Rensis Likert and his associates of University of Michigan, U.S.A. have studied the patterns and styles of managers for three decades and developed certain concepts and approaches important to understanding leadership behaviour. Likert developed four models of management which he termed systems of management. He assigned numbers 1 to 4 to his conceptual models to indicate the stages of evolution in the patterns and styles of management in organization.
- Exploitative Authoritative System: In this type of management system, the responsibility lies with the people in higher positions in the hierarchy. Here, the subordinates are not involved in the decision-making process. The superior has no trust and confidence in his subordinate and imposes decisions on him leaving no room for further discussions.In this system, the communication flows downwards, i.e. from the superior to the subordinate and hence there is a lack of communication and teamwork. The management is only concerned with the completion of work; it uses any means or threats to get the work completed through the subordinates.
- Benevolent Authoritative System: Like exploitative authoritative system, here also the responsibility lies with the people at the upper echelons of the hierarchy and the only difference is that the motivation is based on the rewards, not on fear and threat. The superior has that much trust and confidence in his subordinates which is required in a master-servant relationship.In this system, the subordinates are given rewards for their participation and the communication may flow upwards i.e. from subordinate to superior, but restricted to what the superior wants to hear. Thus, in the benevolent authoritative system also, the subord-inates do not feel free to discuss job-related issues with the superior. This results in the lack of communication and a little teamwork.
- Consultative System: In this management system, the superior has substantial but not complete, trust and confidence in his subordinates and constructively uses the views and opinions given by them. Here, the motivation is based on rewards and the amount of the individual’s involvement in the decision-making process.The consultative system is characterized by a great flow of information both horizontally and vertically. The subordinates feel free to discuss job-related issues with the superiors and hence, the upward flow of communication is more into the consultative system than a benevolent system. But still, the decisions are made by the senior people in the hierarchy.
- Participative System: In the participative system, the management has full confidence in his subordinates and encourages them to participate actively in the decision-making process. Here, the subordinate feels absolutely free to discuss any issue related to a job with his superior. This system is characterized by a good teamwork and teams are linked with people, who are the members of more than one team and such people are called as “linking pins”. The subordinates get motivated through rewards for their participation in the decision-making process.
While studying various systems Likert has taken seven variables such as:
- Leadership,
- Motivations,
- Communication,
- Interaction-influence,
- Decision-making process,
- Good-setting and
- Control process.
