Organisation and behaviour - Assignment Example

It further seeks to investigate the approaches of these organizations to their management. Style of Leadership The success of Berkshire and its founder, Warren Buffett starts with leadership. Buffett’s leadership has the capability of adapting to changing world. The success of Buffett’s leadership style is reflected in the performance of his company. The annual report 2010 of Berkshire stated that they tend to let their subsidiary companies operate in their own. They do not monitor or supervise them to any extent.

Many managers utilize the liberty in a magnificent manner and preserve an owner-oriented behavior. Warren Buffett’s employs the laissez-faire style of management, which increased the stock of the company by 19.8%. Laissez-faire style of management thrives at Berkshire because every organization has its own culture. Berkshire does not enforce the conventional human resource. If it had done it, then laissez-faire would not have worked at Berkshire. Buffett believes that enforcing autonomy creates pressure on CEOs.

He encourages his leaders by convincing them that they can do more than they believe they can and it will take three people to replace each of them. A contrasting organization to Berkshire is Trump Organization, where the founder Donald Trump runs the organization in an autocratic style. He has centralized all the decision-making power to himself and to a group of few selected people. This type of leadership style limits the inputs of rest of the employees. Trump exhibits an eccentric style of leadership.

This is shown in every piece of real estate that he owns. Every building, gold course, or casino has his name on it. Trump is considered as the positive example of autocratic leadership. According to his employees, though he keeps gentleness out of spotlight, but in essence, he is more generous than anyone would believe due to this reputation. It is not about which style is being implemented. It entirely depends on how it is being implemented. If leaders are confident, capable, and motivated, it can work well.

Modern Management Theories When it comes to Donald Trump, it is quite evident that Henri Fayol’s 14 principles are applied to greater extent. Trump’s style of management clearly integrates elements mentioned by Henry Fayol. Unity of Command, Centralization, Discipline, Authority of Work, Division of Work, Scalar Chain, and Order are named as few. The common element among all these principles is autocracy and autonomy, which is decently reflected in the workplace and organizational culture of Trump Organization.

The span of control and attention is limited to one person only, who has all the decision making power. It is staff’s responsibility to show initiative within the limits of discipline and authority. Uniform goals and similar direction is constructed for all the employees of the entire organization. In contrast to that, the style of Warren Buffet contradicts with contemporary capitalism. Warren Buffet understands the Systems Theory. Buffett is aware of how different systems affect the workers and how the system is affected by workers.

A system constitutes of variety of different parts that work together in order to achieve a goal. Systems theory allows leader to evaluate events and patterns in the workplace. Warren buffet is aware of what inputs need to be inserted into the system in order to achie