Rensis likert management _Leadership Theory

Rensis likert System of Management
leadership Theory

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1. Credits : ayesha naz Presentation Theory : Rensis likert System of Management

2. Likert’s management systems are management styles developed by Rensis Likert in the 1960s. He was an American educator and organizational psychologist best known for his research on management styles. He is also famous for developing the likert scale, a psychometric scale commonly involved in research using questionnaire. Rensis Likert (1903 – 1981 )

3. Likert system of management

4. Exploitative / Authoritative In this style, the leader has no concern for people and uses such methods as threats and other fear-based methods to achieve target. In this type of management the job of employees/subordinates is to abide by the decisions made by the manager and those with a higher status than them in the organization.

5. Communication is almost entirely downwards and the psychologically distant concerns of people are ignored. The subordinates do not participate in the decision making. There is no team work involved

6. People supposed to work more than specified work hours. The top management forced to carryout extra work load, but the wages, monetary benefits and work satisfaction would be lost. People found highly demotivated due to exploited by owner/ management. The organization is concerned simply about completing the work.

7. Benevolent /Authoritative Less controlling than the exploitative authoritative system, under this system motivation is based on the potential for punishment and partially on rewards. The decision making area is expanded by allowing lower-level employees to be involved in policy-making but is limited by the framework given to them from upper-level management.

8. Major policy decisions are still left to those at the top, who have some awareness of the problems that occur at lower levels. This creates mainly downward communication from supervisors to employees with little upward communication, causing subordinates to be somewhat suspicious of communication coming from the top

9. however employees are motivated through rewards (for their contribution) rather than fear and threats. Information may flow from subordinates to mangers but it is restricted to “ what management want to hear ” This Likert system is based on a master-servant relationship between management and employees, where rewards are the sole motivators and both teamwork and communication are minimal

10. Consultative system This theory is very closely related to the  human-relations theory . Motivation of workers is gained through rewards, occasional punishments, and very little involvement in making decisions and goals. Managers will talk to their subordinates about problems and action plans before they set organizational goals . Communication in this system flows both downward and upward, though upward is more limited.

11. Lower-level employees, in this system, have the freedom to make specific decisions that will affect their work. Upper-management still has control over policies and general decisions that affect an organization.

12. This promotes a more positive effect on employee relationships and allows them to be more cooperative   Satisfaction in this system improves from benevolent authoritative as does productivity.   Management will constructively use their subordinates ideas and opinions.  

13. In this style, managers partly trust subordinates foster a higher level of responsibility for meeting goals, and inspire a moderate amount of teamwork and some communication .

14. Participative system Likert argued that the participative system was the most effective form of management. This system coincides with  human-resources theory . This system promotes genuine participation in making decisions and setting goals through free-flowing horizontal communication and tapping into the creativity and skills of workers.   Managers are fully aware of the problems that go on in the lower-levels of the organization.  

15. All organizational goals are accepted by everyone because they were set through group participation.   There is a high level of responsibility and accountability of the organizational goals in all of the employees . Managers motivate employees through a system that produces monetary awards and participation in goal setting.

16. Management has complete confidence in their subordinates/employees.   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.  

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