Managementin business is like organizing and oversees the work of other employees,subordinates to get the effective and efficient outcomes. Mainly three types ofmanagement styles are used in business that are Autocratic, Democratic andLaissez-Fairel/Free Rain.
Warren Buffet uses the Laisses-Fairel technique tomanage his organization that is allowing the employees to work on a given taskwith freedom means employees require little guidance from their superiors. Buffet chooses the right employees and providesthem high degree of autonomy. If any employee make mistake then he doesnot believe in firing the person instead he tries to motivate him/her toperform better. He believes that reprimand should be short and manager shouldpraise the employee immediate after the reprimand because he thinks that inthis way the employee does not feel negative about the manager. He also concentrates on selection of managers becausehe believes in getting the things done by the other people so he follows therule that hire those people who love the things they do.
Buffetsays that we should learn from our mistakes instead of moving far away from ourmistakes because if we face difficulties it is better to seek for better pathto go.(Management Secrets, Warren Buffet,2009)Asmanagement does not end by just organizing the work of others there are severalfactors with the businessman deals. Investment is one out of those factors.Warren buffet follows some rules while makes investments. According to him investorsshould focus on the inner financial strength of the company rather thanfocusing on the stock trading. He also likes to do home work before spendingmoney for a business. He and his team always know what information they requireand how they will get the information and after the collection of informationthey integrate the information into clear opinion. Warren only makes investmentin those companies about which he knows what the company does to make profit.
The most powerful strength of him is his ability to take decisions quickly. Hedoes not waste time on setting up the decisions and does not waste good moneyin worst business.( Sidney Kess and Edward Mendlowitz,CPA Journel, 2016)Manypeople argue upon the Buffet style because they say that Berkshire struggled inthe textile company for twenty years so Buffet’s strategies would not fit toevery business but we cannot ignore the market position of Berkshire, over thehalf-century of his management, Berkshire’s stock price has raised to12,000 times and Warren has not been dealing in single industry he has investedin various industries such as textile, sports products, jewelry, furniture andetcetera.
(Lowenstein, Roger, Fortune.com,2015)http://agnescheah.blogspot.ca/p/blog-page.html