Effect of Open Book Management on Organizational Performance in Selected Manufacturing Firms in Enugu State Nigeria

Abstract

This research work critically examined the concept of Open Book
Management and its effect on Organizational Performance in
Manufacturing Firms in Enugu State, Nigeria. Open book management is
based on the principle that managers and employees who know and
understand financial performance and goals and share a stake in
organizational success are more apt to be highly effective and motivated
in meeting those goals. Specifically, the study sought to: ascertain the
effect of transparency on organizational survival, and the extent employee
participation in decision making affects employee output. The study
adopted the survey research design. The population of the study was a
total of 1,276 staff of the five selected manufacturing firms in Enugu State,
Nigeria. The sample size 125 was obtained from the population using
Evans Morris formular at 95% confidence level and 5% margin of error.
Data were collected using the questionnaire research instrument and
interview which was designed in a 5 point Likert scale and manually administered to the respondents. The hypotheses were tested using
regression analysis. . The findings indicate that transparency had a
significant and positive effect on organizational survival (r = 0.875, p <
0.05); andEmployee participation in decision making significantly had
positive effect on employee output(r = 0.866, p < 0.05). The study
recommends that in the practice of open book management, organizations
should place emphasis on ensuring the practice of transparency among
the employees; and employees should be involved at certain levels in the
decision making process and/or should be kept abreast of management’s
decision processes and decisions. The study concludes that open book
management processes puts the organization on a pedestal to achieving
organizational growth, employee performance and sustainability.