Everyone knows an ineffective manager after just a few short interactions with him or her. Think of Gary Cole’s character in Office Space, Bill Lumbergh. That 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 fast turnover and they result in a serious problem for companies.

Some of the most common signs of an ineffective manager are; their lack of communication and emotional intelligence; they are impatient, cocky, entitled and often rude; they are inconsistent and unreliable; and they tend to micromanage every little detail. These are just a few of the many signs of an ineffective manager.

But just what is the cost of all this bad managing?

The answer is in the title; an ineffective manager can hinder an entire company costing hundreds of thousands of dollars potentially. Through a variety of reasons, analysts have been able to show that ineffective managers can cost companies hundreds of thousands or even millions of dollars for that simple reason. However, to illustrate the point we looked into the research that expert analysts have done to give you more than just an estimated cost.

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.

Based on a Gallup survey, 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, in 2003 released a report that showed that bad management directly related to conflict and negative vibes in an office 39% of the time.

Attrition is also directly related to bad management and has found that 70% of the reason people leave their jobs is due to their boss.

The most damning of all, is a report from 2004 by Laurence Karsh found that roughly 1% of the US GDP was used to correct the problem of making poor hiring choices by ineffective managers. 1% of the GDP in 2011 translates to approximately $1.41B.

Simply put, ineffective managers can cost companies hundreds of thousands of dollars by demotivating and destroying the will of employees. To deal with these less productive employees, managers need to come up with a reason for their bosses why productivity or performance is down ? which can lead to some sticky responses that many not be the correct ones for the situation.

LePhair helps companies directly in building great managers with our tools. If your company is suffering from the potential problem of an ineffective manager, understand that they can be assisted and become great managers with a little bit of time and education. Do not let an ineffective manager hurt your company and contact us today to see how we can help.

[About] LePhair Associates is a sales and service training and development company providing employee assessments, training and consulting services to companies that appreciate their people are essential to their success. LePhair’s customized training programs, help companies get the right person in the right job, provide the means to determine how engaged the workforce is and provides a process to coach, train, manage and motivate people to greater success and increased productivity. Try a complimentary Assessment.

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