Why empires fall ? A recipe for disaster

Nishan Wimalachandra Corporate Consultant, Trainer and Lecturer

It is obvious that most organizations are struggling with high labour turnover and a de-motivated staff. This is the main reason why many organizations get paralyzed.

Owners or the top guns in firms blame the employees for the dysfunctionalities in their organizations, while employees blame their masters. The uncertain future of organizations goes unnoticed to the outside world.

Many family owned businesses whether their operations are global or local, face the same dysfunctionality mentioned above. The real acid test is three dimensional.

De-motivated employees

Gone are the days of “carrot and stick” approach to management. This is the era of “empowerment”. Most organizations which struggle today have a think layer of bureaucracy which was indeed needed few decades ago.

And due to the micro management practices of the owners, these very firms have little hope to venture towards a modern approach to motivating staff.

Today’s employee is intelligent, resourceful and far knowledgeable than a decade ago. Today finding employment for most is streamlined through the internet and job banks are specialized in such tasks.

In this setting the ones that will be badly affected is the organization itself. The process is not cumbersome to find out whether the employee motivation exists within the firm or not.

Truly any organization which has a higher labour turnover is indeed affected by this syndrome - Demotivated employees.

Usually there are a few reasons why employees remain in the same establishment for more than five years, one being no one else will hire them. Another could be that they are reaching retirement age within the next five years or so, and it’s difficult to find employment elsewhere.

Employees could get demotivated due to various reasons. Mainly there is a limit that a person could be motivated by money alone.

Appreciation, recognition matters much more than an allowance or some quarterly increment which is obviously phrased “carrot”.

Employees of this generation require their supervisors and bosses to be more paternalistic and participating in their approach.

Bureaucrats will not survive. A participative and paternalistic approach of management will definitely increase the moral of the employees and motivate them to work better.

Negative reinforcements of behaviours are indeed effective, only when you train an animal at the zoo. Many would agree to the advertisements seen for vacant positions by most organizations, advertising for “self- motivated” individuals.

In other words the organization is clearly saying that, they must come motivated, because the organization is not in a position to motivate their employees in anyway. Indeed this is one recipe for disaster.

Unhappy creditors

Another test is to establish how well the creditors are treated. Simply many organizations which are dysfunctional have a long list of unpaid creditors who are frustrated with the way things are handled. Supplier bargaining power has indeed increased due to the intense competition in any industry.

Goodwill, reputation and longevity are irrelevant when it comes to money, and the faithfulness and loyalty of the suppliers are only guaranteed by the timely payments of what is due to them.

In a marriage, the moment the couple stops laughing together, hey are ready for a divorce, therefore the moment the creditors communication becomes sore, the organization is heading for a severed relationship.

This is one of the best ways to strengthen the competitors. For instance, if the same supplier is well treated on payments by another firm, then obviously their first relationship is automatically lost.

An improper way of handling funds may cause serious issues which could be directly linked to employee de-motivation if salaries are not paid on time.

Most accountants are trained in a single minded manner that is “delay payments” and “expedite receivables” and this creates so much tension with all other departments; and in turn paralyzes the foundations of the organization. Most big brand names have these types of accountants who bring death to the organizations. After all is said and done, a good amount of suppliers are lost.

Red tape

Many are surprised at the fact that red tape still exists in many organizations. Yes it does and it is hidden in the layer of systematic procedures or organized processes, and the labels go on and on.

Whatever the name you may call it, it still does the same damage it did few decades ago.

Systems are indeed required, but automating an inefficient system will create more inefficiency. And now it becomes an automated inefficient system which can only make organizational life more and more miserable.

Procedures, policies, regulations and way of doing things are indeed necessary, but any of these things reducing efficiency must be repelled immediately no matter how hard it is without it.

The only policy must be quality policy. Organizations suffering from red tape, whether created long ago or recently must take immediate corrective action to adopt new working procedures where “Creativity” is encouraged rather than “Reactivity” and the top management must “C” things properly.

After all whether to be Reactive to problems or to be Creative to find solutions is the sole responsibility of the top management.

The most important part in developing a modern organization is by taking care of the very people who build the organization. The ones who build organizations aren’t the ones on top; they are the ones who deal at the forefront of the organization, the ones who represent the organization to thousands of people on daily basis.

A word of appreciation, a tap on the back, a meeting held to appreciate a person’s achievement goes a long way than a smaller salary increment. The best mirror any organization could use is their former employees and what they have to say even after they have left long ago.

Simply people don’t leave organizations; they leave bosses, policies, procedures, red tape and a de-motivated environment.

There’s nowhere like home, if people are treated well, if they are taken care of, they will always be home, not in the competitors bosom.

(The author could be reached via [email protected])