Consider the following two scenarios:
Scenario 1
Employees work in an atmosphere of distrust and fear. Leaders make decisions behind closed doors. Changes to processes and staffing often occur unexpectedly without warning or explanation. A few select people are given information and guard it jealously. Most employees do not get an opportunity to give input or feedback.
Scenario 2
Employees work in a small company where everyone knows everything about everyone and the rumor mill runs rampant. Leadership gives both praise and reprimands in public. They frequently discuss employees’ personal affairs.
These scenarios illustrate two extremes of transparency in business. Maintaining the right degree of transparency is a challenge for many organizations. Some leaders operate their organizations with an open-book management style. Others believe in carefully maintaining the security of information. Leaders must determine the appropriate level of transparency necessary for their organizations to stay healthy.
Explain how a leader might exert influence-using transparency.