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Mistakes Managers Make During Tough Economic Times

Posted by Dr. Holly Latty-Mann on

Tunnel Vision- “What worked before will work again.”

Why: Often managers are jinxed by their own experience bias.  Seasoned managers with previous experience  in surviving recessionary conditions are likely to follow “what worked before.”  This is a common mistake and it is important for managers to understand that each recessionary environment is not the same, and thus demands unique managerial decision making.  Approaching other managers and  employees in the organization is a good way to generate cost saving ideas and coordinated leaner operations.

Beware Inaction: Another common managerial mistake, in additiona to a bias for repeating the past is simply doing nothing.  Inaction is a very dangerous road for managers and can result in increase employee anxiety, loss of direction and declining morale.  Filing to respond to changes in the business environment is not the measure of an effective manager.  Economic changes present a perfect ociasion to re-examine and revisit existing policies and procedures and look for opportunities to improve processes and save money.

Resources provided upon request.