Explanation:

It is the first system in Likert's Leadership Styles. Under this style Likert states that the ultimate power lies in the hands of the top subordinates. The Top management makes the policies and rules and the employees in the lower level are bound to follow the instructions given to them by their superiors. Here, it is observed that the workers at the lower level do not feel free to discuss their work with their superiors. The communication and teamwork in this system are very little. 

The leaders in the system of Exploitative authoritative have a lower level of concern for their employees. They use threats or methods that involve fear to achieve their work. The method of threat works well and the employees work efficiently upon entering the organization. The leaders are ignorant of the psychological feelings of the employees and the communication between them is almost nil.  In this type of system, the upper management burdens employees with a heavy workload and they are to finish the work without fail. The monetary benefits and work satisfaction in this type of system is very less.