Principles of Hotel Management

Main Systems : Prof. Rensis Likert and his associates at
the University of Michigan have studied the patterns or styles
of leaders. In the course of this research, Likert has developed
four systems/styles of leadership that exemplify different
behavioural aspects of leaders. They are as follows :
System 1: Exploitative-authoritative leadership System 2 :
Benevolent- authoritative leadership System 3 : Consultative
leadership System 4 : Participative group leadership.
System 1 : Exploitative-authoritative-System leadership is
described as “exploitative-autocratic or
authoritative.” In this kind of leadership system,
leaders/ managers are highly autocratic. They
have little confidence and trust in subordinates.

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Principles of Hotel Management
They motivate subordinates mainly through
fear and punishment. They rarely or
occasionally reward them. They make all
decisions. They mostly use downward
communication and have little interaction with
subordinates. Likert found that productivity
under this system is mediocre.
System 2 : Benevolent-authoritative-Under this system
style of leadership, leaders have patronising
confidence and trust in subordinates. Leaders
take a very paternalistic attitude. Managers
make decisions but subordinates have some
degree of freedom in doing their job. Leaders
motivate subordinates with rewards and also
through some fear and punishment. They
permit some upward communication and solicit
some suggestions and ideas from
subordinates. Under this system, productivity
ranges from fair to good.
System 3 : Consultative leadership-In this style of
leadership, leaders/managers have substantial
but not complete confidence and trust in
subordinates. Leaders consult their
subordinate managers before setting goals
and making policy decisions. However,
operating decisions are made at lower levels
in the organisation. Subordinates have
considerable degree of freedom in making
decisions about their job. Leaders usually try
to make use of subordinates ideas and
suggestions. They tend to use rewards for
motivation with occasional punishments.
Leaders usually tend to rely on two-way
communication.

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Focus of Management
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