LIKERTS MANAGEMENT SYSTEM

AUTHORITATIVE DEMOCRATIC

System 1 Exploitative Authoritative Top management Makes all decisions

System 2 Benevolent Authoritative Top management makes most decisions Motivation by economic and ego motives

System 3 Consultative Democratic Some delegated decisions made at lower levels Motivation by economic, ego, and other motives such as desire for new experiences Communication down and up Review and control functions primarily at the top but ideas are solicited from lower levels

System 4 Participative Democratic Decision making dispersed throughout organization Motivation by economic rewards established by group participation Communication down, up, and with peers Review and control functions shared by superiors and subordinates

Motivation by coercion

Communication downward Review and control functions Concentrated in top management

Communication mostly downward Review and control functions primarily at top