Poor leadership has a direct negative impact on employees and the business. The following are some of the negative outcomes poor leadership may bring to the business
Poor service delivery and output by employees
Ineffective leaders normally have poor communication with their employees. Such leaders tend to focus only on the job ignoring the employees who get the job done. Employees are handled like objects. This discourages them from working hard and offering best customer service to customers. Thus the output from the business is as well affected.
Increased business liabilities
Poor leadership forces the business to constantly rely on debts due to failure of the business to achieve its financial targets. Poor leaders will constantly opt for debts instead of encouraging the employees to work hard and increase quality and quantity of the business’ output. High quality output attracts customers and subsequently increase sales and profits of the company.
Low profits
The business fails to have enough sales for goods and services sold. Poor leaders affects the normal day to day operations of the business. Investors will avoid investing in a company whose leader is not effective in running the business. This as well discourages partnerships with other companies and entrepreneurs making the business to have a low profit margin.
Employees exit from the business
Due to poor interaction between employees and employers, employees may opt to exit the business due to unfavorable working conditions. Employees may result to leave their current employer and go to work for competitor companies. It is hard for incompetent leaders to retain their employees for a long period of time.
Lack of business growth
Growth of any business is highly dependent on its leader. This is because leaders are responsible for making any important business decision. Incompetent leaders constantly make poor decisions which discourage growth of the business.
