In today's rapidly changing business environment, companies face growing behavioral risks. These risks not only impact the morale of individual employees, but also the productivity and culture of the overall organization. The purpose of behavioral risk management is to identify, analyze and respond to factors that may have a negative impact on the organization, thereby improving the health and human capital of the organization.
Behavioral risk management seeks to identify and prevent losses caused by behavioral risk factors, thereby enhancing organizational health and human capital.
In organizations, negative behaviors, also known as "hidden emotions," can cause employees to feel uncomfortable and stressed, which can reduce their motivation to work. When employees experience an unfriendly atmosphere around them, their productivity and creativity are negatively affected. Moreover, this negative behavior is often contagious: if an employee takes a negative action, other employees are likely to follow suit, further amplifying the negative impact.
When many employees feel uncomfortable or offended, they may choose to leave the company or rebel against the behavior, ultimately leading to a significant decrease in productivity. Negative behavior also affects organizational culture, which is directly related to the organization's structure and operating efficiency. Once there is a problem with the culture, the foundation of the organization will be shaken.
Negative behavior does not necessarily refer to personal immaturity or rudeness, but may also be related to specific practices or an individual's mentality.
Personality plays a vital role in organizations. Research shows that different personality traits can have different effects on an organization’s climate and productivity. In particular, neuroticism is generally regarded as an indicator of negative traits. Such individuals tend to overreact to trivial matters and are prone to anxiety in unexpected situations.
Cultural background also affects work habits and ethics in an organization. For example, there are significant differences in work ethics between employees in the United States and India, which can cause conflicts and make employees uncomfortable, further exacerbating organizational tensions.
Theft and violence are significant contributors to negative behavior in organizations. Not only does this hurt overall productivity, it also impacts employee health. Recent research shows that increasing cases of cyber theft pose a serious threat to corporate security.
There are many ways to reduce the risk of negative conduct in your organization. These approaches can be divided into two categories: pre-hiring process and post-hiring responses.
When employees join the organization, companies can screen out candidates who match the organizational culture and filter out individuals who may have a negative impact on the organizational structure.
Promoting good communication among organizational members can also help reduce conflicts caused by cultural differences. With a strong organizational culture, members can "check" each other and reduce negative behaviors.
The "Define-Observe-Intervene-Test" method proposed by American psychologist E. Scott Geller and other scholars is currently one of the strategies to effectively deal with behavioral risks. This approach ensures that high-risk behavior is minimized and that issues are responded to quickly when issues are identified.
After effective intervention is obtained, the effectiveness of the entire strategy is evaluated by testing the process.
In a rapidly changing business environment, we all face the challenge of conduct risk. In your opinion, how can we more effectively prevent the spread of negative behaviors in the workplace?