Author name: Dr Maxwell Ampong

Imagine a persistent drip, drip, drip in the quiet of your night. Annoyance builds, sleep eludes you, and eventually, you get up to turn off the tap. A bad boss or manager can feel much the same, slowly draining your energy, morale, and productivity with every condescending remark, lack of support, or unclear direction. Just as you would eventually stop that leaky tap, the impact of a toxic manager on an employee’s well-being and job performance cannot be ignored. Every employee steps into a job with expectations of fair treatment, respect, and support from their manager. When these expectations aren’t met, they shatter the psychological contract between employee and employer, leading to a significant drop in morale and productivity. Negative perceptions of management, whether due to incompetence or overbearing behaviour, erode the quality of work and stifle productivity. Research shows that toxic managers can push even the most dedicated employees towards absenteeism or into the arms of competitors. On the other hand, great managers do more than oversee – they inspire, support, and invest in their employees’ growth. Strong manager-employee relationships lead to higher motivation and engagement, which translates into better performance. Employees who feel valued are not just more productive—they’re also more likely to go the extra mile. Google’s Project Aristotle uncovered a key element in team success: psychological safety. This concept, where team members feel safe to take risks, share ideas, and admit mistakes, creates an environment where innovation thrives. In such teams, diverse perspectives are embraced, leading to better decision-making and lower turnover rates. The best team is not just a collection of stars but a network of empowered minds working in an atmosphere of trust and collective growth. A positive workplace environment and strong managerial support are crucial for employee satisfaction and retention. As a leading psychologist, Dr. Michael Leiter points out, “The quality of the supervisor-employee relationship is the single most important factor influencing employee well-being and engagement at work.” Great managers retain talent by understanding their employees’ passions and aligning their roles to match, ensuring the workplace remains both fulfilling and engaging. THE POWER OF BAD BOSSES ON MOTIVATION, STRESS, AND ENGAGEMENT The impact of a bad boss goes beyond just poor management. It profoundly affects employee motivation, stress levels, and overall engagement. Here’s how: Impact on Motivation: Motivation is key to a productive workforce, yet a significant barrier to employee engagement is the need for recognition. In the UK, over a quarter of disengaged workers report feeling unappreciated, highlighting appreciation’s critical role in fostering a motivated team. Personalised recognition, like a sincere “thank you” from a manager after a job well done, can be far more effective than generic rewards. A culture that values and recognises contributions boosts morale and drives employees to excel. Moreover, while competitive salaries and benefits are essential, fulfilling higher-level needs such as recognition and rewards significantly enhances employee motivation. Increased Stress and Anxiety: Job-related stress is a major issue that can lead to both physical and emotional exhaustion. Factors contributing to stress include toxic work environments, heavy workloads, lack of autonomy, and poor relationships with managers. These pressures can result in decreased productivity, increased absenteeism, and even severe health issues. However, adopting a proactive approach, such as fostering open communication, setting clear expectations, and providing manageable workloads, can mitigate stress and promote a healthier, more productive work environment. By addressing stress at its roots, companies enhance employee well-being and reduce costs associated with stress-related absenteeism. Reduced Engagement: Employee disengagement is a growing concern that threatens both productivity and workplace morale. Poor leadership, lack of trust, and the absence of a meaningful connection to work are key contributors to disengagement. When employees feel disconnected, their motivation drops, reducing productivity and declining overall organisational performance. Cultivating a work culture that prioritises strong leadership and meaningful employee relationships is essential for maintaining engagement and driving success. Higher Employee Turnover: Toxic workplaces and strained employer-employee relationships are major drivers of high employee turnover rates, which are costly in terms of both time and resources. Moreover, employee turnover can be contagious; if one employee leaves, others are likely to follow. This ‘turnover contagion’ can lead to significant disruptions within the organisation. To combat this, fostering a positive work environment where employees feel valued and supported is crucial. BUILDING A POSITIVE WORK CULTURE Creating a positive work culture centred on trust, respect, and open communication is essential for cultivating a motivated, engaged, and productive workforce. Critical elements of effective employee management include: To ensure employees feel safe, valued, and productive, organisations must implement strategies that foster a positive work atmosphere: WHAT TO DO NEXT? In today’s competitive landscape, the value of a positive work culture cannot be overstated. Managers should foster an environment of trust, respect, and open communication so their organisations can unlock the full potential of their workforce. Supportive management, opportunities for growth, and a commitment to employee well-being are the pillars upon which high-performing teams are built. Ultimately, when employees feel valued and engaged, they are more productive and more likely to stay and contribute to the organisation’s long-term success. Investing in a positive workplace is not just a strategy: it’s the foundation for sustained growth and innovation. I hope you found this article insightful and enjoyable. Subscribe to the ‘Entrepreneur In You’ newsletter here: https://lnkd.in/d-hgCVPy.  I wish you a highly productive and successful week ahead!  ♕ —- ♕ —- ♕ —- ♕ —- ♕ Disclaimer: The views, thoughts, and opinions expressed in this article are solely those of the author, Dr. Maxwell Ampong, and do not necessarily reflect the official policy, position, or beliefs of Maxwell Investments Group or any of its affiliates. Any references to policy or regulation reflect the author’s interpretation and are not intended to represent the formal stance of Maxwell Investments Group. This content is provided for informational purposes only and does not constitute legal, financial, or investment advice. Readers should seek independent advice before making any decisions based on this material. Maxwell Investments Group assumes no responsibility or liability for any errors or omissions

The role of interest rates in shaping economic landscapes is deeply rooted in history. It has been influenced by evolving monetary policies, cultural beliefs, and responses to financial crises. By tracing this historical evolution, we can better understand the current role of rates and anticipate how they might adapt in the future. Interest rates have varied considerably throughout history, responding to changing economic conditions, monetary policies, and financial crises. In ancient Mesopotamia, evidence suggests the existence of interest-bearing loans regulated by the Code of Hammurabi, indicating early recognition of the concept. In Greece, philosophers like Aristotle debated the morality of charging interest, reflecting early ethical considerations. The Romans adopted and modified Mesopotamian practices, regulating interest rates while prohibiting usury and highlighting societal concerns about exploitation. Usury is the practice of lending money at unreasonably high rates of interest. I wonder if the Romans would speak up today, ha! With the rise of Christianity in Europe, interest was strictly prohibited, leading to limited lending activity and economic growth. However, the medieval and Renaissance periods saw transformations with the emergence of merchant banking and the rise of banking houses, which circumvented usury laws and fuelled economic development. The Industrial Revolution marked a surge in demand for capital investment, leading to the emergence of central banks and the development of financial markets and instruments. In the 20th century, advancements in monetary policy saw central banks using interest rates to manage inflation, and the concept of a formal policy rate emerged during this period. The Great Depression highlighted the need for active monetary policy, leading central banks to target interest rates for managing economic activity. Following World War II, inflation targeting became prominent. Central banks set target inflation rates and used policy rates to maintain price stability.  The latter part of the 20th and 21st centuries witnessed further developments, such as increased communication about policy decisions, globalised policy coordination, and the rise of unconventional tools like quantitative easing alongside traditional policy rate adjustments. Understanding this history sheds light on the current role of policy rates and their potential future adaptations. Throughout history, the concept of interest rates has evolved and been shaped by economic, cultural, and ethical considerations, highlighting its significance in the financial landscape. Early precursors include metal standards, where the money supply was linked to gold reserves and discount rates from central banks to commercial banks. While central banks influencing economies has roots in ancient times, formal policy rates are a recent phenomenon. What Are Policy Rates? Policy rates are the interest rates set by the Bank of Ghana, which serve as the foundation for all other interest rates in the economy. When the Bank of Ghana adjusts the policy rate, it’s making a decision that affects borrowing costs, savings returns, and overall economic activity. For instance, if inflation rises too quickly, the central bank might increase the policy rate to make borrowing more expensive. This discourages spending and helps cool down inflation. On the other hand, if the economy slows down, lowering the policy rate can make loans cheaper and encourage spending and investment. In Ghana, the policy rate is a powerful tool the central bank uses to maintain economic stability. By tweaking this rate, the Bank of Ghana can influence the amount of money circulating in the economy, impacting everything from people’s spending to businesses’ investments. What Are Bank Rates? Bank rates are the interest rates that commercial banks charge their most creditworthy customers, often referred to as the prime rate or base rate. While the policy rate sets the stage, bank rates are what you, as a consumer or business, directly interact with. When the Bank of Ghana adjusts its policy rate, commercial banks typically follow suit by adjusting their bank rates. If the policy rate goes up, banks might increase their lending rates to cover the higher borrowing costs from the central bank. Conversely, if the policy rate drops, banks might lower their rates to encourage more borrowing. In Ghana, bank rates are crucial because they determine how much interest you’ll pay on loans or earn on deposits. Whether taking out a mortgage or a home loan, a business loan, or just saving money in a bank account, the bank rate affects your financial decisions. How Interest Rates Fit In The ‘interest rate’ is a more general term. It is simply the cost of borrowing money, typically expressed as a percentage. Interest rates apply to loans, mortgages, credit cards, and savings accounts. The interest rates that consumers and businesses encounter daily are influenced by both the policy rate and the bank rates. For example, if you take out a loan, the interest rate determines how much extra you’ll pay over the life of that loan. Similarly, if you’re saving money, the interest rate tells you how much your money will grow over time. Interest rates in Ghana can vary widely depending on the type of loan or savings product. Mortgage rates, for instance, might be lower than credit card rates because the risk to the bank is lower; the house is the collateral and is usually insured in more than a few ways. Business loans might fetch higher rates because of the inherent risk in running many businesses. The Role of the Bank of Ghana The Bank of Ghana plays a central role in managing the economy by adjusting the policy rate. This rate influences how much money is available and at what cost. During periods of high inflation, the Bank of Ghana might increase the policy rate to make borrowing more expensive, thereby reducing spending and cooling down the economy. On the flip side, if the economy slows, the central bank might lower the policy rate to encourage borrowing and investment, stimulating economic activity. This balancing act is crucial for maintaining economic stability and growth. The Evolution of Rates in Ghana Historically, interest rates in Ghana, like elsewhere, have evolved in response to changing economic conditions. From ancient lending and borrowing practices to modern-day central banking,

These articles, particularly ones like this, are my love letter to posterity, for they are my thoughts formed from all I have known as I witness the dynamic structures of what is and pontificate on what could be. It is much harder to choose between two timelines when all you have is the theory of both, but that is not the case here. One timeline is playing out. Right now, across Africa and, dare I say, the world, the gap between the rich and the poor is growing wider. And ‘pontificate’ might be the wrong word because I know that as I am neither a politician nor a lawmaker, it is without hubris that I type these words. I see how much of our national and regional efforts speak as though they target the little guy at the bottom but end up widening the divide between those at the top and those at the bottom. It is a dangerous trajectory, one that demands our immediate attention. The very foundation of any stable society lies in its economic baseline, the level at which even the most disadvantaged citizens can live with dignity. When this baseline is eroded, the consequences ripple far beyond the immediate suffering of the poor. The erosion begins subtly, perhaps with a lack of access to essential services or the slow decay of public infrastructure. But over time, it becomes a chasm that threatens to swallow the very fabric of our society. Consider this: when the poorest in society struggle to survive, the middle class does not remain unaffected. The middle class, often seen as the backbone of any economy, finds itself squeezed from both sides. On one end, the cost of living rises, making it harder to maintain their standard of living. On the other end, the tax burden increases as governments attempt to plug the gaps left by failing social services. This pressure cooker environment creates a scenario where the middle class gradually slides into poverty, unable to sustain the lifestyle they once took for granted. And what of the wealthy? The assumption that wealth insulates one from the struggles of the masses is a fallacy. The rich do not exist in a vacuum; their fortunes are tied to the stability of the society around them. When the economic baseline collapses and the middle class falters, the rich face a new set of challenges. Increased crime, political instability, and social unrest become more common as desperation grows among the populace. The wealthy find themselves investing more in security, protection, and other means of safeguarding their assets. Yet, these measures do little to address the root cause of the problem and often lead to an ever-deepening sense of isolation and a feeling of not being 100% unsafe. So, what is the alternative?  The alternative is the other timeline: elevate the economic baseline of our communities and see the ripple effects. Elevating the economic baseline is not just a moral imperative; it is a practical one. Ensuring that even the poorest members of society can live comfortably creates a foundation of stability upon which the entire society can thrive. A strong baseline means a strong middle class, which in turn fosters a robust economy. The benefits are cyclical: as more people have disposable income, demand for goods and services increases, driving economic growth. This growth creates more opportunities, further elevating the standard of living for all. Moreover, a society that prioritises the well-being of all its citizens is one in which the rich can enjoy their wealth without fear of losing it to the chaos that often accompanies extreme inequality. The goal should not be to punish the wealthy but to create an environment where wealth is sustainable and not at the expense of the broader population. If we do not elevate the economic baseline, and if we do not ensure that the poorest in society can live comfortably, then the middle class will inevitably become poor, and the rich will find it increasingly difficult to hold on to their riches. This is not just a question of ethics or morality; it is a matter of practical necessity. A society that fails to support its most vulnerable members is one that sows the seeds of its own destruction.  The time to act is now, before the chasm becomes too wide to bridge in our generation. I have a few basic and known theoretical foundations for why I am getting even more confident in my thinking in this line, with a couple of real-life case studies and the statistical evidence to back me up. 1. THEORETICAL FOUNDATIONS 1.1 Maslow’s Hierarchy of Needs In Junior High or Senior High School, we all got introduced to Maslow’s Hierarchy of Needs. It was proposed by Abraham Maslow in 1943 as a foundational psychological theory that categorises human needs into a hierarchical structure. The theory posits that individuals must first satisfy lower-level needs, such as physiological needs for food, water, and shelter, before focusing on higher-order needs like safety, love and belonging, esteem, and, ultimately, self-actualisation. This hierarchy underscores the essential nature of basic needs as the bedrock upon which more complex human aspirations are built. In the context of poverty alleviation, Maslow’s theory provides a critical lens through which to understand the importance of elevating the economic baseline. If society’s most disadvantaged members cannot secure their basic physiological needs, they remain trapped in a survival mode, unable to contribute meaningfully to societal development.  By ensuring access to essential resources such as food, shelter, healthcare, and safety, we enable individuals to transcend the mere struggle for survival. This progression allows for personal growth and broader participation in economic and social activities, driving the collective progress of the nation. Empirical evidence supports Maslow’s theory in real-world applications. Studies have shown that when basic needs are unmet, economic stagnation and social unrest often follow. For instance, research conducted by the World Bank indicates that countries with high levels of poverty and inequality experience slower economic