Smaller companies often have an unhealthy working environment, which can lead to customer and employee discontent, which in turn leads to a shaky business. Why is the culture of work unhealthy in small and medium-sized enterprises? Let’s look into it.
1. Inadequate SOP
A well-planned approach to any issue is crucial to arriving at the most effective solution. If you don’t have a process in place to ensure that the activities are happening according to the plan and delivering the results you want and results, you’re creating unhealthy working conditions. The most common mistake that is made by SMEs is that they don’t make an SOP (Standard Operating Procedure) for their company. They do not have any guidelines, such as how much work is required each day, what time the stock needs to be replenished, and who is accountable for what task. An SOP is a standardized connection between different departments of a business. The absence of an SOP is a sign that whenever a problem occurs, there is no one who is willing to be accountable for the problem, which can lead to an unhealthy working environment. Blaming others is not helpful, and this type of unwholesome procedure can lead to order delays and unhappy customers.
2. Inadequate HR policies
HR teams do not exist within a business only to find employees and keep track of the payroll. They’re there to maintain the health of relationships with the employees and with each other and address employee concerns, and ensure the integrity of all interactions with employees. An SME typically lacks an effective HR department as well as concrete HR policies. These businesses are more focused on profit-making than they are on the well-being of employees. Employees are often not paid in time, don’t receive their annual, sick, or pregnant leave, and don’t have PF or pension accounts. In addition, there is no formal procedure for the departure of employees. This is why people often feel their position isn’t secure at an enterprise that is small or medium. How can an employee be able to provide their best when there isn’t job security? In the absence of a confirmation that the employee will be paid on the correct date? So the lack of a policy for HR leads to a hostile work environment.
3. Middle management that is toxic
In a medium and small-scale business, control is in just a few hands. Middle management believes they are more skilled and superior to the rest and are always seeking to take credit for the work of others. They’re often biased, and their work is rarely valued. This negative attitude can cause distrust and low morale in employees. They don’t have expectations of recognition or rewards, which is why productivity suffers.
In a medium or small business, what the owner decides is the final decision. Employees’ voice is not taken into consideration in the business. There is a lack of communication between the owner of the business and employees, and it frequently happens that employees are not informed of a decision only after it is made. In this type of setting, employees don’t feel like they are part of the business, and this can create a toxic workplace culture.
5. Conflicts between Employees
If there isn’t proper management, how does an organization be able to have people who are loyal and peaceful? Your employees come from diverse backgrounds with diverse personalities and skills. The SME frequently operates by the belief that the most miniature conflicts between employees will disappear on there by themselves, but this isn’t the case since, with time, these minor conflicts can become massive and lead to an unhealthy workplace. Unhealthy workplace culture is the result of unhealthy competition among employees. Employees are more likely to be rude to each other and lack enthusiasm for teamwork in order to obtain an increase in pay or promotions. This type of behavior has to be dealt with firm hands. In SMEs, the managers and supervisors tend to ignore these problems and focus on their productivity, eventually encouraging individualism. There is no one who can give the best solutions to disputes and insults. In such a hostile atmosphere, employees will always be disappointed and feel deprived.
Does your business have similar issues? Does the culture at work really negative? Make the necessary changes to create a healthy work atmosphere, satisfied employees, happy customers, and a sustainable company. If you are aspiring to be large and turn your business into a brand, create the SOP and learn the most effective techniques from industry experts who have helped remain a force in the market.
YRC is a Management Consulting Company with a head office in Pune, India. We offer services across three verticals: Startups, SMEs & Corporates. Our expertise is in the creation of Standard Operating Procedures (SOPs) for businesses and helping them to organize and grow. We have an experience of over 15 years. Our holistic approach assists us in developing the most effective management strategies for your organization.