The negative impact of poor management

The role of the manager in the workplace is perhaps the most significant in terms of impact on organizational performance. Managers have the most direct influence on employees they line-manage. They are responsible for aligning the performance of their team and its members with overarching organizational goals.

Hence an organization that has poor management personnel in place has multiple problems. The issues begin internally and begin to show themselves externally with long-lasting effects that may infect the entire organization. Indeed, the results of poor management and misguided leadership reach far and wide.

The following problems detail the negative impact of poor management:

1. Instills Fear

If the unit head instills fear into his/her subordinates, it creates tension and unneeded stress that can negatively affect their performance.

Most scared workers have low morale and neither trust nor respect their unit head. If they have a question or concern, they may feel that their unit head is unapproachable. This is dangerous for the organization because without knowing about an issue, an organization cannot react and make changes, which results to lack of workplace innovation and the inability to adapt to changing business conditions.

2. Creates a Negative Environment

An ineffective unit head creates a negative working environment putting team members under stress and stress at work can carry over to misery or dread at home, resulting in an emotionally-drained workforce that is not energetic, caring less about their quality of work and overall performance.

3. High Employee Turnover Rates

Poor management affects an employee’s perception of the company’s overall vision and values, potentially causing unhappiness and leading to a high turnover of staff. When a team member fears the unit head that just seems to be on a power trip, they don’t want to remain employed with the organization.

In a 2015 Gallup report, one out of two professionals surveyed said they had quit a job at some point in their career to “get away” from their boss.

Hence if your organization has an unusually high turnover rate, look at your management staff first and conduct an employee poll. This may save your company from adopting a poor local reputation, which can result in long-term staffing issues later.

4. Reduced Productivity

When subordinates are not recognized for their accomplishments or are only criticized for their shortcomings, they don’t feel valued. And when people are not valued, they are not motivated, and productivity dips.

Avoiding recognition is a poor management skill which is very common. In a study carried out three years ago, 57 percent of the 397 employees surveyed didn’t feel recognized for their progress at work.

In another study, from Michelle McQuaid and the VIA Institute on Character, it was found that 71 percent of the 1,000 employees surveyed who said they believed their managers could name their individual strengths also said they felt engaged and energized by their work.

Managing teams goes beyond just delegating and requires consistent, open communication, where subordinates receive constructive feedback. Heads of teams should provide guidance to subordinates on improving weaknesses while also celebrating their strengths and accomplishments.

5. Decrease in Profits

If the sales department is affected by poor management, gross profits are directly impacted when targets are not met. Profits are also affected when the unit head, due to poor supervision, allows funds to be mismanaged thereby overextending budget in comparison with revenues earned.

Taken together, the potential impact of poor managers underlines the critical importance of the management team within any successful organization. Hence for organizations to survive, there is need for conscious development of competent caring leaders. Put differently, investing in our team managers is essential to today’s business success.

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