Assignment:2

Leadership in Action The last CEO of Lehman Brothers:

Richard Fuld

Summary

The case explains about the Last CEO of Lehman Brothers, a financial services firm that was
founded in 1850 and finally that went on bankruptcy in year 2008. The person in this case is
Richard Fuld his CEO title made the company itself to collapse. This have been accused of shady
accounting practices that allowed it to hide risky investments. Fuld head the organization
considering that 1994 and also has been renowned intended for his or her expertise and also
effectiveness and also his or her robust and also bullying model. His nickname the Gorilla
shows equally his or her habitual grunting and also his or her domineering model.

Question 1
1. What are the sources of Dick Fulds power?
Fuld structured his great power with establishing sizeable experience early on in his profession.
He additionally builds a strong system involving buddies and politics allies who presented him
referent power. While they accumulated standard and place in Lehmans, they accumulated
genuine power and sizeable compensate and coercive power and also the standard place. He
incredibly astutely, used the many causes of power to develop on a single another. He used his or
her genuine place as well as the privileges the item given more creates friendships and
associates. He used the same power to intimidate individuals who disagreed along with him and
compensate these to whom they loved.
2. What elements of power corruption are present in this case?
Richard Fuld displays many of the individual characteristics that can lead to abuse along with
records corruption. Because his success improved, they developed the filled watch regarding
them self, demonstrated extensive hubris, along with grew to be big-headed. The mood further
led to this. The treatment method regarding subordinates displays his solidity, sense regarding
entitlement, along with motivation to make use of his capacity to gain his goals or simply just
belittle these people. In the mean time, Fuld handsomely rewarded followers exactly who
executed along with conformed.
The particular fans along with organizational variables that will produce records corruption will
also be found. Because of his or her know-how along with high performance, there were
liabilities as Fuld repudiated for company to know problems. They produced a new lifestyle
regarding violence that will reward simply fiscal efficiency though dismissing other likely
problems. The work environment in the Lehman was a type of intimidation that rewarded only
financial performance while ignoring other potential problems. Besides bankruptcy, Fuld along
with the corporation are usually arrested regarding fiscal wrong-doing along with governed by
investigation.