1. Credits : ayesha naz
Presentation
Theory: Rensis likert System of
Management
2. Likert’s management systems
are management styles
developed by Rensis Likert in
the 1960s.
He was an American educator
and organizational
psychologist best known for
his research on management
styles.
He is also famous for
developing the likert scale, a
psychometric scale commonly
involved in research using
questionnaire.
Rensis Likert (1903 – 1981)
4. Exploitative / Authoritative
In this style, the leader has no concern for
people and uses such methods as threats and
other fear-based methods to achieve target.
In this type of management the job of
employees/subordinates is to abide by the
decisions made by the manager and those with
a higher status than them in the organization.
5. Communication is almost entirely downwards and
the psychologically distant concerns of people are
ignored.
The subordinates do not participate in the
decision making. There is no team work involved
6. People supposed to work more than specified
work hours. The top management forced to
carryout extra work load, but the wages,
monetary benefits and work satisfaction would
be lost.
People found highly demotivated due to
exploited by owner/ management.
The organization is concerned simply about
completing the work.
7. Benevolent /Authoritative
Less controlling than the exploitative authoritative
system, under this system motivation is based on
the potential for punishment and partially on
rewards.
The decision making area is expanded by
allowing lower-level employees to be involved in
policy-making but is limited by the framework
given to them from upper-level management.
8. Major policy decisions are still left to those at
the top, who have some awareness of the
problems that occur at lower levels.
This creates mainly downward communication
from supervisors to employees with little
upward communication, causing subordinates
to be somewhat suspicious of communication
coming from the top
9. however employees are motivated through
rewards (for their contribution) rather than fear
and threats. Information may flow from
subordinates to mangers but it is restricted to
“what management want to hear”
This Likert system is based on a master-
servant relationship between management
and employees, where rewards are the sole
motivators and both teamwork and
communication are minimal
10. Consultative system
This theory is very closely related to the human-
relations theory.
Motivation of workers is gained through rewards,
occasional punishments, and very little involvement in
making decisions and goals.
Managers will talk to their subordinates about problems
and action plans before they set organizational goals.
Communication in this system flows both downward
and upward, though upward is more limited.
11. Lower-level employees, in this system, have the
freedom to make specific decisions that will affect
their work.
Upper-management still has control over policies
and general decisions that affect an organization.
12. This promotes a more positive effect on
employee relationships and allows them to be
more cooperative
Satisfaction in this system improves from
benevolent authoritative as does productivity.
Management will constructively use their
subordinates ideas and opinions.
13. In this style, managers partly trust
subordinates foster a higher level of
responsibility for meeting goals, and inspire a
moderate amount of teamwork and some
communication.
14. Participative system
Likert argued that the participative system was the
most effective form of management. This system
coincides with human-resources theory.
This system promotes genuine participation in
making decisions and setting goals through free-
flowing horizontal communication and tapping into
the creativity and skills of workers.
Managers are fully aware of the problems that go
on in the lower-levels of the organization.
15. All organizational goals are accepted by
everyone because they were set through group
participation.
There is a high level of responsibility and
accountability of the organizational goals in all
of the employees.
Managers motivate employees through a
system that produces monetary awards and
participation in goal setting.
16. Management has complete confidence in their
subordinates/employees.
There is lots of communication and
subordinates are fully involved in the decision
making process.
Subordinates comfortably express opinions
and there is lots of teamwork.
Teams are linked together by people, who are
members of more than one team.
