MPM701A Business Process Management

1.

According to Navimipour & Zareie (2015), open book management entail firm availing its financial information to employees to enable them see how their efforts in the firm yield profits. However, despite many firm against this move, majority of the top firms in the markets practice the open book management as a result of its enormous benefits. This management systems increases employees’ morale by making them feel as partners of the firm hence giving them a sense of belonging. It also helps reduce politics and people forming cliques thus making them focus on the main task given. Transparency in the firms reduces the employees’ turnover as they feel part of the firm hence increasing their productivity. The business environment is built on honesty and trust in this type of management thus there is great focus on work by both parties (Stark, 2015).

2.

Ironically, despite the benefits of open book management, many firms feel it is more important to hide information form employees for various reasons. Competition is high in the market and employees might share the information with competitors thus making the firm be at competitive disadvantage. Poor financial records by a firm may lower the employees’ morale if the information is shared. Additionally, information on salaries, bonuses, earnings may result to conflicts among employees due to conflicts of interest.

3.

Therefore, open book management styles may result to lowering employees’ morale in the firm, when they are aware of the payment of each other and in case there is great differences. Poor financial records may make employees fear for their job security in the firm hence this can increase their turnover levels. Job satisfaction is very crucial for employees and anything which makes them insecure may reduce their satisfaction in the job hence reducing the productivity of the firm. However, good financial records of a firm increase the morale of the employees as they feel secure due to job security. Depending on the nature of the financial information, it is important for managers to check whether to dispose the information or not to depending on its effects on the employees’ morale (Raziq & Maulabakhsh, 2015).

4.

Employees motivation is important for increasing employees’ morale hence increasing their productivity in the firm, which will result to achievement of the set goals and objectives. Despite open book management and profits sharing methods, other methods for motivating employees include training and development. This move helps the employees equipped with necessary skills for the changing environment. Fairness to all employees is important is getting employees trust in the firm. This motivates them as they know the working opportunity is equal for all. However, both the intrinsic and extrinsic motivators are aimed at ensuring that the employees fully execute their duties for attainment of the defined firm’s targets (Kuvaas et al. 2017).

5.

In my view, a for a company to have collaborative work culture, which entails shared visions among the employees it must have creative and innovative management at its helm. In my firm I would ensure that their collaboration with the employees during making strategic decisions. Additionally, I would also use open book management to ensure that employees feel a sense of belonging in the firm for better results. The advantages of this strategies are increasing employees’ motivation, increasing their trust in the firm, and making them feel as part of the management. However, some disadvantages’ likely to face is competitive disadvantage in case employee share information with competitors, decrease of employees’ morale when the firm makes low sales, and conflicts pertaining money matters.