Common collocations: 士气涣散 (morale falls apart), 纪律涣散 (discipline lapses), 精神涣散 (mind wanders / lacks focus), 眼神涣散 (vacant stare). Always negative. The character 涣 originally describes ice melting and dispersing — picture cohesion melting away.
memory
涣 (water radical 氵, "melt/disperse") + 散 ("scatter") — together they double down on "falling apart." If 团结 (unity) is being held together, 涣散 is the opposite: melted and scattered.