Casual and Intervening Variables

Likert argued that casual variables of managerial behaviour and organization structure affect and are affected by certain intervening variables e.g motivating factors, goal performance, extent and nature of communication and are related to cause and results like profits, sales, costs and other enterprise goals and the result of human satisfaction.

Control of human organization may be looked upon both as control of individual managers and as the overall control of human side of enterprise. Likert and his associates attempted to come up with methods for measuring the value of the human assets of an enterprise. This mainly is covered under human asset accounting to cover the entire spectrum of human resources i.e. assets represented by people within the firm and the values represented by customer good will. Human resource accounting is however still not largely embraced by many organizations so few firms have undertaken to measure the investment cost and losses in human resources. No one interest in effective control of enterprise can afford to disregard the importance of maintaining the value of human assets.