However, direct communication is also critical in solving behavioral or performance problems. One should not delay discussing problems until the next performance review this can allow negative behavior to become too entrenched. Effective managers should deal swiftly and compassionately with performance difficulties in order to route the employees back toward success and demonstrate to other employees a low tolerance for poor attitudes or lax performance. Great managers look for latent employee skills and create opportunities for growth and development. They are willing to invest company funds for training.
Effective managers care about their employees on a personal as well as a business level.
Truly successful small business owners ultimately realize that all this effort at encouraging, teaching and nurturing their employees ironically benefits themselves and their business. Excellent personnel management skills create both good employee morale and the opportunity for positive financial rewards for the small business owner as well.