Introduction
Every company owner fears a financial catastrophe, which might have either internal or external causes. In the event of a financial crisis, prompt action must be taken by those in a position of authority to mitigate the situation and prevent the Company from collapsing or suffering more losses. Employees feel inefficient procedures and oversights in accounting and budgeting have caused significant problems for Company X. They believe Company X has wasted their time and money extravagantly on poor marketing campaigns. Spending extra money on advertising not specifically tailored to a specific audience is frequently a waste of resources. Due to a lack of funds, the Company cannot provide for its employees’ needs or put money into initiatives that might contribute to its expansion. This paper aims to demonstrate how financial problems can affect leadership in any organization and how the challenges can be mitigated.
Main body
Several individual problems have contributed to the challenges facing Company X. The workers believe that the manager, Mr. B, is incompetent to lead the Organization. The reduced trust in the leadership has worsened the Company’s financial status as the workers are unmotivated to work toward the profitability of the Organization. The workers have failed to take instructions from the manager efficiently, contributing to more financial loss at the Company. The Organization has been unable to amend its constitution that gives specifications regarding the roles of the manager and the workers.
Either internal or external forces may trigger financial crises; thus, pinpointing the root of the issue is the first step toward finding a solution. The Organization’s manager must show that he can take charge and find effective solutions to the firm’s problems (Manning & Curtis, 2019). Company X needs sustainable answers to the crisis; therefore, the manager has to investigate potential cost-cutting avenues. He must streamline the Company’s operations and eliminate unnecessary manual tasks. Perhaps the corporation wasted a lot of money on things that did not need to be bought since he was not paying close enough attention to the details while making purchases. The Company’s resources have to be put toward activities that boost profits. Plans for growth, events, or other activities that would be costly might be put on hold. The management will fully understand revenue and costs if cash flow is closely monitored regularly. The financial health of Company X may be ascertained from the data indicated in the monitoring.
Successful conflict management is the key to turning disagreements into opportunities for growth rather than roadblocks. The workers must change their attitude towards their manager and take the instruction fully. Company X will benefit significantly from establishing benchmarks based on past data and identifying strengths and weaknesses, top performers, and opportunities for growth via accurate evaluation of employee performance (Ciulla, 2020). It will help in reducing the financial challenges that Company X is currently facing. Leaders with high ethical standards create a positive work environment by fostering a team spirit and a climate of mutual respect and trust (Ciulla, 2020). Positive outcomes such as decreased costs, increased output, and steadfastness result from this. A manager’s role in restoring workers’ trust is to foster their participation in company activities. Workers and management may continue working together after respectably resolving a problem.
Conclusion
Leaders and workers play a significant role in determining the Organization’s financial stability. In any organization, the leaders must demonstrate competency to solve the economic challenges that affect a company. Leaders must inspire trust and confidentiality in their staff as it determines the Organization’s financial health. Managers should make efficient budgetary decisions that will improve profitability in the Organization. The workers should not take advantage of the Company’s economic situation and aim to worsen it. They should be ready and willing to take the instructions given to them by those in authority.
References
Ciulla, J. B. (2020). The search for ethics in leadership, business, and beyond. Springer.
Manning, G., & Curtis, K. (2019). The art of leadership. McGraw-Hill Education.