Section Two
Another positive feature of open-book management is
that the sharing of such information instills a sense of trust
among employees. In firms that do not practice open-book
management, financial and performance information is often
restricted to high-level executives. This restricted information
flow conveys to other employees that they are not to be trusted
with such information. As a result of its positive features,
open-book management has the potential to enhance employee
motivation.^61
Examples of companies using open-book management
include R.R. Donnelly and Sons, Carolina Safety Associates, and
Terminex (North Carolina). The Bradshaw Group, Inc., in
Richardson, Texas, provides an example of a small company
that is practicing open-book management. The firm trains its
employees to understand accounting and financial terms and
shares ten percent of its firm’s profits when profit goals are
achieved.^62