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RENSIS LIKERTS
MANAGEMENT SYSTEM

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 INTRODUCTION
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L i k e r t ’ s M a n a g e m e n t S y s t e m a r e
management styles developed by
Rensis Likert in the 1960s.
H e o u t l i n e d f o u r s y s t e m s o f m a n a g e m e n t
to describe the relationship,
involvement, and roles of managers and
subordinates in industrial settings.
R e n s i s L i k e r t a n d h i s a s s o c i a t e s s t u d i e d
the patterns and styles of managers for
three decades at the University of
Michigan, USA, and identified a four-fold
Rensis Likert
American Psychologist
model of management systems.
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 FOUR MANAGEMENT SYSTEM
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E x p l o i t a t i v e a u t h o r i t a t i v e s y s t e m

B e n e v o l e n t a u t h o r i t a t i v e s y s t e m

C o n s u l t a t i v e s y s t e m

P a r t i c i p a t i v e G ro u p s y s t e m

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Exploitative Authoritative System

 In this type of management system the job of employees/subordinates is to

abide by the decisions made by managers and those with a higher status than
them in the organization.

 The subordinates do not participate in the decision making.

 The organization will use fear and threats to make sure employees complete the
work set.

 There is no teamwork involved. 4 4

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Benevolent Authoritative System

 Just as in an exploitative authoritative system, decisions are made by those at

the top of the organization and management.

 Employees are motivated through rewards rather than fear and threats.

 Information may flow from the subordinates to managers but it is restricted to

“what management want to hear”.

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Consultative System
 In this type of management system, the subordinates are motivated by rewards
and a degree of involvement in the decision making process.

 Management will constructively use their subordinates ideas and opinions.

 This theory is very closely related to the Human Relations theory.

 Communication in this system flows both downward and upward, through

upward is more limited.

 This promotes a more positive effect on employee relationships and allows them
to be more cooperative. 6 6
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Participative Group System
 Management have complete confidence in their subordinates/employee.

 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.

 Likert’s calls people in more than one group “linking pins”.

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Conclusion
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T h e n e a re r t h e b e h a v i o r a l c h a r a c t e r i s t i c s o f a n
o r g a n i z a t i o n a p p ro a c h s y s t e m , t h e m o re l i k e l y
t h i s w i l l l e a d t o l o n g - t e r m i m p ro v e m e n t i n s t a f f
t u r n o v e r a n d h i g h p ro d u c t i v i t y, l o w s c r a p , l o w
costs, and high earnings. If an organization
wants to achieve optimum effectiveness.

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“
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Thank You.
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