InterClean Enviro Tech Merger Paper

Shari Arthurton

HRM 548

LJ Elliot

2-13-2012

Introduction

InterClean has begun a new shift in their strategic plan. The new direction of the company is one focused on a “solutions and service model” through the creation of “full-range service packages” that are designed to meet the individual needs of each client (University of Phoenix, 2012). In concurrence with the new strategic plan, Interclean has merged with Envirotech. InterClean has made a big decision by merging with EnviroTech, which will allow them to sell cleaning products and evolve them into an environment friendly full-service cleaning business. As with any merger, there will be the need to be an evaluation of the options available in relation to workforce planning that is aligned with the organizational goals of InterClean. Interclean will need to determine if rightsizing is a viable option. In the event of job elimination, a plan must be developed to ensure the process is conducted ethically and legally, and if there is an involuntary separation, what steps need to be taken.

Viable Options

Whenever there is a merger between two companies, it is up to the purchasing company to figure out a way to intertwine both workforces. In this case, EnviroTech has decided to shift their strategic direction to Interclean. The new strategic goal of InterClean requires a need to provide new training to the current InterClean sales force while incorporating 60 additional personnel from EnviroTech (University of Phoenix, 2012). There are 3 options they can choose from: 1) re-train the staff of both companies, 2) recruit new staff altogether, and 3) continue the business as normal with the staff provided. The first option is to re-train the staff for both companies. In this process, InterClean will allow us to have process of elimination. The company will retrain and monitor the workers to see which of the chosen ones will continue their journey with the company. The re-training goals should be clearly stated and should include the specific outcomes expected. In planning the re-training program, it is also wise to determine the steps that will be followed should the training fail to meet the stated goals. The second option is to recruit new staff. By bringing in new staff, we will have to let go old staff because of improper training and lack of learning of the new procedures. The company will obtain interviews for people who they feel are highly qualified, skilled, and meet the company’s fitness and standards. Third option is to continue business as normal with the staff provided. With this option, we can offer additional training to current employees and new positions.

Rightsizing

“Rightsizing is the process of a corporation reorganizing or restructuring their business by cost-cutting, reduction of workforce, or reorganizing upper-level management. The goal is to get the company molded properly to achieve the maximum profit”(business dictionary). Rightsizing for a company can be a key factor in its success or failure. For Interclean, rightsizing will be the best practical option when alternatives are impractical, expensive, or when the company strategy is not working. This is something InterClean may discover once they have realized that the merger is unsuccessful because of lack of training and training resources availability. Unavailable training will only hurt the merging process as the company strays away for the strategic objectives as well as not achieving the market goals. If the company decides that rightsizing is not appropriate, the competitors may take the initiative to improve their own businesses.

Implementation

The company can implement the plan in a manner that is both ethical and legal once the decision has been made about what should happen. Instead of the company downsizing during peak time, they should offer overtime rather than hiring new employees and during downturns, overtime hours should be cut. This will help retain the current employees since employees will have job security and sense of belonging and give off their best.

Involuntary separation

If an employee decides to take matters into their own hand by leaving the company, it is up to Interclean Human resource department to make sure everything is adhered to correctly. “A desire to provide protection and safeguards to employees leaving the organization, especially for discharge and downsizing, has led to myriad laws and regulations governing the separation process which includes Public policy restrictions on employment-at-will, Employment discrimination laws and regulations, Affirmative action requirements, Employment contract principles, Labor contract provisions, Civil service laws and regulations, Negligent supervision and retention, and Advanced warning about plant closings” (Heneman III & Judge, 2009). Interclean has to make sure that employees that choose to separate from the company should be treated fairly and consistent for everyone who decides to leave. That the employees are separating for legitimate reasons like merit, seniority, or performance. They should be thoroughly familiar with numerous laws and regulations. Most separations are driven by employee performance. Interclean will have to design a performance appraisal. “A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. It should not, however, be considered the supervisor's only communication tool. Open lines of communication throughout the year help to make effective working relationships” (Performance appraisal process). If the employee does not meet their requirements on the appraisal, then we will have to let them go. The company will inform the employee the reason of their separation, present them with the correct paperwork, and inform them of their rights.

Conclusion

It can be inferred that, the merger with Interclean and EnviroTech has its advantages and disadvantages. There are going to be many more hurdles that InterClean is going to experience, but with proper planning and implantation, any impediments can be avoided or well controlled for a successful merger and growth. Therefore it is up to both companies to have open communication, knowledge about their employees and company. The human resource department has to be well aware of the rules and regulations.

Works Cited

Heneman, G. H., & Judge, A, T. (2009). Staffing organizations (6th ed.). New York, NY: McGraw-Hill.

Performance Appraisal Process. Retrieved February 13, 2012 from: http://www.wpi.edu/Admin/HR/performance-appraisal.html

Rightsizing. Retrieved February 13, 2012 from: http://www.businessdictionary.com/definition/rightsizing.html#ixzz1mHZC2Ylq

University of Phoenix. (2012). InterClean-EnviroTech Scenario. Retrieved from University of Phoenix, HRM/531 website.