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Management has many different approaches within the organization. At the institute for Social Research at the University of Michigan, Renis Likert and colleagues proposed that Management styles could be classified into one of four different systems:
System 1 - "Exploitive Authoritative"
System 2 - "Benevolent Authoritative"
System 4 - "Participative Group"
I learned different management styles, while taking a management course and was highly interested in them. I decided to do my research on Likert's systems of management because of my previous knowledge and interest on the subject. I was interested in learning, in further detail, the different ways that companies can be managed.
Likert's first book about management styles, New patterns of management, was written in 1961. This book mainly supported the other books that I used for this research. Likert talks about the authoritative form of organization which has decision making from the top, and the participative form of organization which has decision making widely throughout the organization. A ten page chart, "Organizational and Performance Characteristics of different Management Systems Based on a Comparative Analysis," is presented which is broken down into seven main parts: (1) Character of motivational forces, (2) Character of communication process, (3) Character of interaction-influence process, (4) Character of decision-making process, (5) Character of goal-setting or ordering, (6) Character of control processes, and (7) Performance characteristics (later character of leadership was added). This chart is organized as is four discrete kinds of organizational systems exist, of which fall at four points of a suggested continuum: Exploitive authoritative, Benevolent authoritative, Consultative, and Participative group. "(The chart) oversimplifies the situation. The four different systems really blend into one another and make one continuum with many intermediate patterns." This reading went into depth about what types of people work in an authoritarian organization and a participative organization. (Likert-1961)
Likert wrote another book in 1967, titled, "The human organization. In this book Likert changed the names of the four styles, --Exploitive authoritative, Benevolent authoritative, Consultative, and Participative group - to System 1, System 2, System 3, and System 4; he included the same ten page chart as he did in his earlier book.
System 4 is the ideal management style, in which Likert wrote a substantial amount to back this up. He believes that the superior/subordinate relationship is extremely crucial. In proving his ideal management style as System 4, he touched upon some of the following topics:
(1) The use by the manager of the principle of supportive relationships.
(2) His use of group decision-making and group methods of supervision.
(3) His high performance goals for the organization.
Likert wrote System 1, System 2, and System 3, the other Management styles - in the form of disadvantages.
Some managers in Likert's research felt that a manager should move toward System 4 after he has achieved high levels of productivity. "They feel that the way to move from low to high productivity is to use a management system well toward the left (e.g., System 1 or 2) and move toward System 4 only after high productivity is achieved..." Research results show that managers who do hold this view are not likely to achieve high productivity in their results. Other field experiences have demonstrated - "...how difficult it is to effect substantial changes in the management system of a particular plant, department, or company and how long a period of time is required."
System 1 is moved towards when top management is trying to cut costs, increase productivity and improve productivity, even though Likert has proven in his book that management should move toward System 4.
When applying System 4 to management in a company, we learn that it will differ depending on the nature of the work and the heritage of the organization.
System 1 and System 2 are the traditional organizational structures and we learn that the form of the organization used consists of a man-to-man pattern (a). This model stars at the top of the organization - President -, which has full authority and responsibility. He/She delegates the tasks to the Vice-President, who in turn does the same to their subordinates. The continues down the line of the organization.
Terminology mentioned in this term paper
Names referenced in this report
Renis Likert, Jackson, Morgan, Ricky w. Griffin, Gibson, John H.; Morgan, Richard M., Jane Whitney,
Organizations mentioned in this report
institute for Social Research, University of Michigan,
Locations referenced in this research material
p. 80-81. 4, New York, Atlanta, Boston,
Companies mentioned in this paper
Keywords referenced in this paper
System 4, management, management style, organization, communication, management systems, organizational communication, decision making, organization theory, managers, productivity, human organization, different management styles, organizational structure, new york, performance, another book, top management, HUMAN RELATIONS, authoritarian, HUMAN RESOURCES, group, ideal, formal organization, informal organization, leadership, research, motivational processes, decision making process, Griffin, group processes, communication channel, organizational systems, Harper Collins Publishers, chart, four points, ideal model, managerial, solutions, work stoppage, LITERATURE REVIEW, Suggestion boxes, best way, results, behavioral model, labor relations, a question, a team, Social Research,