Leadership skills are just one of the many factors that a manager or head of a team must possess in order to fully attain the goals of any organization they are affiliated with. There are other human factors that are also important in efficiently handling situations for the benefit of the entire organization. For example, there is the ability to politicize with other people, which contributes to making business deals easier. Additionally, educational attainment allows leaders to structure plans and strategies for their organization.
However, let us set aside these other traits that a leader must possess and focus more on how leaders handle their organizations in their own creative way.
This paper will compare and contrast the leadership qualities of Steve Ballmer, CEO of Microsoft Company, and Steve Jobs, CEO of Apple Inc. These two leaders will be evaluated based on their problem-solving approaches and how they perceive opportunities.
Leader Behaviors
Steve Ballmer is an aggressive type of leader who strives to seize all possible opportunities in the market. This is justifiable since Microsoft is the largest hardware-software provider in the world, and Ballmer cannot allow their competitors to take over their market dominance. Ballmer’s love” for Microsoft has made many investors become part-time owners of the company. His passion for his job provides enough security for investors to invest in Microsoft. Unlike typical “serious” CEOs, Ballmer is a “funny” yet responsible leader in his own way.
Moreover, like other CEOs, Ballmer is innovative and not content with what Microsoft currently offers its customers. He wants to push the limits of Microsoft by further developing their products to maintain their market dominance.
On the other hand, Steve Jobs was a serious type of leader who was somewhat dependent on other companies from countries like Japan for the development of key parts in their products. In short, Apple mainly assembled their computers. Although Apple tried to be as innovative as possible, the quality of their products was put to the test. There were many market rumors about faulty parts in Apple products such as iPods. In other words, Steve Jobs and his team were more concerned about quantity and timeliness rather than quality aspects.
Success and failures.
Steve Ballmer was able to launch Microsoft’s new software, Vista. The software is slowly but surely being introduced in international markets. Most of Vista’s features are improvements on previous Microsoft operating systems, with some significant new features such as Windows DVD Maker,” a multimedia creation tool, and “Windows Aero,” which enhances the system’s search capabilities. In addition to the new OS, Ballmer also acquired the Zune Digital Music Player to expand their product lines and take advantage of the growing market for online music stores. This move is also a good way for Microsoft to advertise its name in the booming industry of online music.
However, Microsoft’s plan to acquire Google did not come into fruition. The reason for Google’s refusal was not disclosed publicly, but rumors suggest that it may have been due to Google’s high price demands.
On the other hand, Steve Jobs successfully launched the iPod in the market and is now entering the European market. Although the iPod faced a lot of problems in terms of quality aspects, these problems are already being addressed by Apple, such as faulty screens and batteries. From an innovative perspective, Apple received votes from most consumers for being the first to offer a media player that is less bulky but has a large memory space. This is why the iPod earned market acceptance in just a short period of time. Moreover, Steve Jobs and Apple management were able to develop a device that combines features of both a cellular phone and media player – iPhone. This new product line under the brand of iPod is currently on its promotional period since it was only launched a few months ago.
One of Steve Jobs’ failures was not providing dividends to Apple’s investors for several years. This has caused investors to think twice before investing their capital in the company.
Reasons for Becoming a Leader
It was previously mentioned that both Steve Ballmer and Steve Jobs are leaders in their own right. Steve Ballmer can be considered a leader due to his effective leadership in making Microsoft the market leader for software and hardware industries, resulting in market dominance. His dedication to Microsoft has resulted in a positive work environment for employees and customers alike. Additionally, he successfully created new job opportunities while maintaining profitability for the company. In short, he possesses a comprehensive understanding of every aspect of Microsoft’s operations from top-level management down to individual units.
Steve Jobs was also a successful leader in maintaining zero debt and financial obligations, resulting in Apple having a smooth flow of cash and profitability. This has enabled them to attract investors despite not yet paying dividends to current investors. Perhaps Apple is using the budget for dividends for expansion programs and will pay investors later on.
Additionally, due to Jobs’ seriousness, workers are exposed to many responsibilities that build their skills in managing the company. In short, employees at Apple are influenced by Jobs to give their best in everything they do for the company.
Leadership style is an important aspect of management. It refers to the approach that a leader takes in guiding and directing their team towards achieving organizational goals. There are various leadership styles, including autocratic, democratic, transformational, and laissez-faire. Each style has its own strengths and weaknesses and is suitable for different situations.
Before Steve Ballmer became the CEO of Microsoft, he was considered a very authoritative person with a short temper. As a result, many employees were unhappy working with him. However, things changed when Ballmer assumed the position of CEO at Microsoft. He slowly learned how to handle his temper and direct it into something else.
Currently, Ballmer is guided by democratic leadership. He allows his managers to speak first and listens before giving suggestions or participating in activities if needed (Hamm, 1999). This approach has helped Ballmer gain the sympathy of his subordinates and improve his relationship with the company’s managers.
On the other hand, Steve Jobs is known for his aggressive leadership style and tends to use authoritarian leadership (Wagner, 2007). He prefers to do things according to his own plan and monopolizes the exchange of ideas. Regardless of opposition from managers or the company, he wants his ideas implemented. For example, when developing the iPod,” Jobs gave his development team only 8 months to complete it and did not tolerate any delays. Despite criticism of this authoritarian approach, it helped establish high standards for executing strategies and making decisions at Apple. As a result, Apple employees produce high-quality outputs. Jobs’ aggressive leadership style contributed greatly to Apple’s success in penetrating a highly competitive market.
Decisions Made.
Regarding Microsoft, Steve Ballmer’s decision to acquire aQuantive Inc., an online advertising company, is justifiable despite the cost (Businessweek.com, 2007). MSN failed to compete with Yahoo Inc. and Google Inc., so aQuantive Inc. is expected to revitalize Microsoft’s online advertising system by replacing MSN.
On the other hand, Steve Jobs’ decision to launch the iPod in the market despite its short development period was the right thing to do. This was due to rumors that their competitor was also developing a media player with a similar concept as the iPod. If their competitor had launched their product first, it would have been difficult for Apple to penetrate the market since people might think they just copied their competitor’s product. Therefore, Jobs’ decision to launch the iPod after an 8-month development period is understandable and necessary considering the threat in the market.
Accomplishments
Steve Ballmer completed his studies at Harvard University and was known for being a school leader” as he managed various organizations during his college years. He also handled several divisions of Microsoft during his early years with the company. Prior to joining the Microsoft family, Ballmer served as an assistant product manager at Procter and Gamble Co. for two years.
Steve Jobs was honored by Governor Arnold Schwarzenegger and inducted into the California Hall of Fame” in December. He also received the “National Medal of Technology” from President Reagan and the “Jefferson Award for Public Service” in the 1980s.
References
Businessweek.com (2007) reported that Microsoft paid $6 billion for an online advertising company. The article can be retrieved from http://www.businessweek.com/bwdaily/dnflash/content/may2007/db20070518_719727.htm?chan=search, accessed on November 22, 2007.
Hamm, S. (1999). I’m Trying to Let Other People Dive in before I Do.” Retrieved November 22, 2007, from http://www.businessweek.com/1999/99_20/b3629004.htm.
Wagner, K. V. (2007). Lewin’s Leadership Styles. Retrieved on November 22, 2007 from http://psychology.about.com/od/leadership/a/leadstyles.htm.
