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Buffett's Laissez-Faire Leadership Style

Warren Buffett is known as one of the greatest businessmen and investors. He runs Berkshire Hathaway using a laissez-faire style of leadership, giving employees freedom in their work and evaluating results. Buffett focuses on hiring the right people and letting them make their own decisions. Steve Jobs was an autocratic leader as CEO of Apple, needing to make all major decisions himself. This caused issues as it prevented new ideas and was considered outdated. Jobs could be obsessively controlling and took credit from others. Indra Nooyi is a democratic CEO of PepsiCo, valuing employees' ideas and input. She communicates well and personally thanks employee families. Nooyi treats employees fairly

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367 views2 pages

Buffett's Laissez-Faire Leadership Style

Warren Buffett is known as one of the greatest businessmen and investors. He runs Berkshire Hathaway using a laissez-faire style of leadership, giving employees freedom in their work and evaluating results. Buffett focuses on hiring the right people and letting them make their own decisions. Steve Jobs was an autocratic leader as CEO of Apple, needing to make all major decisions himself. This caused issues as it prevented new ideas and was considered outdated. Jobs could be obsessively controlling and took credit from others. Indra Nooyi is a democratic CEO of PepsiCo, valuing employees' ideas and input. She communicates well and personally thanks employee families. Nooyi treats employees fairly

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Laissez Faire

Warren Buffett is not only known as one of the world's greatest businessman, but he is
also counted amongst the worlds best investors. Once considered to be the richest man in the
world, Buffett is the C.E.O. of Berkshire Hathaway which he runs using a laissez-faire style of
leadership. The laissez-faire method of management is a way of managing your employees by
giving them lead way with their work and then evaluating their results. Warren Buffett is a great
example of a leader who used that method throughout his dealings with employees and has seen
a great result. When it comes to Laissez-faire, Warren Buffett really focuses on hiring the right
employees to run his businesses, and then giving them freedom to make their own decisions. I
believe in getting things done through other people. Warren Buffett (Cheah, 2013) I would
say that his quote from Warren Buffett exemplifies the picture of the leader sitting away from
the group because Warren is that type of leader (McQuerry, 2015)
Autocratic
Steve Jobs, the co-founder of Apple and one of the most influential businessmen.
He ruled over his employees with an Autocratic style of leadership which is shown in
the military, being one of the easiest types of autocratic leadership to recognize
(inchworm73533, 2010). Being an autocratic leader is being somebody who needs to
always make the last decision and hardly ever allows any say from his subordinates in the
serious decisions making processes. Jobs had a very hands on style of management which
caused several grievances over the course of time at Apple and Steve even found himself
dismissed from the company in the early days of the organization. Being an autocratic
leader in this day and age has become primitive because nowadays it is more important to
initiate new innovative ideas instead of just commanding a group of people (McCrimmon,
2007) and it caused Steve Jobs a lot of issues in his business. Ronald Riggio a professor
of leadership said that Jobs could also be a tyrant. He was obsessively controlling, and
given to fits of rage, throwing tantrumstook credit for others ideasand fell short of
the qualities possessed by the very best leaders (Williams, 2012).

Democratic
A democratic leader is a manager that should be a peoples person. They are very
open-minded, and listen to all of their employees ideas and value them. That is why I
choose The Avengers as my democratic leadership example because they all value each
other and allow each member of the to take part in the discussion (Kandoi, 2014). A
democratic leader should be able to make a decision on their own but they value a good
decision from their employees. Indra Nooyi, the C.E.O. of Pepsico, is a very strong
communicator and she would consider that as one of the most important traits in a
manager. Nooyi stated, You can not over-invest in communication skills (Hedayati,
2014). Indra is very personal with her employees which is important as a democratic
leader. For example, she will even go as far as writing letters to their families to thank
them for their relative. Nooyi is beyond fair with her employees and wouldn't burden
them with unrealistic tasks. She said, I wouldnt ask anyone to do anything I wouldnt
do myself. (Snyder 2015).
As you can see from the examples of managers who have found substantial
success using a wide variety of leadership styles that if used properly they can all create a
profitable business and successful work atmosphere.

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