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Recession 'creating negative management style among companies'

17 July 2012

Many UK businesses are allowing the ongoing economic downturn to create harmfully negative management styles within their operations.

A new report from the Chartered Management Institute (CMI) and Simplyhealth has revealed that the recession is leading many firms to become overly bureaucratic, reactive and authoritarian in their leadership style.

This is leading to employee disengagement, decreasing job satisfaction, reductions in productivity and declining performance, as well as negatively impacting the health and wellbeing of staff and workers alike.

Companies have therefore been advised to adopt a motivating and empowering management approach in order to reverse these trends.

CMI chief executive Ann Francke said: "It's official: especially in a recession, authoritarian is out and empowering is in. It's more than just words - if you're a trusting manager and are good to your people you can reap big business rewards."

Last month, the Chartered Institute of Personnel and Development published a report suggesting that HR management is becoming an increasingly vital issue for companies of all sizes.

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Categories: Functional Practices, Human Resources

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