Effects of Poor Management

Having weak, ineffective managers in the workplace has many damaging effects on employees and the firm as a whole. Companies with poor managers almost always perform below expectations. What characteristics do ineffective managers have in common? There’s three main ones: lack of vision, ineadequate understanding of business finance, and poor interpersonal communication skills.

Having a lack of vision harms companies in a way in which they cannot compete with others. GM is a great example of a firm with managers who lacked vision. Japanese and Korean automakers were able to adapt to the changing market and produce successful fuel-efficient hybrid cars. GM was unable to do the same due in large part to ineffective managers. GM decided to stick with producing large cars and gas-guzzling SUV’s, leading them towards bankruptcy.

Having managers with a poor understanding of business finances is also damaging to firms. Knowing how to handle cash flow is an integral part of running a business. Firms whose business in seasonal such as resort communities in Miami Beach and the Hamptons must have managers who know how to manage their cash flow. If they have ineffective managers, the increased revenues made during peak seasons may not last long and make it impossible for the firm to operate successfully in the off-seasons.

Mangers with poor communication skills are ineffective. Good employee motivation and morale depend largely on the communication skills of the manager. Also, sustaining long-term relationships with customers and suppliers is nearly impossible to do if a firm’s managers have poor communication skills. Managers that lack good interpersonal communication skills negatively impact their company.

Clearly, poor managers are damaging to employees and the company itself. Ineffective managers lack vision, an adequate understanding of business finances, and good communication skills. By recognizing if these characteristics are present in managers of their firms, companies can make the necessary changes in order to prevent failure.

For more information on the effects of poor managers, please visit:


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: