The 1899 structure was built on the Class System. Workers were lower class and were raised to give homage to their ‘betters’.
Managers were Middle Class, above the workers but below those on the Board which were either Upper Middle Class or Upper Class.
As the Structures of how those of each class engages, the ability of a Middle Class person to order a lower class person, and have that order obeyed, was second nature.
As Class structures broke down the workers did not see themselves as inferior to their bosses. The groveling disappeared, the idea of worker rights interposed.
Hence once a worker realised that the worst a Manager could do was berate and report, it depended on the swift action of the Board whether the worker retained his position or was fired.
As soon as it was appreciated that in the 1899 Business structure the Board was distant and unconcerned, the ability of the Manager to Manage was destroyed.
The second workers appreciated that the Manager would have to swallow his pride and grovel before a Board, the likelihood of this happening became remote.
Hence, in the 1899 Business Model the Manager would adopt a distant posture and workers could do as they pleased.