REPORT ON LEADERSHIP STYLE OF BILL GATES

SUBMITTED TO: DR. SWATI AGARWAL

SUBMITTED BY: Dhananjay Kumar

Jaipuria institute of management, Noida

chairman and chief executive officer of Microsoft Corporation. was a schoolteacher. IBM contracted him for the development of their first Personal Computer. Queen Elizabeth gave him the title of 'Knight Commander of the Order of the British Empire'. Gates developed a version of the programming language BASIC for the first microcomputer . who is now Microsoft's president. Gates dropped out of Harvard to devote his energies full-time to Microsoft. and plays an important role in the technical development of new products.William (Bill) H. programming computers at age 13. In his junior year. It was at Lakeside that Gates began his career in personal computer software. He is the Co-Founder and the Chairperson of Microsoft. Much of his time is devoted to meeting with customers and staying in contact with Microsoft employees around the world through email. 3. Their father. the world's leading provider of software for personal computers. He is the world's third richest person (As per the survey done in 2008) 5. 1955. where he lived down the hall from Steve Ballmer. In 1973. Gates II. Gates III is co-founder. 2. Guided by a belief that the personal computer would be a valuable tool on every office desktop and in every home. Gates attended public elementary school before moving on to the private Lakeside School in North Seattle. 4. Facts about Bill Gates 1. they began developing software for personal computers. University of Washington regent and chairwoman of United Way International. Gates' foresight and vision regarding personal computing have been central to the success of Microsoft and the software industry. a company he had started in 1975 with his boyhood friend Paul Allen. Gates is actively involved in key management and strategic decisions at Microsoft. is a Seattle attorney. BASIC was first developed by John Kemeny and Thomas Kurtz at Dartmouth College in the mid-1960s. Gates entered Harvard University as a freshman. He is an American Business Magnate. their late mother. While at Harvard. He and his two sisters grew up in Seattle.the MITS Altair. Bill Gates was born on October 28. . Mary Gates. William H.

Achievements as a successful entrepreneur The list of achievements of Bill Gates is so long that a book can be written about it. Bill Gates . Yes. 3. Bill Gates knighted by Queen Elizabeth II for his contribution to the British economy. His title will be 'Knight Commander of the Order of the British Empire. Bill Gates. they have received the award of 'Order of . The success of Microsoft is the true example of the entrepreneurial skills of Bill Gates. we cannot survive in this competitive world without it. He has received doctorates from various universities and institutes like Harvard University and The Royal Institute of Technology. His hard work.6. 7. The success story of Bill Gates is highly motivating for all the upcoming entrepreneurs. He has got the skills to identify the most suitable employee for recruitment. In 2005. 4. Microsoft Windows is the world's most successful operating system.’ 2. Vision and dedication are the key factors of being a successful entrepreneur and these skills were present in Bill Gates from the beginning. For this. it is Mr. dedication and self-confidence helped him to earn everything he has. And the man behind its success is Bill Gates. The youth can take inspirations from the life of Bill Gates.A Successful Entrepreneur Gates is one of the most successful entrepreneurs of the world. a living example of success. Some of his achievements are mentioned below: 1. He is able to run a successful and a profitable entrepreneurship for many years and even today. His name was continuously there from 2004 till 2006. Time Magazine included his name in '100 most influential people of 20th century'. 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. He is a simple man and slightly conservative in regards of money although he is one of the richest people of the world. Bill Gates and his wife have done many generous works for the welfare of the society.

Gates released a version of FORTRAN . In late 1977. These qualities helped him to attain top position in the profession he chose.the Aztec Eagle' in Mexico. an investment company. was the basic guiding vision of Bill Gates. Every business and household must have a computer and must run Microsoft software”. PASSION When as a student at the Harvard University. 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 intelligence. 6. which included four programmers. coding and technology that incidentally also made him the richest man in the world INNOVATION Gates and Allen were assisted by a staff of six. VISIONARY Microsoft's vision is "A computer on every desk and Microsoft software on every computer he will continue to stomp out the competition until he dies. you can achieve anything. From childhood Bill was ambitious. Sunday Times included his name in its Power List in 1999. intelligent and competitive. 5. Bill Gates decided to stop studying and pursue his dream of writing software’s for every computer in the world He was just passionate about software. every single student would have wanted to be part of the great institute and graduate to be successful. Berkshire Hathaway. 7. Forbes Magazine listed his name in 'The World's Richest People' from the year 1995 to 2007. approached him to be the Director of the company.

There will be people who would want to make fun of your efforts. . Microsoft developed a new version of BASIC. CONTINOUS LEARNER “Microsoft is not about greed. Action is the key word. When IBM pulled out of the contract for the operating system to be bundled with the IBM Clone PCs.” – Bill Gates This is one never mentioned secret of success. a company he had started in 1975 with his boyhood friend Paul Allen development of new products. Bill . He had an early interest in software and began programming computers at the age of thirteen. In 1979. Bill Gates stayed on and started focusing on the creating Windows amidst lots of hiccups that will hamper the company..language for microcomputers.” – Bill Gates” Never stop learning was the Mantra of Bill Gates which he follow till date. In 1978. OTHER KEY LESSONS-BILL GATES “If you show people the problems and you show them the solutions they will be moved to act. Technology and Entrepreneurship. It’s about Innovation and Fairness. pull you down and so on. Microsoft emerged as the market leader in microcomputer languages with sales exceeding $1 million. The stronger you stand the bolder you get the faster these negatives wither. When logic never drives us its emotions. ACCEPTING THE CRITICISMS Its fine to celebrate success but it is more important to heed the lessons of failure.. Around this time. Gates and Allen introduced a version of COBOL. Gates dropped out of Harvard to devote his energies full-time to Microsoft. He will always be remembers as an Icon and even without his presence in Microsoft he would still be regarded as a great inventor and a real genius in every regard of Business. This empowers him to be a Great Leader of our times. We must have take action. RISK BEARER In his junior year.

Entrepreneurship: Entrepreneurship is an integral part and is present in Bill Gates from the beginning. Bill Gates' Secrets of Success Hard work: Bill Gates is a hard worker since the beginning of his life. and he is focused towards his goals. For Bill Gates. This was not just capitalizing on the knowledge but provide the best by understanding the need of the people.Gates as a small young boy never had anything to lose which he kept telling his good friend Paul Allen. most of all. he is a creative person and. Bill Gates was nurturing Microsoft by building a broad range of products. He has made lots of successful deals in his career. The deal with IBM was one of them. A Great Convincer: Bill Gates is gifted with great convincing skills. . In his college days. he learns from his own mistakes. Bill Gates used to sleep only for 6 hours in a day without skipping a single day of office. Confidence: Bill Gates has always been a highly confident person. he still consistently took action by developing more software which the people wanted. When Microsoft was started. This made him a super star overnight. Managerial Skills: The great managerial skills of Bill Gates helped Microsoft to be a successful company. we’ve got some fantastic competitors and it keeps us on our toes” – Bill Gates Bill Gates took up the responsibility of being the Chief Software Architect. When he had several odds again him such as the American Law and several cases against him. He was always confident about his dream of becoming successful. hard work is one of the main keys of success. “Whether it’s Google or Apple or free software. He knows how to manage his work. he used to work all night long on his computer. He efficiently managed all the areas of the company which required his focus. he always takes a keen interest in learning.

He Had a Solid Team: “If we weren’t still hiring great people and pushing ahead at full speed. Gates built his empire around this central vision and steered clear of all other distractions. 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. the vision continues today. Gates’ long-term approach helped ensure Microsoft’s remarkable staying power. Throughout his career. it would be easy to fall behind and become a mediocre company. Gates began coding software with a view to the next fifty years. he never once wavered from this dream. in every business and in every school. Focusing on software as the means to popularize the PC. but also because of the strong team that stood behind him. It is a gift of god to him. From Microsoft’s inception. Microsoft has earned lots of success through this technical mind.Technical Mind: Bill Gates is born with a highly technical bent of mind. Gates prioritized his team. He Had A Vision: From day one. Gates dreamed of having a personal computer in every home. He Took a Long-Term Approach: “In the decade ahead I can predict that we will provide over twice the productivity improvement that we provided in the ‘90s. He has constantly tried to keep his company at the forefront of new technological developments by funding new research initiatives.” says Gates.” he says. “We are not even close to finishing the basic dream of what the PC can be. This bold statement captures Gates’ philosophy behind his entire business.” said Gates. He Learned From Failure: . bringing in only trusted friends to help him get the company started. As the company grew. Never one to chase after instant success or an immediate pay-off. Microsoft succeeded not only because of Gates. And.

Gates. From day one. He asked questions about what could be done to solve the problem. Ric Weiland and Marc McDonald. When Gates faced a dilemma. From his business activities to his philanthropic efforts. as a struggling entrepreneur. Showing no signs of slowing down. He Never Stopped Asking Questions: “I believe that through our natural inventiveness.” says Gates. He then became even more resolute and determined to see his vision realize. it was a bond that would last for the rest of their lives. When Allen and Gates first met as students at Lakeside. don't you think I would have crossed it years ago?” asks Gates. And. “I’m afraid that’s not quite right. Gates’ early failures seem so miniscule that they are almost laughable. But. Knowing each other’s strengths and weaknesses.” said Gates speaking to the future possibilities for medicine. there are lots of brilliant ideas but the image is that they all come from the top. we’re going to make some amazing achievements. Gates continues to fuel his business. recognizing the importance of a solid and trustworthy team. it was going to take the hard work and sweat that he trusted few others to put in. Gates knew that if Microsoft was going to get its feet off the ground. inspire his workers and make his contribution to the global village. it took the help of numerous other trusted individuals to help realize the company’s success. he went through the same frustration. “If I'd had some set idea of a finish line. they instantly formed a strong bond over their passion for computers. Gates’ curiosity and desire to constantly be learning has been one of the key factors behind his success. to be part of the core Microsoft group. also brought on two former high school friends. . he didn’t stop and give up. creativity and willingness to solve tough problems. What distinguishes Gates from the rest was his ability to rebound from his mistakes and take whatever lessons he could from them. 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.” While Gates has been the famous face of Microsoft for over thirty years.In hindsight. confusion and despair that others in his situation also face. education and technology. “At Microsoft.

“Steve and I were kind of driving the business and Paul and I were driving the technology.” says Gates. has always been hiring very smart people. the company typically focused on hiring people right out of school. “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. As their number of staff began increasing into the thousands. “There is no way of getting around.” says Gates. he had a staff of 16 people. whose knowledge about graphical interfaces made a significant contribution to Microsoft’s later graphical applications. Ninety-five percent of the people shouldn’t write complex software. who was thereafter in charge of human resources. we decided that we wanted them to come with clear minds.” recalls Gates. “They key for us.” 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. Gates continued to bring in trusted friends of his whose characters he understood and who he knew he could trust. Microsoft continues to seek out only the best in order to help it stay ahead of its increasingly fierce competition. including his friend from college. Ballmer hired Charles Simonyi. so too did the number of employees that the company required. to learn the way that we liked to develop software. “Our success has really been based on partnerships from the very beginning. When Gates moved the operation to Seattle in 1979. that in terms of IQ. and to put the kind of energy into it that we thought was key. Steve Ballmer. Microsoft has managed to retain its competitive edge for over three decades. number one. . not polluted by some other approach. As Microsoft grew. you’ve got to be very elitist in picking people who deserve to write software. “Most of our developers.” recalls Gates.he understood the importance of having a small team that could join together each person’s enthusiasm around a common goal. In one particularly key move.” By hiring the best and the brightest and carrying out work in small teams that stimulate free and creative thinking. one of the original founders of the Xerox Palo Alto research lab.

” SOURCES & TYPES OF POWER POSSESSED BY BILL GATES Position Power Legitimate Power: It is based on his position power given by the organization.“Though he never set out to be a millionaire. promotions & other rewards. but also one of the world’s most respected entrepreneurs for having revolutionized the world of computers and setting new industry standards.” “Power is the engine that drives the ability to influence . such as allocating expense & budget funds. 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 value to them. Legitimate Use of Rational Persuasion It is used by Bill Gates while dealing with higher-level managers. It is also called the legitimization influencing tactic. Employees agree to comply with management authority in return for the benefit of members. Bill Gates has full control over evaluating employee’s performance determining their raises.” recalls Gates. The use of legitimate power is appropriate when asking a person to do something that is within the scope of their job. Gates not only became the world’s first cent billionaire in 1999. “I really had a lot of dreams when I was a kid. Microsoft is famous for giving huge remuneration packages to its employees. We also need to examine the sources of power and the relationship of different power sources to leadership effectiveness. An important part of reward power is having control over resources. an analysis of the complex web of power relationships and influence processes in organizations is essential. Coercive Power: . To understand leadership effectiveness therefore .

PERSONAL POWERS Personal power is derived from the follower based on the leader’s behavior. Bill Gates is a master of his subject & his knowledge. It is also called the personal appeals influencing tactics based on loyalty & friendship. He was very clear on the benefits which the followers would get & conveyed the same to others. tagging him having the expert power. INFLUENCE TACTICS RATIONAL PERSUASION Bill Gates extremely used this tactic by applying its functions in a very logical manner. Referent Power: It is based on leader’s personal relationships with others. expertise is never questioned. He was very quick on explaining how problems & concerns will be handled. PRESSURE . People often respect an expert & fewer the people who possess an expertise. It is also called the pressure influencing tactics. friendship or loyalty and charisma. It includes expertise. He always innovate newer technologies & was very clear on their strength over others.The use of coercive power involves punishment & withholding of rewards to influence compliance. Bill was a autocratic leader but he never made rash threats & used coercion to manipulate others or to gain personal benefits. skills. People stay at Microsoft for longer time period than most of the companies. Expert Power: It is based on the user’s skill & knowledge. Being an expert makes other people dependent on the leader. Bill always explained why the objectives need to be met. But with Bill Gates it is more of loyalty due to his autocratic behavior towards his employees. the more power the individual has. He was very motivational regarding the set objectives & provided subtle evidences that the objectives can be met.

leadership effectiveness is the result of interaction between the style of the leader and the characteristics of the environment in which the leader works" . Bill gates style as Fiedler Model "In Fiedler's model.Bill Gates very frequently used the pressure influencing tactics from fear of reprimands. to suspension or dismissal. probation.

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. The dominant trait is a personality factor causing the leader to either relationship-oriented or task-orientated" Relation-oriented leadership: Leaders who describe their preferred coworker in favorable terms. 2. ... High LPC leaders are said to be relationship-orientated. These leaders see that good interpersonal relations as a requirement for task accomplishment. Task-oriented leadership: Leaders who describe their least preferred coworker unfavorable terms. 1.. 3. the effectiveness of a leader is determined by the degree of match between a dominant trait of the leader and the favorableness of the situation for the leader. which are leader-member. Leader-member relations: the degree to which the employees accept the leader. So in this case Bill Gates found most favorable place where positional power is high as he has most authorities in the firm. 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. are purported to derive major satisfaction from establishing close relationships with felow workers. Task structure: the degree to which the subordinates’ jobs are described in detail. with a high LPC. Position power: the amount of formal authority the leader possesses by virtue of his or her position in the organization. are derived major satisfaction by successfully completing a task. Fiedler then extends his analysis by focusing on three key situational factors. task structure and position power. This basically is defined as the degree a situation enables a leader to exert influence over a group. These leaders are said to be task-orientated. with a low LPC. They are more concerned with successful task accomplishment and worry about interpersonal relations later The second major factor in Fiedler's theory is known as situational favorableness or environmental variable."According to Fiedler. Each factor is defined in the following.

then who." Level 4 leaders are very much in the conventional mode. This is what level 4 leader refer to as "first what. They may be effective when it is not too difficult to decide what to do. And Bill Gates is too confident what he wants to do in near future and pursue his vision through his expertise. He decides on direction and then gets people to implement his vision. Level 5 Leaders .Level 5 hierarchy Bill Gates Contributing Team Member Highly Capable Individual Level 4 Leaders Bill Gates has his own visions of what the business needs to do to succeed.

Consequently. He believed that the recruitment of talented software engineers was one of the most critical elements in the software industry. Leadership style 1. he delegates authority to managers to run their independent departments. Microsoft restricted the ability of its internet partners to deal with its rivals. Used to sign expenses for his right hand man – STEVE BALLMER.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. He is trying to monopolize the World Wide Web software market and has had legal problems with the department of justice. although he is philanthropist who endowed $28 billion dollar in his own Bill & Melinda Gates 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. Autocratic style Control is basic to Gate's nature and his management practice. and deep familiarity with programming structures. Gates looked for a bundle of attributes in recruits. Criticism . He has an obsession with detail and with checking up. Gates assumed that the best talent would never apply directly. Microsoft's HR managers had to hunt for the best talent and offer them a job Gives autonomy to his manager. Exp. the ability to ask probing questions. Delegate style Brightest talent: Gates paid special attention to recruit and retain the best talent in the software industry. Though a great number of potential recruits applied for jobs at Microsoft. Also he dislikes complaints. These included the capacity to grasp new knowledge quickly. 2. he is too centralize and blamed for curbing innovation.

but also the standards provider for the industry. James Wallace of Seattle Post-Intelligencer said. ” With his ambitious and aggressive business philosophy. They said that Gates reformed existing products to satisfy customer needs instead of inventing new ones. They said that Gates' intense rivalry with some of his competitors made him personalize every battle and obscured his judgment. have fought legally against the actions of Microsoft . but he wants to kill the competition. Analysts also argued that Microsoft's overwhelming market share was a major impediment to innovation in the software industry. OPERA. Microsoft was not just the market leader. AND SUN MICROSYSTEME ETC. Impediment in development of smaller firms: Critics claimed that winning was so important to Gates that he would go to any extent to beat his opponent. NETSCAPE. 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. He wants to bury the wounded" “Sometimes Gates took things so much to heart that his emotional feeling overshadowed his rational thinking. "Bill Gates not only wants to win.Curbing of Innovation: The critics argued that Microsoft was not an innovative company. including – APPLE COMPUTER. . WORD PERFECT .