Missing deadlines and delays in completing orders can have serious consequences. If you take a laissez-faire approach to management, your customer is unlikely to be patient, and your business partners are unlikely to be understanding of your flexibility when it comes to meeting contract terms. This can lead to having to finish projects yourself or to penalties, while your employees continue to receive wages they do not deserve.
Lack of profit and progress in business is related to the previous point. If employees do not feel interested in achieving results from management, this does not add enthusiasm to the staff.
An example of how a laissez-faire approach can sometimes be harmful is the Coca-Cola Corporation. By laying off lower-level employees, management became less involved in the operation, believing that this would increase productivity. However, this resulted in a decrease in revenue, and the company subsequently had to make significant efforts and spend time to recover.
Case: VT-metall
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Signs of excessive liberalism
In many situations, companies benefit from liberalism, but this only happens if managers strike a balance. Unfortunately, this is not always the case.
Most often, people who become liberal managers do not become so on purpose, but are simply “born” as such. These are usually those who are naturally good-natured and do not like confrontation, preferring to avoid conflicts. Another reason may be related to a lack of professionalism and self-confidence. In such a case, the boss believes that his employees “know what is best” and acts, relying on their opinion.
Signs of excessive liberalism
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After all, the manager may be a creative person who is unfamiliar with concepts such as "management," "governance," and "organizational skills." For him, the responsibilities of management are a burden, and he feels out of his element.
Let's outline the actions of a liberal leader that go beyond the limits and can cost business too much:
lengthy persuasion and requests to an employee to perform work that is essentially his responsibility;
performing tasks instead of subordinates due to their lack of discipline;
inability to say no and lack of determination in setting goals and objectives;
prioritizing good relationships with employees over the interests of the company by any means necessary;
provision of unjustified benefits for unjustified reasons;
indulgence and connivance on the part of the leader;
violation of regulations and statutory rules in order to maintain good relations with subordinates;
lack of even minimal control over the activities of personnel;
inertia and lack of one's own position in situations that require decisive action by the leader.
There are other behavior patterns that go beyond the norm. For example, such managers may give employees undeserved bonuses, provide various benefits, and also endlessly postpone the dismissal of poorly performing employees. In some cases, such a manager realizes that he is in the wrong place and is ready to give it up to another candidate.