Sharing the financial information, details of policy, guidelines, future projections and future plans with the employees is never been a practice with many companies. People who are in charge of running the enterprises are not very open with the thought of “Open Book Policy”, though for the listed entities the person in charge is left with no options but has to disclose the financial information to the public in form of Balance sheets. But for the unlisted companies there is no way through which one can have the insight of the financials of the companies.
The bosses are averse to “Open Book Policy” fearing that there leadership might have to face challenge and the employees may seek answers for non performance of company and imprudent/ faulty decision. Such Bosses generally push there decision without understanding the utility, outcomes and impact; they are also not open for discussions because of the fear factor that their subordinate will challenge there decision and may suggest a better way to do the things. They just don’t want to see themselves in that situation. They also try to avoid suggestion and discussion because if every time there subordinate suggests a prudent way their leadership will be questioned and it will hurt there ego like anything.
Such leaders are instrumental in the downfall of the organization; employees moral, loss of productivity, stress and dissatisfaction and all that at the cost of their ego. They neither grow not provide a platform for others to grow. Leaders are legitimately given the stature of leader, but egoistic leaders force their decision on their subordinates and try to register his/her authority in employees mind. But in doing this they tend to loose the faith and respect of there subordinates.
Organizations following the ideology of “Open Book Policy” and “leader should not pretend to know everything” have done exceptionally well. The policy divulges in making the innards open and transparent for key employees to be able to see and understand the financials, rating company's performance as up-and-down arrows, singeing profit and loss, and asserting stance in moving the numbers in the right direction. This makes better policy advocaters and makes them feel that they have a direct stake in the company's success makes the enterprise stronger. The more they understand about the business and the consequences of their actions, the more clear the horizon. It certainly pays off down the road, when they determine the cost centres and imply their might in the graceful reduction of overheads.
Image source : homepossible.com.au
The bosses are averse to “Open Book Policy” fearing that there leadership might have to face challenge and the employees may seek answers for non performance of company and imprudent/ faulty decision. Such Bosses generally push there decision without understanding the utility, outcomes and impact; they are also not open for discussions because of the fear factor that their subordinate will challenge there decision and may suggest a better way to do the things. They just don’t want to see themselves in that situation. They also try to avoid suggestion and discussion because if every time there subordinate suggests a prudent way their leadership will be questioned and it will hurt there ego like anything.
Such leaders are instrumental in the downfall of the organization; employees moral, loss of productivity, stress and dissatisfaction and all that at the cost of their ego. They neither grow not provide a platform for others to grow. Leaders are legitimately given the stature of leader, but egoistic leaders force their decision on their subordinates and try to register his/her authority in employees mind. But in doing this they tend to loose the faith and respect of there subordinates.
Organizations following the ideology of “Open Book Policy” and “leader should not pretend to know everything” have done exceptionally well. The policy divulges in making the innards open and transparent for key employees to be able to see and understand the financials, rating company's performance as up-and-down arrows, singeing profit and loss, and asserting stance in moving the numbers in the right direction. This makes better policy advocaters and makes them feel that they have a direct stake in the company's success makes the enterprise stronger. The more they understand about the business and the consequences of their actions, the more clear the horizon. It certainly pays off down the road, when they determine the cost centres and imply their might in the graceful reduction of overheads.
Image source : homepossible.com.au