Sky Factory Case Study

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AB207-01-Unit6-Assignment

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Many successful companies practice open-book management that includes disclosing financial information to all employees. What are the potential benefits of this disclosure?

Disclosing financial information to the staff and assisting them in understanding the statistics, because not every employee has economic education and can understand a database, they can observe company’s operations from inside and be aware of the path towards its objectives. When there is some bonus or income distribution plan, workforce will better value program’s performance and see how its labor helps the company achieve these objectives.

Being a part of the company through possession of its components ensures increased loyalty and intention to improve its operation, which results in profit growth. In this case, employees work for their own company. They relate to the company with more respect and desire to help its development.

Besides open-book management and profit sharing, how else can The Sky Factory motivate employees?

Subordinates should understand an adopted compensation plan. Arbitrariness in promotions and rewards leads to cynicism, but not to an increase in motivation. If a new program is taken from the ceiling, workers start to think that the leaders do not respect them. The company should give clear answers to the questions of subordinates on how the system of rewards can affect their daily operations. Also, to achieve professionalism in any work, the employee should strive to become the best in the field. Fascinated by studying people certainly grow in the position and develop complementary skills. Therefore, the knowledge and training can be used as a reward and motivator, namely additional training, conferences and training employees who have achieved significant results in the work, and whose achievements have been recognized colleagues. Knowledge is a powerful motivating factor; it costs surprisingly cheap compared to its true

Such a system makes staff friendly and cohesive body that works more smoothly. The friendly team easily perceives changes or innovations; it is easier experienced difficulty or failure, faster decisions. Also, each employee understands his place, objectives and value to the company. The result is improved performance. The crucial disadvantage is that not all people on the first day can be arranged under the existing system. If someone does not follow the general rules of the system, it can be fraught with loss of place even during the probationary period, regardless of how he is a good specialist. So, as corporate culture may seem unusual for a beginner, soon every employee is aware that the implementation of the basic laws of the company is essential for streamlined and efficient operation. Only the team that works on the same principle be able to achieve