Designing Organizational Structures for Sustainable Development Through the Lens of Psychological Well-Being: In the Times of the Covid 19 Pandemic

Abstract

Psychological employee well-being is a severe challenge for companies around the world. The Covid-19 pandemic exacerbated the problem and forced companies to act to ensure a healthy and productive workforce. Based on the Job Demands-Resources Model (JD-R), this study examines the leader's perspective on how decision making and communication processes have altered in the face of the pandemic and how these alterations can promote the advancement of psychological well-being. Another central research focus is the impact of the changes in decision-making and communication processes on the organization’s sustainable development. The relatively new perspective of the Psychology of Sustainability and Sustainable Development (PoS&SD) is applied to investigate these questions. The literature review analysis showed that almost all companies in the study implemented changes to the two processes because they perceived deterioration in employee psychological well-being. While most leaders in Sweden indicated that they had given employees more autonomy throughout the pandemic, leaders in Germany reported a greater desire for direction and structure. The communication style likewise required adjustment to meet the new way of working and employees' needs. Finally, it was found that employees' psychological well-being will take on a higher priority in many companies in the wake of the pandemic as companies have recognized that the fostering of psychological well-being is closely linked to sustainable development.