1. Is It Fine to Privatize Profits and Nationalize Losses, Is It Right for Organisational Development?

1. Is it fine to privatize profits and alter losses, is it right for organisational development? As the United States Of America had to suffer wedge shape-prime crisis during 2007-2008. numerous home-owners defaulted in their payments causing Freddie and Fannie to suffer multi-billion dollar losses. The share prices tumbled by more(prenominal) than 90% and the investors around the world felt that these two firms might non be able to live upto the guarantees which they have to provide to the public.It is somehow confirm to Privatize profits and nationalize losses as the major companies(Freddie and Fannie) which infallible bailouts were US federal government entities and their guarantee was endorse up by the federal government and in case of crisis the US government backed it with a gurarantee. Therefore the mortgage was a very safe picking for the public. It is somehow argued that to privatize profits and nationalize losses is not earnest for the Organisational Development o f the companies as this might set up a badly example for the future.It encourages weak leadership and poor circumspection. The organisations should access the risk associated with their performance and should adopt a proactive approach to counter such problems. The aware government bailout would affect the organisational working which would otherwise have been different. 2. Was this a impart of failure of leadership of these firms ? The downfall of such broad companies is not skillful a failure of the financial system, but also a huge leadership failure.Excessive interest in personal financial goals as against the larger interest of the organization is one of the root cause of this meltdown. These years some managers are not that efficient and rely on fix and incentives. They believe that if they hire smart people, give huge incentives for personal results, the management of the firm would take care of itself. Under such circumstances, taking risks to come upon personal g oals even if that puts others or organization in danger seems acceptable.These bad-tempered leadership failures have been a major cause of this full-scale meltdown of US financial So, proper approach and tackling problems in advance hatful avoid such kind of downfall of the companies. For eg. The crampfishprime crises has never been thought remove in indian trade and the indian companies are not providing sub prime loans and have been only dealing with prime mortgage market so as to avoid future debacles which would prove fatal for the economy. The sub prime market of India is considerably small than the Prime mortgage market.