Mushroom management

The employees often have no idea what the company's overall situation is, because the leaders tend to make all the decisions on their own, without asking anyone else to give their opinion.

If the flow of information within a company is insufficient, the people involved often have a limited understanding of how to react in situations that require quick assessment and prompt decision making.

At the end of this process, the blame is sometimes even attributed to the shop assistants, because they are the employees in a direct contact with the customers.

[6] Fuld, together with other managers, had kept a significant amount of essential information secret, as well as lying to the investors and to all other involved parties.

This method involves the company's employees being divided into various groups, each of which has all the information which it specifically needs but nothing more, similar to a need to know approach taken in the military to control access to sensitive material.