In most organisations, managerial positions generally have access to crucial information and enjoy knowing things others don't. Typically, this kind of information can directly impact the day-to-day operations of the organisation.
Rather than sharing the information with their subordinates, they guard it like a treasure – many managers in today's world are guilty of doing this. Possessing such crucial information gives the manager a sense of belonging to an elite class. This kind of prejudiced attitude destroys the harmony within the organisation. The information managers keep to themselves creates a dichotomy and, as a result, divides the organisation into privileged and non-privileged classes.
Such managers believe that holding information will give them a sense of complete control and greater power over their direct reports. This type of behaviour on management's part is unethical and very "un-managerial".
The practice of holding information is not the right mindset for a manager to have. Keeping secrets may give a manager tighter control over some situations; however, this may not go a long way and may do more harm than good.
When you hoard essential information from your team, you are not only messing with the productivity of your team, but this will also impact your performance as a manager. When your team members sense that something is up but are not getting any authentic information from you; as a result, uncertainty and doubt will creep into their minds. Amid the uncertainty, people will start jumping to conclusions, which will, in turn, create chaos within the organisation.
If your employees sense that you are keeping secrets from them, they will either try to find another source to get the information you're holding or straight up jump to conclusions. Both ways, the information they get is likely to be wrong, which can also work against you. Based on false assumptions, your team may be headed in a direction that will be entirely different from your intentions.
As a manager, you will be in a much more powerful and efficient position when you give your team all the necessary information to perform their duties in a self-directed manner.
In the organisation, there is very little that needs to be kept a secret. Typically, in any business, it is a matter of timing more than anything that remains a secret. Unless you are working for an organisation that is highly classified in nature that has a credible system to keep the information a secret; otherwise, it's usually an excellent option to let your team know what is going on at all times.