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chenz09

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TOPIC: ARGUMENT209 - 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."

WORDS: 479 TIME: 0:30:00 DATE: 2010-10-9

 

The Human Resources Manager`s recommendation for Fancy Toy Company is well-presented, but is not well-reasoned. By making a comparison between the fallen profits of the Fancy Toy Company leaded by Pat Salvo in the last three quarters of the year and the hiking profits of the Starlight Jewelry leaded by Rosa, the arguer draw a conclusion that it is Pat Salvo who should take the blame and suggest the directors appoint Rosa in charge of the company in place of Pat Salvo.

 

However, the HR manager are failing to consider other possible alternatives leading to the considerably fallen profits. Some unpredictable alternatives, like the disadvantageous fluctuation of the domestic exchange-rate, the recession of market may be included, which far beyond the range of the president. It is possible that the domestic exchange-rate may rise up undesirably and cause the export of toys to be considerably hard , then the quantity of sale as well as the profits would reduce sharply as a consequence.

 

Again, three quarters of the year may be not a particularly long time frame for the director to determine whether change a new leader would be beneficial for the company or not. The toy market in the last three quarters of the year may not profitable like before. The decrease of profits may due to the increased tax adjusted by the government but not the fault of Pat Salvo, who may have been working hard for the company`s future unchangeably. So without more details provided, it appears to be unwise to blame Pat Salvo and even fire her.

 

Last but not the least, we can`t consign it to be oblivion that the different company in different field of market confront different circumstance. Although Rose do well in Starlight Jewelry, she may not be familiar with the production process, the location of the toy commodity, the specific human resources in Pat Salvo and even the distribution of investing on toy. Due to the different constitute of consumer structure, the different potential and prospect between toy and jewelry, the toy market in the short time may perform not as well as jewelry market, considering there is no evidence given by the HR manager, who knows it will prolong in the future? If not, changing the president arbitrarily may be no other than the bolt from the sky to the Fancy Toy Company. It needs to pay the time cost for Rose to adapt herself to the company.

 

In conclusion, the HR manager`s advice for the decision of appointments and dismissals due to the reason behind the decrease of toy company`s profits back to its original seems logical since he is beneficiently considering the interest and development of the Fancy Toy Company. However, before the final decisions are made, do more survey about the market condition and think twice between Pat Salvo and Rose is requisite.

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