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There are multiple reasons that why organizations fail. The main reason is when companies don't believe in delegation of duties or hire employees without any thought process. Such companies will do well in the short run but are bound to fail. The structure of the company should be built on strong basics rather than one's wishful thinking or mood swings.

At times companies treat their manpower as a liability rather than an asset. They are more concerned about the money they spend on employees and keep on demotivating their employees by telling them this and scolding them most of the time. The employees feel unwanted in such organizations and there will be huge manpower turnover and eventually, there will be no dependable or accountable employee left.

One has to be flexible about new ideas and thoughts for building a brand. You don't need "yes men" for your organization to succeed. 

Why do some organizations fail

Let me tell you a small story about an organization where I worked for a few months only.

"I used to work in a Laala company where Laala ji would wake up one day and make a new rule. If Laala ji was happy then everyone used to be relaxed in the office and vice-a-versa.

Being HOD finance, one day I requested Laala ji that I need a new accountant as work pressure was increasing on our team. The next day an Ayurveda Doctor was appointed as my deputy and I was told to assign someone from my team to teach her. I said but we need a person with an accounts background, but he replied, "her life is full of sorrows, we need to help her". Damn that girl was given a separate cabin and everyone from my team started getting jealous of her and it created more mess.

One day Laala ji decided that his company should be listed and I was given the responsibility for it. I worked tirelessly for 15 days with my team to arrange documents for initializing the listing. Suddenly Laala ji said no let's convert this company into LLP. God damn! but why? He said he feels it will be better.

 

Laala ji had one yes man who would stand beside him and would agree on everything that Laala ji would say. He was a BA qualified who was promoted as General Manager of the company. His duty was simple that was to do whatever Laala ji wants from him. Be it arranging Groceries for his home or arranging parties.

 

Then there was a younger brother of Laala ji whom Laala ji would hardly trust. No one knew that why was he in the company apart from roaming here and there.

Nobody was allowed to give any ideas to Laala ji as Laala ji would fire him because Laala ji used to feel that he himself is knowledgeable in this world. Laala ji would govern income tax or GST laws himself. If I would tell him that something is against provisions of income tax or GST, his reply would be, "Its my company. Do whatever I say. I will suffer the consequences". But if any notice used to come then the responsibility would shift from Laala ji to his employees and they would be scolded.

There was an HR too who was only to cut the salaries and penalize employees as per Laala ji's wish."

Eventually, I left that circus surrendering even my one month's salary, but with a lesson that "HOW ORGANIZATIONS SHOULD NOT BE RUN"

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Category Others, Other Articles by - CA Anurag 



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