Topic > Buffett Leadership Analysis - 767

An American icon for millions of investors around the world, we decided to explore his leadership style that contributed to his success. Buffett is well known for his leadership style because it is a combination of democratic style (also known as participatory style), servant leader, and self-empowered leadership. According to Hersey and Blanchard's situational theory (as cited in Daft, 2008 p.71 ) describes that a leader's style is determined by the attributes of his followers as a crucial element of the theory. Labels that the level of preparation, willingness and skills of subordinates determine the style of a leader. Buffett falls into the participatory style, where he reflects a low concern for the task and a high concern for relational behavior (Daft, 2008). Since Buffett has exceptional people with good judgment, he identifies capable and talented individuals who can put themselves in his shoes and perform the task correctly. Involves his employee/team in decision making, thus increasing the level of job satisfaction among workers; so they are motivated to work hard by more than just financial reward. It is because all of his managers have the necessary experience, education and skills, yet they may feel insecure in their ability and level of preparedness to accept the responsibility of the task assigned to them by Buffett. Therefore, it treats its managers as equals, providing them with an overall goal, guidance and resource, and empowering them to make decisions and carry out tasks as they see fit. They also treated those who know their customers, businesses and stakeholders as equals as he trusted them with everything from succession to managing his organisations' accounts. Another factor that contributes to this style is that he feels he has enough control… mid-paper… as far as operating companies are concerned, he implements a participatory or democratic leadership style. Due to the limited number of employees from all his companies, all managers report directly to him and therefore he is the one making the decisions. Furthermore, all decisions regarding a company's capital expenditure and allocation decisions are primarily made by him, and this has an effect on his leadership style. But since he is also interested in investments, he always considers his employees, stakeholders and customers as the main contributing factor to his success, which leads to his servant leadership style. The reason why he decided to choose Warren Buffet as the leader to research is because he is the man who courageously made a huge investment during the worst economic crisis, when other investors did not dare to do so. Personally we think it's magnificent