Everyone knows an ineffective manager after just a few short interactions. Think of Gary Cole’s character in Office Space, Bill Lumbergh. He is a perfect example of an ineffective manager. Rather than creating a good team environment that employees are happy and excited to be part of, he does the opposite and makes them miserable. Miserable employees are those that suffer from low morale, high stress and turnover and have a negative impact on overall productivity.
Some of the most common signs of an ineffective manager are; lack of communication skills and emotional intelligence; impatient; inconsistent and unreliable; and a tendency to micromanage every little detail.
But just what is the cost of all this bad management?
The answer lies in the effect on the bottom line. Included are some expert analysts findings over the past several years that illustrate some of these costs.
Sweden’s health department determined that bad management creates a massive increase in sick time, sickness and even a significant rise in heart attacks. Conversely, the opposite is true and employees with good management were sick less and generally were healthier.
A Gallup survey found that poorly managed people are 50% less productive than well-managed people are. The same survey also found that poorly managed sales people delivered 44% less profits than well-managed people.
Under-performers, based on a sweeping study done by Personnel Today, found that 70% of human resources staff felt they were under-performing due to bad management and were concerned about the capabilities of their bosses.
Monster, released a report that showed that bad management directly related to conflict and negative vibes in an office 39% of the time. They also found that attrition is directly related to bad management and that 70% of the reason people leave their jobs is due to their boss.
A Laurence Karsh report found that roughly 1% of the US GDP was used to correct the problem of making poor hiring choices by ineffective managers.
Simply put, ineffective managers hurt the company bottom lines by demotivating and destroying employee will.
LePhair helps companies build great managers and leaders. If your company is suffering from the potential problem of an ineffective manager, we have tools to assess performance, identify gaps and create an action plan for improvement. Do not let an ineffective manager hurt your company; contact us today to see how we can help.