The loss of employees by many companies in Zimbabwe is attributed to many and diverse
reasons. These include poor management skills that are exercised by company executives. It has
been internationally established that most employees do not leave their jobs but their managers.
Articulated below are some of the poor management skills that cause employees to leave their
companies to form their own and several other factors that contribute to this. Firstly I will define
the key terms to the !uestion.
Definition of terms: Established Company
To establish is to prove or settle beyond reasonable doubt. It can also be defined as having
existed for a long time and having been successful or accepted for a long time. A company can
be defined as an entity engaging in business such as a proprietor partnership or corporation. It is
a form of business organisation corporation that carries on a commercial or industrial enterprise.
A company is well established in its industry with a well"known product and loyal customers
following with average growth. #ompanies are categorised according to the business stage it is
currently in and these types of companies have passed the stage of rapid growth and tend to grow
at the same rate as the overall economy.
Poor management
To fully expound what this term means one has to define the terms separately understand what
effective management is and finally bring to surface what poor management is. $oor according to
the dictionary meaning is to be deficient in possession or !uality inade!uate scanty or less good
than is expected. Therefore the most appropriate to the derivation of definition of poor
management would be deficient of a !uality and less good than expected. %anagement can be
defined as the planning organising leading and controlling of various resources to achieve
company goals effectively and efficiently. According to &tonner and Freeman it is the process of
planning organising leading and controlling the work of organisational members and of using
all the available organisational resources to reach stated organisational goals.
Therefore poor management is the deficient of planning organising leading and controlling
skills by managers to reach organisational goals. There are three major managerial skills which
are conceptual human and technical skills. These are implemented by managers to help them
coordinate employees and resources to achieve their goals. If one is deficient of these skills it
would mean that they have problems in managing their companies which includes losing
employees. %anagers need to arm themselves with the proper tools to leverage proven
management techni!ues and strategies that they may not know they exist.
Stern competition
It is rivalry in which every seller tries to get what other sellers are seeking at the same time that
is sales profit and market share by offering the best practicable combination of price !uality
and service. 'here the market information flows freely competition plays a regulatory function
in balancing demand and supply. The competitive environment also known as the market
structure is the dynamic system in which a business competes. The state of the system as a
whole limits the flexibility of a business. 'orld economic conditions for example might
increase the prices of raw materials forcing companies that supply an industry to charge more
raising your overhead costs. At the other end of the scale local events such as regional labour
shortages or natural disasters also affect the competitive environment. A company(s direct
competitors provide products or services similar to theirs. In addition to direct competitors some
businesses also face competition from providers of dissimilar products or services. Therefore
stern competition is excessive rivalry between companies within the same industry.
Use of out-dated management concepts
The prominent poor management skills used by managers that make companies lose a lot of
employees are the use of out"dated management concepts. These theories include %c)regor(s
theory * in which management uses punishment and threatening to provoke productivity in
employees. In these theories it is resembled that management makes production through people.
+mployees would be regarded as assets of the company and are not to be included in the decision
making processes of the company. The management would not be concerned about the safety of
their workers but about production. They also use the autocratic type of management where they
will be expecting obedience without !uestioning. This was the case with &trive %asiiwa when he
was working at Tel"one. The management make the decisions alone and they would then tell the
employees what to do and how to do it. +mployee(s views were not considered in decision
making. This is one of the major reasons why %r %asiiwa left Tel"one to form his own company
+conet 'ireless which has now become prominent in the telecommunications industry.
Poor decision making
#onceptual skills are part of the most important skills that need to be ac!uired by managers. In
these skills lies the attribute of good decision making. ,ecision making of organisations by
managers is what shapes the future of organisations. )ood decision making will result in the
positive growth of the company. %anagers are the ones responsible for making final decision
even when they have in!uired from their subordinate. %anagers need to make good and
informed decisions. The existence of poor decision making in companies in Zimbabwe has also
led to the loss of employees. &ome managers make rushing and uninformed decision which
would lead to huge losses within the company. In some instances some monopoly firms like Tel"
one were reluctant to venture into new and improved technologies. Tel"one was reluctant to
introduce the use of mobile phones into the industry. They were content with the use of landlines
and phone booths which were now being phased out by use of mobiles in other countries.
It is through such poor decisions that &trive %asiiwa formed his company. 'hen he introduced
mobiles people were keen to adopt them. -e even lowered the prices of simcards to allow
anyone and everyone to use mobiles. Thus his company has grown to be one of the best
companies on the Zimbabwe &tock +xchange .Z&+/. This company is now more competitive as
compared to Tel"one(s 0etone thus exerting stern competition against his former employer. It is
also due to poor decision making that Tawanda %utyebere owner of #hicken &lice founded his
company. The managers of #hicken Inn did not wish to take into consideration this goal of
providing fast foods along highway routes. The managers did not make an informed decision on
the subject and rejected his proposal as a subordinate. -e left the company to form his own fast
food outlet #hicken &lice. The company has now grown and is now nationwide. #hicken Inn
now cannot handle the level of competition being exerted. They are now resorting to form new
branches within a radius of a hundred metres from a #hicken &lice outlet.
Poor planning
$lanning is the ability to forecast and make arrangement for future years. This is the task of the
management to prepare objectives strategies and programmes of action. $lanning involves
formulating of detailed arrangement to optimum favourable balance of needs and demands with
the available resources. If management lacks this skill then the company would have no
direction. $oor planning deprives the company the ability to know its current position and where
it ought to be. It would also lack the ability to recogni1e the time to shift to new directions. $oor
planning also deprives the company the opportunity to reali1e new opportunities to invest in. the
employees would lack the vision and objectives to pursue thus disorder is rampant. The
company might also lose sight of the objectives and in some cases pursue already achieved
Time management is also essential when planning thus they say 2time is money3. Therefore
planning ahead of time for events and activities that are foreseen in the radar and taking
necessary initiates will be beneficial for the company. If managers lack the skills employees
would opt for a more organi1ed and better performing organi1ation. Thus was the case with
0ational %erchandising 4ank of Zimbabwe .0%4/ the company(s management did not plan for
future events. This led to the closure of the company after losing employees and people like
Tawanda 0yambirai took the opportunity to form his own T0 bank. The bank was better
performing than 0%4 and due to stern competition it left the market. Therefore poor planning
by managers will make employees leave their companies to form their own that are better
Managers not goal oriented
&ome companies are not goal oriented thus they to invest in every opportunity that arises.
%anagers need to be goal oriented thus if the company does not set attainable goals it will lose
focus. If managers are not goal oriented they will lead the company astray. If the managers try to
invest in every opportunity that arises without weighing its pros and cons they may lead to
closure of the company. This was the case with T0 limited which invested in banking furniture
supermarkets and several other sectors. This overwhelmed the company(s finances and hence led
to its closure. If employees realise that their managers lack direction and are not willing to
comply with set goals they will leave their companies.
ack of communication
If managers lack human skills they may also compel workers to leave their companies to form
their own. -uman skills refer to the ability to work with people to understand and motivate them
as individuals or groups. Thus the lack of human skills like communication may make employees
leave. 5ack of communication can create conflicts in relationships among supervisors and
subordinates. The tension created in these in these relationships can ultimately lead to low
morale. &ubordinates rely on supervisors to communicate both formally and informally. If
managers do not communicate directions task assignments and information workers can make
mistakes or fail to perform their duties. This can cause conflict between the managers who
expects good work and the employee frustrated by poor performance. This was the case with
#hicken Inn employee Tawanda %utyebere. The company is a multinational company thus
conveying the message to company head!uarters was difficult. +mployee views and concerns
were not attended to if the local managers had failed to address them. #ommunicating his view
of opening highway food outlets was ignored by his local manager and hence since the
organisational structure did not allow him to take his message to foreign managers he had to
leave the company. -e went on and left the company to form his own company #hicken &lice
which is now competing with #hicken Inn.
Poor moti!ation
$oor motivation in the workplace can also cause employees to leave their companies. %otivation
is the driving force behind human behaviour. %otivated people are those who have made a
conscious decision to devote considerable effort to achieving something that they value.
+mployee empowerment is one way of motivating employees. +mployee empowerment can be
defined as controlled transfer of authority to make decisions and take actions. It is the key to
motivated productivity thus employees will help in the development of the company. If
management do not provide motivators for their employees they will leave the company. &ome
motivators for employees could be awards for completion of goals. The awards could be in form
of cash holidays and other incentives for their achievements. ,epriving employees of these
motivators will contribute to them leaving the organisation. This was the case with some
employees who left ,oves %organ to form their own funeral plan company 0yarad1o. The
employees did not get benefits and recognition for their accomplishments thus they left ,oves.
0yarad1o has become a major competitor in the industry and has been performing better than
,oves in the past years.
ack of inno!ation
%anagers who are deficient of skills can also constrain employees to leave the company. 5ack of
innovation in companies can lead to employees leaving companies. &ome managers would not be
willing to embrace new and innovative ideas that may be brought up by employees. %anagement
and leadership tend to resist because creativity often means embracing uncertainty and may pose
possible difficulties in measuring returns on investment. If the employees would have brought up
these innovative ideas and managers refuse to embrace them they would be forced to leave the
organisation to try to implement the ideas in their own companies. &imilarly %r %asiiwa and
%utyebere who brought innovative ideas to their managers who were not willing to embrace the
ideas thus they left their companies to form their own. 'hen these ideas where implemented
they were industry revolutionising hence they have become major players in their respective
"inancial instability
The organisation(s financial instability that is a lack of sales lay"offs and salary free1es all lead
to employees feeling unstable and lack of trust. +mployees who are worried tend to leave their
companies. This is one of the major reasons why employees leave their companies to form their
own. &everal companies in Zimbabwe tend to let employees go for prolonged periods without
remuneration while managers are taking with them large salaries and benefits. Therefore workers
leave their companies to form their own. ,airyboard Zimbabwe lost a number of its employees
because they were not being paid their salaries. They went on to form to form their own
company ,endairy which is now a major competitor of ,airyboard. ,oves also lost its
employees because they were underpaying and sometimes not paying them at all. These
employees left this company and formed 0yarad1o which is now a major player in the market.
This was also the case with former Z4#(s employee &uper %andiwan1ira who left the company
with several others to form their own Zimbabwe F% which is now competing with radio
Zimbabwe. These companies are outplaying their former employers because they rectify the
weak areas of their employers thus being virtually superior.
#ther factors: $mbition
-owever employees leaving their companies is not only attributed to poor management skills
exhibited by their employers but also several other factors. 6ne of the factors is ambition
expressed by the employees. &ome employees join companies just to gain experience so that they
can form their own companies. &ome were born with the aptitude and entrepreneurial thus they
were bound to leave their employers. Ambitious employee who left his companies to form his
own company is 7ingdom 4ank(s 0igel #hanakira. After working for many years at 8eserve
4ank of Zimbabwe left the company to form his own which is now well established in the
industry. ,evine 0dukula is also an example of such people9 he left the Zimbabwe 8epublic
$olice to form his own security company &ecurico. This company focuses on protecting premises
of several organisations and homesteads thus also promoting the security of the people of
&ome employees realise the inefficiencies portrayed by their companies due to their monopoly
state. Thus they feel that the industry needs new players who will introduce stern competition to
improve efficiency. Tel"one was enjoying monopoly state for several years and was inefficient
thus people like &trive %asiiwa saw the need for competitors in the industry. &ince %r %asiiwa
entered the industry to form +conet 'ireless to introduce some competition Telone has
improved its services and invested in 0etone which is now competing with +conet. This has
reduced some inefficiency that existed and they are now more concerned about what consumers
%o!ernment policies
)overnment policies like indigenisation and empowerment have also led to employees leaving
their organisations to form their own. The indigenisation and empowerment policies state that
resources should be also be allocated to Zimbabweans so that they can benefit. The government
is now calling for Zimbabweans to form groups of ten people and one foreigner in the mining
sector to form partnerships in which they will all benefit. Thus many employees have left their
companies to venture into such deals.
+mployees also leave their companies to for their own due to availability of funding. %onetary
institutions are now providing funds to everyone who has collateral and innovative ideas. This
allows people to invest in their ideas and to form their companies which exert stern competition
against their former employers.
From the discussion above one can deduce that the leaving of employees to form their own
companies and exert stern competition against their former employers is more attributed to the
poor management skills exhibited by their managers than other contributing factors.
#alvert 8. +. 4ailey ). : #oles ,. .;<<=/ Introduction to building Management: 6
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8obbins. $ and #oulter. % .?@@?/. Business and economics. #ornell -all. A&A
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&tonner. B and Freeman. 8 .;<<</ Management 6
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www.saylor.orgFbooks> "rinciples of management