No matter how stupid the Owners or Board think their workers are, once they perceive the 1899 Business Model, they know they are home free all.
They may not be able to verbalise or explain, but they know that the ‘Boss’ has no power to fire them. They know the ‘Board’ to which the ‘Boss’ answers is too stupid and distant to care.
They quickly learn how to do as little as possible to get by. They learn how late they need to arrive, if they need to arrive at all, and how early they can leave.
They learn this via the ‘Boss’ who, totally powerless, is no longer going to embarrass himself by trying to enforce his will; even if his will is simple proper business practices.
It’s a rather easy equation.
The Board has all the power and is a million miles away. The Manager has no power and everything he does or tries to do has to go through the Board.
The term ‘demotivation’ is now applicable.