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How Can Bad Leadership Negatively Affect a Company’s Success?

Leadership is among the most significant factors that determine a company’s success. Poor leadership can have a substantial impact on employees’ morale and even result in the plunging of the bottom line of an organization. Bad leadership results in poor employee retention and demotivates the remaining workers, making them less productive than they ought to be. It is important to note what the behaviors of a lousy leader are so that they can be identified early enough and taken care of before the firm suffers. Experiences of terrible leadership can be both a learning experience and a bad experience. We have all experienced bad leadership, and we ought to utilize these experiences to become good leaders and help us achieve the organization’s objectives. In the essay at hand, I will examine how bad leadership can affect a company’s success.

Research by Al-Nasour & Najm (2020) has revealed that poor leaders tend to take care of their interests more than their employees. Consequently, employees disregard the guidance and advice of their leader and also lose trust in them. Many firms suffer due to poor leadership and leaders not utilizing the potential of their employees as expected. An organization can still be successful even if it is experiencing poor leadership, but the success usually is short-lived. A firm will not stay on top or achieve the set goals with poor leadership. In poor leadership, leaders fail to identify the individual talents of their team members and assign the right tasks to the right individuals. Bad leadership is felt throughout the organization. Corporate culture turns out to be a meaningless term where leaders assert it is there while employees are frustrated. An insufficient flow of communication makes the company run by deceit, politics, and rumor mill. Employees are not sure of the goals and objectives of the company for success. Additionally, they have no idea concerning their level of significance toward making success happen or how they fit into that picture.

Decisions for promotions are not based on talent or integrity. Instead, they are based on the ones deemed to be least threatening to the leadership at hand or who can hold the biggest talk. Employees are taught to play dirty against their colleagues to get ahead of them ultimately. Bad leadership results in high turnover, low morale, and a reduced ability to have any justifiable success (Setiawan, 2021). Employees who experience bad leadership often feel like their jobs are not enjoyable or are meaningless. Bad leadership results in lower job satisfaction, which carries over into other areas of the employees’ lives. A leader ought to set the tone of the company. Thus, their lousy energy and example can poison good employees and spread throughout the firm. It takes genuinely great leaders to have a successful company at the end of the day.

In summing up, the effects of bad leadership on the company’s success can be detrimental. Having insufficiently engaged and motivated employees results in clients who are not being served appropriately. High employee turnover shows that the organization is spending a fortune on training and replacing new workers while trying to help them achieve the expected results. Low self-esteem and support for the culture the leadership is building in the organization will lead to workers seeking an opportunity to exit. A company should conduct exit interviews frequently to find out why their employees are looking for other options. On top of that, the leadership should work closely with the human resources department to develop strategies that will ensure the company’s success in due course.


Al-Nasour, J., & Najm, N. A. (2020). Leadership Capital: Concept and Roles. Economics and Management, 17(1), 120-126.

Setiawan, R., Cavaliere, L. P. L., Navarro, E. R., Wisetsri, W., Jirayus, P., Chauhan, S., … & Rajan, R. (2021). The Impact of Leadership Styles on Employees Productivity in Organizations: A Comparative Study among Leadership Styles. Productivity Management, 26(1), 382-404.


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