Rensis Likert, a renowned organizational psychologist, introduced four distinct management styles in his influential book “New Patterns of Management” in 1961.
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These styles were formulated based on the varying degrees of employee involvement and participation in the decision-making process. Each style represents a unique managerial approach, exerting different effects on employee satisfaction, productivity, and overall organizational performance.
- Exploitative-Authoritative Style: This style is characterized by a hierarchical and authoritarian management approach, where managers retain complete control and make decisions without involving employees. Communication tends to be one-sided, with limited trust between managers and their subordinates. This style often leads to low morale, resistance, and high employee turnover.
- Benevolent-Authoritative Style: In this style, managers adopt a relatively more benevolent approach while still maintaining the ultimate decision-making authority. They take into account employee welfare and consider their suggestions before making decisions. However, the final say remains with the manager. This style creates a somewhat improved work environment, but employees may still feel restricted in their influence.
- Consultative Style: The consultative style emphasizes active involvement of employees in the decision-making process. Managers actively seek input from their subordinates and value their opinions before making final decisions. However, the ultimate decision-making power still rests with the manager. This style fosters better employee satisfaction as they feel more engaged and involved in the decision-making process.
- Participative Group Style: The participative group style represents the highest level of employee involvement in decision-making. Managers collaborate with employees, granting them significant autonomy and responsibility. Open communication, strong trust, and a sense of teamwork are characteristic of this style. It promotes high employee morale, motivation, and commitment, resulting in increased productivity and a culture of innovation.
It’s important to note that Likert considered the participative group style as the most effective and beneficial for organizations. This style encourages a supportive work culture that empowers employees. The four styles form a continuum, with the exploitative-authoritative style being the least desirable and the participative group style being the most desirable for achieving organizational success.