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Effective leadership is the most important part of any organization’s success, and analysing strategies used by effective and ineffective leaders can help to understand what qualities contribute to it. Two leaders that will be discussed in this essay are Satya Nadella and Ken Lay. Nadella has been the CEO of Microsoft since 2014, and Lay was the founder and CEO of Enron, a major energy company that declared bankruptcy in 2001 (Eckhaus & Sheaffer, 2018). This essay will discuss Nadella as an example of effective leadership, and Lay as an example of ineffective leadership.
Some similarities can be found between these two leaders; for example, they both worked and, in Nadella’s case, continue working, as CEOs of some of the largest companies in the world. In addition, both leaders have been ranked among the highest-paid CEOs globally, and Nadella still remains in that list (Prakash et al., 2021). However, there are significant differences between their leadership styles. Since he became the CEO of Microsoft in 2014, Nadella has promoted a culture of diversity and inclusion, while Lay did not address these aspects of work environment when he was in charge (Eckhaus & Sheaffer, 2018). Nadella understands the importance of organizational transparency and accountability (Prakash et al., 2021). On the other hand, Lay has neglected these values; studies have shown that most of his decisions were based on personal interests and gaining profit (Eckhaus & Sheaffer, 2018). Unethical accounting and other illegal practices have eventually led Enron to its demise.
It can be concluded that a number of characteristics were identified as part of making an effective or ineffective leader. Nadella’s example has demonstrated that those contributing to effective leadership include focus on transparency, inclusion, diversity, accountability, and honesty. In turn, Lay and Enron’s story show that characteristics associated with ineffective leadership include unethical accounting practices, a lack of organizational transparency, and a lack of inclusion.
References
Prakash, D., Bisla, M., & Rastogi, S. G. (2021). Understanding authentic leadership style: The Satya Nadella Microsoft approach. Open Journal of Leadership, 10(02), 95-109.
Eckhaus, E., & Sheaffer, Z. (2018). Managerial hubris detection: The case of Enron. Risk Management, 20(4), 304-325.
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