Likert's 4 Systems of Management

What is Likert's four systems of management? Well, this is a model in theory that focuses on the different approaches of management towards the flow of information and the empowerment of employees in decision making

And thus, this is a leadership model to the extent that it inspires or motivates employees. The first approach is the exploitative authoritarian system

This is where, in a very structural organization, very hierarchical, information tends to flow downward

Decision making is made by higher level management and it's pushed down to lower levels for execution

Very little involvement in the system. The lower level employees are motivated through fear of repercussions of not doing as they're told

A benevolent authoritarian system, this is the next system, focuses on rewarding employees for compliance

Decision making is still top down It still pushed down But there more communication from the bottom up to the top to inform decision making But once again decision making does take place at higher levels of management and is

pushed down. It's just the reward system gains additional levels of buy-in from lower level employees

Then you have the consultative authoritarian system. And this system focuses on integrating the input of lower level employees into the decision

making process. There's a dual flow of information up and down the chain of command

Still, you have authoritarian approach to making decisions. But once again, the lower level employees are heavily consulted

There's additional buy-in because they feel a sense of ownership because their opinions have been listened to and heard in the process

And then lastly, participative system is where employees actively participate in decision making

That is, it may be through vote, it may be through collective decisions or inputs as

to potential options, but there's a high degree of participation and the highest degree of

buy for the individual employees at the lower level But once again decision making is the key characteristic here whether it being made at a higher level or whether a great deal of it is delegated to a lower level

The model you see here is a good illustration of these approaches

Now in assessing the management style being employed or determining which one is being

employed and in which category it fits, you can look at various forces at play

One, what motivational forces are used by leadership as part of the process

What leadership processes? That is, what level of oversight, what level of inspiration, what level of motivation is created directly by the leadership structure, not just the forces that exist in the organization

What is the decision-making processes or their formalized standard processes, or is it very haphazard

What is the communication flow and how does that look like? Is it very formalized or is it very relaxed communication style

Is there low power distance in the organization Interaction influence processes that is to what extent do individuals interact collectively and have influence over others Is there interrelated work teams Is there close interaction between leaders and

subordinates? Control processes, this is the review process of how things are going

or the processes, how they're being implemented. So it's more the controlling

function of management how that's implemented. And then the planning function, the goal setting processes, and the extent to which lower level employees are again

involved in that. As part of this theory, Likert also identified key individuals that interlink

individuals from different groups within the organization to understand how they come together

or how they interact. Sometimes this is the leader, sometimes this is a member of different

groups within the organization and called these linking pins. But in summary, Likert's four

systems identifies a sliding scale of how management approaches the leadership process through decision-making and how that affects the level of motivation of

the subordinates involved in the process