Bad people management is the mishandling of employees through ineffective leadership, inadequate communication, and a lack of empathy or support. Bad people management is a critical issue for businesses because bad management directly impacts the work environment, affecting everything from job satisfaction to overall company productivity. When management is ineffective, management starts a chain reaction, beginning with decreased employee morale, which is one of the most immediate signs, which quickly leads to disengagement, higher turnover, and lower productivity across teams.
Research from the Harvard Business Review shows that poor leadership, characterized by a lack of emotional intelligence and disorganization, contributes to increased stress levels among employees. A study published in the Journal of Applied Psychology further highlights how “employee stress” due to inadequate management leads to decreased performance and higher burnout rates.
Bad managers display characteristics such as poor time management, disorganization, and lack of clear goals. The behaviors not only confuse employees but also reduce employee efficiency, creating a sense of instability within teams. When leaders fail to set clear expectations or provide adequate support, employees become frustrated, further eroding workplace morale and productivity. This is why businesses need to recognize and address bad people management early on, focusing on better leadership training and communication strategies to foster a healthier work environment. Below are 8 Effects of Bad People Management:
1. Decreased Employee Motivation and Productivity
2. Depleted Morale
3. Poor Work-Life Balance
4. Hindered Professional Growth
5. Resignations
6. Diminished Potential
7. Negative Impact on Company Culture and Reputation
8. Lower Productivity
1. Decreased Employee Motivation and Productivity
Decreased motivation is a drop in employees’ drive, directly lowering productivity. Motivation propels goal achievement, deadline adherence, and output levels. When motivation wanes, workflow is disrupted, reducing efficiency. Motivation directly impacts performance and team success. Addressing the issue ensures employee engagement and productivity, preserving a thriving work environment. Ignoring the decrease in motivation delays projects misses opportunities, and harms the bottom line. In corporate settings, poor leadership or lack of recognition diminishes motivation, affecting project timelines.
Decreased motivation ripples across teams, lowering morale and collaboration. Prolonged productivity dips lead to revenue loss and competitive disadvantage. A study by Jan-Emmanuel De Neve, George Ward, and Clement Bellet (2019) from Oxford’s Saïd Business School and British Telecom links employee happiness to 13% higher productivity. Challenges of decreased motivation include ineffective leadership and unclear growth paths, crucial to maintaining motivation. As motivation declines, employee morale drops, deepening workplace dissatisfaction.
2. Depleted Morale
Depleted morale is a decline in workplace energy and enthusiasm, due to a lack of support, recognition, or meaningful work. Morale drives employees’ feelings about employees roles and contributions. Low morale undermines teamwork, communication, and satisfaction. High morale fosters cohesive teams and a positive work environment. Without high morale, absenteeism rises, and trust and loyalty erode, increasing turnover. In workplaces with unappreciated employees, morale plummets, leading to poor collaboration and frequent conflicts.
Low morale lowers individual and team output, breeds internal conflicts, and fosters a toxic culture. For the organization, this tarnishes its reputation, hindering talent attraction and retention. Amy Novotney’s research (December 2010) titled “Boosting Morale,” published by the American Psychological Association, links unhappy workplaces to higher depression and heart disease rates, underscoring the importance of morale. Managers often overlook low morale’s root causes, such as weak feedback systems or an unsupportive culture, complicating resolution. As morale declines, work-life balance worsens, amplifying dissatisfaction.
3. Poor Work-Life Balance
Poor work-life balance is when employees are unable to effectively manage their professional responsibilities alongside their personal lives, leading to stress and burnout. A balanced work-life situation is critical for employee well-being, job satisfaction, and sustained productivity. Without it, employees may become overwhelmed, leading to mental and physical exhaustion. Addressing this ensures that employees remain healthy and productive, reducing burnout and turnover. Companies that promote work-life balance are more likely to retain high performers and boost overall workplace satisfaction.
In many industries, especially high-pressure environments, employees working over 50 hours per week are more likely to experience burnout . This results in absenteeism, reduced work quality, and higher health-related costs for employers. For the team, poor work-life balance results in reduced collaboration as stressed employees become less communicative and more likely to make mistakes. For the organization, high turnover rates and decreased productivity can become costly issues.
According to a study titled “Work-life balance and self-reported health among working adults in Europe: a gender and welfare state regime comparative analysis” by Aziz Mensah and Nicholas Kofi Adjei (July 16, 2020). This research, published in BMC Public Health, found a strong association between work-life conflict and poor self-reported health among working adults in Europe. The study underscores the need for conducive working conditions and social policies to manage work-life balance. A major challenge is that many organizations fail to offer flexible work arrangements, which are key to achieving balance. Additionally, over-demanding workloads are often ingrained in company culture. As employees struggle with balance, they may also find that their professional growth is hindered, limiting long-term opportunities for both the individual and the company.
4. Hindered Professional Growth
Hindered professional growth refers to the lack of opportunities for employees to develop new skills, advance their careers, or achieve personal goals within the workplace. Growth opportunities foster employee engagement, motivation, and loyalty. Without them, employees feel stagnant and disconnected from their roles, which can stifle innovation and progress. Offering pathways for professional growth retains top talent, enhances job satisfaction, and ensures the organization remains competitive through skill development.
A survey by LinkedIn revealed that 94% of employees would stay longer at a company if it invested in their career development . Without such opportunities, employees often feel unvalued and underutilized. For the team, the lack of professional growth opportunities can lead to knowledge gaps and reduced competency over time. For the organization, this translates to decreased innovation and higher employee turnover as individuals seek growth elsewhere.
Research titled “Professional Growth and Workplace Learning” by Laura Pylväs, Junmin Li, and Petri Nokelainen (March 1, 2022). This chapter from the book “Research Approaches on Workplace Learning” discusses the continuous learning process necessary for professional growth. It emphasizes that professional development is crucial for adapting to changing demands and maintaining vocational proficiency. Many organizations struggle to provide continuous learning due to budget constraints or inadequate leadership development programs. As employees feel their growth stifled, many seek alternative employment, leading to resignations, a costly consequence for organizations.
5. Resignations
Resignation is when employees voluntarily leave their organization, often due to dissatisfaction, lack of opportunity, or burnout. Frequent resignations disrupt team dynamics, increase workloads for remaining employees, and cause knowledge loss. This affects both team morale and productivity, while also increasing hiring and training costs for the company.
Reducing resignation rates is essential to maintaining team stability and company morale. High turnover results in lost institutional knowledge, productivity, and financial resources. In organizations with low engagement levels, turnover rates can exceed, costing companies the departing employee’s salary to replace them. For the team, resignations result in added stress as workloads increase, leading to burnout among remaining staff. For the organization, high turnover damages the company’s reputation as an employer and can lead to significant financial losses.
The Society for Human Resource Management (SHRM) found that each resignation can cost a company up to 6 to 9 months of the employee’s salary in replacement costs and lost productivity . Many organizations fail to recognize the warning signs of impending resignations, such as disengagement or lack of growth opportunities, making retention difficult. As resignations increase, it diminishes the potential of the organization to harness its most valuable resources—its people.
6. Diminished Potential
Diminished potential refers to an organization’s failure to fully capitalize on the skills and talents of its workforce, limiting overall growth and success. When employees’ abilities are underutilized, the company misses out on valuable contributions that lead to innovation and progress. This inefficiency slows down growth and reduces competitiveness.
Addressing this issue ensures the company leverages its full intellectual and creative capital, fostering innovation and improved performance. When potential is not maximized, those productivity gains are lost, stunting organizational growth. Teams that fail to harness their full potential are less innovative and slower to adapt to changes in the industry, leading to stagnation. For the organization, this can result in market share losses and a weakened competitive position.
Research by Mayo Clinic, titled “Assessment of Capacity to Consent and Informed Consent to Research Policy” discusses the ethical considerations and regulatory requirements for involving individuals with diminished autonomy in research. It underscores the need to promote autonomy while ensuring compliance with institutional policies. A common obstacle is that managers may not recognize the untapped potential in their teams or may lack the resources to fully develop their employees’ abilities. This failure to tap into full potential can gradually erode the company culture and reputation, leading to broader organizational challenges.
7. Negative Impact on Company Culture and Reputation
Negative company culture manifests through poor communication, lack of collaboration, and overall dissatisfaction among employees, which can damage the organization’s reputation. Company culture shapes employee behavior and the overall work environment. A toxic culture leads to disengaged employees, poor customer service, and high turnover rates, ultimately damaging the company’s image both internally and externally. A positive, healthy culture is critical for attracting and retaining talent, fostering innovation, and ensuring long-term success. Negative culture can cost a company its reputation in the marketplace, making it difficult to recover.
Research from Glassdoor shows that 56% of workers say that a strong company culture is more important than salary when it comes to job satisfaction. When culture turns negative, high-performing employees are the first to leave, further exacerbating the issue. For the team, a negative culture breeds dissatisfaction, disengagement, and conflict, making collaboration difficult. For the organization, it leads to poor public perception, lower employee retention, and reduced profitability.
According to a study published in the Harvard Business Review titled “Reputation and Its Risks” by Robert G. Eccles, Scott C. Newquist, and Roland Schatz (February 2007), discusses how companies with strong positive reputations attract better talent, have more loyal customers, and can charge premium prices. It emphasizes that managing reputational risk is essential for sustaining earnings and future growth. One common challenge is that leadership may not be aware of how deeply rooted the toxic elements of their culture are or may be unwilling to address them. The culmination of these factors often results in lower overall productivity, marking a downward spiral for organizational performance.
8. Lower Productivity
Lower productivity is a direct consequence of disengaged employees, negative workplace culture, and the underutilization of potential, all of which hinder organizational progress. Productivity is essential for achieving business goals, meeting client demands, and maintaining competitive advantage.
Lower productivity results in inefficiency and financial losses, slowing down growth and innovation. Addressing productivity issues is vital for maintaining profitability and ensuring the company remains competitive in the market. Without productive employees, the company faces declining performance and stagnation. For teams, lower productivity increases stress as employees struggle to meet deadlines, leading to burnout. For the organization, it results in financial losses and damage to its market position, making recovery difficult.
Research published in the Journal of Productivity Analysis titled “Productivity Analysis: Roots, Foundations, Trends and Perspectives” by Valentin Zelenyuk (October 2023), provides a comprehensive overview of productivity analysis, emphasizing the importance of productivity in various sectors. It highlights that productivity is a critical factor for economic growth and organizational success. Many organizations fail to provide the necessary tools or a supportive environment, which limits employees’ ability to be productive, further compounding the problem.
What are the characteristics of a bad manager?
The characteristics of a bad manager are micromanagement, poor communication, lack of empathy, and favoritism. A bad manager also avoids giving constructive feedback, fails to recognize and reward good performance, and creates a toxic work environment through bullying or dismissive behavior. Managers who prioritize personal interests over team welfare cause low morale and high turnover rates, aligning with recognized “signs or causes of bad people management”
Research, including LinkedIn Learning (2020), highlights that poor management practices, like micromanagement and neglecting employee recognition, significantly drive employee dissatisfaction and attrition. Adopting principles of good people management, in contrast, such as effective communication, transparency, and empathy—fosters team engagement, innovation, and long-term productivity.
Is lack of organization a major sign of a bad people manager?
Yes, lack of organization is a major sign of a bad people manager. According to the article “25 Signs of a Bad Manager at Work” by TeamBuilding.com, published on February 12, 2024, disorganization is highlighted as a key trait of incompetent managers. The article explains that while being slightly scattered can be manageable, consistent disorganization leads to forgetting details, losing documents, and missing meetings, which significantly hampers team performance.
Harvard Business Review article “4 Reasons Why Managers Fail” by Swagatam Basu, Atrijit Das, Vitorio Bretas, and Jonah Shepp, published on April 11, 2024, supports the issue by noting that managers today are accountable for 51% more responsibilities than managers effectively manage, leading to stress and fatigue. Overwhelming workload results in disorganization, further contributing to managerial failure. The findings underscore the critical impact of organizational skills on effective management.
Who is a good people manager?
A good people manager is one who effectively carries out management functions. A good manager excels in building relationships, is a sign of empathy, and demonstrates good communication and active listening skills. The traits are essential for fostering a positive work environment and ensuring team success.
As Josh Bersin, CEO of the Josh Bersin Academy, emphasizes, “The future of work has little to do with technology, AI, or algorithms. It’s all about people, organizations, and how we manage people within these organizations.”
This underscores the importance of “People Management Skills For Effective Leadership “ in guiding teams toward achieving goals and maintaining high morale. Incorporating people management into daily practices—such as regular check-ins, end-of-day reflections, and constructive feedback—ensures consistent team alignment and engagement.
Does a good manager utilize time well?
Yes, a good manager utilizes time well. Effective time management is crucial for managers looking to navigate the complexities of their roles efficiently. Research by Macan, Shahani, Dipboye, and Phillips (1990), titled “College students’ time management: Correlations with academic performance and stress”, highlighted that employees who engage in time management behaviors experience less job-induced stress and higher job performance.
Gartner’s 2022 study found that aligning employee goals with organizational needs boosts performance by 22%, further reinforcing the importance of “time management skills for people managers”.
Time management not only enhances productivity but also minimizes stress, fosters work-life balance, and improves team efficiency. Modern tools like time-tracking apps and project management software streamline scheduling, while strategies like task chunking and timers aid individuals with challenges such as ADHD or procrastination. Focusing on these practices enables managers to exemplify reliability, reduce inefficiencies, and maintain project alignment with organizational goals.