The Effects of Mismanagement

Picture Credit: My Seat In Office No Windows; Roy HS NG

Poor management can have a long-lasting negative effect on a business and ultimately, its profitability.

A lack of leadership and managerial skills impacts the workforce and below, we’ve mentioned a few of the most detrimental:

Reduced Productivity

If employers fail to notice, or act upon, instances where employees are failing to meet performance expectations, the situation could escalate and reduce levels of productivity across the workforce.

For employees left continually wondering if they are meeting expected requirements, this can sap their productivity as levels dip. Regular appraisals will help them feel valued and assure them that the company is acknowledging their commitment to the cause.

Decrease in Profits

In the worst-case scenario, mismanagement can impact a business’ profitability. This can happen if an employer’s mismanagement is so poor that employees, especially those that work in sales, for example, focus their attention on looking for employment elsewhere as opposed to achieving company targets and goals.

Ultimately, in most cases where companies suffer with falling profits, the issue can be linked back to a lack of required skills, thereby increasing the possibility of mismanagement.

Low Morale & Motivation

An employer who can’t relate to staff and struggles with settling employee issues or complaints can create a toxic company culture whereby employee morale and motivation is drastically lowered. If an employee doesn’t feel like they can trust or confide in their employer to sort a workplace dispute, for example, issues are less likely to be resolved in a quick and efficient manner, possibly resulting in people needing time off for stress and other illnesses.

High Turnover

Unsurprisingly, one of the biggest effects of mismanagement is high employee turnover. Whether it’s an employer driving staff away through poor people management skills or employees choosing to pursue a career elsewhere because they believe they will have a better chance to excel, high turnover rates can reduce productivity, weaken employee morale and impact a company’s reputation as an undesirable place to work.
In order to avoid such outcomes, focus on implementing a supportive and effective workplace which encourages positive employee engagement, valuing them and their contributions.

It’s important then for employers and line managers to be trained and well equipped to carry out their role, thereby creating an environment of trust and respect between employees and their managers.

However, if you have any concerns about poor management and how it might be affecting you, members of staff or the business as whole, please do get in touch with us via email at [email protected] or call 01386 751740.