Section Five
In order to determine the impact of teams, the
researchers used a longitudinal research design with data series
beginning before the implementation of teams. Their analysis
examined 84 weeks of quality data (manufacturing defect
rates) and 21 months of labor productivity data. Because there
are many potential influences on quality and productivity, the
analysis included several control variables. The researchers
found that the implementation of the high-performance work
teams produced significant improvements in quality (reductions
in defect rates) and labor productivity.^55
Open-Book Management or Sharing Financial and
Performance Information
The sharing of financial or performance information is often
referred to as open-book management. Essentially, the practice
encourages empowered employees to act in the best interests
of the firm by making informed decisions and taking informed
actions. The practice has the potential to enhance motivation
by instilling a sense that employees are trusted and valued and
by combining employee empowerment with various incentives
such as profit sharing or cost savings. Although there is little
empirical evidence on the performance impact of open-book
management, there is a great deal of anecdotal evidence
derived from the experiences of companies that have imple-
mented the practice.