A Comparative report on Bill Gates and Steve Jobs Effectiveness of Leadership

by: Prashath Pushpaharan   

Executive Summary

 Leadership is “the process of influencing an organized group towards accomplishing its goals”. (Hughes, Ginnett and Curphy, 1993, p.6) This assignment is based on two successful business leaders and their contribution to the world. This document compares the Vision, Leader Follower relationship, Power to influence the Followers and Leadership Traits of both the business giants. And this concludes with a conclusion of who is effective in comparison.

Entrepreneur-cum-Leader William Henry "Bill" Gates III, born on 28^th October 1955 in Seattle Washington. From his age of 13 Gates was showing off his interest on computer programming at the Lake Side School. Gates found himself at the right place at the right time while striking out on his own, with his friend and business partner Paul Allen. Gates is the Co-founder and Chairman of Microsoft Corporation, which has been providing software services and solution that, helps businesses and personals to realize their full potential. This was formed in the year of 1975. Through his leadership skills, technological innovation, keen business strategy, and aggressive competitive tactics he built the world's largest software business. In the process he became one of the richest men in the world as well as a well known successful leader in the world of business.

Another Entrepreneur-cum-Leader Steven Paul Jobs was born in San Francisco in 24^th of February 1955. He was an adopted son of Clara and Paul Jobs. His Biological parents were Joanne Simpson and Abdulfattah “John” Janadi. Steve Jobs is one of the Co-founder of Apple Computers Inc. This was formed in the year of 1976 in the Jobs family garage.  Apple Computer Inc has the credit for revolutionizing the computer industry by democratizing the technology making the machine smaller, cheaper, intuitive and accessible to everyday consumers. Even though the Strategies and leadership of Jobs is successful today as being a CEO of Apple Computers Inc, there was a period (1985) which made him to resign from his post CEO of Apple Computers Inc. Even at that time he managed himself, using his leadership capabilities he formed another company named NeXT Inc, Which again have been eventually bought by Apple Computers Inc in 1997.

. 14

1.0 Introduction

Leadership is a process of influencing a selected group of members towards a goal, based on the situations. This influence becomes practical only if the person influencing has more power than the other, where power is “the capacity to produce effects on others”. (Hughes, Ginnett and Curphy, 1993, p.135) The performance criteria’s such as job satisfaction and motivation solely depends on the ability of the leader to guide their followers in the correct path.   

2.0 Leadership and Vision

“The vision must be articulated in such way that increases dissatisfaction with the status quo and compels followers to take action”. (Hughes, Ginnett and Curphy, 1993, p.635)

The vision of Gates “Every business and household must have a computer and the computer must run Microsoft Software”.  As per his vision he has tackled the world in such way, where the people can’t do their jobs easily and quickly without a computer and the computer to cater the people, essentially require Software’s produced by Microsoft. This has been contrasting throughout his products from 1985 Windows1.0 to his recent products.

The vision of Jobs, in the other hand states, Apple is to bring in the best personal computing experience to all its users around the world, through their innovative hardware, software and internet offerings. Their First successful product was released in 1976 and was named as Apple1, which is a hardware unit. And the recent release was Mac Book Air. Today their ideas have set a model for others to follow; this includes their competitors as well.

3.0 Leader and Follower Relationship

A proper leadership (a process) takes place only if the relationship between the leader, follower and the situation is kept perfect.

Gates as a leader had always maintained his relationship between his followers and his co-workers in a perfect manner. He never under estimated his followers. Gates always conveys his objectives which need to be achieved, in a clear manner to his followers. And he also conveys the benefits, which they will get, if they achieve those objectives. Gates Has said it by himself that the Microsoft would have been unsuccessful without my strong team, which stood behind me.

Jobs in the other extreme could not experience this benefit of leader follower relationship during some of his struggling periods.  Jobs elected John Scully as the Apples president. Where During 1985 when most of the Apples products were suffering, Scully believed that these failures were due to Jobs hurting Apple, and he began to influence the executives to phase Jobs out of his own Apple Computer Inc. This made him to resign from Apple on his own. Even that is so, when his NeXT Inc was bought by Apple and when Jobs again was made as a CEO of Apple, he as successful leader managed to build a good relationship with his followers and was able to take Apple to great extents.

4.0 Power and Leadership

According to French and Raven, they have identified five sources of power by which an individual can potentially influence others, that is Expert, Legitimate, Reward, Referent and Coercive power.

Gates as well as Jobs have contrastingly used;

(a) Expert power to influence their followers. This power is based on the user’s skill & knowledge. Both Gates and Jobs were masters on their fields by their knowledge and experience.

(b) Legitimate power this depends on one person’s organizational role. Even though during the 80’s Jobs in specific struggled to make use of this particular source of power, but after 1997 by getting on to the CEO role in his organization he had the maximum use of this power source. Gates on the other hand found this power much useful from his first day onwards.

(c) Reward power “involves the potential to influence others”. (Hughes, Ginnett and Curphy, 1993, p.145) An important part of this is to have a control over resources. The followers and the coworkers under Gates, basically enjoys with plenty of rewards and remuneration as the base for their motivation. Gates as well as Jobs has full control over evaluating employee’s performance determining their promotions and other rewards.

(d) Referent Power often called charisma, the ability to attract others and win their admiration. Gates was loyal to all his employees through his autocratic behavior. Due to this people stayed at Microsoft for long time period than most of the companies. Jobs was able to influence his followers using his innovative and creative ideas. While admiring his ideas people tempted to work for Apple.

(E) Coercive Power this is the opposite of the reward power, is the potential to influence others through the administration of negative sanctions or the removal of positive events. It is an ability to control others using the fear of punishments. This was much used by Jobs in order to get his tasks done on time and as per the requirement. This power in some extents has been used by Jobs in a manner, where the subordinates have cried in meetings. 

 

5.0 Leadership Traits

The trait approach to personality maintains that people behave the way they do because of the strength they possess. The traits cannot be seen, it can only be viewed by looking at a person’s constant pattern of behavior.

Following are the Bright side of personality traits, of Gates and Jobs classified under the Five Factor Model FFM.

Surgency involves, in getting things done in the group settings and concerned in getting ahead in life. Both the leaders that I have taken in to count possess higher Surgency levels. Gates and Jobs had decisive and self confidence in achieving things. And both of them managed to achieve their targets in a group setting, where Gates manages 89,000 employees and Jobs manages 34,300 employees.

Agreeableness is also known as interpersonal sensitivity or the need for affiliation. Even though Gates is not recorded for being friendly, he does carry the sociable traits whereas he found Bill & Melinda Gates foundation and had spent millions of dollars to the charity. This possesses his sympathy and caring on others. Gates is not a greedy boss, he care for his employees. Where on the other hand Jobs most of the decisions were centralized and he never gives a chance for his subordinates to take part in decision making process. This possesses a type of low agreeableness with Jobs.

Dependability is also known as conscientiousness or prudent.  Both of the leaders carry responsibility and achievements traits. Gates found Microsoft Corporation in 1975 and Jobs found Apple Inc in 1976. From there to now they both have consciously identified and understood their responsibilities and achieved their goals. This proves their achievements over the time in growing the business stronger and solid.

Adjustment “is concerned with how people react to stress, failure, or personal criticism. (Hughes, Ginnett and Curphy, 1993, p.210) Gates is a leader with the higher adjustment level. He has emotional stability traits, he does not release his stress towards his employees and he is an enjoyable person who never falls moody in any situations. He has self control, he acts calm and good while under pressure. Where Jobs on the other hand, he is just opposite to Gates. Former Apple public relations executive Laurance Clavere said that before going to a meeting with Jobs, she has to develop a mindset like a bull fighter entering the ring-kill or be killed. She further says that there was times where the subordinates cry in meetings and have been fired to his angry tantrums. Jobs personality is pure but only thing that he could not adjust his self towards the imperfections of the world.

Openness to Experience Leaders higher in this, tend to be imaginative, broad minded and big picture thinkers. Gates as well as Jobs are high in openness to experience. Both of them get ideas from imaginary world and put them to practice using their innovations and creativeness.

6.0 Conclusion

It is not possible for a person to say the leader is effective by looking at his achievement of group goals, but rather it needs to be looked at in a manner where the leaders ability to guide and motivate his followers regardless of the situation faced.

Gates was successful, as a leader he had a good relationship between his co-workers regardless of the situation. As well as he has always allowed his followers to independently think and come up with their own ideas and initiatives. Jobs in the other hand also have been successful by most of the time implementing his own ideas with his own centralized decisions.

Both the leaders were on to their vision from the day they begun to now. Even though there were criticisms on Gates and Jobs leadership styles, the way they overcame those criticisms tempts to keep both of them in the same level that is effective leaders. I would say as a conclusion to this, both the leaders were effective on accomplishing the task in their own way.      
 

7.0 Reference

• ·            Hughes, R., Ginnett, R, and Curphy, G., 2009, Leadership: Enhancing the Lessons of Experience, 06th Edition, McGraw – Hill Irwin, New York
• ·            http://www.biography.com/articles/Bill-Gates-9307520?part=0
• ·            http://www.biography.com/articles/Steven-Jobs-9354805?part=0
• ·            http://www.brainmass.com/homework-help/business/management/160472
• ·            http://www.creatingcustomerevangelists.com/resources/evangelists/steve_jobs.asp
• ·            http://en.wikipedia.org/wiki/Bill_Gates
• ·            http://www.guardian.co.uk/technology/2005/sep/22/stevejobs.guardianweeklytechnologysection
• ·            http://www.icmrindia.org/casestudies/catalogue/Leadership%20and%20Entrepreneurship/LDEN018.htm
• ·            http://www.leadership-with-you.com/steve-jobs-leadership.html
• ·            http://www.microsoft.com/presspass/exec/billg/bio.mspx
• ·            http://www.macobserver.com/tmo/article/the_half-life_of_steve_jobs_leadership/
• ·            http://www.scribd.com/doc/16315025/Leadership-Style-of-Billgates
• ·            http://www.scribd.com/doc/13075547/How-Did-Bill-Gates-and-Steve-Jobs-Differ-in-Their-Leadership-Style
• ·            http://www.suite101.com/content/steve-jobs-and-apple-computer-modify-the-world-a245862
• ·            http://trendsupdates.com/the-gates%E2%80%99-leadership/
• ·            http://www.thepracticeofleadership.net/2008/03/30/steve-jobs-and-his-leadership/
• ·            http://views.washingtonpost.com/leadership/leadership_playlist/2009/11/seven-secrets-of-a-steve-jobs-presentation.html
• ·            http://www.wc.pdx.edu/billgates/billy.html