BIll Gates Executive Summary Complited

Bill. H.
Gates as
Leader
Managing Organization
–MGT3553
Kabiru Ahmed Shahir(SCM013621),

Beketov Almas(SCM 013296)
Yuan Lei (SCM014015)
Managing Organization 2
Bill. H. Gates as Leader
Group: Kabiru Ahmed Shahir( SCM013621),Beketov Almas(SCM 013296)
Executive Summary
The report begins with a brief background of the organization in which is Microsoft Company
and Bill. H. Gates is currently the Chairman of the company. The report also includes a brief
background of Bill Gates with a detail of his education, working experiences and Goals. The
highlight of the report is the identification of the leadership characteristics of Bill Gates trough
The Behavioral Theory under the University of Iowa Studies, The Fiedler Model and finally, the
report ends with the identification of two contemporary challenges faced by Microsoft Company
and Bill Gates as well as recommendations to overcome these issues.
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Table of Contents Page

Num
Executive Summary....................................................................................................................................1
1.0 Background of Microsoft Cooperation..................................................................................................3
2.0Bill Gates Brief Life History.................................................................................................................5
3.0 Bill H. Gates Leadership Characteristics...............................................................................................6
3.1 The Early leadership theory in relation to the trait theories...............................................................6
3.1Bill gates style as Fiedler Model.........................................................................................................7
4.0 Bill Gates faced with leadership issues..................................................................................................9
4.1Leading across cultures...................................................................................................................9
4.2 Developing trust Issues................................................................................................................10
Reference...................................................................................................................................................12
Appendix...................................................................................................................................................13
Grading Scheme
Peer Evaluation

1.0 Background of Microsoft Cooperation

The name Microsoft, without the hyphen, was first used in a letter from Gates to Allen on
November 29, 1975, and on November 26, 1976 the name became a registered trademark. The
company's first international office was founded on November 1, 1978, in Japan, entitled "ASCII
Microsoft" (now called "Microsoft Japan"). On January 1, 1979, the company moved from
Albuquerque to a new home in Bellevue, Washington. Steve Ballmer joined the company on
June 11, 1980, and would later succeed Bill Gates as CEO.( en.wikipedia,2010)
Microsoft's first operating system was Xenix, released in 1980. After acquiring a license to
distribute Unix from AT&T, Microsoft hired Santa Cruz Operation in order to port/adapt the
operating system to several platforms. (Windows history,2000). Microsoft possesses footholds in
other markets, with assets such as the MSNBC cable television network, the MSN Internet
portal, and the Microsoft Encarta multimedia encyclopedia. The company also markets home
entertainment products, such as the Xbox, Xbox 360 and MSN TV.( Fast Facts about
Microsoft,2009)
Microsoft Corporation (NASDAQ,2010) is an international computer technology corporation

with 2005 global annual sales of close to $40 billion USD and about 64,000 employees in 85
countries and regions which develops, manufactures, licenses, and supports a wide range of
software products for computing devices. Headquartered in Redmond, Washington, its most
popular products are the Microsoft Windows operating system and the Microsoft Office suite of
productivity software, each of which has achieved near ubiquity in the desktop computer market.
In the table 1.0 below list down the following windows Os that has been launched from the
inception of the Microsoft corporations

List of Microsoft operating systems from the the oldest to the newest
No Year Operating systems
1 1991 Windows 3.0
2 1992 Windows 3.1
3 1995 Windows 95
4 1996 Windows NT
5 2000 Windows Me
6 2000 Windows 2000
7 2001 Windows Xp
8 2003 Windows Vista
9 2008 Windows 7
10 2011(expected date) Windows 8
Table 1.0
Sourse (solarnavigator.net,2011)

2.0 Bill Gates Brief Life History

Bill H Gates was born on October 28, 1955. He and his two sisters grew up in Seattle. Their
father, William H. Gates II, is a Seattle attorney. Mary Gates, their late mother, was a
schoolteacher, (Microsoft 2008),University of Washington regent and chairwoman of United Way
International. At the age of 13, bill enrolled for Lakeside school, an exclusively preparatory
school, which while attending that school, He developed his first major program on his own,
which is an implementation of game called as tic-tac-toe. This is, perhaps the turning point in his
career. In fact, Gates was always thinking, how the machine could execute his program perfectly
without giving any problems (vistahunt,2008).
In fall of 1973, Gates took admission at the Harvard University. It was he who met his future
partner Steve Ballmer, here. He also met many great personalities here, including computer
scientists of that time, In his junior year, Gates left Harvard to devote his energies to Microsoft, a
company he had begun in 1975 with his childhood friend Paul Allen. Guided by a belief that the
computer would be a valuable tool on every office desktop and in every home, they began
developing software for personal computers. Gates' foresight and his vision for personal
computing have been central to the success of Microsoft and the software industry Gates was
married on Jan. 1, 1994, to Melinda French Gates. They have three children. Gates is an avid
reader, and enjoys playing golf and bridge.(vistahunt.com,2008),

3.0 Bill H. Gates Leadership Characteristics
3.1 The Early leadership, the Behavioral Theory under the University of Iowa
Studies
Bill gate was seen as to have adapted two types of leadership style under this model which he
was said to be by HR department at Microsoft he said to be Autocratic and at the same time he is
also the delegating type make him democratic as well.(scribd.2008)
Autocratic style
As an autocratic leader he was obsessed with checking up on his Staffs and detail another quality
reported by the HR department was that he he tried to monopolized the World Wide Web
software market in process of doing that he got into problem with the department of justice, there
for making Microsoft restricted the ability of its internet partners to deal with its rivals, and lastly
he dislike also complaints.( scribd.2008)
Democratic or delegated authority style
Gates looked for a bundle of attributes in recruits. These included the capacity to grasp new
knowledge quickly, the ability to ask probing questions, and deep familiarity with programming
structures. Gates assumed that the best talent would never apply directly. Consequently,
Microsoft's HR managers had to hunt for the best talent and offer them a job he also gives
autonomy to his manager, he delegates authority to managers to run their independent
departments (Dhananjay Kumar.2008)

3.1Bill gates style as Fiedler Model

"In Fiedler's model, leadership effectiveness is the result of interaction between the style of the
leader and the characteristics of the environment in which the leader works"(Scribed, BILL
GATES LEADERSHIP , 2008)
"According to Fiedler, the effectiveness of a leader is determined by the degree of match

between a dominant trait of the leader and the favorableness of the situation for the leader
The dominant trait is a personality factor causing the leader to either relationship-oriented or
task-orientated"
Relation-oriented leadership:
Leaders who describe their preferred coworker in favorable terms, with a high LPC, are
purported to derive major satisfaction from establishing close relationships with fellow workers.
High LPC leaders are said to be relationship-orientated. These leaders see that good interpersonal
relations as a requirement for task accomplishment. refer to appendix 1 for diagram
(Scribd,BILL GATES ,2008)
Task-oriented leadership:
Leaders who describe their least preferred coworker unfavorable terms, with a low LPC, are
derived major satisfaction by successfully completing a task. These leaders are said to be task-
orientated. They are more concerned with successful task accomplishment and worry about
interpersonal relations later

The second major factor in Fiedler's theory is known as situational favorableness or
environmental variable. This basically is defined as the degree a situation enables a leader to
exert influence over a group. Fiedler then extends his analysis by focusing on three key
situational factors, which are leader-member, task structure and position power. Each factor is
defined in the following. refer to appendix 1 for diagram ,As a result of the characteristics of the
leader he was able to influence his employees
1. Leader-member relations: the degree to which the employees accept the leader.
2. Task structure: the degree to which the subordinates’ jobs are described in detail.
3. Position power: the amount of formal authority the leader possesses by virtue of his or her
position in the organization.
So in this case Bill Gates found most favorable place where positional power is high as he has
most authorities in the firm, task structure is also defined as he gives the direction to subordinate
to fulfill his vision, and last leader-member relation is also good.
That’s mean Bill Gates is more likely Task-oriented leader who want performance from his
subordinate and work has to be done to achieve the goal of the company (refer to Table 2.1).
Bill gates is also seen as a level four leader this makes him an effective leader according to the
model this refer to as "first what, then who." Level four leaders (refer to Appendix 1) are very
much in the conventional mode (Microsoft.com,2000)
Bill gates is also seen as someone who is effective when it is not too difficult to decide what to
do. And Bill Gates is too confident what he wants to do in near future and pursue his vision
through his expertise.(scribd.com/ Dhananjay Kumar,2010)
Bill gate was a very passionate person who loves what he belives in and Bill Gates decided to
stop studying and pursue his dream of writing software’s for every computer in the world

He was just passionate about software, coding and technology that incidentally also made him
the richest man in the world.(scribd.com/ Dhananjay Kumar,2010)
How bill has been moving Microsoft for last 5 financial year
MICROSOFT INCOME STATEMENT

2010 2009 2008 2007 2006
Period End date 06/30/2010 06/30/2009 06/30/2008 06/30/2007 06/30/2006
Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
Statement Source 10-k 10-K 10-K 10-K 10-K
Statement source date 07/30/2010 07/30/2009 07/30/2009 07/30/2009 08/25/2006
Revenue 62,484.0 58,437.0 60,420.0 51,122.0 44,282.0

Total Revenue 62,484.0 58,437.0 60,420.0 51,122.0 44,282.0
Cost of revenue total 12,395.0 12,155.0 11,598.0 10,693.0 7,650.0

Gross Profit 50,089.0 46,282.0 48,822.0 40,429.0 36,632.0
Table 2.1 source: (moneycentral.msn.2010)
According to Redmond W. ,2007 he stated that Microsoft operations announced that they have a
revenue of $14.40 billion USD at the first quarter of this year ended march 31 st,2007.
(Microsoft,2007)
Redmond W also added in the year 2010 that Microsoft Corp. announced record revenue of
$19.02 billion for the second quarter ended Dec. 31, 2009, a 14% increase from the same period
of the prior year. Operating income, net income and diluted earnings per share for the quarter
were $8.51 billion, $6.66 billion and $0.74 per share, which represented increases of 43%, 60%
and 57%, respectively, when compared with the prior year period.(Microsoft,2010)
4.0 Bill Gates faced with leadership issues

4.1Leading across cultures
In the paragraph below this report will state the scenario in which Microsoft faced one of the Leadership
issues of the 21st century the Leading Across Cultures in relation to Monopoly
It is no doublet that Microsoft is still leading in every markets it enters across nation which
became a problem for the company because of some of the other companies such as apple where
in disagreement with this because according to (woopidoo,2010) that the software giant’s
Microsoft suffered a problem of moving across cultures and markets because Microsoft
monopoly was set about completely dominating every market it enters through either acquisition,
aggressive business tactics or a combination of them. Many of the largest technology companies
have fought legally against the actions of Microsoft, including Apple Computer, Netscape,
Opera, WordPerfect, and sun Microsystems. (moneycentral.msn,2010)
The late Nobel economist (Milton Friedman,2004) believed that the antitrust case against
Microsoft set a dangerous precedent that foreshadowed increasing government regulation of
what was formerly an industry that was relatively free of government intrusion and that future
technological progress in the industry will be impeded as a result.(wikipidia,2007)
Jean-Louis Gassée, CEO of Be Inc., claimed Microsoft was not really making any money from
Internet Explorer, and its incorporation with the operating system was due to consumer
expectation to have a browser packaged with the operating system. For example, BeOS comes
packaged with its web browser, NetPositive. Instead, he argued, Microsoft's true anticompetitive
clout was in the rebates it offered to OEMs preventing other operating systems from getting a
foothold in the market.(wikipidia.com,2011)
4.2 Developing trust Issues
The developing trust issue was face by Bill gates him self as he quoted “For computing to
achieve its full potential -- and to enrich the daily lives of people and businesses everywhere -- it
must first be made as secure and reliable as it can be, says Bill Gates” (Microsoft.com2003)
Billgates developing trust is in relationship to his windows software in which he tried to provide
the consumer trust on his product which were computer software that Microsoft developed he

used the first and foremost important point which was TRUS we see this as bill explained that
computers before, the data they contained were relatively easy to secure because they were rarely
moved or communicated to other machines.(Microsoft 2006)
Another point he explained was Reliability In fact, it has worked to address security and
reliability issues for decades, helping to ensure that banks could safely process transactions, that
flight control systems functioned flawlessly and that sensitive data remained in the hands of
those authorized to use them. But this all went on behind the scenes and the average citizen knew
little about it.
The next point he further explaind was the freedom and openness Bill said in the past few years
we have seen all that change. The amazing growth of PCs connected to the Internet transformed
the nature of computing, setting information free and creating tough new security challenges.
That was his view for openness that consumer should have the freedom on the internet while
being secured.(BIlL Gates ,2003).
And when it came to loyalty Bill said to get a person’s physical and emotional feelings correct
,to make this happen, our computing systems cannot just be secure they should be unfailingly
trustworthy and when we have that then we have loyalty . We should be able to rely on them as
we in the developed world rely on electricity or a telephone service today.
Although complete trustworthiness has yet to be achieved by any technology -- power systems
still fail, water and gas pipes rupture and telephone lines sometimes drop calls -- these systems
are usually there when we need them and they do what we need them to do. For computers to
play a truly central role in our lives, they must achieve this level of trust.
Solutions and Recommendations

Developing trust Issues
 To really gain the trust of customer what we suggest is that the company should work
with the government hand in hand law enforcement and business leaders to deter
cybercrime at its source and build a secure digital future.
 Microsoft should ensure that people can retain control over how their personal
information is obtained and used by others.
Leading across cultures
 The company should lunch a software which did not include any additional web browser
because that was the main reason the they were sent to court
 The company should solve the monopoly problem by adjusting their leadership style to a
more centralized one in which there should do business on a level playing ground
Conclusion
To conclude on this report we would say Bill Gates is a very effective leader who has followed
his goal in very optimistic way he was also very innovative Plus he was a Autocratic and
democratic as well. He was also someone who did not like complains I would say finally he was
a Transformational leader.
WORD Count 1,850 Exclude : Cover page, table of content ,Conclusion , Appendix and
Executive summary

Reference
1. Bill H. Gates,(2008),Microsoft News center, Bill Gates Chairman,
http://www.microsoft.com/presspass/exec/billg/ (accessed 30/03/2011)
2. Bill H. Gates,(2003),Microsoft News center, Building Trust in technology by bill gates,
http://www.microsoft.com/presspass/ofnote/01-03davos.mspx (accessed 30/03/2011)
3. Dhananjay Kumar, Scribd,(2008),Report on Leadership Style Of Bill Gates,
http://www.scribd.com/doc/16315025/Leadership-Style-of-Billgates
(accessed 2/4/2011)
4. DocStDC,(2009),Bill Gates Leadership, http://www.docstoc.com/docs/16954726/Bill-
gates-Leadership
(accessed 2/4/2011)
5. NASDAQ,MSN Money,(2010),Financial Results, Microsoft cops
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=US
%3aMSFT
Accessed 5/4/2011)
6. Oppapers,(2011) Personality Traits of Bill Gates,
http://www.oppapers.com/essays/Personality-Traits-Of-Bill-Gates/548642
(Accessed 4/4/2011)
7. Redmond .W(2010),Microsoft News center, Microsoft Reports Record Second-Quarter
Results, http://www.microsoft.com/presspass/press/2010/jan10/01-
28fy10q2earnings.mspx (accessed 30/03/2011)
8. Redmond . W(2007),Microsoft News center, Microsoft Reports Record Results,
http://www.microsoft.com/presspass/press/2007/apr07/04-26Q3FY07ERPR.mspx
(accessed 30/03/2011)
9. Solar Navigator,(2005),Microsoft Corporation,
http://www.solarnavigator.net/sponsorship/microsoft.htm
(accessed 5/4/2011)
10. Wikipidia, (2008) Bill Gates, http://en.wikipedia.org/wiki/Bill_Gates#Investments
(accessed 4/4/2011)
11. Wikipidia,(2011) United States Vs Microsoft,
http://en.wikipedia.org/wiki/United_States_v._Microsoft#Trial

(accessed,5/4/2011)
12. Woopidoo!,(2005) Bill Gates Biography, http://www.woopidoo.com/biography/bill-
gates.htm
Accessed 3/4/3011)

Appendix 1
Bill gates style as Fiedler Model
Level 5 hierarchy
Bill Gates
Contributing Team
Member
Highly Capable Individual

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Bill. H.

Kabiru Ahmed Shahir(SCM013621),

and Bill Gates as well as recommendations to overcome these issues.

SEGi University College

Table of Contents Page

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1.0 Background of Microsoft Cooperation

Microsoft Corporation (NASDAQ,2010) is an international computer technology corporation

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SEGi University College

2.0 Bill Gates Brief Life History

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3.0 Bill H. Gates Leadership Characteristics

Democratic or delegated authority style

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3.1Bill gates style as Fiedler Model

"According to Fiedler, the effectiveness of a leader is determined by the degree of match

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MICROSOFT INCOME STATEMENT

Revenue 62,484.0 58,437.0 60,420.0 51,122.0 44,282.0

Cost of revenue total 12,395.0 12,155.0 11,598.0 10,693.0 7,650.0

4.0 Bill Gates faced with leadership issues

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4.2 Developing trust Issues

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Solutions and Recommendations

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Leading across cultures

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