1. Likert’s Management System
Marcia Taylor
MGMT 500 PA
Organizational Behavior and
Human Resource Management
August 5, 2012
Dr. Whitney Stevens
Southwestern College Professional Studies
Rensis Likert conducted extensive research to discover the general pattern of management used by high-producing management used by high-producing managers” (Hersey et al., 2008, p. 82). Likert’s important research involving the human aspects of leadership are important to the new theories and research that are currently being used in today’s world.

2. Authoritative vs. Participative
Likert’s Management Leadership styles are depicted as System 1 through System 4.
System 1 authoritative style uses fear and threats.
System 4 participative style has a high degree of trust and confidence.
There are many leadership theories and models for supervisors and managers to use to obtain their goals. Rensis Likert management system identified four leadership styles, System 1 exploitative-authoritative system, System 2 benevolent-authoritative system, System 3 consultative system, and System 4 participative group system (Hersey et al., 2008). Likert’s research indicated managers who used System 1 leadership style tended to be low –producing, while those who used System 4 were more high performance.
The appropriate leadership style approach is an important area for my organization. My organization leans primarily towards the Likert’s System 1 approach. This approach lends to fear and threats, no decision making by the employees, and no confidence or trust in the employees (Hersey et al., 2008). This approach tends to lead to low producing employees. My organization could have high performance if the leadership style moved toward the participative style. As a supervisor, I would move the organization towards the participative style of leadership as appropriate for each employee or group. My organization has many key employees that are at the R4 level but management continues to have control over every decision. I would allow these key employees to begin to have decision making capabilities and participation in setting goals for their particular area of management. Confidence and trust would begin to be built between the top management and employees. I believe confidence and trust is a key to obtaining high performance among the employees and to the success of the organization.

3. Human Resources One of the most important assets are human resources.
Value these important assets
Human assets can affect the bottom line
Effectively managing human resources is one of the most crucial tasks
Apply appropriate leadership styles
Widespread responsibility
Likert’s research found that supervisors with best performance records focused on the human aspects of their employees (Hersey, et al., 2008). These type of supervisors are called employee centered and endeavor to build effective work groups with high performance goals (Hersey et al., 2008). Likert’s conducted many studies and surveys to determine what type of leadership styles produced the higher performance records. Employee centered supervisors tended to produce high performing work groups.
Likert’s study could be applied to my organization as well. My organization would see an increase of earnings and productivity if the administration could see the true value of the assets they have on hand. To show value of the employees at my organization, a performance measure could be instituted to reward employees. Top management should also be more employee centered opposed to job centered. Management should be more supportive of employees considering personal issues that may be affecting their job and their performance readiness level. As top management began to be supportive, loyal and communication improved with employees, the employees would in turn be loyal and supportive of the organization. Valuing the employees and applying the appropriate leadership style would improve the morale, motivation, and productivity in my organization. Likert indicated that these important assets provides the financial resources that a CEO needs to draw on when wishing to increase earnings (Likert, 1979).

4. Situational Leadership
Situational Leadership involves interplay between leader, follower, and situational variables
Analyze the situation before determining leadership style.
Analyze the followers performance readiness to determine leadership style
In the Situational leadership style, “the leadership process is a function of the leader, follower, and other situational variables” (Hersey et al., 2008, p. 62). Situational leadership as opposed to Likert’s Management Systems, involves analyzing the situation when determining the leadership styles. Another aspect of situational leadership style is analyzing the performance readiness of the follower then applying the appropriate leadership style (Hersey et al., 2008).
Leadership in my organization could benefit from the situational leadership style by analyzing the situation, then determining what appropriate leadership style is suitable for that particular situation and employee. Our employees are generally told what to do, how to do it, and when to do it. Analyzing the performance readiness of followers would also help my organization in the development process of the employees. On occasion our management will move towards Likert’s System 3 and 4 styles with certain employees, but reverts back to System 1 because that is the style they are comfortable with. In my sphere of influence, I would be more aware of the situations and apply the leadership style that is appropriate for my particular employees.

5. References
Hersey, P., Blanchard, K., Johnson, D. (2008). Management of organizational behavior: Leading human resources. Upper Saddle River, NJ: Pearson Prentice Hall.
Likert, R., From production and employee centeredness to systems Journal of Management. Retrieved from