Introduction

▪Likert’s Management Systems are

management styles developed by
RensisLikerts in the 1960s.

• He outlined four systems of management to

describe the relationship, involvement, and
roles of managers and subordinates in
industrial settings
• The four systems of management or the
four leadership styles identified by Likert’s
are:

Exploitative autocratic system

Benevolent autocratic system
Participative system
Democratic system
 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.
 BENEVOLENT
AUTHORITATIVE SYSTEM
• Just as in an exploitive authoritative system, decisions
are made by those at the top of the organization and
management.
• However employees are motivated through rewards
rather than fear and threats.
• Information may flow from subordinates to managers
but it is restricted to “what management want to hear”.
 PARTICIPATIVE SYSTEM

• In this type of management system, 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, though upward is more limited.
• This promotes a more positive effect on employee relationships
and allows them to be more cooperative
 DEMOCRATIC SYSTEM

• Management have 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.
• Likert’s calls people in more than one group “linking pins”.
 FUNCTIONS OF LEADERSHIP

Function # 1. Taking the Initiative:

The first and foremost job of a leader is to take the lead in all
activities. He should not depend upon others for guidance and
direction to do any work. He himself should be present in the
field, lay down the goals, commence its implementation and see
that the goals are achieved as per the predetermined targets.

Function # 2. Representing the Enterprise:

Since a leader is the true representative of the entire organization,
he should represent the enterprise and its objectives not only to
those serving in it but also to the others in the outside world.
Function # 3. Guiding and Directing the Organisation:
It is the primary function of the leader to guide and direct
the organization. He has to issue the necessary orders and
instructions and see that they are communicated properly.
He should guide and advice people and direct their
behavior for the achievement of organizational goals.

Function # 4. Encouraging Team Work:

Without team work, a leader cannot succeed-in his task of
accomplishing organizational goals. Thus, a leader must try
to win the confidence of his sub-ordinates.
Function#5. Link between management and worker:
A leader acts as a link between the two as at one point
he/she represent the worker’s grievances, problems,
ideas etc. to management and on other hand provides
the polices, rules and regulation being framed by
management to the workers.
 IMPORTANCE OF LEADERSHIP

•Inspire the employees.

• Cooperation.
• Creates confidence.
• Provides good working environment.
• Needed at all levels of management.

REMEMBER- A boss will say ‘GO’ and a leader will say ‘Let’s GO’
 LEADERSHIP QUALITIES
Personality: A pleasing personality always attracts people. A leader
should also friendly and yet authoritative so that he inspires
people to work hard like him.

Knowledge: A subordinate looks up to his leader for any suggestion

that he needs. A good leader should thus possess adequate
knowledge and competence in order to influence the subordinates.

Initiative: A good leader takes initiative to grab the opportunities and

not wait for them and use them to the advantage of the organization.

Communication skills- A leader needs to be a good communicator so

that he can explain his ideas, policies, and procedures clearly to the
people. He not only needs to be a good speaker but also a good
listener, counselor, and persuader.
Motivation skills: A leader needs to be an effective motivator who
understands the needs of the people and motivates them by satisfying
those needs.

Self-confidence and Will Power: A leader needs to have a high level of

self-confidence and immense will-power and should not lose it even in
the worst situations, else employees will not believe in him.

Intelligence: A leader needs to be intelligent enough to analyze the

pros and cons of a situation and take a decision accordingly. He also
needs to have a vision and fore-sightedness so that he can predict the
future impact of the decisions taken by him.
 AN K YO U
TH