Team Impact

Rajguru Panner. AliAbbas Sayed. Ali Haider Sayed. Ali Akbar Batliwala. Saif Merchant. Nazia Hossain.

DID PEOPLE ISSUES BRING THE BANKING

CRISIS?

CAUSES Over-complexity of products and

lack of understanding by management of the associated risks

Excessive reliance on leverage in banks’ business models

Inter-connectedness of financial institutions

Misalignment between the interests of originators of, and investors in, complex financial products

Failure to appreciate cultural and motivational factors, a rigidity of thinking, a lack of desire to change, an attitude of ‘it is not my problem’, inappropriate vision/drivers and human greed

CAUSES lack of training to enable senior

management and board members to understand underlying business models and products, leading to poor oversight by senior executives and a lack of rigorous challenge by independent non-executive directors

Complacency after a prolonged

bull market. Poor control of banking and

financial systems. Poor corporate governance i.e.,

less interference of the government, lack of control over system.

Market economy.

Abraham Maslow’s Theory.

EFFECTS

Negative effects.Positive effects.

NEGATIVE EFFECTS. Rise in

unemployment/poverty. Increase in crime rate. Reduction in purchasing

power. Inflation. Less job security. Social trust. People going back to their

homeland. No new development

project. Lack of motivation. Stressful life due to

uncertainty.

POSITIVE EFFECTS. People Tapping new careers. Multi-skilled workers in demand. Developing countries doing well, especially

agriculture based. Increased efficiency in people. Changing means of entertainment among

people. Judicious use of money. Emotional intelligence has increased. Increased Faith in spiritualism rather than

materialism.

POSITIVE EFFECTS.

Environmental effect-People going green by growing vegetables at backyard to save money-Car sharing concept to save money & reduce carbon emission.-Going more close to mother nature

Suggested measures.

Centralized Leadership. Enhanced Emotional Quotient. People Oriented Approach/strategies. Getting back to the basic human values. Materialism should not be a driving force. Mentor needed.

CONCLUSION

As the human species have struggled and survived all the calamities and catastrophes in life, this calamity too will perish against the 'human' force and we can say that every situation has a positive and a negative effect and we should take all the positives in life and prosper by following the theory that the glass is half filled rather than saying its half empty.

references

www.google.com www.creditcrunch.co.uk www.theguardian.co.uk www.Sayitvisually.com