REPORT ON LEADERSHIP STYLE OF BILL GATES
SUBMITTED TO: DR. DR . SWA SWATI AGARW AGA RWAL AL
SUBMITTED BY: BY: Dhananjay Kumar
Jaipuria institute of management, Noida
William (Bill) H. Gates III is co-founder co-founder,, chairman chairman and chief executive executive
officer of Microsoft Corporation, the world's leading provider of software for personal computers. Bill Gates was born on October 28, 1955. He and his two sisters grew up in Seattle. Their father, William H. Gates II, is a Seattle attorney. Mary Gates, their late mother, was a schoolteacher, University of Washington regent and chairwoman of United Way International. Gates attended public elementary school before moving on to the private Lakeside School School in North Seattle. It was at Lakeside that Gates began his career in personal computer software, programming computers at age 13. In 1973, Gates entered Harvard University as a freshman, where he lived down the hall from Steve Ballmer, who is now Microsoft's president. Whil Whilee at Harv Harvar ard, d, Gate Gatess deve develo lope ped d a vers versio ion n of the the prog progra ramm mmin ing g language BASIC for the first microcomputer - the MITS Altair. BASIC was first developed by John Kemeny and Thomas Kurtz at Dartmouth Colle College ge in the the mid-1 mid-196 960s 0s.. In his his juni junior or year year,, Gates Gates dropp dropped ed ou outt of Harvard to devote his energies full-time to Microsoft, a company he had started in 1975 with his boyhood friend Paul Allen. Guided by a belief that the personal computer would be a valuable tool on every office desktop and in every home, they began developing software for personal computers. Gates' Gates' fore foresig sight ht and and visio vision n rega regardi rding ng pers persona onall compu computi ting ng have have been been central to the success of Microsoft and the software industry. Gates is acti active vely ly invo involv lved ed in key key mana manage geme ment nt and and stra strate tegi gicc deci decisi sion onss at Microsoft, and plays an important role in the technical development of new products. Much of his time is devoted to meeting with customers and staying in contact with Microsoft Microsoft employees around the world through email. Facts about Bill Gates
1. Queen Elizabeth gave him the title of 'Knight Commander of the Order of the British Empire'. 2. IBM contracted him for the development of their first Personal Computer. 3. He is the Co-Founder and the Chairperson of Microsoft. 4. He is the world's third richest person (As per the survey done in 2008) 5. He is an American Business Magnate.
6. Yes, it is Mr. Bill Gates, a living example of success. 7. Microsoft Windows is the world's most successful operating system. And the man behind its success is Bill Gates. Bill Gates - A Successful Entrepreneur Ent repreneur
Gates is one of the most successful successful entrepreneurs entrepreneurs of the world. He is able to run a successful and a profitable entrepreneurship for many years and even today, we cannot survive in this competitive world without it. Visi ision and and dedi dedica cati tion on are are the the key key fact factor orss of bein being g a succ succes essf sful ul entr entrep epre rene neur ur and and thes thesee skil skills ls were were pres presen entt in Bill Bill Gate Gatess from from the the beginning. He has got the skills to identify the most suitable employee for recruitment. The success of Microsoft is the true example of the entrepreneurial skills of Bill Gates. The success story of Bill Gates is highly motivating for all the upcoming entrepreneurs. His His hard hard work work,, dedi dedica cati tion on and and self self-c -con onfi fide denc ncee help helped ed him him to earn earn everyt everythi hing ng he has. has. He is a simp simple le man man and and sligh slightly tly cons conserv ervat ative ive in regards of money although he is one of the richest people of the world. The youth can take inspirations from the life of Bill Gates. So it can be concluded that Bill Gates is one of the ideal personalities of the world who has honestly contributed towards the world's success. Achievements as a successful entrepreneur
The list of achievements of Bill Gates is so long that a book can be writ writte ten n abou aboutt it. it. Some Some of his his achi achiev evem emen ents ts are are ment mentio ione ned d belo below: w: 1. In 2005, Bill Gates knighted by Queen Elizabeth Elizabeth II for his contribution contribution to the British economy. economy. His title will be 'Knight Commander Commander of the Order of the British Empire.’ 2. Time Magazine included his name in '100 most influential people of 20th century'. His name was continuously there from 2004 till 2006. 3. He has received doctorates from various universities and institutes like Harvard University and The Royal Institute of Technology. 4. Bill Gates and his wife have done many generous works for the welfare of the society. For this, they have received the award of 'Order of
the Aztec Eagle' in Mexico. 5. Sunday Times included his name in its Power List in 1999. 6. Forbes Magazine listed his name in 'The World's Richest People' from the year 1995 to 2007. 7. Berkshire Hathaway, an investment company, approached him to be the Director of the company. In 2000 Gates resigns as CEO of Microsoft to spend more on software architecture and less with running the company
CHARACTERISTICS OF BILL GATES
INTELLIGENT
He believes that if you are intelligent and know how to apply your inte intell llig igen ence ce,, yo you u can can achi achiev evee anyt anythi hing ng.. From From chil childh dhoo ood d Bill Bill was was ambitiou ambitious, s, intellige intelligent nt and competit competitive ive.. These These qualiti qualities es helped helped him to attain top position in the profession he chose. VISIONARY
Microsoft's vision is "A computer on every desk and Microsoft software on every computer he will continue continue to stomp out the competition until he dies. Every business and household must have a computer and must run Microsoft software”, was the basic guiding vision of Bill Gates. PASSION
When as a student at the Harvard University, every single student would have wanted to be part of the great institute and graduate to be successful, Bill Gates decided to stop studying and pursue his dream of writing software’s for every computer in the world He was was just just passi passiona onate te abou aboutt softw software are,, codi coding ng and and tech technol nolog ogy y that that incidentally also made him the richest man in the world INNOVATION
Gates and Allen were assisted by a staff of six, which included four prog program ramme mers. rs. In late late 19 1977 77,, Gates Gates relea release sed d a versi version on of FORTR FORTRAN AN
languag languagee for microco microcomput mputers. ers. In 197 1978, 8, Gates Gates and Allen Allen introdu introduced ced a version of COBOL. Around this time, Microsoft emerged as the market leader in microcomputer languages with sales exceeding $1 million. In 1979, Microsoft developed a new version of BASIC... He had an early interest in software and began programming computers at the age of thirteen. . RISK BEARER
In his junior year, Gates dropped out of Harvard to devote his energies full full-t -tim imee to Micr Micros osof oft, t, a comp compan any y he had had star starte ted d in 19 1975 75 with with his his boyhood friend Paul Allen development of new products. CONTINOUS LEARNER
“Microsoft is not about greed. It’s about Innovation and Fairness.” – Bill Gates” Never stop learning was the Mantra of Bill Gates which he follow till date. This empowers him to be a Great Leader of our times. He will alwa always ys be reme rememb mber erss as an Icon Icon and and even even with withou outt his his pres presen ence ce in Microsoft Microsoft he would still be regarded as a great inventor inventor and a real genius in every regard of Business, Technology and Entrepreneurship. ACCEPTING THE CRITICISMS
Its fine to celebrate success but it is more important to heed the lessons of failure. There will be people who would want to make fun of your efforts, pull you down and so on. The stronger you stand the bolder you get the faster these negatives wither. When IBM pulled out of the contract for the operating system to be bund bundle led d with with the the IBM Clone Clone PCs, PCs, Bill Bill Gates Gates staye stayed d on and and start started ed focusing on the creating Windows amidst lots of hiccups that will hamper the company co mpany.. OTHER KEY LESSONS-BILL GATES
“If you show people the problems and you show them the solutions they will be moved to act.” – Bill Gates This is one never mentioned secret of success. Action is the key word. When logic never drives us its emotions. We must have take action. Bill
Gates as a small young boy never had anything to lose which he kept telling his good friend Paul Allen. When he had several odds again him such such as the the Amer Americ ican an Law Law and and seve severa rall case casess agai agains nstt him, him, he stil stilll consistently took action by developing more software which the people wanted. This made him a super star overnight. “Whether it’s Google or Apple or free software, we’ve got some fantastic competitors and it keeps us on our toes” – Bill Gates Bill Bill Gate Gatess took took up the the resp respon onsi sibi bili lity ty of bein being g the the Chie Chieff Soft Softwa ware re Architect, Bill Gates was nurturing Microsoft by building a broad range of products. This was not just capitalizing on the knowledge but provide the best by understanding the need of the people.
Bill Gates' Secrets of Success
Hard work: Bill Gates is a hard worker since the beginning of his life. In his college days, he used to work all night long on his computer. When Microsoft was started, Bill Gates used to sleep only for 6 hours in a day without skipping a single day of office. For Bill Gates, hard work is one of the main keys of success. Entrepreneurship:
Entrepreneurship is an integral part and is present in Bill Gates from the beginning. He knows how to manage his work, he always takes a keen interest in learning, he learns from his own mistakes, he is a creative person and, most of all, and he is focused towards his goals. Confidence:
Bill Gates has always been a highly confident person. He was always confident about his dream of becoming successful. Manag Manageri erial al Skill Skills: s: The great great mana manage geri rial al skills skills of Bill Bill Gates Gates helpe helped d Microsoft to be a successful company. He efficiently managed all the areas of the company which required his focus. A Great Convincer: Bill Gates is gifted with great convincing skills. He has made lots of successful deals in his career. The deal with IBM was one of them.
Technical Mind:
Bill Gates is born with a highly technical bent of mind. It is a gift of god to him. Microsoft has earned lots of success through this technical mind. He Had H ad A Vision Vision :
From day one, Gates dreamed of having a personal computer in every home, in every business and in every school. Throughout his career, he never once wavered from this dream. Focusing on software as the means to popularize the PC, Gates built his empire around this central vision and steered clear of all other distractions. And, the vision continues today. “We are not even close to finishing the basic dream of what the PC can be,” he says. He Had a Solid Team :
“If we weren’t weren’t still hiring great people and pushing ahead at full speed, it would be easy to fall behind and become a mediocre company,” says Gates. From Microsoft’s inception, Gates prioritized his team, bringing in only trusted friends to help him get the company started. As the company grew, he insisted that they hire only the most capable young minds and strove to create a small and creative environment for them to thrive in. Microsoft succeeded not only because of Gates, but also because of the strong team that stood behind him. He Took a Long-Term Approach:
“In the decade ahead I can predict that we will provide over twice the productivity productivity improvement improvement that we provided in the ‘90s,” said Gates. This bold statement captures Gates’ philosophy behind his entire business. Never one to chase after instant success or an immediate pay-off, Gates beg began an codi coding ng soft softwa ware re with with a view view to the the next next fift fifty y year years. s. He has has constantly tried to keep his company at the forefront of new technological develop development mentss by fundin funding g new researc research h initiati initiatives ves.. Gates’ Gates’ long-te long-term rm approach helped ensure Microsoft’s remarkable staying power.
He Learned From Failure:
In hindsight, Gates’ early failures seem so miniscule that they are almost laughable. But, as a struggling entrepreneur, he went through the same frustration, confusion and despair that others in his situation also face. What distinguishes Gates from the rest was his ability to rebound from his mistakes and take whatever lessons he could from them. He then became even more resolute and determined to see his vision realize. He Never Stopped Asking Questions :
“I beli believ evee that that thro throug ugh h ou ourr natu natura rall inve invent ntiv iven enes ess, s, crea creati tivi vity ty and and willingness to solve tough problems, we’re going to make some amazing achi achiev evem emen ents ts,” ,” said said Gate Gatess spea speaki king ng to the the futu future re po poss ssib ibil ilit itie iess for for medicine, education and technology. When Gates faced a dilemma, he didn’t stop and give up. He asked questions about what could be done to solve solve the the prob proble lem. m. From From his his bu busin sines esss activ activiti ities es to his his ph phila ilanth nthrop ropic ic efforts, Gates’ curiosity and desire to constantly be learning has been one of the key factors behind his success.
“If I'd had some set idea of a finish line, don't you think I would have crossed it years ago?” asks Gates. Showing no signs of slowing down, Gates continues to fuel his business, inspire his workers and make his contribution to the global village. “At Microsoft, there are lots of brilliant ideas but the image is that they all come from the top,” says Gates. “I’m afraid that’s not quite right.” While Gates has been the famous face of Microsoft for over thirty years, it took the help of numerous other trusted individuals to help realize the company’s success.
When Allen and Gates first met as students at Lakeside, they instantly formed a strong bond over their passion for computers. And, it was a bond that would last for the rest of their lives. Knowing each other’s strengths and weaknesses, interests and passions and having a strong sense of trust enabled these two entrepreneurs to form one of the most successful working relationships of the 20th century.
Gates, recognizing the importance of a solid and trustworthy team, also brou brought ght on two two forme formerr high high scho school ol frien friends ds,, Ric Weilan eiland d and and Marc Marc McDonald, to be part of the core Microsoft group. Gates knew that if Microsoft was going to get its feet off the ground, it was going to take the hard work and sweat that he trusted few others to put in. From day one,
he understood the importance of having a small team that could join together each person’s enthusiasm around a common goal.
When Gates moved the operation to Seattle in 1979, he had a staff of 16 people. As Microsoft grew, so too did the number of employees that the compa company ny requir required ed.. Gate Gatess conti continu nued ed to bring bring in trust trusted ed frien friends ds of his his whos whosee char charac acte ters rs he un unde ders rsto tood od and and who who he kn knew ew he coul could d trus trust, t, including his friend from college, Steve Ballmer, who was thereafter in char charge ge of hu huma man n reso resour urce ces. s. “Ste “Steve ve and and I were were kind kind of driv drivin ing g the the business and Paul and I were driving the technology,” recalls Gates. “Our success has really been based on partnerships from the very beginning.” The move to Seattle proved to be a boon for Microsoft in that it enabled the company to have a much wider range of skilled candidates to choose from. “In the world of software a lot of the brilliant ideas of Microsoft come from a broad set of great people we've been able to hire,” says Gates. In one particularly particularly key move, Ballmer hired Charles Simonyi, Simonyi, one of the original founders of the Xerox Palo Alto research lab, whose knowledge about graphical interfaces made a significant contribution to Microsoft’s later graphical applications.
As thei theirr nu numb mber er of staf stafff bega began n incr increa easi sing ng into into the the thou thousa sand nds, s, the the company typically typically focused on hiring people right out of school. school. “Most of our developers, we decided that we wanted them to come with clear minds, not polluted by some other approach, to learn the way that we liked to develop software, and to put the kind of energy into it that we thought was key,” recalls Gates. Microsoft continues to seek out only the best in order to help it stay ahead of its increasingly fierce competition. “They key for us, number one, has always been hiring very smart people,” says Gates. “There is no way of getting around, that in terms of IQ, you’ve got to be very elitist in picking people who deserve to write software. Ninety-five percent of the people shouldn’t write complex software.” By hiring the best and the brightest and carrying out work in small teams that stimulate free and creative thinking, Microsoft has managed to retain its competitive edge for over three decades.
“Though he never set out to be a millionaire, Gates not only became the world’s first cent billionaire in 1999, but also one of the world’s most respected entrepreneurs for having revolutionized the world of computers and setting new industry standards. “I really had a lot of dreams when I was a kid,” recalls Gates.” “Power is the engine that drives the ability to influence . To understand leadership effectiveness therefore , an analysis of the complex web of power relationships and influence processes in organizations is essential. We also need to examine the sources sources of power and the relationship of different power sources to leadership effectiveness.” effectiveness.” SOURCES & TYPES OF POWER POSSESSED BY BILL GATES Position Power
Legi Legiti tima mate te Powe Power: r: It is base based d on his his po posi siti tion on po powe werr give given n by the the organization. It is also called the legitimization influencing tactic. Employees agree to comply with management authority in return for the benefit of members. The use of legitimate power is appropriate when asking a person to do something that is within the scope of their job. Legitimate Use of Rational Persuasion
It is used used by Bill Bill Gate Gatess whil whilee deali dealing ng with with high higher er-l -lev evel el mana manage gers rs.. Rational Persuasion includes logical arguments with factual evidence to persuade others to implement your recommended action Reward Power:
It is based on the leader’s ability to influence others with something of valu valuee to them them.. Micr Micros osof oftt is famo famous us for for givi giving ng hu huge ge remu remune nera rati tion on packages to its employees. An important part of reward power is having control over resources, such as allocating expense & budget funds. Bill Bill Gates Gates has has full full contr control ol ov over er eval evalua uati ting ng emplo employe yee’ e’ss perfo perform rmanc ancee determining their raises, promotions & other rewards.
Coercive Power:
The use The use of coer coerci cive ve po powe werr invo involv lves es pu puni nish shme ment nt & with withho hold ldin ing g of rewards to influence compliance. It is also called the pressure influencing tactics. Bill was a autocratic leader but he never made rash threats & used coercion to manipulate others or to gain personal benefits.
PERSONAL POWERS
Perso Persona nall po power wer is deriv derived ed from from the follo follower wer base based d on the the leade leader’ r’ss behavior. It includes expertise, friendship or loyalty and charisma. Expert Power: It is based on the user’s skill & knowledge. Being an
expert makes other people dependent on the leader. People often respect an expert & fewer the people who possess an expertise, the more power the individual has. Bill Gates is a master of his subject & his knowledge, skills, expertise is never questioned, tagging him having the expert power. Referent Referent Power: It is base based d on lead leader’ er’ss pers person onal al rela relatio tionsh nship ipss with with
others. It is also called the personal appeals influencing tactics based on loyalty & friendship. But with Bill Gates it is more of loyalty due to his autocratic behavior towards his employees. People stay at Microsoft for longer time period than most of the companies.
INFLUENCE TACTICS RATIONAL PERSUASION
Bill Gates extremely used this tactic by applying its functions in a very logical manner manne r. Bill always explained why the objectives need to be met. He was very clear on the benefits which the followers would get & conveyed the same to others. He was very motivational regarding the set objectives & provided subtle evidences that the objectives can be met. He was very quick on explaining how problems & concerns will be handled. He alwa always ys inno innova vate te newe newerr tech techno nolo logi gies es & was was very very clea clearr on thei their r strength over others.
PRESSURE
Bill Gates very frequently used the pressure influencing tactics from fear of reprimands, probation, to suspension or dismissal.
Bill gates style as Fiedler Model
"In Fiedler's model, leadership effectiveness is the result of interaction between the style of the leader and the characteristics characteristics of the environment environment in which the leader works"
"According to Fiedler, the effectiveness of a leader is determined by the degr degree ee of matc match h betw betwee een n a do domi mina nant nt trait rait of the the lead leader er and and the the favorableness of the situation for the leader.... The dominant trait is a person personalit ality y factor factor causin causing g the leader leader to either either relatio relationshi nship-or p-orien iented ted or task-orientated"
Relation-oriented leadership:
Leaders who describe their preferred coworker coworker in favorable favorable terms, with a high LPC, are purported to derive major satisfaction from establishing close relationships with felow workers. High LPC leaders are said to be relat relation ionshi shipp-ori orien enta tated ted.. These These leade leaders rs see see that that go good od inter interpe pers rsona onall relations as a requirement for task accomplishment. Task-oriented leadership:
Leaders who describe their least preferred coworker unfavorable terms, with with a low low LPC, LPC, are are deri derive ved d maj major sati satisf sfac acti tion on by succ succes essf sful ully ly completing a task. These leaders are said to be task-orientated. They are more concerned with successful task accomplishment and worry about interpersonal relations later The secon second d major major facto factorr in Fiedle Fiedler's r's theory theory is kn known own as situ situati ationa onall favorableness or environmental variable. This basically is defined as the degree a situation enables a leader to exert influence over a group. Fiedler then extends his analysis by focusing on three key situational factors, which are leader-member, task structure and position power. Each factor is defined in the following. 1. Leader-member relations: the degree to which the employees accept the leader. 2. Task structure: the degree to which the subordinates’ jobs are described in detail. 3. Position power: the amount of formal authority the leader possesses by virtue of his or her position in the organization. So in this case Bill Gates found most favorable place where positional power is high as he has most authorities in the firm, task structure is also defined as he gives the direction to subordinate/follower to fulfill his vision, and last leader-member relation is also good. That’s mean Bill Gates is more likely Task-oriented leader who want performance from his subordinate/follower and work has to be done to achieve the goal/objective of the company.
Level 5 hierarchy
Bill Gates
Contributing Team Highly Capable Individual Level 4 Leaders
Bill Gates has his own visions of what the business needs to do to succeed. He decides on direction and then gets people to implement his vision. This is what level 4 leader refer to as "first what, then who." Level 4 leaders are very much in the conventional mode. They may be effective when it is not too difficult to decide what to do. And Bill Gates is too confi confide dent nt what what he wants wants to do in near near futur futuree and and pu purs rsue ue his his visio vision n through his expertise.
Level 5 Leaders
We not put Bill Gates as level five leader because level five leader require both professional will + humility in which definitely he has professional will but there is some doubt about humility, although he is philanthropist who who endo endowe wed d $2 $28 8 bill billio ion n do doll llar ar in his his own own Bill Bill & Meli Melind ndaa Gate Gatess Foundation and even promise to donate his 95% wealth as he will have aged but even after a lot of critics is there that he is doing all of it just because of status symbol, he is too centralize and blamed for curbing innovation. Leadership style
1. Autocratic style Control is basic to Gate's nature and his management practice. He has an obsession with detail and with checking up. Exp. Used to sign expenses for his right hand man – STEVE BALLMER. He is trying to monopolize the World Wide Web software market and has had legal problems with the department of justice. Microsoft restricted the ability of its internet partners to deal with its rivals. Also he dislikes complaints. 2. Delegate style
Brightest talent: Gates paid special attention to recruit and retain the best talent talent in the the soft softwar waree indu industr stry y. He belie believe ved d that that the recru recruitm itment ent of talented software engineers was one of the most critical elements in the software industry. Gates looked for a bundle of attributes in recruits. These included the capacity to grasp new knowledge quickly, the ability to ask ask prob probin ing g qu ques esti tion ons, s, and and deep deep fami famili liar arit ity y with with prog progra ramm mmin ing g structures. structures. Though a great number of potential recruits applied for jobs at Microsoft, Microsoft, Gates assumed that the best talent would never apply directly. directly. Consequently, Microsoft's HR managers had to hunt for the best talent and offer them a job Gives autonomy to his manager, he delegates authority to managers to run their independent departments.
Criticism
Curbing of Innovation: The critics argued that Microsoft was not an innovative company. They said that Gates reformed existing products to satis satisfy fy cust custome omerr need needss inste instead ad of inve inventi nting ng new new on ones es.. Analy Analysts sts also also argu argued ed that that Micr Micros osof oft' t'ss ov over erwh whel elmi ming ng mark market et shar sharee was was a majo major r impediment to innovation in the software industry. Microsoft was not just the market leader, but also the standards provider for the industry. Impe Impedi dime ment nt in deve develo lopm pmen entt of smal smalle lerr firm firms: s: Crit Critic icss clai claime med d that that winning was so important to Gates that he would go to any extent to beat his opp oppone onent. nt. James James Wallace allace of Seattle Seattle Post-In Post-Intelli telligen gencer cer said, said, "Bill Gates not only wants to win, but he wants to kill the competition. He wants to bury the wounded" “Sometimes Gates took things so much to heart that his emotional feeling overshadowed his rational thinking. They said that Gates' intense rivalry with some of his competitors made him personalize every battle and obscured his judgment. ” With With his ambitio ambitious us and aggress aggressive ive busines businesss philosop philosophy hy,, Gates Gates or his Microsoft lawyers have been in and out of courtrooms fighting legal battles almost since Microsoft began. Many of the largest technology co. have fought legally against the actions of Microsoft Microsoft , including including – APPLE COMPUTER, NETSCAPE, OPERA, WORD PERFECT PERFECT , AND SUN MICROSYSTEME MICROSYSTEME ETC.
