Question

In: Accounting

COMMENT ON POST Management of a company want to take a bath in the first year,...

COMMENT ON POST

Management of a company want to take a bath in the first year, because this poor performance could be passed in the previous management. The results of the first year of a new management are still linked to the decisions of the previous management and this is a great opportunity for new management to blamed their mistakes in the previous one. Also taking a bath in the first year will allow the new management to most likely show improvements in the second year that it will be for their benefit.

Solutions

Expert Solution

The newly organized management of a company always blame the results of the first year on the decisions and actions taken by the previous management in the earlier year. The new management always force that their decisions effect will be reflected in the second year of their command because all earlier year decisions are taken and executed by them.

All these claims are just the false one because if any management find that decisions taken by the earlier management are not up-to-mark and are against the company, it can stop execution of the decision and can take corrective and developing decisions and actions. Without blaming the earlier management, through their proactive actions, the new management could stop bad performance of the company in the first year of their command.

Every management takes up each and every matter of execution according to their view-point, so blaming any one for the failure of company performance under their command is not appreciable in any way.

If a management is confident that their decisions taken and actions taken towards the operations of the company will bring results in the coming future, then it should take responsibility of results whether of first or second year on their shoulders.

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