Workplace bullying reflects bad systems in hospitality industry

NO small business story can be more tragic than the case of the young girl who committed suicide as a result of bullying.

NO small business story can be more tragic than the case of the poor young girl who committed suicide as a result of bullying in a Melbourne cafe.

This has led to calls for an end to the "Gordon Ramsaying" of workplaces in the hospitality sector.

In truth, most businesses need to de-Ramsay-fy themselves. If it's not the boss, it's someone down the management hierarchy who's letting loose with disgusting tirades.

Usually the most tragic small business story is a case of a good business going broke and when the entrepreneur is not responsible. The pilots' dispute of 1989 was a case in point, as many business builders could not have imagined such a long strike could crush their cash reserves and their businesses.

After what happened at this cafe, it would be surprising if this business could survive.

In case you missed, four men were fined a total of $335,000 over the persistent bullying of a young waitress, who could not take it any more.

When this sort of thing goes on, the buck has to stop with the person who signs the wages cheques. This was not only an occupational health issue, it was a risk management challenge and a complete failure of leadership.

It underlines what can go wrong in any business that is unsystemised, which is the common characteristic of most small businesses. Typical bosses are technically good at what they do but when their businesses grow they need to learn management and leadership. They need to work on their businesses rather than just work in them.

Michael Gerber, author of The E-Myth, says many proprietors' businesses are owner-dependent, which means they really don't own a business but just have a job with a maniac for a boss. This over-reliance on key people creates stress, bad decisions and the antics that Gordon Ramsay has made famous on TV.

These outbursts reflect poor training systems and second-rate recruitment systems. Many bosses are in the same boat.

If the boss at the cafe in question had not known bullying was going on, that would have been systems failure. Of course, if the boss did know, it was illegal -- hence the hefty fines. Even without the boss's knowledge it violates occupational health and safety obligations.

Under the Occupational Health and Safety Act 1991, employers must systematically address the risks of bullying in their workplace. This includes applying a risk management process to identify and control incidents of bullying.

Business owners who yell at staff give a signal that this is the way management deals with frustrations. That creates a bullying culture, undermining productivity and disengaging staff.

It is failed leadership.

US leadership expert John Maxwell, author of Leadership Gold, says leaders aren't born, they can grow, and it never stops.

"Leadership develops daily, not in a day," he says.

Peter Switzer appears on Sky News Business Channel www.switzer.com.au/small-business