Bad Management - It's Also Just Plain Bad For Business.

Bad management runs rampant in organizations. For my discussion I will focus on Automotive Sales and Finance Management. I say this because this is epidemic in many Industries and I don’t want to appear to be singling out Automotive Dealerships.


All emotions stem from insecurity and must be controlled because it has no place in a work Setting. It is a disease that will eat away at and hold back any organization.

A bad manager will not hold on to good people and staff does not want to go to upper management for fear of retribution. This has devastating effects on performance of the department. Always be suspect when a manager says “What goes on here stays here” or “It’s my way or the highway”.

I cannot stress enough the need for companies to have a consultant come in once a year to audit the operations and make recommendations on improvements that could be made to improve profitability. Even if operationally things are functioning well, someone on the outside looking in can always see things that the entrenched management cannot that could mean a significant improvement.

There are many different factors that define a bad manager. One kind of manager is the one who is inconsistent saying one thing and doing another without explaining his actions and who is arrogant in believing they are always right and makes sure everyone knows it. This type of manager is often egocentric and makes every issue about them, doesn’t listen to advice offered but ignores it before even considering it. This inhibits the staff from even mentioning any ideas they may have and leaves them feeling helpless and feeling that nothing will ever be done to improve on a bad situation.

These managers are also often self-centered and do not support, encourage or look out for their team. The worst are mean and abusive and make people feel bad for no reason.


Then there are managers who micro-manage and Refuse to delegate anything, despite what they say. This isolates them so they often don’t involve others in decisions and rarely look for ways to support or encourage the work of their team. This is often is caused by incompetence the lack of basic communication, intellectual, or emotional skills needed to for their role.

Then you have the complacent manager who is content with the way things are and is not open to change. They like things the way they are because they have become lazy or are thinking about other things. I once had a GSM that spent more time outside the dealership hobnobbing with hockey players from the Boston Bruins who were spokesman for the dealership.

I have also be part of organizations where a manager spent valuable company time in generating options as solutions to problem but the problem was created by this same manager. Incompetent managers create more problems than they solve and then waste time to solve the same problems they created in the first place. 

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Comment by David Ruggles on June 24, 2013 at 3:24pm

We're discussing the same things we were discussing 40 years ago.  At some point, OEMs have to figure out how their policies impact employee turnover in Dealerships and Dealers will have to pay closer attention to their stores.  Otherwise, I don't expect things to change.  I wish I could be more optimistic, but this business takes a toll on people.  When sales people and managers are running at the ragged edge, just to survive and/or meet the next objective, the slightest little thing can demoralize them.  Life and one's career is a marathon, not a sprint.

Comment by Sally Whitesell on June 24, 2013 at 2:17pm

I couldn't agree more!  I recently posted a video about the importance of open meetings where employees are invited to bring in one suggestion, present it and then if everyone agrees it is legitimate, form a plan of action.  Letting the group work together is invaluable and actually can take away part of the management stress.  Sales and Service employees are an untapped resource.

Comment by Joseph D'Aurizio on June 24, 2013 at 2:14pm
The problem is we tend to think the best salespeople always make the best managers. This is untrue! Typically the best sales people are the worst managers. They accept the position for all the wrong reasons, (more money, less hours and a better demo). They don't have a TEAM mentality and always put their own interests ahead of the dealership and its employees. They are not LEADERS! Fact: we spend time training salespeople to become better, yet we invest zero dollars into developing out managers into better Leaders. They are the face of the business everyday, we MUST invest in their development.

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