welfare capitalism

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Is a description of the policies of large non-union companies in the United States that have developed internal welfare systems to foster worker loyalty and commitment. Examples of companies that have practised welfare capitalism include Kodak, Sears, and IBM. The main elements of the employment system in these and other non-union companies, until relatively recently, included permanent employment, internal labour markets, extensive security and fringe benefits, and sophisticated communications and employee involvement. This paternalistic package of measures, however, has been put under strain as a result of business restructuring and downsizing. Large American companies appear to be less prepared to shoulder risk on behalf of their employees than they were in the post-war decades.

Subjects: Human Resource Management.

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