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Author: Christopher Jungmann

Ineffective or incompetent managers can cause much more harm than you think. High employee turnover creates a serious competitive disadvantage. In this environment it could lead to your firm going out of business. How do you define and measure high performance in your management team?

Article ID: 2205207
Published: May 22nd, 2004

The Costs of Bad Management

There exist some fundamental reasons for poor management results in most organizations. Understanding the influences on people is critical to being able to change the circumstances that lead to poor management. This article will outline some of the pressures affecting organization dynamics, and propose some steps that should be undertaken to create a more effective organization.

Let's review a common scenario from an employee's perspective: You're a professional that is unchallenged, and unfulfilled in your current organization. You feel that managers there don't care about your work, and perhaps even less about you as a person. They don't seem to be listening while you're explaining things to them, and demonstrate repeatedly that they've forgotten what you told them previously.

Perhaps this has been a recurring theme throughout your career. How many managers have you observed in different organizations that that behave in a similar manner; one that defies all logic? You've changed jobs, but the same problem keeps resurfacing. Routinely your manager assigns you with a task, then forgets about you. Once you're well on your way to meeting the task objectives, they stop in to assign you a new and unrelated task. To make matters worse, you're continually being "invited" into meetings that seem to have nothing to do with your success in the organization.

Poor management translates into very direct and high hidden cost for all organizations. Since human resource investments are among the top business costs, along with customer acquisition, it's incredible to have to wonder why so many businesses accept ineffective and sometimes plainly incompetent management.

According to the Gallup Organization, employees consider their immediate supervisor as the number one factor in deciding whether to stay or leave their current employer. This is consistently listed ahead of other factors such as pay, stock options, benefits, flextime, and company mission.

Why So Much Poor Management?

In order to understand someone's behavior, one needs to look at the forces that an individual is facing. Nearly every organization provides financial rewards based one's position on the ladder. In other words, pay is based on title, and perhaps seniority also, to compound the problem. People are motivated into a management role by money. Once in that role, they adjust their lifestyle and the corresponding expenses to make it virtually impossible to succeed in any role, other than than of a manager. They face enormous pressure to maintain their career or risk losing home, or perhaps face marital instability.

As someone moves into a management role, their original skills start to deteriorate over time. They find themselves managing people with far more valuable skills than theirs. Their subordinates are also better able to apply their talents for the organization. In other words, the organization extracts far more value from their staff, than from most managers. For many, this results in a deep insecurity.

Since we've looked at some negative forces, let's consider the positive forces for a moment. What are the positive forces acting on a typical manager? For one, they are facing a potential promotion in the near term. Their near-term actions will be significantly influenced by activities that increase their chances of being promoted. This explains why managers frequently discount any ideas from staff that will result in longer-term benefits for the organization. Many long-term initiatives carry short-term risks. Most managers simply want to look good in the near-term.

Taken together, financial pressures, professional insecurity, and the need for short-term results create a mindset that is far from optimal for making the best possible decisions with all of the available information.

What To Do About Poor Management

Let's start by getting to a purpose for management. Many books have been written about this subject, so we need to get to the core of the issue. Most succinctly put by John Hellier from QModo "A manager's role is to facilitate staff's success." Keeping this core principle at the center of your company's value system will be the first step.

Facilitation may require definition. The term has it's roots in Latin, and in French the word "facile" means "easy". Making it "easy" for staff to succeed has nothing to do with telling them what to do. Since most manager's don't know how to facilitate their staff's success, they turn to trying to cover up their shortcomings by issuing what seem like random tasks. Your competitive advantage will be in developing a management culture that lives and breathes to make it easier for staff to be successful.

Continued...

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