. This involves clearly establishing the responsibilities and expectations of team members, granting them autonomy within clear guidelines. Leaders need to understand that they cannot control every detail and, therefore, should focus on the most crucial strategic decisions. In a healthy work context, humanized management stands out, where values such as belonging, recognition, respect, responsibility, admiration, affection, communication, transparency, freedom, and empowerment are cultivated and disseminated. Each employee not only understands their importance but also recognizes their true role in the organizational system, promoting a culture of trust and collaboration.
An exemplary instance of effective leadership amidst an organizational crisis can be found in the agile response of an entire project management team facing a challenge. Instead of attempting to control every aspect of the solution, the project leader adopts a decentralized approach, delegating clear responsibilities to each team member. Empowered to make rapid and effective decisions within their areas of expertise, team members collaborate synergistically, resulting in a quick resolution of the problem and minimizing negative impacts on production and clients.
Through the development of a healthy culture, companies can not only overcome immediate challenges but also strengthen their resilience and long-term adaptability, preparing themselves to face future turbulence with confidence and determination.
EXPLORING ALTERNATIVE MANAGEMENT APPROACHES
In addition to identifying the challenges imposed by liquid ideology, it is essential to consider alternative management approaches that prioritize autonomy, collaboration, and employee well-being. These approaches offer a valuable counterpoint to traditional practices and can inspire reflections on pathways to positive transformation in organizations. Let’s consider some ideas that can help better reflect on alternatives for dealing with reactive management:
- Participatory and Democratic Management: An approach that promotes active employee participation in decision-making and strategic planning within the organization. This not only increases the sense of responsibility and engagement but also values different perspectives and skills within the team.
- Servant Leadership: Based on the principle that leaders are in service to their teams, servant leadership prioritizes the personal and professional development of employees. Leaders are enablers who support the growth and well-being of their teams rather than imposing authority.
- Horizontal Organizational Models: Horizontal organizational structures, such as holacracy and boss-less management models, seek to eliminate rigid hierarchies and distribute decision-making power more equitably among team members. This promotes autonomy, creativity, and individual responsibility.
- Culture of Trust and Transparency: Building an organizational culture based on mutual trust and transparency is fundamental to employee well-being. This includes sharing relevant information, openly communicating decisions, and recognizing the efforts and contributions of each team member.
- Emphasis on Well-being and Quality of Life: Prioritizing the physical, emotional, and social well-being of employees through initiatives such as mental health programs, flexible working hours, a welcoming physical environment, and encouraging work-life balance.
There is nothing new in these alternative approaches, and they all continue to demonstrate in practice that it is possible to reconcile organizational success with proposals that promote the well-being and mental health of employees. By adopting these models, organizations can create healthier, more collaborative, and sustainable environments where everyone has the opportunity to thrive and contribute to collective success.
In this context, adaptability and effective leadership become crucial. Those who can anticipate and proactively respond to emerging crises not only ensure their own survival but also pave the way for the long-term success of organizations.
However, to achieve this success, it is essential that companies adopt a holistic and committed approach, embracing not only technological innovation but also fundamental human values. By recognizing the importance of collectivity, inclusion, and social responsibility, organizations can not only overcome present challenges but also create a more promising future for all involved.
Therefore, in the face of the complex and interconnected challenges we face, it is crucial that organizations embrace change and become active agents in creating a better and more sustainable world for all.
PROMOTION OF AWARENESS AND COLLECTIVE ACTION
In the context of contemporary organizations, collective awareness and collaborative action emerge as essential catalysts for promoting significant changes in organizational practices. Below, I will mention some initiatives that not only empower employees but also promote healthier, more inclusive, and sustainable work environments:
- Employee Empowerment
One of the most effective ways to promote awareness and collective action is through employee empowerment. This involves empowering individuals to understand their rights, actively contribute to decision-making, and participate in the organizational transformation process. Examples of successful employee empowerment initiatives include:
- Education and Training Programs: Offering professional and personal development opportunities that empower employees to acquire new skills, knowledge, and competencies.
- Formation of Workgroups: Facilitating the formation of employee groups or committees to discuss work-related issues, identify problems, and propose collaborative solutions.
- Inclusion in Organizational Decisions: Promoting employee participation in decision-making processes, ensuring that their voices are heard and considered in issues directly affecting their lives and livelihoods.
- Promotion of Inclusive and Healthy Work Environments
In addition to employee empowerment, collective awareness and collaborative action are also fundamental for promoting more inclusive and healthy work environments. This requires a joint commitment from leaders, managers, and employees to create an organizational culture that values diversity, mutual respect, and the well-being of all team members. Examples of successful initiatives include:
- Awareness and Training Programs: Implementing awareness and training programs addressing diversity, equity, and inclusion issues, promoting a culture of respect and tolerance in the workplace.
- Promotion of Work-Life Balance: Offering policies and benefits supporting work-life balance, such as flexible schedules, paid parental leave, and wellness programs.
- Creation of Safe and Welcoming Spaces: Establishing physical and virtual spaces where employees feel safe to express their opinions, share experiences, and seek support in times of difficulty.
In summary, collective awareness and collaborative action are essential elements for driving organizational change and promoting healthier, more inclusive, and sustainable work environments. By empowering employees and promoting a culture of collaboration and mutual respect, organizations can not only address present challenges but also create a more promising future for all involved.
Recognizing the variety of knowledge permeating work dynamics and relationships, this article consists of an essay derived from systematic research in journals and books in the fields of Sociology, Psychology, Administration, and Occupational Health, engaging with the different perspectives and approaches presented by each science. Its aim is to discuss the reflections of liquid ideology on work organization and the mental health of employees. The idea is not utopian but understanding management as a behavioral fact. This more holistic and less restrictive conception from the viewpoint of organizational human changes.
Finally,
I hope that reflecting on the importance of human aspects during crisis periods leads us to a fundamental understanding: organizations are composed of people. While financial and operational metrics are crucial, it is the coordinated and motivated efforts of people that drive true organizational success.
Therefore, leaders must strive to unite their teams around a common mission, providing a shared purpose that inspires and motivates each team member. This not only strengthens bonds within the organization but also creates an environment where each individual feels valued and actively contributes to collective well-being. By adopting an inclusive leadership approach, leaders can ensure that each person understands their importance in the larger context and knows how their skills and efforts contribute to organizational goals. This not only increases operational effectiveness but also promotes a sense of belonging and personal fulfillment among team members. In this sense, fortified leaders, as I often call visionaries, recognize that by prioritizing the well-being and engagement of employees, they are investing in the future success of the organization.
They understand that by taking care of people, they are building a solid foundation for organizational resilience and the ability to face challenges with determination and cohesion. The fact is that when facing a crisis, leaders must constantly remind themselves of the human element and seek ways to strengthen and support their teams. For it is through the unity and dedication of people that organizations can not only overcome adversity but also emerge from it stronger and more prepared for the future.
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