Management Notes

Management Notes

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Custodial Model

Custodial Model – Models of Organizational Behavior | Management Notes

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Custodial Model

A custodial model has the managerial orientation of using money to benefit employees. Based on the model, the benefits of the model depend on the organization’s economic resources and ability to pay for them. Despite the hope of gaining security, employees become increasingly dependent on their employers. Employees who rely heavily on the organization are less dependent on their bosses.

According to Herzberg, employees can fulfill their own security and maintenance requirements. Custodial model employees are fairly happy, but they are not very productive. As with Herzberg’s satisfiers and dissatisfiers, this also relates to Herzberg’s satisfiers. The employees feel respected and secure because adequate attention is given to them. Management should determine the benefits and rewards employees receive, not the employees themselves.

This approach differs only in the fact that its philosophy is quite similar to the patrimonial system, in which it is the responsibility of the top management to determine which benefits are most suited for their employees. A lot of Indian businesses adopt this philosophy still today. Families also exist within organizations, where a large proportion of family businesses operate. It is essentially the parents’ responsibility to decide what’s best for their children, while managers decide what’s best for their employees. This approach is therefore unsuitable for mature employees.

Based on economic resources, this model emphasizes a managerial orientation to money. With this model, employees are focused primarily on benefits and security. They depend on the organization. Employees are guaranteed security. This model is most commonly used by companies with high resources, as its name implies. It depends on economic resources. It encourages us to rely more on the firm than on our manager or boss. Employees give passive cooperation because they are satisfied but not very motivated.Custodial model gives more importance to employees.

Major Highlights of Custodial Model

  • Using the custodial model, managers can motivate and improve workers’ performance by providing financial incentives, such as bonuses and benefits for good performance. As you can see, this model promotes a win-win philosophy in which employees and the company benefit from improved employee performance.
  • A custodial model would discourage teamwork except in the case of mutual favours within alliances of staff – the “you help me, and I will help you” relationship.

  • As organizations become more concerned about reputations, performance can shift from goal achievement to reputation management.
  • Employees often feel obligated to communicate their performance levels throughout the organization, especially upwards in the hierarchy, even when their direct supervisor is not or will not be involved in the financial and bonus schemes.
  • Financial security is the primary motivator for employees in this structure, which leads the company to achieve its key performance targets.To provide its employees with ongoing strong financial benefits, the organization must be economically strong, otherwise the employees will become demotivated and begin looking for better opportunities.

  • Economic resources are imperative to the Custodial Model’s success since it emphasizes the rewards and benefits of the economic model. Due to the fact that employees’ physiological needs have already been met, security needs became the employer’s motivating factor.
  • Under the Custodial Model, employees are more dependent on their employers than their bosses. Employees can’t afford to leave an organization if the welfare and development programs are good.
  • The employees in this model are satisfied and happy, and they are not highly motivated. As a result, they give only passive cooperation. Their efforts are similar to those in an autocratic system.
  • The problem with this model is that it relies only on material rewards to motivate employees. But the workers have their psychological needs also.
  • In response to the drawbacks of this method, research was conducted to find the most effective means of motivating workers to perform at their full capacity.

Custodial Model FAQs

Employees needs met by Custodial Model is

A. subsistence
B. security
C. status and recognition
D. self-actualization

Answer» B. Security

Managerial Orientation of Custodial Model of OB is

A. Authority
B. Money
C. Support
D. Teamwork

Answer» B. Money

Basis of “Custodial Model of OB is

A. Economic resources
B. Power
C. Leadership
D. Partnership

Answer» A. Economic resources

“Leadership motivates the people to work and not the power of money”, this concept is related to _______

a) Autocratic model
b) Custodial model
c) Supportive Model
d) Collegial Model

Answer :b) Custodial model

Check the below Article:

Organizational Behavior | All of the Basic Concepts

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