Financial Consequences of Poor Management
When it comes to running a business or investing in a, something that you should keep in mind is that there are always financial consequences of poor management. So, not only do you have to worry about if your general decisions are appropriate, but you always have to worry about if your management decisions are illogical. Management is hard, but if you don’t figure out how to do it right, you’re going to hemorrhage money from every aspect of your company.
Poor management will come in all sorts of different forms and formats. If you participate in discriminatory hiring or firing, that can immediately and negatively affect your financial bottom line. If you don’t pay attention to federal regulations in your business dealings and your management decisions, you can have the full weight of the government lean in the on you at inopportune times. And if you’re not generally aware of what makes employees happy, and don’t manage them in a way that maintains their satisfaction, then you are going to lose all of your excellent employees to companies that are willing to take appropriate steps.
Discriminatory Hiring and Firing
Employment and workplace discrimination is illegal on every possible level. You cannot hire or fire people based on arbitrary things like age, sex, religion, or other factors that don’t affect their ability to work. You can hire and fire people based on job qualifications. You cannot hire and fire people based on qualities that they have outside of these job qualifications. Even in states where hiring and firing practices are less regulated, you still cannot fire someone just because you don’t like something about them that is known to be a discriminatory quality. That is not how a democratic society works.
There is also the matter of federal regulations. If your business is involved with federal employment in any way, there are stricter sets of rules that you might need to follow as an employer or potentially as an employee. If something that you do runs contrary to these regulations, you may have to contact a federal employment lawyer to find out how the law works to your advantage or disadvantage depending on the context. Being on the wrong end of a lawsuit regarding federal regulations because of your management choices is one of the worst things that you can do financially as a white-collar worker.
What Makes Employees Happy
Are you aware of what makes employees happy? As a manager, if you don’t create a positive environment for people to feel satisfied in, you are going to lose them. Particularly in a time of low unemployment, you need to do an above average job in keeping your good employees happy; otherwise, they will simply quit and go somewhere else. And you’re not going to make a lot of money running a business with dissatisfied employees.