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Therefore to quash such behavior or performance a manager must do so decisively and quickly.  Most managers know the slow and careful or delicate way to handle bad proposals or employees by taking something up at a committee level.  The "we'll look into it" or "we'll discuss it", and "take it up at the next meeting" approach is very familiar to the "diplomatic" manager.

The employee-centered manager is a risk to an organization or company.  The naive manager or owner oftentimes has his integrity turned against him by a predatory or troublesome employee, who counts on this naivete to support them while worrying about the company's difficulties in addition to the strife they present to the manager.  Thus honest and integrous managers are easy prey, and easily manipulated into being a sympathizer or an apologist who oftentimes rushes to be well-liked by employees and clever troublemakers who bull-bait their managers into being sympathetic, while covertly painting a picture of the manager as one who would be "using us employees to make themselves rich".

This scenario is a losing proposition for all.  It becomes a  fallaciously pious game that leaves the organization a "sitting duck".   Managers often intuitively understand this yet are often still at the effect of it, though they recognize and deplore it at the cognitive level.  "Employee rights" and threatened retribution often suppress the manager or owner into submission.  Often the naive manager or owner is considered "fair game", "a pushover", or one who "won't do anything about it".  "After all, he can afford it" is the justification for sub-standard employee performance results and lost revenue for their employer.

Organizations and companies where honesty and integrity is bypassed, and at times a foreign concept -- discarded or replaced in favor of positionalities, laziness, malice, contempt, or greed (sees the recent Bears Stearns debacle)--are doomed for upheaval at some level .  At the heart of this are employees who have fundamental disagreements with policies and feel that things ought to be "their way".  Rather than bringing this up tactfully to management thess employees slither on their belly to inject a naive co-worker with  venomous propaganda of malice.

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