sigh...really been let down by my immediate superior (who happened to be a director of the company)...

I am working really hard to retain a resigning good worker from leaving the company, and he goes around telling everyone that she's leaving, worse of all, to the person that always having conflict with her...

Really let down by his work and really pushing me to rethink again my position in the company...barring finances consideration (I have saving that can last me for 2 years), should I just call it a day and throw the letter..

It's been a tornado in the company since his promotion to Director post last year, but the big boss owner trusted him....

Hang in there, Michael. I've had my fair share of dubious supervisors over the years.

I guess the question is whether boss is friends with the person with whom the resigning worker was always having conflicts and might have been helping them to drive the resigning worker out. If so then normally things shouldn't be this bad...

Get a new job lined up first. Don't put your savings at risk. Also, he might be gone in six months. You can't see the future.

Yeah, good point... the most this should do is get you to keep your eyes open for other opportunities. Very few things are worth quitting over, and I don't think this is one of them.

One thing I learned a long time ago is that while you might think you're making a powerful statement, the other people would have to care as much as you do for the statement to be effective...

... and if they cared as much as you then the problem wouldn't have come up in the first place

is there any upward mobility for you in your current company?

if you moved to a larger company would you have more upward mobility than the one you are currently at?

Do you get along with the director?

are there many opportunities in your local area that will provide you equal or more upward mobility than your current company?

these would be the questions i would want to ask myself.