As a result, morale and productivity suffer, leading to a drain on the company's bottom line. If this environment continues, employees lose trust in management, widening the gap and setting the stage for unionization and confrontation. The primary reason unions exist today is because of the sins of past malevolent management, executives who either deliberately or inadvertently lost touch with their employees and took advantage of the situation. When employees in a business believe they are fairly treated and are made to feel they are necessary and valued members of the organization, it is far more difficult for unions to flourish. During the 1990's, restoration of lost employee trust and dedication has been achieved through the creation of empowered teams, with management no longer issuing directives but rather defining boundary conditions within which the team is free to act as it sees fit.
Management flows down both authority and accountability to the workers.
These teams may be cross-functional when appropriate, so that team members develop an appreciation of the impact of their decisions upon other disciplines within the company. Teams frequently accomplish more than individuals can alone. As teams mature, they need additional knowledge regarding the results of their previous business decisions, so they can collectively discern the best course for future decisions. Teams can also provide recommendations to facilitate difficult management decisions, such as matching the capabilities of their segment of the work force to projected future work loads. These objectives must be perceived as both fair and achievable by the team, and the resulting incentive should be appropriate to the objectives.