Home Why SMEs Fail Why Small Organisations Fail? Part 1: Lack of Psychological Safety

Why Small Organisations Fail? Part 1: Lack of Psychological Safety

by Provilence Ndhlovu

Have you been wondering why some small organisations with brilliant teams fail? Here is one of the reasons, Lack of Psychological Safety. The most painful part is that, in most cases, when a company fails, the team or subordinates will be fully aware of what led to the collapse of the company.

Psychological safety refers to the shared belief that individuals can express themselves without fear of negative consequences in the workplace. It is an environment where employees feel comfortable being themselves, sharing their ideas, and taking risks without the fear of ridicule or retribution.

So, what’s wrong with SMEs?

Most small organisations do not provide such an environment to the team. There is no room for making mistakes. No room for giving a different point of view. No room for even a constructive debate with the leader.

Most small business owners feel they are too good to be criticized or opposed. They assume they know it all. An attempt to air a different opinion they angrily respond.

Our Zimbabwean leaders are full of I know such that as a subordinate you cannot share negative opinion to that of the leader.

As a result, even if the team knows problems that may be haunting the company, they will not disclose the information to the leader. Even if the leader tries to create an open discussion, the team will develop some resistance mood towards the leader.

Impact of Psychological Safety on Small Organizations

Psychological safety enhances employee engagement and productivity in small organizations by fostering a safe environment for open communication, increased investment, and growth opportunities.

A psychologically safe workplace in small organizations reduces employee turnover and absenteeism by fostering a sense of value, respect, and openness to personal and professional challenges.

Psychologically safe environments foster innovation and creativity in small organizations, encouraging employees to take risks and share unique perspectives, enhancing adaptability and growth.

So, What to Do to Promote Psychological Safety?

Small organizations should foster open and transparent communication to promote psychological safety, allowing employees to express ideas, concerns, and feedback through regular meetings, one-on-one discussions, and anonymous suggestion boxes.

Active listening and empathy are crucial for promoting psychological safety in small organizations, fostering a supportive and inclusive work culture by acknowledging and understanding others’ perspectives.

Psychological safety in small organizations is significantly enhanced by fostering strong relationships, team dynamics, and trust, allowing employees to express themselves freely and share ideas.

If small business owners would inculcate a culture of respect for the team, and promote psychological safety, the number of SME failures will be reduced.

…. In my dreams

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