Thursday, December 5, 2013

LEADERSHIP AND DECISION MAKING: AN INDEX OF CORPORATE SUCCESS


By: Ryan Christophe Babida, Pranay Kejriwal, Jay Miyazato, and Shelly Zeng

At the head of any business or corporation, the executive(s) must guide his or her workers for the future scope for that corporation. Efficiency and profit maximization can be achieved depending on how these executives lead their employees. Thus, we can safely say that leadership is a very important aspect when it comes to a company’s success. We will analyze and compare two different types of leadership: directive and participative leadership. Directive leadership involves a hierarchical approach, where the chief executive has the most control over his subordinates. This form of leadership is great for workers who are inexperienced, as the higher ups of a business will be more knowledgeable. Participative leadership on the other hand features a more collaborative approach, where bottom-ups may present input to the executives.

Jeff Bezos, the leader, founder, and CEO of Amazon, seems to be following a rather directive approach when it comes to leadership and decision-making. Bezos seems to be the one issuing the orders for various departments. He has a high-level of involvement with his employees. Not everything is left to the experts. Be it a marketing strategy, a new product design or acquiring a new company, Bezos seems to be spearheading it all. [i] This may eventually make him fall prey to the so called “leadership traps” of control, consistency and competence but seems to be working just fine at the moment. Amazon is showing steady growth. His leadership style can be characterized as shrewd yet effective.

McDonald’s is one of world‘s largest chain of fast food restaurants. McDonald’s is run by participative leadership, in which all members of a team work together to achieve a common goal. In this case, the leaders and CEO of McDonald’s make decisions as a whole to make the corporation bigger and better. The corporation has remained one of the highest ranked in the fast food industry by implementing programs and strategies for human resources and leadership. In the article, the author talks about how McDonald’s makes strong corporate efforts in developing leaders within the corporation. [ii] McDonald’s gives many job and training opportunities for employees to develop their leadership skills and apply it in their job position. With this we can conclude that McDonald’s is a successful corporation because of its focus on participative leadership.
Apple also uses participative leadership by approaching innovation with a collaborative philosophy. The shift from Steve Jobs to the new CEO Tim Cook was rough for many Apple fans because their different philosophies regarding leadership. [iii] According to the article, “Tim Cook's Leadership Determines Whether Apple Hits $100 or $1,000 Next”, Arora explains that Apple may drift to a more participative, decision-by-committee environment. With Steve Jobs, Apple had a more authoritative, direct leadership. With the current CEO, Tim Cook, Apple uses a much more participative, collaborative approach. Managers within Apple would rely on shared decision making and use different branches of the companies in charge of a part of a large-scaled project. An example is with the new iPhone as Apple makes different departments of the company fully in charge of the new iOS7 and another department fully responsible for the design of the product. [iv]Although changes with leadership style within a small period of time can bring failure, Apple is still able to innovate with new products and is more importantly, still a successful “tech-giant” that many companies hope to follow.
Given these two methods of leadership, we conclude with our findings that neither method is particularly more superior than the other. Instead, the success of a business seems highly dependent on the innovative quality of its ideas rather than how the business is led. Both methods are not perfect by any means, but they both have their own unique strengths.




[i] An example of Directive Leadership. Amazon's Jeff Bezos: The ultimate disrupter, by Adam Lashinsky I 5:00 November 16, 2012


[ii] Observation of Leadership and Organizational Behavior at McDonald’s, by Eric Goldman, Tiago Santos and Sara Tully  l  9:00 November 09, 2008,

[iii] Tim Cook's Leadership Determines Whether Apple Hits $100 or $1,000 Next, by Nigam Arora || 9:50 October 12, 2011


[iv] Steve Jobs vs Tim Cook – If X worked the Y use a collaborative style?, by Sarah Baker |  October 23, 2013


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