Mushroom management is a style of management in which the personnel are not familiar with the ideas or the general state of the company, and are given work without knowing the purpose of this work. Open-book management is the opposite of mushroom management.
Mushroom management means that workers' curiosity and self-expression are not supported. 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. This problem can occur when the manager does not understand the employees' work (in a programming company, for example) and therefore cannot communicate effectively with the employees.
The consequences of mushroom management can be extremely detrimental for everyone involved in the company. 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.