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Character of Management is Important to Business

by Ron Kurtus (11 March 2013)

The character of management is important to the success of a business.

The leadership and management of a business sets the tone of how the company treats their customers, suppliers, and workers. When management exhibits poor character traits, customers resent being cheated and workers do the minimum. When they show good character, the business is respected for its integrity and its workforce is loyal.

Questions you may have include:

This lesson will answer those questions.



Poor character by management

There are a number of areas where management might show poor or negative character that can affect the business.

Treatment of workers

When the leadership of a company treats employees poorly, the result is a high turn-over rate. Good workers will go elsewhere. Many of the workers that stay don't care to work hard and may even pilfer goods from the company.

Harvey believed in "tough management" methods. He would often yell at his workers and insult or demean them in front of others, as a way to get them to work harder. He attributed the high turn-over rate in his department due to HR hiring "losers".

Treatment of suppliers

If management shows poor character toward suppliers, not paying on time and even insulting their people, the suppliers don't do the best job in delivering quality goods or services to the company.

Dishonesty

If customers are dealt with dishonestly and with little respect, they will soon move on to a different company in which to do business.

Some managers may be dishonest concerning company funds.

Good character by management

Positive character traits and actions by management usually have positive results.

Dealing with customers

When the top management of a company insists on dealing with customers in an honest fashion and in making sure that the customers get helpful service and their money's worth from the goods, the reputation of the company soars. This results in more business.

Dealing with suppliers

When suppliers are treated with respect and paid as promised, they usually will provide good service and delivery.

Dealing with workers

When workers feel management is honest with them and deals with them in a solid fashion, they will put out more and do better work.

Example set by management

Workers, sales representatives, lower level managers, vendors and suppliers, and customers reflect the character of a company's leadership and the tone they set.

Poor character at the upper levels results in poor character internally and externally. Ultimately, it results in loss of customers and loss of profits.

Summary

The leadership and management of a business sets the tone of how the company treats their customers, suppliers, and workers. When management exhibits poor character traits, customers resent being cheated and workers do the minimum. When they show good character, the business is respected for its integrity and its workforce is loyal.


Lead by example


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