Likert’s System of Management

In the University of Michigan in the USA, Rensis Likert along with his associates carried out an extensive survey of management patterns and styles in many organizations. Because of this, Likert developed a continuum consisting of four systems of management style. Thus, this system was called a Likert management system  In this system, there were four different management systems. Each of these systems is explained below in brief.

Likert Management System

These systems essentially indicated different stages of evolution of patterns of management in these organizations. This system is based on several variables. These variables are motivation, leadership, communication, influence, interaction, decision making, etc.

Benevolent Autocratic – System 1

In the Likert management system, managers are divided into four different categories. One of them is autocratic. Also, these managers are not exploitative.

These managers take a paternalistic approach for their subordinates. Thus, they allow their subordinates to carry out their tasks with some freedom.

Meanwhile, managers start to adopt a patronizing view towards the subordinates that are faithful and obedient. The subordinates who accomplish their goals are rewarded.

While those who fail to accomplish their tasks are punished harshly. Thus, it can be said that a carrot and stick approach is taken in this system for motivation.

Exploitative Autocratic – System 2

In this system, managers are more oriented towards the work than motivating the subordinates. Thus, they make decisions that are only work-related. Also, they order their subordinates to follow their decision. Furthermore, managers also describe the methods and standards of performance.

In the decision-making process, there is no view taken of the subordinates. The communication that happens between the subordinates and managers is in a downward direction.

Thus, this conversation can be said to be highly formal in nature. Also, to get the things done, the managers believe in punishment and threats. They exercise control and supervision on their subordinates.

Consultative – System 3

In this system, managers consult their subordinates to issue the orders and set out the goal. The routing decisions are taken by the subordinates. While major decisions are taken by the managers himself. Thus, subordinates can discuss work-related matters with their managers.

So, this makes sure that there is two-way communication in the organization. Also, managers trust their subordinates to carry out the tasks. Thus, in this system, greater emphasis is laid on rewards rather than penalties.

Democratic- System 4

As the name suggests, in this system, the decision and goals are set by the subordinates. In this system, control and supervision are group-oriented. The attitude of the manager is also friendly and supportive of their subordinates. The goals in this system are mutually set.

Thus, the subordinates are allowed for self-appraisal when these goals are met. In this system, communication is wide open. And that is why Likert suggested that system 4 is the ideal system for the organizations to work.

Practice Questions Likert’s System of Management

Q. Out of the following Likert systems of leadership, in which system do managers do not have complete trust and confidence in their subordinates but still take advice from subordinates while taking the final decision?

A. Democratic

B. Benevolent autocratic

C. Consultative

D. Exploitative autocratic

Answer: B. Benevolent autocratic

Q. In which Likert system of management does the manager fully support the decision of their subordinates and the appraisal is mutually set once when the goals are set?

A. Democratic 

B. Benevolent autocratic

C. Consultative

D. Exploitative autocratic

Answer: A. Democratic