Key management theory explained

 

Reference to any literature produced by the theorist

 

Student opinion on theory
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Rensis Likert was born on the 5^th of August 1903 and died on the 3^rd of September 1981. Hes an American social scientist who developed scales for attitude measurement and he introduced the concept of participative management. 

After studying economics and sociology at the University of Michigan and psychology at Cumbria University. Likert went on to teach psychology at New York University (1930-1935) before moving to Hartford. Where he wanted to become the director of research for the life insurance Agency Management Association. 

In his early career Likert wanted to find effective and systematic means of studying Human attitudes and the factors that influence them. His research led him to develop and come up with a scale of attitude measurement. Which is now known as the Likert Scale, it offers means of determining attitudes along ranges of choice. For example; ‘strongly agree’ ‘agree’ and ‘strongly disagree’ 
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Rensis Likert has studied human behaviour within many different organisations. After extended research he concluded that there are four systems of management. According to Likert, the efficiency of an organisation or its departments is influenced by their system of management. The four management systems were categorised. 

EXPLOITIVE Authoritative system 1- in this type of management system the job of the employees is to abide by the decisions made by their managers and those with a higher status than them in the workplace.  No employees should get to decide on any decisions, the organisation is concerned simply about completing the work. The organisation will use fear and threats to make sure employees complete the work set. There is no teamwork involved.

BENEVOLENT Authoritative system 2-  Decisions are made by those at the top of the organisation and management. However, employees are motivated through rewards for their contribution, rather than fear and threats. 

COUSULTATIVE system 3- in this type of management system, employees are motivated by rewards and a degree of involvement in the decision making process. Management will constructively use their subordinates ideas and opinions. However involvement is incomplete and major decisions are still made by senior management.

PARTICIPATIVE/GROUP system4- 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 calls people in more than one group “linking pins”. Employees throughout the organisation feel responsible for achieving the organisation’s objectives. 

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