How can leadership negatively affect the success of a company?

The executive body of any company that has the authority to make decisions, influence to

bring about changes and is responsible to produce outcomes is said to be the leadership of

that company. Leadership serves as the backbone and that’s why plays a key role in the

success as well as the failure of a company. Some of the common negative traits of

leadership are

 Poor Administration/Management Skills

 Authoritarian Style

 Incompetency

 Poor Communication Skills

 Non Cooperative Attitude

 Displays Unethical Behavior

 Lacks Vision/Mission

 Poor Interpersonal Skills

Unfortunately, if a company gets such leadership who possesses negative traits will

therefore negatively affect the success of a company in the following ways.

1.1 Poor work culture

Negative leadership always fails to produce conducive environment for

employees to work as a team and incapable to produce harmony among all

employees.
1.2 Loss of motivation to work

All employees of the company start losing their motivation to work in order to

accomplish their job tasks. Thus, ineffective leadership results in poor performance

and low morale.

1.3 High turnover of employees

One of the major consequences of bad leadership is the increased rate of

turnover of the company’s employees as they feel insecure and seek career in other

companies.

1.4 Lack of ownership and transparency

Employees can never build trust on bad leadership and vice versa, such

leadership fails to build trust on the employees which is very essential to achieve

company’s goals.

1.5 Poor sales performance

The major impact of poor leadership comes up with the poor sales

performance. Lack of technical skills and knowledge can never make up with the

individual and team sales targets on sustained basis.

1.6 Wrong decisions

The prime responsibility of leadership is to make wise decisions. Therefore,

incompetent leadership stands responsible for making wrong decisions.

1.7 Poor communication

Insufficient information is spread from top to bottom which makes ambiguity

and even false information.

1.8 Mismanaged resources

Company’s resources are not managed properly rather it goes wasted due to

wrong decisions and orders placed by the poor leadership.