Answered Essay: How did Welfare Capitalism win workers' loyalty and increase the efficiency?

How did Welfare Capitalism win workers’ loyalty and increase the efficiency?

Expert Answer

Welfare capitalists tried to win the loyalty of workers. This was done by keeping the workers away from their community and were mixed with the workers of different race and ethnic groups in the department, and these people were also offered life insurance policies by the company and were tried to keep them away from their union. Also, rest of the people were put into stock ownership plan in which those people were investing some amount of money in the company and that led to commitment towards company’s growth from that employees. They also initiated some programs which offered the worker to achieve some incentive by increasing their productivity and were also given promotion under the criteria of productivity only. A lot of financial and non-financial benefits such as pension funds, stock sharing plans, life insurance, social activities were also initiated were had a big contribution in winning workers. Also, the policies have been designed in such a way that if the worker goes for a strike with their union, then all the above-mentioned benefits would be stopped for that worker. All these welfare capitalism practices made a good and positive organizational environment for the workers and they started focusing on their work and increasing their productivity to lure more benefits.

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