Discuss the Key Goals of Welfare Capitalist Firms

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The Answer is suggested:Welfare Capitalist firms had two major objectives. These were to increase productivity and to reduce unionization rates, strikes and turnovers. These objectives were largely met in the 1920’s by the adoption of practices designed to exploit the link between efficiency and morale as established by scientific management theories.

Many companies established personnel departments to provide worker welfare and resolve disputes. They also saw a developing role in hiring and firing practices. This was spurred on also by the replacement of temporary employment systems with one of relatively permanent tenure. Along with this were a number of training and education programs designed to make workers more productive and efficient.

Concomitant with these developments, personnel departments also started to oversee a number of increasing employee benefits, such as pensions. Insurance, paid vacations and loans. The purpose for these practices was one of anti- union animus, and they were designed to make unionization an unnecessary or even undesirable option.

Unfortunately, the Great Depression made these practices expensive as they already were, impossible to maintain. Many employers found themselves reverting toe the traditional hard- line coercive drive approach that had serve them, if not their employees so well.

Discuss the Key Goals of Welfare Capitalist Firms

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