Does prisoner's dilemma really apply in your typical command and control scenario? When enough of person's future wages, wellbeing and so is being held hostage

Does prisoner's dilemma really apply in your typical command and control scenario? When enough of person's future wages, wellbeing and so is being held hostage by single party, the choice is obvious. The article doesn't dive much into complexity of problem. Prisoner's dilemma doesn't have much place in traditional organisations. It is more subtle than that.