12/20/2019 Likerts Management System
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Likert’s Management System
Rensis Likert and his associates studied the patterns and
styles of managers for three decades at the University of Michigan, USA, and identi ed a four-fold model of
management systems. The model was developed on the basis of a questionnaire administered to managers in
over 200 organizations and research into the performance characteristics of di erent types of organizations. The
four systems of management system or the four leadership styles identi ed by Likert are:
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System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper
echelons of the hierarchy. The superior has no trust and con dence in subordinates. The decisions are
imposed on subordinates and they do not feel free at all to discuss things about the job with their
superior. The teamwork or communication is very little and the motivation is based on threats.
System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower
levels of the organizational hierarchy. The superior has condescending con dence and trust in
subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things
about the job with their superior. The teamwork or communication is very little and motivation is based on
a system of rewards.
System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The
superior has substantial but not complete con dence in subordinates. Some amount of discussion about
job related things takes place between the superior and subordinates. There is a fair amount of teamwork,
and communication takes place vertically and horizontally. The motivation is based on rewards and
involvement in the job.
System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout
the organizational hierarchy. There is a high level of con dence that the superior has in his subordinates.
There is a high level of teamwork, communication, and participation.
The nature of these four management systems has been described by Likert through a pro le of organizational
characteristics. In this pro le, the four management systems have been compared with one another on the basis
of certain organizational variables which are:
Leadership processes
Motivational forces
Communication process
Interaction-in uence process
Decision-making process
Goal-setting or ordering
Control processes
On the basis of this pro le, Likert administered a questionnaire to several employees belonging to di erent
organizations and from di erent managerial positions (both line and sta ). His studies con rmed that the
departments or units employing management practices within Systems 1 and 2 were the lease productive, and
the departments or units employing management practices within Systems 3 and 4 were the most productive.
Advantages
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12/20/2019 Likerts Management System
With the help of the pro le developed by Likert, it became possible to quantify the results of the work done in the
eld of group dynamics. Likert theory also facilitated the measurement of the “soft” areas of management, such
as trust and communication.
Conclusion
According to Rensis Likert, the nearer the behavioral characteristics of an organization approach System 4
(Participative), the more likely this will lead to long-term improvementin sta turnover and high productivity, low
scrap, low costs, and high [Link] an organization wants to achieve optimum e ectiveness, then the ideal
system
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