All-or-nothing thinking refers to thinking in extremes.
As an organization develops policies and procedures it is absolutely necessary to avoid "All-or-Nothing Thinking".
If you think your policy is the right way to do it or any other way is absolutely wrong, you are going to create conflict. Your thinking must never be "The person that is subject to this policy is either totally good or is totally bad if they do not follow the Company line".
Here on MLK Jr. Day, we all need to remember one of Dr. King’s strongest beliefs was respect for the individual and their God given rights. Individuals are allowed to control their own bodies and their beliefs. Humans have the freedom to choose how they will manage their lives.
Dr. King was right, we should never subject individuals to thinking in the extreme.
You should also note the “All-or-Nothing Thinking” is a recognized cognitive disorder!