The following recommendation was made by the Human Resources Manager to the board of directors of the Fancy Toy Company.
“In the last three quarters of this year, under the leadership of our president, Pat Salvo, our profits have fallen considerably. Thus, we should ask for her resignation in return for a generous severance package. In Pat’s place, we should appoint Rosa Winnings. Rosa is currently president of Starlight Jewelry, a company whose profits have increased dramatically over the past several years. Although we will have to pay Rosa twice the salary that Pat has been receiving, it will be well worth it because we can soon expect our profits to increase considerably.”
The opinion that the Fancy Toy Company should appoint Rosa Winnings as their president to replace Pat Salvo as their president seems reasonable. After all, Rosa Winnings is a good president for her company now. However, the conclusion that the company can expect their profits to increase considerable under Rosa Winnings’ leadership may cover many other important factors of the falling profits.
First of all, the HR manager shouldn’t simply deny the incumbent president Pat Salvo just because their profits have fallen considerable in the last three quarters. There are many other factors can influence the profits. It is, at least, possible that the ex-president of this company left a awful mess, maybe almost shut down, to his successor. If so, it is a significant achievement for Pat Salvo to save the company from the edge of shut down. And there may also have many other influencing factors, such as the global financial crisis, the depression in toy business, the strong competition in the toy trade, so on and so forth. Therefore, the manager shouldn’t just deny Pat Salvo without consider many other important factors, and the company may should give Pat Salvo more time to show his ability and to save the falling profits.
The argument also weakened by affirming that Rosa Winnings would have a good performance in the Fancy Toy Company. Rosa Winnings now is the president of Starlight Jewelry, and maybe she is good in her company. But the company which she is managing is in the field of jewelry, it’s a totally different field with the Fancy Toy Company. There is no any powerful evidence can show that she have any good performance in the toy field. So it is really doubtful that she can manage the Fancy Toy Company well. Even if she can, but we still don’t have any other evidence can prove that the Fancy Toy Company have their profits increasing considerably immediately. It is, at least, possible that, like what have been discussed above, the company is a awful mess now, everything goes wrong, everyone wants to resign, and the global financial is on a critical time. It seems extremely difficult, even impossible, for her to increase the profits immediately. It may be more realistic for her to stop the downward trend of their profits.
Finally, the Fancy Toy Company really should consider if it is worth to pay Rosa twice as Pat’s salary. If the company is really dangerous now, the first thing they should do is to consider how to save company immediately, but not to appoint a new president. Because, as we all know, a new president with a new group must have a different way to manage a company, so it’s really risky to change the president in this key time. Therefore, the company should consider in a more comprehensive way.
The argument that we ought to appoint Rosa Winnings as the new resignation to replace Pat Salvo is based on the HR manager’s strong desire to make more profits for company, but the company should consider more to keep the company running well. After all, a president is a company’s heart.