Buffett Leadership Analysis

American icon for millions of investors in the world, we have decided to explore his leadership style which has contributed to his success. Buffett is well known for his leadership style because it is a combination of democratic (also known as participating 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 their followers as a crucial element of the theory. It labels that subordinates readiness level, willingness and abilities determines a leader’s style. Buffett falls under participating style, where he reflects low concern for task and high concern for relationships behaviour (Daft, 2008). Since Buffett has exceptional people judging skills, he identifies capable and talented individuals who can step into his shoes and carry out the task properly. He involves his employee’s/team in the decision making process thus it increases job satisfaction level among the workers; so they are motivated to work hard by more than just financial reward. It is because all his managers has necessary experience, education, and skills however they might feel insecure in their ability and readiness level to accept the responsibility for the task given to them by Buffett. Hence, he treats his managers as equal by giving them a general objective, guidance and resource, and empowers them to make decision and do the tasks as they seem fit. They also treated as equal who know their customers, business, and stakeholders since he trusted them with everything from succession to managing accounting of his organizations. Another contributing factor to this style is he feels that he has enough controlling...

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...o him regarding the operation companies, he implements participating or democratic leadership style. Due to small number of reporting staff’s from all his companies, all the managers are reporting directly to him and hence he ended up as the one making decisions. Also all the decision regarding a company’s capital expenditures and allocation decision are made by him mainly, it does have an effect on his leadership style. But since he also is into investment, he always considers his employees, stakeholders and customers as the major contributing factor to his success, which lead to his servant leadership style.

The reason why decided to choose Warren Buffet as our leader to research on is because he is the man who was bravely made an huge investment during the worst economic crisis when other investors did not dare to do so. We personally believe that his magnificent