Thank you again! I just realized my questions has been posted on CR section!!!
Flaws: 1) Mistaken correlation with causation or Causal Oversimplification. Although the new hires from the last two years correlates with the profit drop, it does not means that the former causes the later. 2) Since the qualifty of the new hires are constant, the drop in revenue probably results from some other factors such as the retention rate of new hires, the mechanism to reward high-achiever among new hires, the overall trend of the industry, the success of the competitors, etc. 3) Most importantly, the vision of and the guidance from the upper management might affect a new hire's performance in the firm. To put the blame of falling profit on the the shoulder of HR is unfair, short-sighted, and demoralizing. -- by 会员 sdcar2010 (2010/12/31 1:48:49)
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