Rensis Likert was the director of

Michigan Institute of social

research,U.S.A. He conducted
extensive research for fourteen
years with the help of 40
researchers in the field of
Likert’s leadership. Likert treats the
organisation as a complex system

System based on the principle of

supporting relationships, in which

Management decision-making,leadership,motivati
on,communication and control
move together. He was of the view
that these variables are measurable
and could be related to production
and profit over time.
Under likert system,Rensis
likert classified leadership
styles into four categories-

1. Exploitative Autocratic -
In this style,there is no participation of
workers because these leaders have no
confidence and trust in subordinates.

2. Benevolent Autocratic -
There is no proper confidence in
subordinates and the relationship is that
of a master and a servant.

3. Participative -
The subordinates are allowed to participate in decisions involving
their lives. Leader does not have full confidence in them.

4. Democratic -
In this style the confidence and trust in subordinates is full and they
meaningfully participate in decision-making.
Characteristics of Likert’s system leadership styles
Leadership System 1
(Exploitative
variable
Autocratic)
Confidence and trust Has no confidence and
is subordinates trust is subordinates
Subordinates does not
Subordinates
feel at all free to discuss
feeling of freedom things about the job with
their superior
Superiors seeking Seldom gets ideas and
opinions of
involvement with
subordinates in solving
subordinates
job problems.
System 2 System 3 System 4
(Benevolent
(Participative) (Democratic)
Autocratic)
Substantial but not Complete confidence
Has condescending
complete confidence and trust in all matters
confidence and trust
and trust
Subordinates does not Subordinates feel
Subordinates feel completely free to
feel very free to discuss
things about their job
rather free to discuss discuss the job with
thing about the job with their superior
with the superior
their superior
Sometimes gets ideas Always asks
Usually gets ideas and
and opinions of opinions and usually tries subordinates for ideas
subordinates in and opinions and
to makes constructive use
solving job problems. of them. always tries to make
constructive use of
them.
 The Managerial Grid
(Blake and Mouton)
Robert R. Blake and Jone S.
Mounton developed the
managerial Grid which has been
used as a means of managerial
training and identifying various
combinations of leadership:
(i)Concern for people; and
(ii)concern for production.
There are five representative styles of leadership
on the managerial grid :
1. Impoverished Management -
The first style (1.1) is the impoverished management under
which the manager is least concerned with either people or
production.
“Exertion of minimum effort to get required work done is
approproate to sustain organisation member.”

2. Country Club Management -

The country club management as shown in the grid at 1.9 is one
in which the management (leaders) have great concern for their
people but lack production orientation. “Thoughtful action to needs of people for
satisfying relationships leads to a comfortable friendly organisation atmosphere
and work tempo.”

3. Task Management -
“Efficiency to operations result from arranging conditions for work in such a way
that human elements interfere to a minimum degree.” As shown in the grid 9.1,
the leader with high concern for production fall under this style. Their concern
for people, however, is minimum.

4. Team Management -
“Work accomplishment is from committed people, interdependence through a
common stake in organisation purpose leads to relationship of trust and respect.”
As shown in the grid at 9.9, the leaders having high concern for production as
well as people fall under this style.
9
5. Middle of the Road -
“Adequate organisational performance is possible through balancing
the necessity to get out work while maintaining morale of people at a
satisfactory level.” This has been shown in the grid at 5.5. The leaders
of this style have medium concern for both people and production and
try to maintain a balance in the two.

The managerial grid implies that the most desirable leader behaviuor
is team management (9.9) in which the leader has high concern for
production as well as people. The managerial grid is useful for
identifying various combinations of leadership styles. But it is unable
to point out the factors which lead the manager to such a style.