LIKERT TYPOLOGIES OF MANAGEMENT SYSTEMS

PRESENTED TO

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF BUSINESS ADMINISTRATION

BY

GROUP 1

DEPARTMENT OF CHEMICAL

ENGINEERING

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

GEG 502 – LAW AND MANAGEMENT

AUGUST, 2018
 GROUP 1

1 130401034 EJIOGU, Emmanuel Onyekachi

2 130401032 OMOTOSHO, Tiwalade Ifeoluwa

3 130401054 SULAIMON, Saleem Babatunde

4 130401026 ARIKAWE, Adewale Samuel

5 130401077 ELEORAMO, Olubunmi Olufemi

6 140401504 IBITOYE, Aminat Ayomide

7 140401511 ALO, Folusho Micheal

8 150401536 ABDULGANIYU, Ibrahim Abayomi

9 140401508 SOTADE, Ibukunoluwa Olayinka

10 140401512 SHOFOLUWE, Ismail Shodipo

11 140401061 USMAN, Sherifideen Dolapo

 LIKERT’S MANAGEMENT SYSTEMS

Management is the attainment of organizational goals in an effective and efficient manner

through planning, organizing, staffing, directing and controlling organizational resources,

organizational resources include men (human beings), money, machines and materials.

Management is also defined as:

 The use of people and other resources to accomplish objectives. Louis E Boone &

David L Kurtz-

 The act of getting things done through people. Mary Parker Follet-

 The art of knowing what you want to do in the best and cheapest way. Frederick Taylor

MANAGEMENT SYSTEMS

A Management system is how organizations ensure things get done. Management systems can

be simple or complex, ongoing or ad hoc, standard across the organization or distinct to

individuals.

They are four management systems; the four management systems are identified as:

 Exploitive-Authoritative,

 Benevolent-Authoritative,

 Consultative-Democratic,

 Participative-Democratic.
 EXPLOITATIVE AUTHORITATIVE SYSTEM OF LEADERSHIP

Definition: This is a form of Management system guided by low teamwork and directive

management in which top managers will make all the decision. Organization goals are set at

the highest levels and communicated vertically down to the workers. There is no upward

communication from the workers on the shop floor to management.

Features:

a) Leadership has no confidence and trust in subordinates

b) Psychological Concerns of people are ignored.

c) Subordinates do not feel free at all to discuss things about the job with their superior

d) Leadership seldom gets ideas and opinions of subordinates in solving job problems.

e) Leadership use methods such as threats and other fear-based methods to make their

workers to conform

f) Leadership presides over the politics and processes

Advantages:

a) Employees immediately have excellent performance upon entering the organization.

b) The project manager is able to churn out the best decision in the best decision at

turbulent times

c) It quickens the decision-making process

d) It helps to straighten out a lethargic workforce

e) It gives an improved negotiation stance

f) Employees have an unambiguous understanding of expectations and organization goals

g) This system of leadership leads to fewer mistakes.

Disadvantages:
 a) The is an atmosphere of apathy and negativity amongst workers

b) Workers are often highly demotivated due to exploitation by management

c) There is a lack of innovation and creativity within an organization

d) This leads to monotony of operations within an organization

e) This often times leads to low productivity

f) Projects may meet budgeted goals but schedules will be lengthy (and overextended)

g) The workers oftentimes bear the consequences of bad decision making.

h) It can lead to costly mistakes especially when the leader is not very knowledgeable of

the overall decision making process.

Examples:

1. John F. Kennedy: John F. Kennedy’s time as the President of the United States was

tragically cut short, but during his time in office, he managed to accomplish quite a bit.

Kennedy’s leadership style is often described as charismatic or even transformational, but

he also showcased plenty of authoritarian characteristics.

The clearest example of his authoritarian trait was his sense of vision. He wasn’t afraid of

directing all resources and focus towards the target he felt were the correct ones. Kennedy’s

vision was to send a man to the moon and bring him back safely. Due to his authoritarian

leadership style, he was able to direct the nation’s attention and focus on achieving this

objective. The key to success was Kennedy’s ability to not only outline the vision, but to

also lay out the path to getting there.

2. Vladimir Putin: Another president who has shown authoritarian leadership qualities is

the current head of Russia, Vladimir Putin. Putin’s authoritarian style stems from his

background, as he is a former KGB agent. As mentioned above, military organizations

often benefit from this type of clear hierarchy model and it’s apparent, Putin has adopted a

similar style in his political career.

 The Russian leader also shares Kennedy’s trait of having a strong vision towards which

he pushes the country. For Putin, the vision is to restore Russian hegemony on the

global stage and to create a country that people can look up to. He has been able to

concentrate much of the country’s decision-making into his own hands. Although the

nation has democratic elections, many believe the decisions the parliament makes come

directly from Putin’s desk.

BENEVOLENT AUTHORITATIVE SYSTEM

Like exploitative authoritative system, here also, the responsibility lies with the people at the

upper echelons of the hierarchy and the only difference is that the motivation is based on the

rewards, not on fear and threat. The superior has that much trust and confidence in his

subordinates which is required in a master-servant relationship. In this system, the subordinates

are given rewards for their participation and the communication may flow upwards i.e. from

subordinate to superior, but restricted to what the superior wants to hear. Thus, in the

benevolent authoritative system also, the subordinates do not feel free to discuss job-related

issues with the superior. This results in the lack of communication and a little frame work.

Advantages

1. Motivation is based on rewards and not fear and threat.

2. Errors that may arise due to subordinate incompetence is reduced as decision making

is solely at the managerial level.

Disadvantages
 1. The teamwork or communication is very little.

2. The subordinates do not feel free to discuss things about the job with their superior.

3. Responsibility lies at the managerial levels but not at the lower levels of the

organizational hierarchy.

4. The superior has condescending confidence and trust in subordinates. (master-servant

relationship)

Examples:

1. Military: This is a typical example of a Benevolent-Authoritative Management System

in which military commanders solely make decisions but the motivation of the troops

is based on reward for service or achievement of certain milestones.

2. Lee Kuan Yew: This is the founding prime minister of Singapore who ruled it for

several years before he finally passed away in 2015. He was considered an autocrat but

always credited the team of leaders and the pioneering generation, who together turned

around the fate of a small island which had to import water and lacked all natural

resources except people. He created the first “people-powered” economy - enticing in

foreign investment and multinational corporations and developing a reputation for

competence and lack of corruption together with a highly disciplined, highly educated

workforce.

CONSULTATIVE SYSTEM OF LEADERSHIP

In this management system, the superior has substantial but not complete, trust and confidence

in his subordinates and constructively uses the views and opinions given by them. Here, the

motivation is based on rewards and the amount of the individual’s involvement in decision-

making process. The consultative system is characterized by a great flow of information both
horizontally and vertically. The subordinates feel free to discuss job-related issues with the

superiors and hence, the upward flow of communication is more into the consultative system

than a benevolent system. But still, the decisions are made by the senior people in the hierarchy.

Advantages

1. Managers working in specialized fields can benefit enormously from consultative

management. They can grow to understand how their managerial skills can benefit the

experienced professionals with whom they work and how to avoid complicating the

duties of those like engineers and scientists who have large bodies of specialized

knowledge, states leadership with you.

2. Consultative management can create an attitude of involved pro-activity within a

workplace. If employees feel that they can speak up and voice their opinions, they are

more likely to participate in problem solving and to bring concerns to managers so that

they can be discussed and solved together.

3. Consultative management can also serve to develop admirable traits in a leader and to

make them an approachable figure to those they manage. Traits a leader can develop

through exercise of the consultative style include humility and ability to communicate

as equals with anyone.

Disadvantages

1. It may be time consuming to reach conclusions

2. Subordinates may dominate or it may be that they may cause disruptions.

Examples:

1. Academia: Here in a typical academic setting, the leadership constantly requests for

feedbacks from the subordinates e.g., students and staffs. These decisions are instrumental

in guiding the decision making process.

However, the choice whether or not to follow the suggestions of the subordinates is left to

the discretion of the Leadership.

2. Religious Organizations: Religious leaders receive information from subordinates. These

decisions are instrumental in guiding the decision making process.

Just as it is in the Academia, the choice whether or not to follow the suggestions of the

subordinates is left to the discretion of the Leadership.

PARTICIPATIVE SYSTEM OF LEADERSHIP

In the participative system, the management has full confidence in his subordinates and

encourages them to participate actively in the decision-making process. Here, the subordinate

feels absolutely free to discuss any issues related to a job with his superior. This system is

characterized by a good teamwork and teams are linked with people, who are the members of

more than one team and such people are called as “linking pins”. The subordinates get

motivated through rewards for their participation in the decision-making process.

Advantages
1. Increase in productivity: An increased say in decision making means there is a strong

feeling of association now. Thus, the employee assumes responsibility and takes charge.

There is lesser delegation or supervision from the manager. Working hours may get

stretched on their own without any compulsion or force from the management. All these

lead to increased productivity.

2. Job satisfaction: In lots of organizations that employ participative management, most of

the employees are satisfied with their jobs and the level of satisfaction is very high. This

is especially when people see their suggestions and recommendations being implemented

or put to practice. Psychologically, this tells the individual employee that, ‘he too has a

say in decision making and that he too is an integral component of the organization and

not a mere worker’.

3. Motivation: Increased productivity and job satisfaction cannot exist unless there is a high

level of motivation in the employee. The vice versa also holds true. Decentralized

decision making means that everyone has a say and everyone is important.

4. Improved Quality: Since the feedbacks come from people who are part of the processes

at the lowest or execution level, even the minutest details are taken care of and reported.

No flaw or loophole goes unreported. Quality control is thus begun and is ensured at the

lowest level.

5. Reduced Costs: There is a lesser need of supervision and more emphasis is laid on

widening skills, self-management. This and quality control means that the costs are

controlled automatically.

Advantages

1. Decision making slows down: Participative system of leadership stands for increased

participation and when there are many people involved in decision making, the

process definitely slows down. Inputs and feedback starts pouring from each side. It
 takes time to verify the accuracy of measurements which means that decision making

will be slowed down.

2. Security issue: The security issue in participative management also arises from the

fact that since early stages too many people are known to lots of facts and

information. This information may transform into critical information in the later

stages. There is thus a greater apprehension of information being leaked out.

Examples:

1. Google: Founders Sergey Brin and Larry Page developed their Internet search engine while

pursuing their doctorates at Stanford. After obtaining initial financing, they did something

unusual. Brin and Page followed the advice of experienced entrepreneurs and hired Eric

Schmidt to jump-start their company. The three immediately began scouting experienced

talent to set up democratic/participative teams. Today, Google remains relatively

democratic in its approach to product development under CEO Page.

2. Muhtar Kent: He is CEO and chairman of the board at Coca-Cola. He has a reputation for

seeking input from others on key decisions. Kent has an inclusive style that reflects his

commitment to diversity. The New York-born executive is as committed to improving

managerial processes and manufacturing efficiencies as he is to teamwork. He worked his

way up the corporate ladder, in part, by doubling Coca-Cola’s bottling operations output.

As CEO, Kent built collaborative management teams to address slowing sales growth and

tackled challenges from global competitors

CONCLUSION

Different management systems can result in varying degrees of effectiveness. What works

for one organization may not be optimal for another. Based on the various expectations of

the Leadership, the right management system can be chosen