When Crisis Hits: How Employees’ Emotions and Workplace Climate Shape Opportunity Development
Why It Matters
Major crises such as COVID-19 do more than disrupt operations — they can upend how work is normally organised. Sudden changes to routines, uncertainty about the future and new constraints force employees to rethink how work gets done. In these moments, employees’ emotional reactions can shape whether they withdraw from uncertainty or engage in developing new opportunities for their organisation.
Key Takeaways
Crises can evoke strong emotions among employees, including fear and anxiety.
Employees’ perceptions of their work environment, known as psychological climate, shape how these emotions influence behaviour at work.
In supportive workplace climates, employees may be more likely to translate difficult emotions into efforts to develop new opportunities during uncertain times.
Emotions at Work During a Crisis
The COVID-19 pandemic disrupted many of the routines that typically structure work. Employees faced health concerns, rapid transitions to remote work and uncertainty about organisational stability. These sudden changes created conditions in which employees had to reassess how to perform their roles and respond to emerging challenges.
While crisis management often focuses on operational disruptions, employees’ emotional experiences also matter. Emotions influence how individuals interpret events, interact with colleagues and decide how to respond to new demands.
Rather than viewing these emotions simply as distractions, this research highlights that they are part of how employees make sense of crisis situations, and whether they engage in developing new ideas or opportunities for their organisation.
The Role of Psychological Climate
A key concept in the study is psychological climate — employees’ shared perceptions of their work environment, including whether it feels supportive, open and trusting.
Psychological climate shapes how employees’ emotions translate into behaviour. In workplaces perceived as supportive and collaborative, employees may feel more comfortable discussing concerns, sharing ideas and exploring possible solutions to new challenges.
Under these conditions, even difficult emotions triggered by crisis situations can motivate employees to think proactively about potential opportunities and ways the organisation might respond.
In contrast, when employees perceive the workplace climate as less supportive, negative emotions may be more likely to lead to withdrawal, hesitation or reduced initiative, making opportunity development less likely.
What This Means for Organisations
The study suggests that employees’ emotional experiences during crises can influence whether organisations identify and develop new opportunities.
For leaders, this highlights the importance of fostering a supportive psychological climate during uncertain periods. Environments characterised by trust, openness and support may help employees channel their emotional reactions toward constructive behaviours such as exploring new opportunities and solutions.
Although crises inevitably generate anxiety and uncertainty, the workplace environment can shape whether employees respond by withdrawing, or by engaging in opportunity development that helps organisations navigate disruption.
Authors and sources
Authors: Yingzhu Fu (Central South University Business School), Marilyn A. Uy (Nanyang Technological University), Waifong Boh (Nanyang Technological University)
Original article: Strategic Entrepreneurship Journal (2025)
