The System 4 Management Approach - Coursework Example

Likert’s System 4 Management Name Course Title Instructor’s Name Institution Location Date Table of Contents 1.0.Introduction 3 2.0. The System 4 Management Concept 3 3.0. Major Characteristics of System 4 Management and other Management Systems 6 4.0. Where does my organization stand in terms of its management style at this time? 8 5.0. Effect of Current Management Style on Performance and Efficiency 11 6.0. Summary and Conclusions 13 7.0. Recommendations 14 References 15 LIKERT’S SYSTEM 4 MANAGEMENT 1.0. Introduction It is indeed recognizable that business organizations develop through a long channel of steps in order to become self-sufficient and stable in undertaking daily practices. Organizational development composes of a wide range of interventions with changes necessary in moving the organization from one level to the next (Langley 2013, p.7). Organizations like emirates airlines require growing consistently till they reach a level where participative approach is utilized and each employee plays significant role in decision making processes and general supervision. The analysis in this paper takes interest in determining and analyzing the ideal steps that shall make an organization propel itself to such a participative level. In undertaking the analysis, the System 4 Management approach shall be used. The analysis in the paper thereafter takes intent analysis on the characteristics of system 4 management style. Finally, the paper scrutinizes the impacts of the current management style on organizational efficiency and efficacy. It is undeniably certain that system 4 level of organizational development is of great necessity in ensuring outstanding organizational performance and efficiency. 2.0. The System 4 Management Concept The theory behind the system 4 management approach was first deviced by Rensis Likert (Modaff, Butler and DeWine, 2016, n.d). Likert and his partners concentrated on the patterns and styles of management for thirty years at the University of Michigan, USA, and recognized a four-overlap model of administration frameworks (Higashinaka et al 2016, pg17). The model was produced on the premise of a survey directed to directors in more than 200 associations and research into the execution qualities of various sorts of associations. The four frameworks of administration framework or the four initiative styles distinguished by Likert are: Framework 1 - Exploitative Authoritative In the first system to management, Likert and his associates argued that organizational management and leadership processes are left to the top notch of the organization who have the power to make decisions and role-down decisions made to junior managers and employees (Shin and Jung, 2014, p.610). In this system, organizational hierarchy is ideal and employees are considered just like other organizational assets rather than human capital. The exploitative authoritative system maintains that employees are like strangers who are just interested in earning income and care less about organizational processes and as such they should never be trusted and granted any degree of confidence (Dietz et al. 2014, p.1035). The organization’s superlatives impose decisions on employees who have to abide by them. In this system, the subordinates have no place in organizational processes however all discussions are done by superior. Communication processes are highly limited and threats are major source of motivation. Framework 2 - Benevolent Authoritative In the benevolent Authoritative system, Likert maintains that organizational management responsibility is for the managerial level however, it is limited to senior management and executives. The system is as well strict on the hierarchical management and therefore excludes lower level management team and subordinates in the decision making processes (Van 2014, pg5). The senior management in conjunction with the organizational executives makes organizational decisions and rolls them down to lower level managers, supervisors and subordinates. In this system, the senior management have patronizing trust and confidence on the junior managers and subordinates, a relationship Likert referred to as Master-Savant relationship (Laschinger et al. 2014, p.5). In this approach, the subordinates are never free to share their experiences and ideas with their seniors for whatever reasons. Benevolent Motivation bases its motivation on rewards and though has deteriorated communication systems and teamwork (Eisenbeiss and Knippenberg, 2015, pg187). Framework 3 – Consultative In the consultative approach, responsibility is spread broadly through the authoritative progression in a learning organization. The prevalent has significant yet not complete trust in subordinates (Benn, Dunphy and Griffiths, 2014, n.d). Some measure of exchange about employment related things takes place between the predominant and subordinates. There is a decent lot of collaboration, and correspondence happens vertically and on a level plane. The inspiration depends on rewards and association in the employment. Framework 4 – Participative In the participative approach, it is believed that every person within the organization plays a significant role in organizational performance. As such, the organization achieves organizational goals through widening the span of responsibility throughout the organizational hierarchy (Brunsson, 2014, pg142). In this level, the organizational executives have high level of confidence and trust on their employees. In this system, the organization’s management takes belief that organizational performance leans on elevated levels of teamwork, all-round participation and communication. 3.0. Major Characteristics of System 4 Management and other Management Systems In determining these four management system, Likert based his discussion on various characteristics such as but not limited to leadership processes, motivational forces, communication processes, decision making processes and control processes (Cummings and Worley 2014, n.d). Likert realized that effective organizations possess effective communication processes. However, the bounds for “effective communication” remain indefinite. Likert nonetheless, ascertains that in characterizing an organization into these four systems, it is of great vitality to consider the organization’s communication processes between persons and within groups and observe the length of time people spend talking to one another as well as sources of communication interruption (Volkoff and Strong, 2013, pg820). An effective organizational system would foster communication processes and address any source of interruption that might arise during job related discussions and consultations. Secondly, an effective organization is characterized by well-defined member roles and functions where each member discerns his/her duty and makes decisions that he/she perceives necessary in increasing performance in that job (Brunsson 2014, p.143). The members, therefore, are granted the chance to make decisions appertaining to organizational problem solving processes. In doing so, the members must adhere to organizational culture as a guiding norm towards achieving objectives within the constraints that t6he organization perceives right. An effective organization requires having an open leadership processes where each person is a leader in his/her own (Kolb, 2014, n.d). The four systems as discussed by Likert are based on these five principalities and ranges from rigidity to a more flexible system respective to system 1 to system 4. The four approaches, according to Likert are just but necessary steps for organization development and transformation. In essence, according to Likert, a new organization is most probable to start with system one and thereafter requires progressive interventions that would propel it from one system to another in the scale of organizational development and organizational transformation process (Langley et al. 2013, pg10). The system approach consists of interacting elements where a set of inter-related and inter-dependent part are brought together in a manner that producers a single whole. The system approach maintains that an organization is a single unit though made up of different units and people that can only work best if unified into a single whole. The system approach additionally maintains that the single units require to be studied at the inter-relationship level rather than in independent manner since all parts function together to produce a single whole. In undertaking organizational study, it should be noted that systems have boundaries that differentiates the internal from the external factors (Drori and Honig, 2013, p.351). Further, the system approach is characterized by the fact that organizations do not prosper in a vacuum but rather get impacts from information they receives as well as materials and energy they receive from other systems as inputs. The system approach recognizes environmental factors as key in shaping organizational development and transformational processes (Rosemann and Brocke, 2015, pg 115). The system management approach maintains that in understanding an organization, attention should be paid towards general effective of the whole system rather than sub-systems. 4.0. Where does my organization stand in terms of its management style at this time? When I joined Emirates Airline Company 5 years ago, it has a team of 17 executive managers, 23 senior managers, 41 junior managers, 61 supervisors, 211 casual workers, 55 non-staffs. When I joined, the organization had just began to transition its management strategy from a system where the management had great influence on decision making processes to an open system where team where each employee would participate fully in decision making processes (Eisenbeiss & Knippenberg 2015, P.191). Five years ago, the management of Emirates believed that the organization’s success shall be achieved if management play its part of decision making processes and roll the decisions made down to junior managers in time so as to facilitate operational practices. The organizational development process is indeed a learning process where organizations aim at transitioning from a lower system towards system4. From the survey, Emirates Airline Company has indeed transformed consistently towards achieving higher organizational performance and employees’ contentment towards the work they do. Currently, the organizational system can be categorized to be at system 3 (Dietz 2014, p.1033). Two weeks ago, I performed a small survey on how employees perceive the organization’s currently system. I divided the survey questions in three parts consisting of employees’ opinion on how the organization handles people, strategies the organization utilize to get to higher performance and the organization’s leadership and learning processes. Each question had a calibrated scale where I expected the respondents to rate the organization with respect to each and every identical question. I managed to have three senior managers and two junior managers as respondents to the survey. Out of the five, three maintained that the organization is indeed fostering learning processes and that the organization is doing great in enhancing employee development. However, the two maintained that the organization dejected learning processes and should therefore seek for better ways to enhance learning processes as well as general organizational transformation processes. Additionally, the survey outcomes showed that the Emirates airline company was showing an outstanding interest in enhancing performance by supporting general involvement of members in decision making processes. 4 out of the possible five agreed that the organization is bridging the gap between the current and expected outcomes through making learning processes available to all, recognizing people for taking initiatives and spend time building trust with each other. All the five however agreed that there is significant change in the organization in comparison with the organization’s in the last three years. Leaders are taking more initiative in enhancing followers’ learning processes through coaching and mentoring (Laschinger et al. 2014, p.5). From my experiences in the organization, I have come to realize that downward information is still of great necessity. People greatly depend on the information channeled down from the senior management down to subordinates more so in an industry like this. The organization mildly depends on the organizational hierarchy as a way of rolling down instructions and commands from senior management (Rosemann and Brocke 2015, p.113). The mild dependence of hierarchy has indeed assisted the organization to maintain high level of discipline and member compliance towards assigned duties. The downward communication has offered efficiency in to the organization since information is channeled from the source in power with great ability to coordinate organizational change. Through the downward system, employees are in a better position to get satisfactory feedbacks from the supervisor. In my organization, majority of employees look forward to downward communication. There is a class of employees who must be instructed on what to do before getting to duty. Downward communication has indeed assisted the Emirates Airline Company in communicating vital information down to the employees, for instance, communication was vital in implementing the USA ban on some citizens without losing the affected customers in the process. (Volkoff and Strong 2013, p.826) Upward communication is essentially the established communication where information is channeled from the subordinates and junior managers to the senior managers. In my organization, employees utilize upward communication to pass across vital concerns, complains as well as opinions in order to improve our management style as an organization. Emirates airlines has showed a consistent pattern of embracing total upward communication system, though it is still minimal. Currently, the management uses the upward communication technique to seek for feedback that could assist steer forward the organizational success from the employees (Wart 2014, n.d). Additionally, front line employees use the upward communication to explain to the management what they feel works best for the organization and in introduction of new policies to help better management. The organization however has not developed the full trust and confidence or its employees and the relationship between employees with the management is still deteriorated. In the organization, downward communication still reigns over upward communication. The management prefers a scenario where they make decisions and roll the decisions make down to junior managers and subordinates though senior managers play a significant part in the decision making processes. The organization is yet to discover its socialization processes as an ideal method to embracing change and enhancing transformative organizational development processes (Shin and Jung 2014, p.613). The leadership sometimes resorts to using subordinate’s ideas in decision making processes this is based on the fact that, they are the first point of contact with the customers. For the organization to use subordinate’s ideas to make final decisions, the management must have done thorough analysis on the underlying situation and are indeed convinced or have no otherwise but to make decisions in favor of the subordinates interest. The degree of warmth and support between the employees and management is substantial. Despite the close relationship between employee and management, it is ascertainable that the management, in its decision making processes are selective and does not foster 3600 involvement and participation of employees. Emirates airlines has played an outstanding part in ensuring that employees are rewarded and encouraged accordingly. The organization applies the employee appraisal technique to determine the most performing employees and reward them accordingly. Most employees are contented with the prevailing leadership style and believe that it necessary in steering forward the organization. The organization has played a fundamental role in ensuring that it does not operate at stringent rules and policies that could otherwise deter employees’ performance within the organization (Langley et al. 2013, p.9). 5.0. Effect of Current Management Style on Performance and Efficiency It is clear from the above discussion that my organization is at level three of the linkert’s management systems. This approach is based on human relation theory. It recognizes that humans are indeed the greatest assets that the organizational has and therefore the management is compelled to indulge other levels of management within the organizational hierarchy in the decision making processes (Brunsson 2014, p141-144). This management system has impacted in different ways on the organizations performance and efficiency. By appreciating people as an organization’s critical asset, the people are relatively motivated towards work. The system emphasizes on both upward and downward communication which are indeed vital in ensuring outstanding organizational performance (Drori and Honig, 2013, pg354). The senior managers are in a position to conjoin with junior manager, discuss issues that they deem necessary in enhancing organizational or departmental success. Since junior managers and supervisors possess better understanding of the employees, they are in a better position discern the factors affecting employees’ performance and thereafter request the senior management to make necessary adjustment (Drori and Honig, 2013, pg353). Such adjustments are indeed of great vitality in enhancing employees’ morale towards work which in the long-run impacts positively of the organizational general performance and efficiency. The upward and downward communication systems are also central in ensuring teamwork within the organization and improving management (Benn, Dunphy and Griffiths 2014, n.d). Since my organization achieved the consultative management approach, the organizational teams have been more efficient than ever as team members have been always ready to work with each other unbounded by austere communication policies and stringent hierarchies. Additionally, the relationship between employees with their supervisors has indeed boosted significantly and as a result, the employees have showed overwhelming interests to commit themselves to their duties with minimal supervision which at the long run enhances organizational efficiency. Additionally, the management style has created a system where responsibility is spread out to various participants unlike a system where all directives generate from a single focal point (Cummings and Worley 2014, p.77). The spreading out of duties ensures that people always do the right thing all the times and all undertakings are aimed towards achievement of organizational goals. The finance and accounting department for instance, have been facilitated by this approach to segregate it functionalities into smaller but efficient subdivisions. The department has assigned each department an accounting unit unlike the previous system where also accounts were done at a centralized treasury point. The chief accountant of each department responds to the head of treasury. As a result, accounting processes have been facilitated. The weakness of the current management system is that it recognizes only the extrinsic motivations discarding the intrinsic ones and it sometimes settles on punishment as a way of motivation (Modaff et al. 2016, p.41). As such, some employees feel that they work under coercing and that their expectations are not well addressed. 6.0. Summary and Conclusions Management style applied by an organization greatly affects and is directly correlative to the organizational performance and efficiency. Likert’s four system modem ascertains that there are essentially four styles of management consisting of exploitative authoritative, benevolent authoritative, consultative and participative. Likert establishes that consultative and participative approaches are indeed the management approaches that can propel an organization to greater heights and that exploitative authoritative and benevolent authoritative are management styles that shall undoubtedly work towards sinking down the organization. However, he expounds that a learning organization must just pass through the systems so as to finally achieve the system 4, the participative approach which is indeed the best management technique. Linkert describes system four as a system focused in team building, open communication, performance orientation, collaborative approach, humanistic orientation and system orientation where he expounds that all these factors are crucial in ensuring organizational success (Wart 2014, p.23). To ensure consistent rise of an organization from one system to the next, the management must identify indicators of change and discern the effective steps in organizational transformation. Emirates airline has shown consistency in embracing better management techniques through effective means. In the organization, need for change is propelled by internal factors such as need to go global, flattening structures and reengineering as well as external factors such as competition, market and product. It is undeniably certain that system 4 level of organizational development is of great necessity in ensuring outstanding organizational performance and efficiency. 7.0. Recommendations Once an organization utilises the system 4 management approach it should consider the organization’s communication processes as it’s instrumental in its overall management and implementation of the intended change. Moreover, effective organizational system integration would foster leadership and change as well as addressing any source of interruption in the running of the organization. The system 4 approach will be essential in helping emirates airlines to define member roles and functions among our employees in order to improve on productivity and motivate the employees to avoid situation like those where an American airline ejected a passenger on presence of being full. Through the system 4 approach an organization will be required to have an open leadership processes where each person is a leader in his/her own thus, creating a culture of openness as well as motivating all the employees without emphasising on their ranks and job groups. Subordinates should be actively involved in the decision making process and eventually improve its management. Upward and downward communication is indeed vital in organizational management and as such the implementation of the system 4 approach will surely rely on this and help an organization like emirates that relies heavily on uninterrupted communications. References Benn, S., Dunphy, D. and Griffiths, A., 2014. 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