Final answer:
Sharing company financial information through open book management increases employee empowerment and has a positive impact on performance and productivity. Informed employees feel more invested and aligned with company goals, improving engagement and attracting outside investment.
Step-by-step explanation:
Rajendra's company uses open book management, which involves making the company's financial information accessible to all employees through the company intranet. This sharing of information is likely to result in an increase in employee empowerment and will have a positive impact on employee and company performance. Employees who are informed about their company's performance are more likely to feel invested in the success of the business. This can also align their interests with the company's goals, often leading to improved productivity. Additionally, understanding the company's financial condition can help employees appreciate how their actions contribute to overall success, thus fostering a sense of ownership and motivation. When employees benefit from the success of the business, they are more likely to be proactive and engaged, which can attract outside investors like bondholders and shareholders, as well-structured and transparent companies tend to inspire confidence in their financial health.