Workers being managed under the autocratic model often feel insecurity and frustration. They may even show aggression towards their boss and families and neighbors. That is why progressive managers felt that there must be some way to develop better employee relationships so that insecurity and frustration could be dispelled. The custodial model provides employees 'dependence on organization rather their dependence on their boss. The model emphasizes economic reward, security, organizational dependence, and maintenance factors.
The custodial approach leads to employee dependence on the organization. Rather than being dependent on their boss for their weekly bread, employees now depend on organizations for their security and welfare. Employees working in a custodial environment become psychologically preoccupied with their economic rewards and benefits. As a result of their treatment, they are well maintained and contented. However, contentment does not necessarily produce strong motivation; it may produce only passive cooperation. The result tends to be that employees do not perform much more effectively than under the old autocratic approach.