The custodial model focuses on providing economic security for employees through wages and benefits in order to create loyalty and motivation. It views employees as dependent on the compensation package from the organization. According to this model, managers can improve performance by offering financial incentives like bonuses for good performance, creating a win-win environment for employees and the organization. However, this overemphasis on financial rewards can discourage teamwork as employees focus solely on individual performance and undermine the concept of collaboration. It also potentially creates a political and toxic work environment if not managed properly.

2. What is the Custodial
Model?
The custodial model is based around the concept of
providing economic security for employees – through
wages and other benefits – that will create employee
loyalty and motivation.
The custodial model mainly focuses on the financial
reward aspects of being employed by the organisation.
The underpinning concept of this model is that
employees become quite dependent upon the package
of wages and other benefits provided by the
organisation. As a result, they look to improve their
performance for the firm in order to maintain their
position and be promoted over time

3. According to thecustodial model,managerscan motivate
workers and improve theirperformance by providing a
financialincentive,such as financialbonuses and benefitsfor
good performance. Therefore, asyou can see, this model
promotes a win-winphilosophy where employees and the
organisation share in the benefits of improved performance
of the firm’sworkforce

5. Given the focus on financial rewards
for performance and “locking” staff
into the organization through attractive
benefits and bonuses, this has the
potential to create a self-interested environment that actually
negates the concept of teamwork.
The custodial model is likely to discourage the concept of
teamwork – with the exception of “mutual favours” between
staff alliances – a “you help me and I will help you” relationship.
In some cases, a very competitive environment can be
created where the employees strive for best performances
on an individual basis only. While this has some benefit to
the organisation, it can also become quite a political and toxic
working environment if it is not managed effectively.

6. Some custodial structures are based around a pyramid
system where only the more senior staff members
truly enjoy the financial benefits of the organisation.
Once a certain management level or status is
reached the employee is very well rewarded. This
creates the incentive, at the lower staff level, to
perform and network in order to “break-through” to
the next level in the hierarchy.

7. Structure of
Coca-Cola company
Ex. of Organisational
Structure.