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OBM Philosophy of involving every employee in making a firm more successful by sharing financial and operational information. OBM involves four basic practices training employees so they become business literate and can understand financial statements, empowering them to use that information in cost cutting and quality improvement, trusting them asbusiness partners on equal footing, and rewarding them fairly for the firm's success
A management strategy emphasizing employee empowerment and individual impact on the success of the company by making the organization’s financial data available to all employees so they can make better decisions as workers.
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It’s a way to make employees feels that they are a part of the organization. Agreed with all
It is essential that you do not "dumb down" your employees, especially front line supervisors and labourers. They don't have to be equal partners, but they must be well informed and committed partners to the goals of the organisation; goals that are often poorly defined by upper management.
Open-Book Management attempts to extend this feeling of responsibility to everybody in the organisation. The philosophy that a firm will succeed if all of the employees share finance and operations information.
Employees must be appropriately trained
Employees must be empowered to use this information to cut costs
Employers must trust employees to act as equal business partners
Employees must be fairly rewarded for business success.
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