The Big Short: Lessons in Supervisory Techniques

  The Big Short: Lessons in Supervisory Techniques Introduction The Big Short, directed by Adam McKay, is a film that delves into the events leading up to the 2008 financial crisis. It follows a group of individuals who predicted the housing market collapse and bet against the fraudulent practices of major financial institutions. In this essay, we will explore three supervisory techniques portrayed in the film, analyze their effectiveness, discuss a scene where I would have taken a different approach as a supervisor, examine the impact of high-stress environments on supervisory techniques, reflect on a supervisory trait that resonates with me personally, and discuss why supervisors may fail even when using "textbook" techniques. Effective Supervisory Techniques One of the effective supervisory techniques portrayed in The Big Short is critical thinking. Characters such as Michael Burry and Mark Baum demonstrate this technique by conducting in-depth research, analyzing data, and questioning conventional wisdom. Their ability to think critically allows them to uncover the flaws in the housing market and make informed decisions. This technique emphasizes the importance of questioning assumptions and seeking evidence-based insights. Another effective supervisory technique in the movie is risk assessment. Characters like Jared Vennett and Ben Rickert assess the risks associated with the housing market and make strategic moves to protect their investments. By evaluating potential risks and developing contingency plans, they demonstrate effective leadership in navigating uncertain situations. Furthermore, effective communication is also highlighted as an important supervisory technique. Characters in the film, such as Dr. Michael Burry, communicate their findings and concerns with clarity and conviction. Their ability to articulate complex financial concepts in a straightforward manner allows them to gain credibility and influence others. Ineffective Supervisory Techniques While there are effective supervisory techniques portrayed in The Big Short, there are also instances of ineffective techniques. One such technique is complacency. Some characters, such as those working in major financial institutions, exhibit complacency by turning a blind eye to the risks and fraudulent practices within the housing market. This failure to proactively assess risks and take appropriate action leads to dire consequences. Another ineffective supervisory technique depicted in the movie is excessive reliance on authority and hierarchy. Characters working for major financial institutions often defer to their superiors without questioning their decisions or considering alternative perspectives. This blind obedience inhibits critical thinking and innovation within the organization. Scene Analysis: A Different Approach In one scene where some characters discover evidence of widespread mortgage fraud, I would have taken a different approach as a supervisor. Instead of solely focusing on their own interests and profits, I would have encouraged collaboration with regulatory agencies and authorities to expose the fraudulent practices to a wider audience. By seeking external support and transparency, we could have potentially mitigated the impact of the crisis on innocent individuals and brought about systemic change in the industry. The Impact of High-Stress Environments In high-stress environments, supervisory techniques can be significantly affected. In The Big Short, the high-stress environment of the impending financial crisis creates immense pressure on characters like Mark Baum. This pressure can lead to emotional reactions, impulsive decision-making, and compromised judgment. In a less stressful environment, supervisors have more mental clarity to make rational decisions and effectively lead their teams. Relating to a Supervisory Trait One supervisory trait that resonates with me personally is adaptability. As a project manager, I have encountered unexpected challenges that required adapting plans and strategies based on evolving circumstances. By remaining flexible and open-minded, I was able to lead my team through uncertainty, adjust goals and objectives as needed, and maintain focus on achieving project success. Failures of "Textbook" Techniques Supervisors can fail even when using "textbook" techniques due to various reasons. One reason is the failure to consider ethical implications. In The Big Short, some supervisors within major financial institutions followed traditional practices without considering the ethical consequences of their actions. By adhering solely to textbook techniques without ethical considerations, supervisors risk undermining trust, damaging reputations, and contributing to systemic failures. Furthermore, supervisors may fail if they lack empathy and fail to consider the impact of their decisions on others. Characters in the movie who prioritize their personal gain over ethical considerations illustrate this point. In my own personal life, I have witnessed supervisors who focused solely on achieving targets without considering the well-being of their team members. This lack of empathy can lead to low morale, decreased productivity, and ultimately, failure in achieving long-term success. In conclusion, The Big Short offers valuable insights into supervisory techniques through its portrayal of characters navigating the 2008 financial crisis. The movie emphasizes critical thinking, risk assessment, and effective communication as key supervisory techniques. Conversely, complacency and excessive reliance on authority are depicted as ineffective techniques. The impact of high-stress environments on supervisory techniques highlights the importance of maintaining composure and

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