by Derek Oxley

Created on: January 11, 2011

As a customer you can witness the adverse effects of poor management on the faces of the clerks on the frontline.  Smiles are free and when they are not shared willing it is a sure sign that something is amiss.  People are the distinguishing factor in any organization and a good leader manages by wandering around.  A poor manager is off counting widgets in the office and not observing his tribes performance on a regular basis.  Upon closer inspection you will be sure to find poor customer service, a loss in productivity, low morale, increased stress and high turnover.

The financial impact is of poor management is staggering.  Greed drives it from the top in an attempt to cut cost and generate profits for shareholders leaving the middle manager to work with a tight budget.  Even in these tough economic times an excellent leader is able to rally his tribe conversely a poor manager will flounder.  His tribe is the first to feel the negative effects followed by the customers.  Listed below is a closer look at the negative effects of poor management:

*Poor customer service

The manager is responsible for setting the atmosphere in the building.  A bland generic experience is the manager fault, she may look to cast the blame on the employee, but the buck stops with her.  If she decides to allow poor service to be tolerated it will permeate through the organization, over time some customers will leave, others will stay but complain and some will grin and bear it.  You will not find raving fans under poor management.  If team member performance is not addressed a loss of productivity will soon follow.

*Loss of productivity

Team members will test the limits and once they realize that a manager is not going to address customer service issues head on, productivity will suffer.  A decline in productivity cost organizations additional payroll dollars in overtime adding a burden on those team members who are performing.  Over time high performing team members morale will be impacted, because the manager is not addressing performance issues.

*Low morale

Low morale is fertile ground for internal theft to grow.  Excessive sick calls will ensue and pretty soon a poor manager is dealing with a dysfunctional team.  A poor manager will start to act like a dog chasing his tail and feel like a fire man who is always putting out fires.  The enormous stress that he feels is then transfered to his team members as he attempts to regain control of the sinking ship.

*Increased stress

Working under stress causes illness and as result increased health care cost.  Coming to work is no longer fun, it is only a means to an end. The high performers will soon look for greener pastures and the poor manager may finally terminate some of the low performers.

*High turnover

Companies spend an inordinate amount of money each year as a result of poor management and the cost attached to training new employees.  Good leaders higher the best and set them up success within the organization and build a strong pipeline in the process.  

The sooner companies move away from the management of people of as a mentality, the sooner they will see increased profits, highly productive teams, increase morale, less stressful environments, and more satisfied customers.   

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