Crisis, fuel, and future of work: The role of organisations and HR leaders in building resilience

Human Resource Management (HRM) plays a central role in building organisational resilience. HR professionals facilitate change, support employees, and ensure organisational continuity during crises. Maintaining resilience requires ongoing strategic commitment

Global geopolitical conflicts increasingly shape economic stability and organisational operations. The recent escalation of tensions involving Iran, Israel, and the United States has significantly disrupted global energy markets, leading to considerable increases in oil prices and economic uncertainty worldwide. Developing countries that rely heavily on imported energy, such as Sri Lanka, are particularly vulnerable to such disruptions. In response to severe fuel shortages, the Sri Lankan government implemented a QR code-based fuel distribution system and encouraged organisations to adopt remote working practices to reduce travel and fuel consumption. These measures highlighted how quickly nations and businesses must adapt in times of crisis. But as global disruptions become more frequent, a critical question remains: are organisations truly prepared to adapt, survive, and rebuild in an increasingly uncertain world?

In today’s interconnected global economy, geopolitical tensions and energy supply disruptions have far-reaching consequences for national economies and organisational sustainability. The recent escalation of the Iran–Israel–USA conflict has created substantial instability in global energy markets, particularly affecting oil supply chains. The Middle East remains a critical hub for global energy distribution. As tensions escalate in this region, the risk of supply disruptions increases significantly, leading to rising fuel prices and economic uncertainty. These disruptions create considerable pressure on businesses, particularly in countries that rely heavily on imported energy resources.

Developing economies are especially vulnerable to such shocks. Sri Lanka presents a compelling case, as it experienced a profound economic disruption that significantly hindered its ongoing efforts toward economic recovery and rebuilding. The surge in fuel prices and shortages placed immense pressure on transportation, electricity generation, and industrial operations, ultimately affecting both organisational performance and societal well-being.

The ongoing conflict has contributed to substantial volatility in global energy markets. Disruptions to oil production and transportation routes have created uncertainty in supply chains, leading to notable increases in fuel prices. Such increases have broader macroeconomic implications. Rising fuel costs contribute to inflationary pressures, higher production costs, and slower economic growth. These effects are particularly pronounced in developing countries with limited financial buffers and high dependence on imported energy. For Sri Lanka, these global shocks translated into significant domestic challenges. Increased fuel prices affected logistics, reduced industrial productivity, and intensified cost-of-living pressures. Businesses were forced to operate under uncertain conditions, highlighting the need for resilience and effective crisis management strategies. Sri Lanka’s vulnerability is closely linked to its economic structure. The country spends a substantial portion of its import bill, estimated at around $4 billion annually, on oil products, making it highly sensitive to global fuel price fluctuations. Additionally, Sri Lanka is currently experiencing a phase of economic recovery under a new government, following a significant contraction in which GDP declined sharply at the peak of the crisis.

The Sri Lankan fuel crisis and the QR code system

Sri Lanka’s fuel crisis illustrates how global disruptions can severely affect developing economies. The fuel shortage created widespread challenges across transportation, manufacturing, and daily life. According to the Ceylon Petroleum Corporation, authorities also implemented broader demand-management strategies. Notably, fuel consumption increased significantly due to panic buying, rising by approximately 21% above normal levels during the crisis and further straining already limited supplies. In response, the Sri Lankan government introduced an innovative QR code-based fuel rationing system to regulate fuel distribution. Under this system, vehicle owners were required to register and obtain a QR code, which granted them access to a weekly fuel quota.

This system played a crucial role in ensuring equitable distribution and preventing excessive fuel consumption. It also reduced congestion and panic buying at fuel stations, contributing to more efficient resource management during a period of scarcity. Additionally, the government encouraged organisations and individuals to limit non-essential travel and adopt remote working arrangements wherever possible. These measures were particularly important in reducing fuel demand while maintaining economic activity. For organisations, this required rapid adaptation. Businesses had to shift toward digital platforms, implement flexible work arrangements, and redesign operational processes to function under resource constraints.

Strengthening organisational resilience 

The fuel crisis highlighted the critical importance of organisational resilience and business contingency management. Organisational resilience refers to the ability of an organisation to anticipate disruptions, adapt to changing conditions, and recover effectively while maintaining core functions. Businesses that had invested in digital infrastructure and flexible working systems demonstrated greater resilience during the crisis. In contrast, organisations relying solely on traditional operational models faced significant challenges.

Effective contingency management involves identifying potential risks and developing alternative strategies. During the fuel crisis, organisations adopted several adaptive measures, including remote working, digital communication tools, flexible scheduling, and supply chain adjustments. These practices enabled organisations to sustain operations despite significant external disruptions.

In addition, a change-oriented mindset is essential for navigating crisis situations. Traditional management approaches often assume stability, but modern organisations must operate in environments characterised by uncertainty and rapid change.

The Sri Lankan fuel crisis required both leaders and employees to rethink how work was organised. Employees had to adapt to remote work, digital collaboration, and altered routines due to transportation limitations.

Leaders play a key role in fostering adaptability by encouraging open communication, supporting innovation, and empowering employees to contribute to problem-solving. Training programs and digital skill development initiatives can further enhance organisational adaptability. Organisations that embrace change as an opportunity rather than a threat are better positioned to thrive in uncertain environments.

The strategic role of Human Resource Management

Human Resource Management (HRM) plays a central role in building organisational resilience. HR professionals facilitate change, support employees, and ensure organisational continuity during crises.

First, HR enables the implementation of flexible work arrangements, such as remote work, which reduces dependence on commuting during fuel shortages. Second, HR ensures effective communication within the organisation. Transparent communication helps reduce uncertainty and build trust among employees. Third, HR supports employee well-being. Economic disruptions often create stress and insecurity, and HR initiatives such as counselling and well-being programs are essential for maintaining morale. Finally, HR contributes to workforce resilience by promoting training, cross-skilling, and knowledge sharing, enhancing organisational flexibility.

Maintaining resilience requires ongoing strategic commitment. Organisations should develop comprehensive risk management frameworks, invest in digital infrastructure, and foster a culture of collaboration and innovation. Encouraging employee participation in decision-making also strengthens organisational cohesion and enhances problem-solving capabilities during crises.

Thus, the Iran–Israel–USA conflict demonstrates how geopolitical tensions can significantly disrupt global energy markets and create widespread economic challenges. These effects are particularly severe in developing economies such as Sri Lanka. Sri Lanka’s response, including the implementation of a QR code-based fuel rationing system and the promotion of remote work, highlights how governments and organisations can adopt innovative strategies to manage resource constraints. In this context, organisational resilience is a critical capability. By developing contingency strategies, fostering adaptive mindsets, and leveraging the strategic role of HRM, organisations can effectively navigate crises and build sustainable futures.

(The author is a HRM Consultant/Founder - HRM for Life)