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Thread: Open Book Management System

  1. #11
    Email problem KimH's Avatar
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    I love the analogy of the businessman and the briefcase.

    South Africa is considered a new and emerging market, twenty years ago majority of business in SA was white owned and were mostly managed in a very formal manner, since the downfall of apartheid and the introduction of democracy business has become more informal, business owners are becoming younger and new styles of business management are emerging. We are however still in the embryonic stages of this metamorphosis and have a long road to travel yet.
    In many instances there are concerns in certain areas that the percentage of white owned business is too high and there is still some distrust between owner and employees at floor level. Lack of proper education and a suspicious mind set could be a deterrent in implementing a fully open book system in many industries in SA.

    Do you think that if we as business owners make an effort to be a little more transparent to our staff that we could eventually break this barrier of distrust?
    "If at first you don't succeed, do it like your mother told you."

  2. #12
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by KimH View Post
    Do you think that if we as business owners make an effort to be a little more transparent to our staff that we could eventually break this barrier of distrust?
    IMO, not while employers and employees are constantly put in an adversarial position via the central bargaining provisions of the LRA.

    As long as these provisions stay in place, you will have vested interests who rely on breaking down trust between employer and employee, not building it.

  3. #13
    Diamond Member Blurock's Avatar
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    The answer may lie in ongoing training and sharing of information. We live in a country where 1st and 3rd world meet. Unfortunately our education system is so backward that even the matriculated can still be illiterate. We also have social problems where we still have unions that will break a company and put employees out of work "for the cause".

    I may not have the perfect solution, but I believe that employers can make a positive contribution by having the right attitude towards staff. Keep them informed and communicate at their level.

    I learnt this from a client in the transport industry about 10 years ago. They had workshops where they informed their staff of the company's position in the market. What the opposition was doing, what trucks they were using etc. They had one-on-one workshops where they did business simulations with drivers so that they could understand the economics of buying a truck and running it profitably. I do not think the financials was ever disclosed to the staff, but the information given, together with bonuses and other incentives, made this a world class organisation which then merged with a listed company. Needless to say, the shareholders got paid a packet with the merger.

    Sometimes we need to swallow our pride, throw away the box and start thinking of new ways to do business.

  4. #14
    Diamond Member Justloadit's Avatar
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    I do not need to substantiate my every move in my company with my staff!

    How are you going to successfully justify buying a new automated machine to improve production, and lower labour costs?

    Right now business in RSA is at a stage of restructuring, which is going to include automation to the detriment of employment. Being transparent in this case will probably destroy the company before it even has a change to get out of the hole that it finds itself in.

    I think we are not ready for this transparency for another good number of years.
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  5. #15
    Diamond Member wynn's Avatar
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    Justloadit said 'Have you noticed that delivery notes never have the goods value marked on it? This is so that staff do not skew the idea of what the company is making lots of money on sales with out understanding the costs of creating goods.'

    The reason mosd DN's have no prices on is so that third parties, such as clients the goods are being delivered to, don't get to see your prices.

    Also 'How are you going to successfully justify buying a new automated machine to improve production, and lower labour costs?'

    You do it as you show them the door when the machine has taken over the production.

    (Had to get that one in, I realise that there are a lot of hoops to jump through before you lay staff off)
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