Question

Warren Buffett is an extremely powerful owner and businessman. Out of the five sources of power, identify one source of power that Mr. Buffet holds. Explain why you selected this one source.

Transactional leadership focuses on the rewards associated with doing a good job. In one paragraph, describe how Warren Buffett is a transactional leader..

Assess your own knowledge, skills, and abilities. Briefly describe your own personal motivation and your leadership traits.

Would you be able and willing to run one of Mr. Buffett's companies? Be sure to justify your response.

Answer 1

Out of 5 sources of power, I believe that Mr. Buffett would effectively have the Referent Power. I have selected this power because of the fact that I believe a person becomes a strong leader with his strong interpersonal relationship skills. It tells about the personal power the leader possess to influence people, not using the command and control.

By using the referent power, Mr. Buffett would automatically have the most strategic skills to make people influence with his words of wisdom. Employees would see them as an idol and would follow them as he himself would establish himself as a good and influencing leader. Thus, understanding the personal needs of the employees by making such relations, he would offer the employees only those incentives which would have the most impact in influencing them. Thus, offering them the relevant incentive to work would make himself as a transactional leader.

Assessing my own skills and abilities, I also see myself having a strong hold on my written as well as verbal communication power. I believe communication if done in the effective manner could solve all the problems and hinderances in the organisation. When should effectively listen, speak and analyse what the other person is saying to make the most strategic decisions and develop a good decision making ability to survive the dynamic market.

Yes, obviously as stated above Mr. Buffett is a strong leader influencing people with his words and personal power not depending on any third factor to make the employees influence. This makes hima strategic leader and an idol and thus it would be an honour working with him as I would be able to learn and adapt so many things under his guidance and leadership.