Leadership Analysis Report: Warren Buffet's Laissez-Faire Management

This report provides an analysis of Warren Buffet's leadership style, specifically focusing on his use of the laissez-faire approach. The report begins with an introduction, explaining the core principles of laissez-faire leadership, which emphasizes trust and autonomy for employees. The main body of the report delves into the consequences and outcomes of this style, highlighting both the benefits, such as a stress-free work environment and increased employee morale, and the potential drawbacks, such as confusion and lack of direction. The report then explores examples of similar leadership styles, contrasting laissez-faire with autocratic and democratic leadership. The report also mentions the traits of a leader such as intelligence, integrity, self-confidence, determination, and sociability. The conclusion summarizes the key findings and references academic sources that support the analysis.

WARREN BUFFET LEADER WITH
LAISSEZ FAIRE LEADERSHIP
STYLES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Explanation the Laissez faire leadership style.............................................................................3
The consequences and the outcomes of the leadership................................................................3
Examples of the similar leadership styles....................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
MAIN BODY
Explaining the Laissez faire leadership style.
Warren Buffet is a very successful investor of all time and the leadership style that he
uses for his companies is the laissez-faire. The meaning of this leadership is' let it be'. The
laissez-faire leaders have a behaviour of trust and certainty on its employees. The leaders of
laissez-faire do not get itself in participation or train and guide the employees of the company
(Northouse,2019). The benefit of this leadership is that it gives a free and pleasurable work
environment and the staff also practices the leadership and it also helps in increasing the
employee morale. It also brings out the creative part out of the individual and the employees are
always motivated this is the reason that why Warren Buffet chose this leadership style in its
organisations.
The consequences and the outcomes of the leadership.
There are some consequences and the outcomes of this leadership the positive outcome is
that it offers its employees a stress-free and free environment. This leadership does not make
people feel controlled or feeling of pressure of manager on their shoulder. This way it helps the
staff to relax and enjoy their work and communicate very well with the peers. But there is also
some negative outcomes such as confusion among the staff because they gain very less direction
from their managers and due to this they get confused in understanding role of their job. Few
incompetent leaders uses this leadership in running away from the reduced accountability and
when the purpose is not fulfilled the leaders very easily blames the team and the staff of the
company (Lundmark,Richter and Tafvelin,2022).
Examples of the similar leadership styles.
The laissez-faire leadership is the straight opposite of the autocratic leadership. Rather
than an individual leader makes every decision for the company or for a team the laissez-faire
makes very less decision and let their employees take a right solution for the office (Breevaart
and Zacher,2019). The laissez-faire leadership is most similar is with the democratic leadership
as the leaders of democratic also takes an involvement in the decision-making procedure, but
they come to others and carry the duty for seeing that the decisions made accomplish the wanted
outcomes. As per the scholarly sources there is some major traits of the leadership and that is
intelligence, integrity, self-confidence, determination, sociability. The intelligence is optimistic

linked with the leadership founded on the basis of a study on the intelligence and some other
indices of the leadership and it is founded that the leaders have higher intelligence than someone
who is a non-leader. The self-confidence is the trait that assist one person to become a leader.
Self-confidence is the power to be definite about ability and skills. The determination is another
trait of a leader it helps in making a tendency to get the job finished and consider characteristics
such as initiative, persistence, control and drive. Integrity is also an important feature, it is the
attribute of honesty and trustworthiness (Nielsen and et.al., 2019). The last attribute of the
leadership is the sociability. Sociability is the leader's attitude to seek out grateful social relations
the leaders with sociability is friendly, outgoing, courteous and tactful.
CONCLUSION

REFERENCES
Books and journals.
Northouse, P.G., 2019. Introduction to leadership: Concepts and practice. Sage Publications.
Breevaart, K. and Zacher, H., 2019. Main and interactive effects of weekly transformational and
laissez‐faire leadership on followers’ trust in the leader and leader effectiveness. Journal of
Occupational and Organizational Psychology.92(2). pp.384-409.
Lundmark, R., Richter, A. and Tafvelin, S., 2022. Consequences of Managers’ Laissez-faire
Leadership During Organizational Restructuring. Journal of Change Management.22(1). pp.40-
58.
Nielsen, M.B. and et.al., 2019. Are transformational and laissez-faire leadership related to state
anxiety among subordinates? A two-wave prospective study of forward and reverse associations.
Work & Stress.33(2).pp.137-155.