What does poor management mean?

Poor management is when a company’s bad management is resulting negative impacts, such as low company morale, reduced employee productivity, decrease in profits, and so on, to its overall operations and its ability to continue.

In many cases of poor management where small businesses lack of business acumen held by the management team or business founder, the business founder who undertakes the CEO role may be the only senior level personnel within the company with limited business acumen, especially when a business is in its first year or two of operation.

While the CEO may has the skills necessary to create and sell a viable product or service, he or she may often lack the attributes of strong management ability and the time required to successfully manage the employees and operation.

Without a dedicated management team, the CEO has greater potential to mismanage certain aspects of the business, whether it is finances, recruitment, product development or marketing.


Definition of management

Management is the administration of an organisation, whether it is a business, a not-for-profit organisation, or government body.

Management includes the activities of setting the strategy of an organisation and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources.

The term ‘management’ may also refer to those people who manage an organisation.

Management processes such as strategic planning, capital budgeting, project management, hiring and promotion, employee assessment, executive development, internal communications, and knowledge management are the gears that turn management principles into everyday practices.


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Last edited on 18 June 2019.