The Causes & Effects of Bad Management

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All companies experience cases of poor management, but you can quickly spot the companies who let the problem become the norm and companies who cull those responsible and remove them from their positions. Multiple factors cause poor management, from managers who can’t handle the job to company rules that make it impossible for a manager to do his job correctly.

Personality

  • A manager’s personality can lead to poor management practices, especially if he does not differentiate his at-home personality from his professional personality. A manager who is unfriendly, doesn’t think before he acts and has problems communicating can create severe problems in the workplace. For example, a manager who lashes out at employees for seemingly insignificant mistakes causes tension and disgust among employees. It’s important to note that some managers can change their personalities to match a professional environment, in which case their otherwise problematic personality doesn’t cause problems in the workplace.

Company Culture

  • Poor management practices often stem from a company’s culture. A company has full control over its managers and should know how a workplace is managed at all times. Companies that insulate managers and attempt to ignore problems that arise contribute to poor management practices, resulting in a culture that reeks of indifference. That kind of culture causes employees to lose their desire to perform at their best. Companies that review the performance of managers and act to fix the problem do not typically suffer from poor management.

Policies

  • Even if a company keeps a watch on its managers, poor management decisions still might exist because of the company’s policies. For example, if a pizza company mandates that all locations inside malls must have one employee sampling food at all times, some locations cannot sustain the labor cost that will result. High labor costs usually are associated with poor management, but in this case they are caused by the company’s blanket policy that doesn’t take into account the traffic to each location.

Poor Production

  • Poor production is one of the most common effects of poor management. This mostly stems from the fact that almost all management decisions affect production in some way. A happy, excited manager affects production by raising the spirits of his employees. A micromanaging manager hurts production by causing frustration in employees.

Turnover Rate

  • Shoddy management usually causes a high turnover rate. Sometimes that’s because managers simply drive employees away from the company with their poor communication skills or because employees believe they have a better chance to excel elsewhere. A high turnover rate can also indicate poor compensation and benefits, so it’s important for companies to find out why employees are leaving before immediately blaming management.

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