In a TV show like Game of Thrones, having more information definitely grants you a position of power, but in real life, that might not always be the case.
For 25-year-old South African national Russell Lewis, knowing more than someone else has its advantages, but can also put someone in a position of weakness.
The Dubai-based technical manager said: “If you are not going to give someone the information they require, they are not going to give you all the outcomes either. If you are more aware of what is going on, you are in a better position to do the task at hand.”
While he said he is not a victim of asymmetric information, he thinks that proper communication between colleagues results in an improvement in attitudes and performance levels. He said: “I think the process of asymmetric information can be avoided completely.”
According to a report published in the journal Management Science, when allocating resources within a firm, people often face two obstacles: the divergence of goals between employees, and a difference in information given and received. Unit managers are said to have more information as compared to the top management, because they are more exposed to the day-to-day functionality at work.
Dubai-based managing director Yash Kalani said he believes it is important that employees know exactly what they are supposed to — no more, no less.
He said: “Professionally, asymmetric information can be healthy, because if employees know everything, their judgment can become clouded. They will do what they think is best, not according to what the manager knows is better.”
He added that withholding some information could be a company’s way of being more efficient, and keeping irrelevant information from spreading to everyone.
Analysis:
Christian Haefke, the head of the economics department at New York University Abu Dhabi, agrees with Kalani and believes that sometimes, information has to be withheld for strategic reasons.
He said: “Imagine two parties negotiating a hostage situation. One party is holding hostages, while the other party is trying to free them. However, the criminal’s team has killed the hostages, but they haven’t told the negotiator. They are withholding information that they possess. If revealed, it would worsen the situation. Morally, this isn’t the best example, but sometimes, it may be better to keep some information to yourself.”
There is also the possibility of knowledge shared among peers being incorrect, or unreliable, which is why management has to make the decision to reveal or withhold certain information.
He said: “If there is asymmetric information being used in a relationship, you never know if I am giving you all the information. The transparency cannot come entirely from the two people involved. It would have to come from some superior.”
In a strategic situation, it is important to use all the information available, he added.
