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Henry Paulson Examples Of Leadership

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Henry Paulson can be both a democratic and an autocratic leader, therefore making him a situational leader. In the movie “Too Big to Fail” we see both sides to Henry. Henry Paulson works with a small group of people that include a PR manager, a financial advisor etc. In the beginning of the movie we see Henry discussing the Lehman Brothers situation with his team. He asks for his team’s opinions and feedback like a democratic leader would. Henry also knew when to tell his team what to do. Later on in the movie Henry is seen telling his PR manager to find a new solution to solve the problem for the Lehman Brothers when plan A doesn’t work. Henry isn’t just a leader to his team but to the people around him as well. During a boardroom meeting …show more content…

The CEO’s of all the top commercial banks in the USA are in a boardroom meeting with Henry Paulson when they are told they need to each invest $1 000 000 into a bailout programme to save Lehman Brothers. The CEO’s argue the whys and why not’s, each coming up with a better solution. Eventually they all come to a mutual decision that they will invest the money. This is an example of functional conflict because the conflict between the CEO’s allowed them to move forward and come to a better solution that would save Lehman. It was conflict that allowed creative thinking and allowed the team to move forward to a greater …show more content…

Credit is what allows people to spend more they currently have/earn. This allows people to purchase more and borrow more money than they can afford to pay back (risky). The National Credit Act (NCA) is an Act that was enforced in order to protect consumers from over spending and then not being able to pay back. The NCA says that credit is not to be given to any person/s that cannot afford to pay the credit amount back. Full background checks are to be done on all potential credit consumers, the consumers earning with be used to evaluate whether or not they are credit worthy. If a person’s earnings are too little compared to the credit amount they wish to get then they will not be granted credit, this is done to protect the consumer. The NCA also says that creditors will receive credit ratings. If a debtor pays their credit back regularly they will get a good credit rating meaning they qualify to take out more credit. The more you owe the higher your credit rating. If a debtor fails to make repayments their credit rating will drop and they will not qualify to take out more credit until they have upped their credit rating. Thanks to Act South Africa has not had the financial problems the USA did because people pend within their means and there is no American

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