System 4

System 4 is the code Rensis Likert gave to the future of organizations moving away from the bureaucratic model of Max Weber, which he referred to as System 1. Likert used a psychological analysis of organisations and conducted extensive research using questionnaires that try to locate the extent to which organisations are compliant with system 1, system 4, or in between.

The Four Basic systems of Organization Likert outlined are:

SYSTEM 1: Exploitive Authoritative - management uses fear and threats; communication is top down. Responsibility lies in the hands of the people at the upper levels of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats. SYSTEM 2: Benevolent authoritative - management uses rewards; communication upward is censored or restricted. The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards. SYSTEM 3: Consultative - management offers rewards and sometimes punishments; broader communication stream downward, upward is cautious. Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job. SYSTEM 4: Participative Group – team oriented; free communication cooperative. Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation.

Three Key Elements of The System 4 Management Model

A. The Manager’s use of the principle of Supportive Relationships B. The use of Group Decision Making in an overlapping group structure C. The Manager’s high performance goals for the Organization

Rensis Likert's Systems 1 to 4: [1]