Model Answer
0 min readIntroduction
Rensis Likert, a prominent organizational psychologist, proposed a framework for understanding organizational leadership and management styles through his ‘Systems of Management’ theory in his 1961 book, *New Patterns of Management*. This theory posits that organizations evolve through four distinct systems – exploitative-authoritative, benevolent-authoritative, consultative-participative, and participative – each representing a different approach to leadership, employee motivation, and decision-making. Likert’s assertion that every organization starts from System I and progresses towards System IV suggests a natural trajectory of organizational development driven by the need for greater efficiency, employee satisfaction, and adaptability.
Likert’s Four Systems of Management
Likert’s systems are not merely classifications of leadership styles but represent comprehensive organizational structures with distinct characteristics. Here’s a breakdown:
System I: Exploitative-Authoritative
- Leadership: Fear-based, autocratic, and highly centralized. Managers exert strict control and rely on threats and punishment.
- Decision-Making: Top-down; little to no employee input.
- Motivation: Based on fear and coercion.
- Communication: Primarily downward, with limited upward communication.
- Example: Historically, many factory settings during the early industrial revolution operated under this system.
System II: Benevolent-Authoritative
- Leadership: Authoritative but with some consideration for employee welfare. Managers may offer rewards but still maintain significant control.
- Decision-Making: Primarily top-down, but with some allowance for employee suggestions.
- Motivation: A mix of rewards and punishments, with an attempt to create a sense of loyalty.
- Communication: Downward communication remains dominant, but some upward communication is permitted.
- Example: Paternalistic organizations where employers provide benefits but expect obedience.
System III: Consultative-Participative
- Leadership: Managers consult with employees before making decisions, valuing their input.
- Decision-Making: Decentralized to some extent; employees are involved in problem-solving.
- Motivation: Based on a combination of rewards, recognition, and a sense of belonging.
- Communication: Two-way communication is encouraged, with feedback loops.
- Example: Many modern corporations utilize this system, holding regular team meetings and seeking employee feedback.
System IV: Participative
- Leadership: Highly participative and democratic. Managers act as facilitators and empower employees.
- Decision-Making: Decentralized and collaborative; employees have significant autonomy.
- Motivation: Intrinsic motivation is emphasized, with a focus on employee growth and development.
- Communication: Open and free-flowing communication at all levels.
- Example: Self-managed teams in organizations like W.L. Gore & Associates (makers of Gore-Tex).
The Progression from System I to System IV
Likert argued that organizations naturally evolve towards System IV due to several factors. System I, while potentially effective in the short term, suffers from low morale, high employee turnover, and limited innovation. As organizations recognize these drawbacks, they begin to adopt elements of System II, offering some benefits to employees. However, System II still lacks genuine employee involvement. The realization that employee engagement drives productivity and innovation leads organizations to embrace System III, fostering a more collaborative environment. Finally, the full potential of employee empowerment is realized in System IV, leading to higher levels of performance, satisfaction, and adaptability.
This progression isn’t automatic. It requires a conscious effort from leadership to shift organizational culture, invest in employee development, and create structures that support participation. Organizations may also face resistance to change from individuals accustomed to more traditional hierarchical structures.
| System | Leadership Style | Employee Involvement | Decision Making |
|---|---|---|---|
| System I | Authoritative, Fear-Based | Minimal | Centralized, Top-Down |
| System II | Benevolent-Authoritative | Limited | Mostly Top-Down |
| System III | Consultative | Moderate | Decentralized (to some extent) |
| System IV | Participative | High | Decentralized, Collaborative |
Conclusion
Likert’s statement highlights a crucial aspect of organizational evolution – the shift from control-based management to empowerment-based leadership. While not all organizations reach System IV, the trajectory suggests that those prioritizing employee engagement, open communication, and collaborative decision-making are better positioned for long-term success. The theory remains relevant today, offering valuable insights into the dynamics of organizational behavior and the importance of adapting management styles to meet the changing needs of the workforce and the competitive landscape.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.