Likert marshals empirical evidence to show the prevalence of Systems 1 and 2 management practices in low performance units, and Systems 3 and 4 management practices in high performance units. Even if the former occasionally produce high performance, such performance is short lived. On the other hand, the latter ensures high level of performance over fairly longer periods. Further, the high level performance achieved by System -1 management is generally under considerable stress and strain contributing to deterioration of not breakdown, in employee morale. On the contrary, the high level performance realized by System-4 management is under more durable conditions of achievement motivation of individuals leading to their self-actualization. Why do most organizations fail to recognize the advantages of management Systems 3 and 4 persist with system 1 and 2 practices? To Likert, it is mainly because of the widely prevalent notion among managers that consultative and participative methods can be used only after high performance has been achieved. Therefore, top managements have a tendency to persist in System 1 and 2 practices.