The Real Cause of Business Management Failure is More About Ethics Than Skills

Posted on June 20, 2008

Bad bosses, poor supervisors, inept managers create negative impact on the bottom line including less production, higher turnover and increased operating costs. These individuals all share one common trait - poor business ethics and values.

An organization is a group of people working together to achieve shared goals. Everyone should have the same high personal ethics and personal values respective to each other, the customers, the vendors and even the community. However, when supervisory or higher employees continually demonstrate negative values and ethics, the organization's performance suffers from the bottom up.

Unfortunately, many of these same organizations believe the answer for these employee related issues is improved training for their employees and waste thousands of dollars focusing on the symptom instead of the problem. These organizations are living Einstein's' definition of insanity (doing the same thing over and over again hoping for different results) on a daily basis

Florida State University just released a study (January 2007) of more than 700 people within a variety of industries and at different employment levels revealed some interesting facts:

  • Almost two out of five bosses (39%) fail to keep their word
  • One in four supervisors (27%) insulted those they supervised to fellow co-workers
  • One in five (23%) blamed others for their mistakes
  • Almost one in three (31%) used the silent treatment to show displeasure

All of these behaviors demonstrate that these bosses lacked personal values and personal ethics. This lack of ethical behavior may be attributed to top management because upper management has probably modeled the same behaviors. Finally, there is probably no core values adopted by the organization within the strategic plan. Even if there is a values statement, it is much more for show.

With all the national attention on corporate malfeasance to corruption politicians, we, as Americans, should not be surprised by the results of this study. Poor ethical behavior attracts poor ethical behavior and becomes the justifying reason for continued poor ethical behavior.

To stop this negative drain on productivity and the U.S. workforce in general demands that organizations adopt a values statement of non-negotiable behaviors within the strategic plan to be demonstrated to all external and equally important internal customers. Failure to adhere to these values is a reason for termination and termination will happen.

Ethics and values are part of the performance for all individuals. If management fails to treat everyone with respect, then how can management expect loyal employees?

Audit the leadership in your business to determine if you have bad bosses

Determine if a business management plan may help you with your ethics and values.

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