Opportunities in VUCA: productive employees and environment

The pandemic has disrupted the market and created a situation of uncertainty and volatility in the global business environment. Specifically, the present research attempts to analyse the role of compassionate leadership (CL) in improving the workplace environment (WE) and driving employee well-being (EWB) in the merging market context. Four hundred seventy one responses were gathered from the employees of the selected electricity distribution companies using the opinion survey method. The empirical evaluation of the research model involved the structural equation modelling (SEM) approach. The results indicate positive and significant effects for all the direct relationships between the model constructs. Also, WE partially mediate the link between CL and EWB. The findings offer cues to the academicians to extend their understanding of tackling crisis management and leadership skills. The results provide new insights to the HR managers and policymakers to focus on initiatives that induce a positive work climate and aid employee productivity.