The way management and leaders conduct themselves affects every single part of an organisation. Not only does poor leadership set a bad example for staff, but it usually results in damaging financial losses as well. Don’t let that happen to you and your business! We’ve compiled the most common negative effects of poor leadership and how to fix them, so you and your company can flourish.
The negative effects
1. Causes a culture of mediocrity
Excellence is an attitude. Well, it starts there anyway! If leaders don’t show the motivation and discipline necessary to succeed, their employees are only going to mimic this behaviour. Laziness, nonchalance and incompetency are contagious. Leaders need to reach for the stars, in order for their staff to as well.
2. Decreases employee morale
Poor leadership, whether that be because of inadequacy or negligence, has a strong tendency to decrease employee morale. Why? Because most employees won’t see the point in trying hard, or enjoying their job, if they know that top level management is just going to let them down anyway.
3. Makes for inefficient business decisions
Ineffective leaders also mean that details will be missed, staff and customers won’t be listened to, and this will lead to disastrous business decisions being made. If this continues, these inefficient business choices can result in the company making serious financial losses, often leading to bankruptcy.
4. Poor management integrity leads to poor staff integrity
Although some special personality types can shine even in the darkest of situations, most people need a strong, knowledgeable leader to guide them through the business landscape. As well as this, poor leadership doesn’t only have negative internal effects – it also shows externally as well. When management integrity is lacking, this will inevitably have a flow-on effect to staff.
How to fix it
1. Lead by example
There is no better way to show staff how to conduct themselves than to lead by example. Leaders need to be stern yet understanding; efficient yet flexible. It is a hard line to walk being an effective leader, but if this line isn’t toed, there can be drastic consequences.
2. Be clear
How can staff produce the work needed if they weren’t given a proper brief? In order to maximise business success, leaders need to be clear about exactly what they need, so there is no dangerous gap in expectations.
3. Encourage open and honest communication
A business is a constantly changing and morphing entity. When things inevitably go wrong, the business needs to adapt and find a solution. Solving a problem is nearly impossible to do without open and honest communication, which need to be initiated and maintained by leaders.
4. Review, reward and improve
The key to success is constant evaluation and subsequent improvement. Moreover, this success is further increased (and staff morale is lifted) if a system of positive reinforcement is implemented. Encourage excellence throughout your company by rewarding staff for their efforts, such as by presenting them with a corporate gift.
Leaders are one of the most vital pieces of any business’ puzzle. Without them, the company has no direction, no example to follow and thus no way to achieve excellence. Maximise your company’s success by learning about the common leadership mistakes and how to fix them.
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