The high price of bad management

I recently had a very sobering conversation with a former manager from a large hotel chain. I have known this individual for longer than a decade, and he worked his way up through the chain over a good number of years to a stable middle management position

I recently had a very sobering conversation with a former manager from a large hotel chain. I have known this individual for longer than a decade, and he worked his way up through the chain over a good number of years to a stable middle management position. He used to rave about the great working environment, how happy teams were, how well his bosses treated everyone and the culture of respect and friendliness within the hotel chain. He used to tell his friends – some of whom worked in tourism and hospitality – about what a great place it was to work. Having worked in a couple of industries, he was happy with his current choice of career and could see himself staying on indefinitely.

However, some senior managers who shouldn’t have been promoted were, and some HR practitioners who should’ve stood up didn’t. The culture quickly changed to one of blame and command and control, staff were cut back to the bone, employees were overworked and no appreciation and thanks was forthcoming. The HR team listened to complaints from the staff, but their woes fell on deaf ears. They stood behind the managers and even protected them in some cases. A few months later, my friend resigned in disgust. He now holds another position of considerable influence within tourism, and advises anyone who’s willing to listen not to go near the place if they’re considering work in the field.

Sadly, this is probably the reality for many HR professionals. Stuck between the rock of authoritarian managers who couldn’t give a toss about people and the hard place of taking a stand, the HR team idly sat by while some of the chain’s best people left in droves.

It can be hard to convince sceptical managers about the value of good people, but is it really worth it? Are they the managers you really want overseeing teams of talented people? A Gallup survey of more than 1 million employees found that the most prevalent cause for people leaving is their immediate supervisor and that poorly managed workgroups are an average 50 per cent less productive and 44 per cent less profitable than well-managed groups.

These are not figures to be taken lightly. We all know intrinsically that bad managers are not good for productivity and ultimately the bottom line, but how many executives and HR teams do anything about it? When a bad manager has entrenched themselves in an organisation, trying to remove them can be reminiscent of pulling teeth. But once removed, these rotten cultural stakes in the ground clear the way for a more fertile and productive future. Granted, this can often take years, but culture change has to begin somewhere.

Leadership is a big issue for HR and managers alike, and rightly so. Personal communication skills are such an ingrained part of our personalities that we are often resistant to change. This is one of the fundamental qualities of leadership: willingness to listen to feedback and act on it. There have been a number of cases highlighted recently where well-known CEOs were promoted into the position with a number of less than desirable personal management traits. But with persistence and willingness to change, they have transformed themselves – and subsequently their organisations – into positive and profitable dynamos.

There is a considerable amount of both quantitative and qualitative evidence on the links between improved management skills, culture and organisational performance. This is valuable ammunition for those HR practitioners who are between the rock of bad managers and the hard place of taking a stand. Granted, you can only lead the executive horse to the water of change. But if an organisation’s leaders are truly interested in the bottom line and shareholder return it should give them food for thought at the least, and a powerful incentive to change if they are serious about their role.

Yes, it takes courage to take a stand. But that is what’s required of HR professionals if they are to have any lasting impact on their organisation and make their mark.

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