What is Bad Management? - Explained

What is Bad Management? - Explained

For each and every business organization, whether it's a public limited liability company, private limited liability company, sole proprietary business or a partnership business, there needs to be one or more than one business owners. The decisions what could make by the business owners does have the potential to drive the business forward and to success.

Business owners do manage the business by making decisions and action plans to the business. To manage a business, business owner needs to have key skill set which required to do business, to manage the cash flow, to maintain good customer relationship, to maintain employee retention and many more which ultimately helps the business to make sustainable business momentum.

When good management could drive the business to success, bad management could drive the business to failure. Bad management is followed by multiple skills levels and personalities.


Bad Skills

If the business owner doesn't have the right skill set to drive the business with fundamental knowledge about accounting, business management, employee retention and such, the business could not be succeed due to the key decision maker could not help the business to maintain the sustainability of the business.

Apart from the business owner, there needs to be a well skilled and should have the capacity which requires the business owner to manage the business. Business owners needs to be educated and should have general sense of humor to operate the business and should have business administration skills.

On top of that business owner should be a leader where everybody in the operational team can follow.


Bad Analytics

Business owners are the major decision makes in a business. Business owners needs a set of skills to make the required decisions. To make decision there needs to be analytical phase needs to take place. Analytical can be at any quality. But to gain a quality analytics required quality analysis which needs to take place. 



When the business owners does have the right skill set which needed to make a quality analysis, that means the entire action plan required after will not give any results towards solving a problem what a business do have. In worse cases, businesses could get more trouble in because of creating a action plan which tries to address the issues which are not there. 

Bad Business Strategies 

Bad strategies comes from where the input is a bad analytics. When the decision maker in the business, makes bad decision or strategies by using the bad analytics it's not really good for the business and for the effort as well as the cash flow of the business.

Bad Strategies which comes from the bad analytics could cause the entire organization to strive something which is not necessary or something which should not the organization to be worried of. Or it could be something the entire organization should neglect and focus on what matters to the business.

For an example, there could be a business which is oriented on products and with bad sales month over month. Un-skilled business owner or un-skilled management team could analyze and build a marketing strategy to improve the sales. But the original problem could be something related the product. Because the product is bad and the user experience is bad in the product, is the reason why consumers don't buy the product. 



Though the marketing budget is really high, the business won't make probably any income out of the marketing campaign due the products which are advertised by the marketing campaign.

Doing something which is not relevant to the business or a root cause is a bad business strategy and that can be implemented by the bad business owners and the bad management team.

Not Listening to Right People

If the business owners or the management is not at the operation level time to time, the business owners and the management team might not getting the problems in the operation level at an open ended manner. There could be situations where the management or the business owners not paying any attention towards a set of employees regarding a matter that needs to pay more attention.

It could be a problem in the supply chain, it could be a problem with the product or service's quality, it could be something administrative related issue. Whatever the issue is, the business owner or the management needs to pay closer attention for the concerns raised by the employees.

There could be situations where the employees do have better skills rather than the business owners or the management team on a particular task. And there could be situation the business owner or the management team don't pay enough attention for the issue or the concern raised by the employees because of the ego or for some other reason.

Due to not listening to the right set of people, there could be possibilities where the business could go bankrupt. The root cause for the issue is bad management. If the management or the business owner tried to listen and evaluate the point what raised by an individual, it's a bad management point which needs to be elaborated.

Bad Risk Management

Every business has exposed to many types of risks. It could be political risk, it could be economical risk, it could be natural disaster risk and etc... There are right ways to minimize the level of risk or to get rid of the risk in many ways. And businesses needs to manage the risk levels very closely. 

Managing risks is a part of the management team's or the business owner's responsibility because it needs decision making abilities to execute the plan. The management team or the business owner should have the capability and the skills to understand the level of risk in a task. And the mechanism to get rid of the risk or the mechanism to get the risk to minimal level.



Risk management could be a situation where the business owner or the management team buy a new fire insurance plan for the business. It could be the business owner or the management team outsource a particular task where there's more risk embedded in it to another party.

Minimizing the risk can be done in many ways. But it requires right skill set, right analytics and a right strategy. If a business owner doesn't do it right, it means the business do have bad management to the organization.

Bad Employee Satisfaction

Customers don't come first but the employees do. Not all the businesses in the world do understand the fact that if the business takes care of the employees, the employees will take care of the customers. Regardless of any particular moment, it's necessary to understand the level of risk in a particular task where the employees do have their hands on. By analyzing the level of risk, the business owner should guide the employees to the right track and to achieve spot on.

Employees should needs to feel that they do have the freedom to fail and then only the employees do have the capability to try new things and do something what other's haven't done yet. If the business doesn't give the employees a chance to try new things and take new challengers, the employees won't get any value addition to what they are doing.



If the business owners don't provide the necessary ground work to the employees to try new things and to be innovative, the employees who needs to do something new and achieve something new won't stay with the organization and they will leave the organization because of less opportunities within the organization.

Employees needs to be protected by insurance plans, they should give them the freedom to achieve new tasks and the freedom to fail. Employees needs to be evaluated and assessed and appreciated. If there's an organization which doesn't do such tasks that means the organization does have a bad management and the business owner do not understand the fundamentals of growing the roots of the business which means the employees.

Bad Cash Flow

No matter how good the company's sales records are and no matter how good the business keep moving forward. There are many businesses in the world with management or business owners with bad management skills. Among the bad management skills, bad cash flow is the most dangerous thing to be worried with. If the business owner is taking out from the business very frequently it's bad for the business

When there is an opportunity to work on something important for the business, if there's no enough cash in the bank account the business will loss an opportunity to do a business. Due to bad cash flow inside the business there could be an opportunity cost which can be involved. What that means is the business could loos an opportunity to do a business.

If the business owner taking cash out of the business for personal expenses that also not good for the business. The business owner should not take cash out from the business unless it's the end of the year or it's extremely necessary and the business owner should log the cash outing in the books.

Above all facts do showcase the bad management in the business owners and the management teams. A business won't sustain it's way toward the sustainability when the business couldn't make above points right. Business owners and the management team should maintain an action to fix the above mentioned issues in the business to maintain a good business momentum.