"Might is Right" is the motto of the theory. It depends upon power. Those who are in command must have power to demand. Employees are to follow their boss otherwise they are to be penalized. The theory is based on the assumption that only management knows what is wrong and what is right and employees are to follow orders without any grudge. Management thinks that employees are passive and resistant to organizational needs. It is just like theory x developed by McGregor.
Under autocratic conditions the employee is obedience to a boss, not respect for a manager. The psychological result for employees is dependence on their boss, whose power to hire, fire, and "per-spire" they is almost absolute. The boss pays minimum wages because minimum performance is given by employees. They are willing to give minimum performance- though sometimes reluctantly-because they must satisfy subsistence needs for themselves and their families.
The autocratic model was an acceptable approach to guide managerial behavior when there were no well-known alternatives, and it still can be useful under some conditions.