Exploitive-authoritative System – 1
Likert’s first system is characterized by goal setting and decision-making by the top management and communications flow downwards. The subordinates so not participate in the decision-making process. In this management system the subordinates are not trusted by the management and the employee’s job is to abide by the decisions of the managers. The organization is concerned only about completing the work. It used fear and threats and sporadic rewards to make employees complete the work assigned. There is no teamwork involved.