The Coronavirus pandemic and its impact on businesses

The Coronavirus pandemic and its impact on businesses

The coronavirus, known as covid-19, started in China in November 2019. It is an infectious disease that causes fever, breathing difficulties, tiredness, and dry cough (WHO, 2020). The virus is spread easily through droplets of saliva when one coughs or sneezes. Covid-19 has caused a scare in the whole world due to the high risk of spreading the virus. The disease has caused fatalities of more than 10,000 people with Italy, recording more than 5,000 deaths (Newey, & Gulland, 2020). China has recorded more than 3,000 deaths, while Iran and Spain have also been greatly affected. Older people and individuals who have diabetes, cardiovascular disease and other respiratory illnesses face a higher risk of being infected with this virus (WHO, 2020). There is no known treatment or vaccines to cure infected patients. Due to the high risk of spreading the virus, most countries have resulted in initiating lockdowns to protect their citizens. Consequently, this has negatively impacted the global business activities, and companies are recording significant losses.

Coronavirus is leading to the crumbling of global markets. The uncertainty and fear created by the virus have scared most investors, thus affecting the operations of most stock markets. In addition, the total lockdowns, travel restrictions and social distancing have affected business operations. Some companies have closed down hence lowering the supply of goods in the market. Besides, travel restrictions mean that traders cannot conduct their business from one country to the other. This has affected most markets as traders cannot avail their goods. Inflation has also risen due to the high demand for scarce commodities in the market (Craven et al., 2020). Most airlines have also grounded their passenger flights; hence no traders can access overseas markets. Lack of a means of transport due to lockdowns in towns and the suspension of flight services have negatively impacted the markets.

Most economies are facing a crisis of recession due to high inflation rates. Central Banks are adopting policies of safeguarding their economy from recession. Global payments have also reduced as governments and banks attempt to cushion themselves from the uncertainty caused by Covid-19 (Bloomberg, 2020). Moreover, regulations against social distancing have led to the closure of business operations and towns. No activities are happening in the markets or factories. The supply of goods is low since producers are in self-quarantine. In addition, there is a risk of high rates of unemployment since companies have resulted in laying off their employees. Small-medium enterprises are also out of a job as they have been forced to stay at home.

Remote working in times of crisis

Remote working is the best way of protecting employees from coronavirus (Gardner & Matviak, 2020). Since the disease is highly infectious, social distancing must be effected. One of the ways to enforce social distance is working from home. Employees must designate a space in their house to be an office. They also have to take remote working seriously as if it was a normal job. For instance, they should dress formally and prepare a routine to guide them in their activities. Due to digital advancement, remote working has been enhanced by various technological measures. Videoconferencing through multiple sites such as Facebook, WhatsApp and Skype have made communication easier (Lufkin, 2020). Clear communication between the management and the employees will guarantee the success of remote working. Managers must communicate to their juniors about their expectations and set targets for them.

Banks are some of the institutions that have resulted in remote working to avoid putting their employees at risk. They should use this pandemic to explore modern ways of working. Managers should establish whether remote working is effective in raising the productivity levels of the employees. In addition, banks should find out how it can improve their working methods through technology. For instance, banks can test whether clients can use videoconferencing to communicate with their employees when they are performing their duties remotely. Remote working can help in saving office space and serving a large number of customers. Besides, more productive working methods can lead to quality services and a reduction in operational costs.

How digitalization can support banks

Digitalization creates multiple opportunities for banks and consumers. It has opened room for mobile services which enhance online transactions in a fast and secure way. Customers can access their bank accounts, borrow loans, repay them and pay bills (Keane, & Knapman, 2020). They can perform various transactions remotely without visiting the bank’s premises. This can help banks to remain resilient in times of crisis as customers will continue with their transactions as usual. For instance, during this crisis of coronavirus, people are directly accessing their accounts from home and paying bills remotely. Therefore, banks are not greatly affected by the lockdown rule since customers can access services remotely.

Besides, digitalization of banking operations can help in cost-cutting hence cushioning the firm from losses that are inherent in times of crisis. The use of mobile apps and online banking can also support the employees working remotely. The banks can save the operational costs incurred in their offices when customers carry out their transactions remotely. Besides, digitalization creates efficiency since the transactions are happening on digital platforms. There is also no risk of human errors; hence the firm saves the costs of losing disgruntled customers. Moreover, a bank can significantly cut the number of employees when it has digitized most of its operations.

Challenges of managing remote working

Remote working leads to boredom and a feeling of isolation. Since an employee works alone from home, one might feel isolated from the rest of the team (Bailey, 2013). Besides, staying at home for a whole day without physically interacting with someone can create a feeling of loneliness. Isolation can also lower the motivation of an employee when undertaking normal duties. This can lead to low productivity leading to poor results. Additionally, boredom can set in as one is restricted at home, and there is no physical interaction with colleagues. This is in contrast to working in an office where people visit others in offices and have conversations. Office chats and physical contacts can lower the boredom in offices.

Poor communication network also poses a significant challenge to remote working. Since the coordination of all the employees is effected via technological systems, any failure distorts the communication process. For instance, videoconferencing can be disrupted by a poor network which can result in miscommunication. This can lead to low productivity since there is no proper coordination of the employees. In addition, remote working creates distrust among the staff (Bailey, 2013). A person can lie that he is at home working, but there is no physical way of verifying the claims. In other cases, some employees can continue with their usual chores at home and only reach out to the manager to show that they are working. These circumstances can result in mistrust and suspicions, which strains the employee’s relationships.

Moreover, remote working can inhibit the formation of productive teams in the workplace. Since employees are working from different areas, the formation of a team can be difficult. Besides, the lack of physical interaction of the team members can lower its effectiveness. This indicates that remote working cannot support the formation of teams. The absence of teams in an organization also lowers the unity of purpose. Every employee works on his own to achieve specific targets, and there is no synergy in the firm. Delegation of duties can also be a challenge in a remote working environment. Since employees are dispersed, it can be difficult for managers to assign duties because the follow up can be ineffective.

Dell is one of the companies enjoying the success of remote working through its ‘connected workplace’ program. The remote working program was initiated in 2009 to enable the eligible teams to work from home (Sutton, 2016). It starts from some of the executive leaders who want to lead by examples and show other employees that working from home is possible. Through the remote program, the firm supports its employees to show that they trust them. This encourages the staff to professionally organize themselves when working remotely. The company also has a platform where the employees share their experiences and success stories. The Employee Resource Group (ERG) creates a united team since the employees working from home can share stories with their counterparts. Dell also offers several alternatives in the program, such as full-time or hybrid telecommunication. Some of the effective tools used are online meetings, emails, and instant messaging.

Response to rumors and uncertainty among the staff

Rumors and uncertainty create anxiety in the workplace, as the staff wonders what will happen next. One of the ways to deal with rumors and uncertainty is timely communication and being there to calm the employees. Rumors and uncertain occurrences can make the employees develop different interpretations that can create more disturbance in the workplace. However, the timely and factual response can help in counteracting them. If the manager responds in time, the employees will be satisfied with the statements given hence easing the pressure at work.

Secondly, being honest and consistent with the staff is another effective way of responding to rumors. The management should share the right information with the employees. It should not conceal vital information but should allow the employees to know the facts. This enables the employees to understand that the management is behind them. It also gives them a direction of what to do or how to react to the crisis. Moreover, the management should deliver the information through formal meetings. Face to face conversations with the employees reassures their confidence that things are under control (Llopis, 2015). The information given should be consistent at all times as it creates more confidence in the employees. If the management is not sure about certain information, the employees should be informed about the same. Lying should be avoided since it can create more disharmony in the workplace.

The management also needs to listen and pay close attention to a different set of information. For instance, the manager can pay attention to what the employees think and this can help in the formulation of the final decision. In addition, numerous meetings should be held to discuss the insights of various developments (Llopis, 2015). This helps in exchanging ideas of how to confront the rumor or uncertainty. If it is a crisis like a coronavirus, the management should follow government updates and directives. This can help in coming up with a solid statement to issue to the employees. The uncertainty among the staff can lower if they get factual and sound communication from the management.

Regulations that support and empower an effective workforce

Employees can be empowered and supported through training programs (Peters et al., 2010). The management should have regulations for organizing training for their employees to gain more skills. For instance, on-job training of junior officers can increase their morale in the workplace. The company should also sponsor employees to attend conferences and exhibitions in their fields. Benchmarking of employees in other companies can also help in empowering them. Regulations from professional bodies requiring certification of various professionals also help in creating a capable workforce.

Additionally, regulations regarding payments of employees help in their empowerment. The government sets minimum payments rates which motivate employees when undertaking their work. Besides, companies’ sets different payments alternatives such as salaries, promotions and bonuses which empowers the employees. The staff is always motivated when they are well paid. Therefore, an effective workforce can be created if the company is paying its staff well. Most of the employees work hard when promised bonuses and promotions.

Moreover, regulations on the code of conduct also create an effective workforce. A company should have a guideline stipulating the allowed behaviors in the firm. A code of conduct defines the values that should be practised in a company (Erwin, 2011). It also establishes the kind of interactions that should exist between employees. This creates harmony and respect due to the boundaries existing among the staff. The employees are also motivated when they are handled with respect in the workplace. In addition, giving the employees autonomy and freedom to make their own decisions empowers them. A company should have regulations that allow employees to make decisions in certain circumstances. Besides, allowing the employees to explore their talents motivates them hence creating an effective workforce.

A company should also create a sound and open communication process in the organization. Effective communication between the management and employees empowers them they understand the direction of the company. Positivity and enthusiasm in the workplace are also created since the employees feel appreciated when their opinions are being heard (Fernandez, & Moldogaziev, 2013). The effectiveness in the workplace is also enhanced when the employees know and understand their roles. In addition, the company should offer organizational support to the employees. Those facing personal challenges should be supported by management. For instance, employees who are grieving should be given both emotional and financial support. This motivates the employees since they are assured of the management support.

Building the right culture among the workforce

The right culture in an organization creates a pool of motivated employees who are committed to the company values (Kohll, 2018). The staff is also loyal since it enjoys working in a firm that values their contributions. Company culture also determines the kind employees recruited in a firm. An organization with a positive reputation attracts the best talents hence creating a productive workforce. One of the ways to build the right culture is taking care of the employee’s welfare. The employer should check on the physical, financial and emotional needs of the staff. This can include learning materials and resources to help them in their work. During a crisis, the employees can have the necessary resources and tools to respond quickly.

Secondly, the company can build a positive culture by creating a meaning of why the firm exists. This can entail formulating a mission and a vision that stipulates the aspirations of the firm. The employees need to understand the values and objectives of the firm. The organization also requires to create specific goals for each of the employees. This can motivate them in their jobs as they have an objective of what to achieve. Therefore, in times of crisis, the employees will remain objective in performing their roles. This will create confidence when tackling market challenges. The employees will also remain focused since they know the purpose of the firm’s existence.

Thirdly, employers can create a culture of optimism and positivity in the organization. The employees should be encouraged in times of difficulties that things will be okay. An optimism spirit should also be developed in the firm. Employers need to instil a positive attitude in the employees that they will succeed in their efforts. When approaching market challenges, the employees can have the same spirit of optimism which can enhance their confidence. Additionally, the firm should create a culture of caring and respecting each other (Zent, 2014). This can create trust and build strong teams in the company. During a crisis, different teams can work together to approach the challenge. For instance, a firm with strong teams that comprise of employees with different abilities can easily tackle a challenge. The employees can assist each other in tackling the crisis by exchanging ideas on how to approach the challenge.

References

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