Leadership Styles in Microsoft and Trump Organization

This essay discusses the leadership styles in Microsoft and Trump Organization and suggests alternate leadership styles for both companies.

TITLE PAGE

Leadership is the ability of an individual to lead something or someone on the right path and to
influence them to move in the given direction. It is the action or state of being a leader. Today, in
organizations it is not just important to have managers but to have managerial leaders.
Managerial leadership is the behavior that inspires voluntary following from the co – workers as
well as from the subordinates and combines the skill of the manager and the qualities of a leader.
It is the practice of showing sincere enthusiasm for the mission to be achieved along with
integrity, loyalty, decisiveness and managerial competence (Fries, 2018). In organizations, there
can be a number of leadership styles that might be followed including Transformational
Leadership, Democratic Leadership, Autocratic Leadership, Transactional Leadership, Laissez-
Faire Leadership and Bureaucratic Leadership among others (Campbell, 2016). The purpose of
this paper is to explain in detail examples of two renowned companies which practice different
forms of leadership. Then, two alternate leadership styles have been suggested which can be
implemented in place of the already followed leadership styles in the given companies so as to
successfully overcome the challenges of contemporary leadership. The two chosen companies
and their leadership styles have been discussed below along with a suggested alternate style:
I. Microsoft Group – Bill Gates
Bill Gates is a classic example of a Transactional style of leadership. Transactional
leadership is the one which promotes compliance in an organization by a system of
rewards and punishments. It is a form of leadership which promotes structure and
order. It is also known managerial leadership and was first given by Sociologist Max
Weber and further discussed in depth by Bernard Bass (Cherry, 2018). Transactional
leadership is based on some basic assumptions, some of which are discussed below:
1. Rewards and punishment are needed to motivate the workers working in the
company.
2. All workers need to be carefully monitored so that necessary control can be
implemented.
3. Following the instructions of the leader is the primary responsibility of the
workers.
4. There is need for a proper chain of command in the organization.
5. There is a system of transactions between the leaders and the subordinates
(Anastasia, 2018).

6. The three core building blocks of leadership of this sort is supervision,
organization structure and performance of the workers.
One of the most known form of transactional leadership is the one employed by Bill
Gates, Founder, Chairman and CEO of Microsoft Group. He is considered many
things – some of which are - a computer innovator, a philanthropist, a leader in future
technology, as well as a transactional leader (“Bill Gate’s transactional leadership
style”, 2015). Bill gates has often presented himself a strict and powerful leader to
both his subordinates as well as to competitors. He is not known to be an easy
taskmaster on the employees till the time they deliver the actual results but at the
same time he is known to give a free hand to the workers to work in the manner that
they want, provided they give the desired results (Bhasin, 2017). The features of this
form of leadership at Microsoft employed by Bill Gates have been given:
1. Confrontation: Transactional leaders are known to confront their workers directly
to find out whether the desired goals have been achieved or not and if not, then
the reasons why those goals have not been achieved. Microsoft is often
considered to be a have a tough work environment because of this policy of
confrontation followed by Bill Gates.
2. Focus: There is an extreme form of focus followed in Microsoft. Bill Gates’ form
of leadership is often considered to have an execution level and focus like no
other in the same field.
3. Communication Gap with the Leader: Bill Gates’ style of leadership is touted as
impersonal. There is hardly any communication between the workers and the
leader. Microsoft is often described as a company with zero impersonal or
grapevine communication. Rather, the atmosphere is often described as rude,
dismissive, and with lack of adaption in any form (“Bill Gate’s transactional
leadership style”, 2015).
4. Lack of Creativity and Innovation: It is often said that transactional leaders like
Bill Gates do not have an ounce of creativity and innovation which is required to
create a successful organization. Microsoft’s chairman is often considered to be
lacking any innovation and accused of revamping already existing products and

turning them into new products to be re-launched in the market. Also, argued was
the fact that winning was the most important thing for leaders like Gates and they
would go to any extent for it.
Having discussed the form of leadership employed in Microsoft and understanding
both the advantages and disadvantage of it, an alternate form of leadership which can
be implemented in the company is a Laissez Faire form of leadership. It is a form of
leadership where the leaders allow the workers to take decisions for the organizations.
It is also known as delegative leadership and considered the opposite of transactional
leadership (Cherry, 2019). This form of leadership, if practiced at Microsoft will give
rise to a culture of creativity, innovation and open system of communication. The
features which will be a part of Microsoft if a Laissez Faire leadership style is
followed are discussed below:
1. Freedom to the workers and choice to make their own decisions.
2. Expectation from group members to solve problems on their own.
3. Tools and resources to the workers provided by the leader himself.
4. Responsibility of the leader for any problems which might arise (Harness, 2018).
There are also certain disadvantages of this form leadership like poor performance if
care is not taken by the leader and wastage of money and resources, but in theory, it
can be implemented as an alternate style to the existing transactional form of
leadership at Microsoft Group.
II. Trump Organization – Donald Trump
Donald Trump, the owner of Trump organization – a collection of about 500
businesses owned and managed by Donald trump – is probably one of the best
examples of an Autocratic style of leadership. It is a form of leadership where the
leader exercises his control over each and every area of the business. It is made up of
two words – auto which means self and cratic means to rule. This form of leadership
reflects individual power and authority over many and complete control without any
support or interference from any outside parties (Anastasia, 2016). This is a type of

leadership, which when talked about, often creates a negative image but it is also the
most followed form of leadership from ancient times. This form of leadership is based
on the following assumptions:
1. This form of leadership is required when quick action is needed.
2. Autocracy is followed when the leader wants a close watch on all activities of the
organization.
3. When the processes of the work operations have to be streamlined, then this form
of leadership is followed (Chris, 2015).
4. When there is a past record of poor performance and there is need to correct it and
rectify the previous mistakes in the company, autocratic leadership will be
followed.
5. The leader wants a fast response and quick decision making is of utmost
importance.
6. This leadership will be followed when the leader thinks that the workers are
unable to perform up to the desired level and he will have to step in if correct
actions have to be taken.
Autocratic leadership style is followed by Donald Trump – owner of the Trump
organization and the current President of the United States of America. Trump
organization is a conglomerate of private enterprises owned by Donald Trump and
based in Manhattan, New York. Trump is known for his unconventional style of
leadership and often considered eccentric and power hungry (Shetty, 2011). He is
considered by many as a classic example of an autocratic leader – ego-centric,
powerful, risk-taker – and yet has displayed in the past his ability to lead several
businesses successfully. Trump is often recognized as an effective but harsh
negotiator. He once summarized his autocratic form of leadership as “It is give-and-
take. But it's gotta be mostly take. Because you can't give. You gotta mostly take.”
(Cain, 2017). The features of Trump’s form of autocratic leadership are discussed
below:
1. Aggressive Negotiation: Autocratic form of leadership is often characterized by
an aggressive approach to all forms of negotiation – whether with the competitors

or with the subordinates. Trump is often known to engage with his employees but
only to dictate his own terms and conditions and hardly responds to suggestions
or recommendations from the other parties.
2. Top-Down Management: Autocratic form of leadership is characterized by a top
to down approach. The chain of command flows from the top to the lower levels
of the management. There is no upward communication trend in this leadership
style. Donald Trump is considered as the sole task-assigning responsibility in the
Trump Organization. He does not ask for or take into account any communication
from bottom to up.
3. Distrust: The autocrat leaders have a high level of distrust on their subordinates.
They are known to trust only a few handful of people and that is why, take all
decisions regarding the organization on their own (Nayab, n.d.). Donald Trump
reserves all right to make decisions relating to his business because of the lack of
trust on his subordinates.
After having discussed the form of leadership actually followed at Trump
Organization, I would suggest the democratic style of leadership as an alternative to
the company. It is a form of leadership whereby the workers take an active part on the
decision making of the company and are given a higher level of autonomy in the
organization. It is also known as participative leadership or shared leadership. The
leader and the subordinates both show an active role in decision making and have an
equal voice (Martin, 2016). The features which will be adopted in Trump
Organization if this leadership style is followed are:
1. Self – Confidence: The workers working at Trump Organization would display a
high level of confidence in their abilities if a democratic leadership style is
implemented by Donald Trump.
2. Ease in Decision Making: Often, autocratic leaders such as Donald Trump face
difficulties in quick decision - making due to their need of taking every big and
small decision on their own. If democratic decision – making is implemented in
Trump Organization, it would lead to an easier and a quicker decision making.

3. Honest Working Policies: Trump’s companies usually show a highly dishonest
way of working and a total disregard for integrity and just work (Stewart, 2019).
If a democratic form of leadership is followed in Trump organization, it can lead
to honest business practices and a high regard for business ethics in the company.
Hence, the purpose of this essay is justified - the two companies with extremely distinctive styles
of leadership are discussed above in depth and alternate leadership forms are also suggested for
both. The Microsoft Group led by Bill Gates follows a Transactional style of leadership which
has its own advantages but the company might prosper even more than its existing state if
alternate forms of leadership such a Laissez Faire Leadership style is implemented. Secondly,
Trump Organization which is led by Donald Trump implements an Autocratic form of
leadership. To overcome the current management challenges and to follow contemporary
management philosophies, Donald Trump should consider implementing an alternate way of
leading which is based on democracy. This will lead to better leader and subordinate relations
and better management in the organization.

References
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