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Why Dysfunctional Management is Worse Than Having No Money

Small BusinessesAre you wondering why your employees are calling in sick or failing to reach performance goals at the end of the month? Your workforce may have competitive salaries or benefits, but your company culture and managers may have a negative impact on productivity.

Dysfunctional Management

Small businesses fail because of lack of focus, vision, planning and specific standards set by the management. Your workforce needs direction, so they know if their contributions will have an impact on the company’s success. The managers will formulate the value proposition of products and services and determine who the market is. This enables employees to see the big picture and fulfill their roles in the company.

Strong management knows how to delegate tasks and identify the strengths and weaknesses of their employees. They do not put employees in a position that’s beyond their capabilities. Although multi-tasking is common in small businesses, leveraging your workforce’s strengths is important to overcome difficulties as you try to build organizational culture and identity.

Managers who practice micromanagement stress their employees out; they often interfere with work or do not give praise when it is appropriate. Micromanagement affects morale and performance because employees feel that they are incapable of reaching productivity standards.

Business coaching companies like say that if you want your employees to respond, they must feel like their contributions are important and valued. A dysfunctional management team will lead to the demise of your business; re-evaluate your organization or train current leaders to achieve your goals.

The Importance of Company Culture

Company culture is more important in a competitive business environment. Your competitors may have the resources to provide the same talent you are after, with a high-paying salary or a comprehensive benefits package. You have a higher chance of luring the best employees with your organization’s culture.

A shared culture and values steers your company in the direction you want, and you always have a guideline to return to if your business starts to encounter problems.

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