Download - Final Likert Sys 4
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Dr. Rensis Likert
An American Educator &
Organizational Psychologist.
Best known for Research
on Management Styles &
for producing a surveyscale known as the Likert
Scale.
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In the 1960s, Likert outlined 4 systems of management
to describe the relationship, involvement, and roles of
managers and subordinates in industrial settings.
He based the systems on studies of highly productive
supervisors and their team members of an American
Insurance Company.
Central Aspects of Likert Theories
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System I System II
System III System IV
Exploitative/Authoritative
Benevolent/Authoritative
Consultative Participative
Likerts Management Systems
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Characteristics System 1 System 2 System 3 System 4
Trust No trust Master-servant
relationship i.e
always cautious
Substantial but
not complete
trust
Complete trust
Motivation Fear, threats &
punishment
Rewards &
punishment
Rewards,
punishment &some
involvement
Goals based on
participation &improvement
Interaction Little
interaction
Little interaction, Moderate
interaction
Extensive
interaction,
friendly
Responsibility Only at higher
level
Till managerial level More at higher
level then
lower level
At all level
Likerts Management Systems
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Characteristics System 1 System 2 System 3 System 4
Decision making Top level
decision making
& control
Top level
decision making
& control
Decision making
& control are at
primary level
but employees
are consulted &
their views
considered
Every employee
have decision
making power
Communication Downward and
inaccuratecommunication
Limited
communication
Both
communicationup & down
Extensive
vertical &horizontal
communication
Team work No Relatively little Moderate High
Likerts Management Systems
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End results System 1, 2 System 4
Employee loyalty Less Great
Performance goals Low High
Conflict More Less
Cooperation Less Great
Technical assistance to peer Less More
Feeling of unreasonable pressure High Low
Employees attitude towards
managers
Less favorable More
favorable
Motivation Lower Higher
Sales volume Lower Higher
Cost of sales Higher Lower
Quality of business sold Lower Higher
Likerts Management Systems - End Results
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Able to quantify the results of the work done in thefield ofGroup dynamics.
Helped in measurement of the soft areas ofmanagement , such as trust & communication.
Eg. An American company, Weldom which adoptedLikerts ideas, showed dramatic improvements in
terms of increased profits and productivity andlower rates of labor turnover, two years afterchanging from System 2 to System 4.
Advantages of Likerts System
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The nearer the behavioral characteristicsof an organization approach system 4,themore likely this will lead to
Long-term improvement in staffturnover i.e. more loyalty
High productivity
Low scrap
Low costsHigher motivation
High earnings & more profits
The organization will achieve optimum
effectiveness .
Conclusion
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Thank you