docbungle, I wanna know if you're actually making their job interesting, and rewarding them for doing a good job (doesn't have to be financial). Furthermore, it sounds like you have a lack of control over your employees. Control doesn't have to be punishment, there are other methods. I could go into a whole lot of management theory about Maslow's Hierarchy of needs, McGregor's Theory Y and shit like that, but I have exams to study for. Just remember though, if your subordinates aren't doing what you want them to do, you aren't leading properly, and you aren't controlling properly. And there is where you have failed 2 out of the 4 management functions, which means you aren't being the best manager.
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