Why those firms in subprime meltdown fell and sunk?

    For the same subject matter or topic, the views and standpoints from leader and manager are totally diverse and not the same aspects. To be effective, organizations therefore need both capable and knowledgeable management and inspired leadership. Management emphasizes the producing order and reliability, whereas leadership is about adaptation and creating change and movement. In all, successful leaders have to be able to differentiate and recognize the really important decisions, and achieve a better result. Hymowitz (2007) analyzed, and argued those leaders that led to the subprime mortgage crisis or disaster, and then became global financial crisis and recession, as Warren Bennis claimed, were “[manic denial of good judgment because there were warning signs everywhere]" (p.1). Without intelligence, innovation, or good business ethics, integrity, and self-confidence, leaders lose their visions or directions, and at the end their organizations may fall or sink. In the business world, you are either the leader, or follow the leader.

References

Northouse, P. G. (2007).  Leadership theory and practice (4th


     edition). Thousand Oaks, CA: Sage.

Hymowitz, C. (2007, December 17). Companies need CEOs to stop  

      spinning and start thinking. Retrieved April 30, 2009, from

      http://online.wsj.com/articleSb119784929145132573.html