Interclean Memo
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MEMORANDOM
InterClean-EnviroTech Board of Directors, InterClean-EnviroTech Merger
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Date:
August 6, 2012
InterClean-EnviroTech Merger
There has been a significant modification in the strategic procedure at Inter-Clean Corporation. At present, the company will be focusing on specific solutions and an overall service model, which can be incorporated through the creation of a “full-range service package.” This improved package is done to meet individual expectations and demands of the customers (University of Phoenix, 2012). As part of this change in strategic function, InterClean Corporation has formed a working union with EnviroTech, which has been one of the toughest competitors in the past years in the fields of cleaning and sanitation specifically in industrial companys venues (University of Phoenix, 2012). Part of this merger will necessitate the company to re-evaluate different options that can provide a more efficient and more cost-effective process concerning future workforce planning. This aids in ensuring that the revised plans are still consistent with the goals of the company. One of the most important decisions to make is the significance of right sizing, which is not an uncommon occurrence when companies merge. InterClean must be able to determine if this would be best for the company goals. Moreover, if the company would have the need to terminate employment, it would evaluate its processes to make sure that the decisions are both ethical and legal. There will be definitely a great deal of feedback stemming from discussions and meetings that will assist the company in coming up with the most workable solutions to the current workforce challenges that they are facing (Cotton, 2007).
Viable Options
In typical cases when companies merge, the goal is to strengthen the assets and benefits of both companies. Depending on the actual circumstances within the merger, this situation can sometimes create an obstacle. The primary issue with this kind of decision is what happens with the incorporation of workforces from InterClean and EnviroTech. This merging would require Inter Clean to conduct new training seminars for their sales staff, and hire 60 more people from the EnviroTech labor team (University of Phoenix, 2012). Given this situation, it would be perceived as being a prudent investment for the company to absorb the additional workforce from EnviroTech. The primary problem with this lies that Inter Clean currently does not have the available budget flexibility to absorb the additional payroll. This decision will upgrade the current sales force of the company because it will include the personnel from EnviroTech companies.
Hornstein (2009) suggested two viable options for companies that are right sizing. One feasible option is for Inter Clean to offer base salary scale, and compensate more of their efforts through performance evaluation. Those employees who can meet performance goals will have monetary rewards, based on how much the companies can afford. The benefit to this method of payroll modification is that it creates a proactive system that promotes individual growth, ensuring a constant influx of fresh ideas. An alternative option suggested by Hornstein is for the company to reduce the working hours of some employees, which means reducing their salary pay as well. This way, Inter Clean can easily cope with the increase of the payroll and its effect on their budget (Hornstein, 2009).
The benefit to this method of payroll modification is that this method considers the companys long-term growth/expansion potential.
Selection of employees will also be done through a systematic process referred to as aKnowledge, Skill, Ability, and other Characteristics (KSACs) evaluation. These aids in the effort to determine whom among the existing employees are most capable in incorporating their work ethics to the new business strategy. Much of the responsibility in this phase will be assigned to the human resources department, since the members of the department would have to evaluate the skills of the employees for both companies-InterClean and Enviro Tech. HR would need to revise training materials that suits the needs of present and future employees. These training materials essentially will focus on the regulations on cleaning and sanitation systems that meet environmentally friendly guidelines and are in accordance with the OSHA (Occupational Safety and Health Administration) standards. In addition, the new sales team specifically needs to know about the legalities and ethical impacts of sanitation job, especially in the context of industries and natural environment (University of Phoenix, 2012). Furthermore, Inter Clean may also offer early retirement packages and employee buyouts in an effort to streamline their operations.
Coming up with the decision to adjust everything to its right size can only be made possible once the data is collected, processed, and evaluated. The amount of money spent on the added training modules, job analysis, formal review, and possible redesignation or elimination of jobs will be addressed and factored into any final decision. The companys decision to lessen the number of migrant workers, shift the duties of their workers, and their chain of command shall affect certain areas where they want to prevent loss and their managers developing control over the level of quality, and their workers who lack the training shall have the adequate amount of skill to perform their duties (Kamery, 2005).
Ethical and Logical Implementation of Plan
InterClean is seeking for ways to minimize payroll without compromising the sales that they generate. Todays companies find more competitive ways of redesigning and reengineering the processes in their operations so that they can complete the tasks at hand using the least effort possible (Kamery, 2005). Based on Nimalas (2006) journal, organizational justice comes in different types, that will affect the obstacles, whether ethical or legal, that an organization, such as InterClean will have to face. It could influence how they want to adjust their processes to the right size. Concerning right-sizing in an organization, distributive justice is relates in different ways that have an effect on the decision-making process of rightsizing which also include many factors like a severance package and the outplacement assistance they can give to the employees who are terminated from their posts (Nimala, 2006). Justice can also come in a procedural form, which covers the process of selection for termination as well,