Business often employee either a cost strategy in which employees are view as a cog in the machine, or a differentiation system which values a quality product and therefore offers rewards to ensure that they are meeting their standards. With cost strategies employees can often resist, quit, and become highly stressed. This type of strategy aligns more with an autocratic stance where unions can be suppressed through harassment, termination, demotion, and plant closings (Budd, 2010). Suppression is a tactic that has been used by an estimated 57% of companies including: Target, Wal Mart and Ford (Shapiro, 2011). This type of strategy should be taken with caution, as psychological distress has been estimated to cost businesses $193 billion a year. That’s nearly one trillion dollars lost every 5 years. Also, it should be noted that once employees reach to point of sever psychological distress the effects often stick with them (Mulvey, 2010). Employers should gear their policies more towards a paternalistic approach, where employers limit the need of unions by treating their employees with respect and
Business often employee either a cost strategy in which employees are view as a cog in the machine, or a differentiation system which values a quality product and therefore offers rewards to ensure that they are meeting their standards. With cost strategies employees can often resist, quit, and become highly stressed. This type of strategy aligns more with an autocratic stance where unions can be suppressed through harassment, termination, demotion, and plant closings (Budd, 2010). Suppression is a tactic that has been used by an estimated 57% of companies including: Target, Wal Mart and Ford (Shapiro, 2011). This type of strategy should be taken with caution, as psychological distress has been estimated to cost businesses $193 billion a year. That’s nearly one trillion dollars lost every 5 years. Also, it should be noted that once employees reach to point of sever psychological distress the effects often stick with them (Mulvey, 2010). Employers should gear their policies more towards a paternalistic approach, where employers limit the need of unions by treating their employees with respect and