RSM100Y1 Chapter Notes - Chapter 9: Employee Stock Ownership Plan, The Home Depot, Financial Statement
Document Summary
An important component of effective management is the empowerment of employees. Organizations promote this goal by giving employees shared authority, responsibility, and decision-making with their managers. Empowerment uses the brainpower of all workers to find better ways of doing their jobs, serving customers, and achieving organizational goals. Empowerment frees managers from hands-on control of workers. It motivates workers by adding challenges to their jobs. Empowerment also gives workers a feeling of ownership. One of the most effective ways to empower employees is to keep them informed about the company"s financial performance. Research suggests that companies should provide regular reports to their employees on key financial information, such as profit-and-loss statements. Firms show their willingness to practise open-book management by using the company"s internal website, or intranet, to post financial statements, training schedules, policy documents, and other information. In this way, employees can understand more about the organization"s strategic thinking and how their own work fits into the overall plan.
