GMAT Essays (AWA)

The following appeared in a memorandum from the CEO of a consumer electronics manufacturing firm to the head of the company's human resources department, who is responsible for hiring new employees:
"Eight years ago, our firm's profits were increasing with each new employee we added. We discovered that each employee had the skills and motivation to generate more revenue for the firm than his or her salary cost us.
However, for the past two years, our profit margin has been falling, even though we have continued to add employees. Thus, our newer employees are not generating enough revenue to justify their salaries. We must not be hiring new employees with the same level of skills and motivation as those we used to attract. Clearly, then, failures in the human resources department account for our falling profits."
Discuss how well reasoned . . .etc.
107
In the above argument the author, the CEO of a consumer electronics manufacturing firm, concludes that the human resource department is responsible for the falling profits of the company. The author supports his conclusion by providing a comparison between the profits generated by the employees eight years ago, with profits earned by the employees the past two years. The author states that the newer employees yield fewer profits as compared to relatively older employees, despite the same level of skills and motivation. The above argument is full of gaps and loop holes. Neither the premises are convincing nor is the conclusion compelling. The author has failed to consider the following points.
Firstly, the author has conveniently assumed that the level of skills and motivation of employees is the only factor affecting the profits of the company. However, the profits of any organization depends on various factors such as strategic planning and goals setting, effective implementation of plans, efficient leadership, timely employee training, cost of manufacturing goods and services, inflation and overall economy of the region etc.
Secondly, the author has mentioned that, eight years ago, the firm's profits were increasing with every new employee added. Further, he stated that in the past each employee has the skills and motivation to generate more revenue for the firm than his or her salary. The author fails to provide and evidence to support his claim. The higher profits could be the result of lower manufacturing and operating costs. Moreover, it is possible that in the past the employees were given extensive training that is not offered to the current employees due to increasing cost and inflation. As a result, the employees despite of being competitive are not able to perform well, resulting in decreasing profits of the company.
Finally, the author fails to support his conclusion of not hiring employees of same level of skills and motivation as those used to attract in the past. The author does not explain what new level of skills and motivation. The author should mention the comparison of the past and new levels of skills. Such as, what skills have failed in the past and why and what new skills will be required and how new skills will help increase the profits. Overall, the argument represents a hasty generalization. It is a weak argument in which the author has assumed and concluded a lot of things without providing evidences.
The argument could be stronger if the author precisely states the past skills that the author believes to be a failure. Moreover, the new skills should be explained in detail. The author should also make it clear that other factors affecting have either remained unchanged or have become favorable for the higher profits of the firm and only employee level of skills and motivation lower than the past employees also b. Had the author consider the factors discussed above, the argument will not only be strengthen but be more convincing.