Bad Management: How To Identify It and the Risks It May Bring to Your Business

Sometimes, it's easy to identify a poorly performing manager and witness the effect of their management skills on the company. In other cases, ineffective manager behavior is more subtle but can equally damage employee productivity and morale.

Whatever the case, poorly performing managers can wreak havoc on an organization. It's critical to identify typical characteristics of these managers and do everything possible to turn the situation around before it's too late.

By "too late," we mean an exodus of talented employees who become so frustrated by their difficult boss that they see no option but to quit their jobs. But the risks to your business don't end there. For instance, a disgruntled employee (or former employee) can air grievances on social media, which may cause a serious public relations problem for your business and can tarnish your reputation.

The Bad Manager Archetypes

Managers may underestimate the impact that their leadership styles can have on employees. They may not see — often until it's too late — how pervasive their influence can be on morale and productivity. Here's a look into some typical behaviors that bad managers may exhibit:

• The bully. This individual believes fear is the best motivator, seeking to intimidate and/or threaten staff to continuously assert control.
• The absentee boss. This manager type sequesters themselves in their office, studying reports or focusing solely on ingratiating themselves with their own boss. As a result, employees in their department are left essentially leaderless.
• The divider. This boss has their favorites among the staff and typically doesn't care who knows it. If a conflict arises, they may try to play one person against another, causing further disruption in the workplace.
• The micromanager. Ever-present, the micromanager is always closely observing and controlling the work of their subordinates. Employees could feel undermined in their actions and may see no point in taking initiative under this type of leader.

If you can’t identify a distinct archetype of a bad manager within your organization, look for key behavioral characteristics that may reveal more than what appears on the surface.

A Snapshot of Flawed Manager Behavior

Do your managers’ leadership styles include negative qualities that discourage employees rather than motivate them? Here are some commonly noted managerial behaviors to avoid whenever possible:

Arrogant, Know-It-All, and Bossy

Some managers adopt an outwardly arrogant style to purposefully or subconsciously mask insecurity about their own leadership skills and abilities. They act as if only they can handle the demands of the workplace or suggest that only they have the in-depth knowledge required to solve problems as they arise. This may manifest itself in a tendency to excessively issue orders rather than allowing employees to address issues on their own. An unwillingness to invite employee ideas is another symptom of this unhealthy approach to management.

Poor Communication Skills

A manager must communicate effectively with employees. Poor communication skills can often appear in forms such as:

• Over-reliance on emails: Managers who don't like talking with employees too often resort to email messages. In situations where clarity is necessary (for example, when offering constructive feedback), emails are usually a poor medium for communication, as they can be impersonal and easily misinterpreted.
• Emotional outbursts: Some managers allow emotions to cloud their communication with employees and may lash out when angry instead of giving themselves time to cool down before talking.

Indecision and Lack of Organization

Managers unable or unwilling to decide on critical matters can trigger uncertainty among those they lead. Employees generally are not motivated by a manager's lack of self-confidence. A manager who's disorganized in everyday activities (forgetting a meeting, showing up late for a performance review, etc.) is also unlikely to inspire employees to be productive.

Complacency and Resistance to Change

For some managers, if they don't hear about issues from their employees, they'll assume that none exists. Employees faced with this form of leadership complacency can be unwilling to step forward and voice a complaint — however urgent or serious. In the same respect, a manager who's openly resistant to change could influence employees to adopt the same attitude. This is precisely the opposite attitude of what any company intent on change wishes to convey.

A Willingness To Bend the Rules

Adhering to the highest standards of ethical conduct is often a key value for a successful company culture. A manager who is open to cutting corners to ease the process (or for some type of personal gain) will likely lose the respect of more honest employees. Worse, this "sort of ethical" behavior could suggest to employees that they might get away with bending the rules as well. This may also cause compliance concerns for the company, which can be costly.

Never Recognizing the Contributions of Others

Unfit managers who fail to recognize employee contributions may exhibit some of the worst leadership styles, while those who claim credit for achievements they had nothing to do with may be even more destructive. Either approach can lead to poor employee morale, in which case greater productivity and initiative are likely to be out of the question.

What Employees Can Do About Bad Managers

Employees can be cautious of and often the first to notice the signs of bad management, starting with how they feel their contributions are received. A 2024 survey showed that 35% of U.S. workers with “non-highly effective managers” report that they feel valued at their organization—that figure is 80% for those with “highly effective managers.”¹

But how can you identify ineffective management in your organization? It may be hard for employees to speak directly with their boss about difficulties they have with their management style. Instead, they should feel free to contact their boss's direct supervisor or HR department to discuss the issues. Alternatively, if a healthy and productive working relationship exists between the employee and manager, the employee may want to speak directly to their boss about what they are experiencing. Unfortunately, many businesses may fail to educate employees on their options if an issue arises with their manager.

Remember, the boss is someone with whom employees regularly interact. There may be too much "baggage" for employees to talk honestly with their boss. They need to know they can reach out to someone else in leadership for guidance.

What Your HR Team Can Do About Ineffective Managers

Offering training for managers can be a key resource in turning a bad situation around, particularly in areas like employee coaching and communications.

Some managers may naturally resist such training, convinced they're doing "just fine" on their own. Employers and HR should ensure that all managers receive the same training, illustrate where these managers fall short in their performance reviews, and indicate how poor employee performance may negatively impact their own standing within the organization.

Sometimes, the situation demands a difficult conversation with a manager – not unlike the type of conversation a strong leader can have with an underperforming employee. This is where experienced HR personnel can help with these difficult conversations. In such cases, keep these guidelines in mind:

• Prepare in advance. Don't just call the manager into your office and start pointing out weaknesses. Take time to review employee complaints and other relevant information and establish key points you want to cover ahead of time.
• Have a goal in mind. As part of your prep work, make sure there's a key objective you want to achieve as a result of the conversation. This can take the form of setting up a time for further discussions or outlining an action plan the manager can begin working on when the conversation has concluded.
• Work together to improve the situation. With any difficult conversation, it's important to defuse tension and focus on how working together can make things better. This way HR and managers can look at ways to improve processes, relationships, and performance, and the result can be a breakthrough for all parties to uncover some fantastic ideas for improving workflow.

An underperforming boss can spread discontent throughout an organization, damaging customer relationships. Prompt corrective action can help fix the problem before it becomes a serious liability for your business.

Solutions for Combating an Unfit Manager

These inept managers can result from a variety of causes, whether that be a focus on their own career goals, lack of management experience, or downright disdain for their employees. However, this doesn’t mean there is no room for change and growth. There are many opportunities available to identify and correct poorly performing managers. Once solutions are put into place, these implementations can lead to successful change-makers within your organization.

Finding ineffective managers is only half the battle. Employees and the organization’s HR team must also know what next steps to take. Here are a few solutions to consider when identifying and addressing an ineffective manager in the workplace.

Increase the Frequency of Manager Performance Reviews

Traditional annual performance reviews tend to focus on past behavior and may not account for future goals and areas for development (such as improved managerial conduct). Areas for improvement and growth can be missed over a 12-month period if feedback is held until one designated time for review.

In contrast, having more frequent conversations about how the company's objectives align with an individual manager's performance and development can change the focus and create a cohesive and tangible relationship between the manager and the company.

A benefit of this style of performance review is that a manager can become more aware of and sensitive to any ill treatment of employees. This can be a huge step in affecting managerial change that benefits the entire workplace.

Use Learning Management Systems To Help Address Poor Behavior and Performance

A learning management system (LMS) is a powerful, versatile, and flexible e-learning application that businesses can use to help plan, implement, and assess specific learning processes. An LMS allows instructors to develop and deliver content, monitor participants' efforts, and assess their performance. These systems also often offer interactive features like video conferences and discussion forums.

These features can be used to focus on making changes in a manager's leadership style, producing positive change that alters workforce-interaction and motivation.

Features of the most robust learning management systems often include:

• Reporting and analytics: Consolidates progress data for a big-picture view of the organizational learning curve.
• Skills gap analysis: Pre-course assessment to identify learning goals, allowing developers to design content according to participants' knowledge base.
• Collaborative learning: Allows group learners to share applications or documents, follow discussion threads, and exchange knowledge and questions.
• 360-degree reviews: Permits instructors to assess performance and participants to give teachers feedback or suggestions.

Learning opportunities like these can help to promote a positive change in a manager's behavior. By prioritizing LMS training and e-learning, you can help ensure managers (like employees) are continuously engaged and focused on honing their leadership skills.

Get Help Transforming Poorly Performing Managers Into Inspiring Leaders

Some business leaders may need assistance in coping with a manager's ineffective leadership style. Paychex provides a wealth of human resources services, including seminars and training led by HR professionals, to help effectively address workplace challenges like this.

Turning a challenging managerial situation into an opportunity for growth is vital to fostering a positive and productive workplace. With the right support and tools, even struggling managers can become inspiring leaders who drive their teams to success.