Management mistakes make a company fail, or at least mediocre. Satisfied employees remain loyal to their company and reward them with a high level of commitment. All of this is reflected in the employer in Heller and Pfennig. According to the study “2018 Fortune 100 Best Companies to Work for”, US companies with high employee satisfaction generate double the returns on the stock market. One reason: satisfied employees remain loyal to the company and work on their growth. According to the study, the fluctuation in the healthcare industry for companies with satisfied employees is only a third of the industry average.
These five management mistakes contribute significantly to a company’s failure:
# 1 Overwhelming
Bosses can demand top performance from their employees. In return, they have to create the right conditions. Realistic time management plays a major role in this. The decisive factor here is that the boss actually knows the effort required for certain tasks. Too many managers have never done their employees’ jobs. It is important to trust the signals of reliable employees. Excellence: Yes, Superhuman: No.
# 2 micromanagement
A good manager has an eye on all areas of his company. A bad manager gets involved everywhere. In particular, strong leaders can find it difficult to hand over responsibility. From a certain company size, however, this is essential – also to create reliable organizational structures that can function without the constant presence of the boss if necessary.
# 3 Too passive
For some managers, delegating responsibility is a license to withdraw from many areas of the company. It can happen, especially with rapid growth, that the boss suddenly loses the overview of his own company. Who are these new people in the kitchen? Why did an important customer suddenly jump out? With such questions it is high time for more engagement.
# 4 Denial of Fallibility
Setbacks are part of the implementation of daring business concepts. Sometimes a radical 90-degree turn is necessary to make an idea a reality. However, if you order these changes without clear communication, you will inevitably upset the employees who have just fired up with passionate speeches. A good company boss communicates instead of demanding blind obedience. Successful managers are not infallible gods, but reliable leaders. This knowledge is also good for employees.
# 5 Lack of decorum
Managers are naturally in a position of power, but equally in a dependency relationship. Anyone who is unable to hire dedicated staff or retain them in the company will sooner or later face a massive problem. For self-interest alone, decency should therefore be one of the leading management principles. Employees are not humiliated or exploited. The propriety extends to dismissal / termination, at which an ex-employee is appropriately recognized and dismissed for services. Keeping silent may be the easiest, but ultimately attests to the responsible person’s weakness in leadership. No successful manager can afford that.