Leadership 7th Edition by Andrew DuBrin, Ann Fisher, Andrew DuBrin

Exercise 3

Mary Chen had been the manager of the subprime mortgage department of a large bank for several years. Although her department was small, she and top-level management thought that their mission was important. As Chen explains it, "We make it possible for people with less than prime credit ratings to become homeowners. We create mortgages for honest, hardworking people who for many reasons do not have excellent credit records. So our group is doing some good in this world, despite a few foreclosures here and there."
As interest rates climbed on adjustable rate mortgages (ARMs), the number of late payers tripled, and the number of foreclosures doubled. Every day the media pounded the subprime lenders, blaming them for a potential recession and a sharp decline in the stock market.
Supervising the people in her department became increasingly more difficult. As Chen said, "As the subprime mess progressed, I saw fewer smiles in my department. Workers were calling in sick more frequently. One-half the people in the department requested a transfer to the mortgage department that provided mortgages to customers with first-rate credit records. Even my best workers looked stressed out."
Malcolm Flynn, a mortgage specialist with four years' experience, described the working conditions in the subprime department in these words: "This is bad. We feel we are looked upon like we are drug dealers. People think we are rotten because we lent money to people who didn't have the means to pay back the loan. "Most of us won't admit the kind of work we are in when talking to people outside the bank. We come to work every day hoping the work will be more fun, but it never is."
When Chen discussed the morale problems she was facing within her group, her manager advised Chen to be a "better leader." Her manager also said that a true leader can guide a group through rough times. Chen thought to herself, "This advice looks good on paper, but I don't know what to do next."
To what extent do you believe the statement of Chen's manager that "a true leader can guide a group through rough times"?