Strategic Management: Formulation and Implementation

University Of Michigan Studies

The leadership studies conducted at the Institute for Social Research at the University of Michigan were done under the direction of Rensis Likert. The studies were conducted in both private and public organizations an included businesses from numerous industry grouping.

The Michigan group also came up with two dimensions of leadership behavior that they labelled employee oriented and production oriented . Employee oriented leaders are those who place strong emphasis on the welfare and motivation of subordinates. Production oriented leaders tend to place a stronger emphasis on getting the work done that on the welfare and motivation of the employees.

Early interpretations of the Michigan research concluded that the most effective leadership style is employee oriented. This is an important difference between the Ohio State and Michigan studies. However the Michigan studies does not clearly show that one particular style of leadership is always the most effective. Rather. it is argued, effectiveness of a given leadership style depends on situational factors.