Interclean Problem Solution

Abstract

Good human capital management is one of the major tasks for any company to be competitive and successful in its respective industry. This paper identifies human resource (HR) related problems exist in Interclean, Inc., an industrial cleaning and sanitation company, and provides optimum solution for addressing the HR related issues. This paper also looks at addressing HR related issues in Interclean and Envirotech for merging two companies into one enterprise.

Problem Solution: InterClean, Inc.

Interclean, Inc. (Interclean), an institutional and industrial cleaning and sanitation service provider. Sanitation industry has been changing its strategy everyday in order to support the growing needs of the customers. Environmental safety and various government regulations add a great deal of challenges for the sanitation industry. Customers are requiring full cleaning service contracts that include cleaning and sanitation, employee training, and meeting regulatory requirements. Mergers and acquisitions are common phenomena in the global marketplace. Interclean is facing major challenges with regards to transforming the organization to support the emerging customer needs as well as managing merger with Envirotech, Interclean's domestic competitor and one of the major player in the sanitation industry. Interclean should carefully analyze the issues and challenges especially in the HR related areas and address them in a timely manner. Effective management of HR is a key to any company's success.

"As many organizational scholars now point out, it is organizational capability (because of the multiple factors that must come together in an integrated way), not financial capability or technological sophistication, that is most difficult for competitors to replicate." (Dreher and Dougherty, 2001, p.5)

Interclean Situation Analysis

Interclean has been operating as a company that provides specific cleaning services to its customers. Now-a-days, customers demand full service with no intervention or resource time from their resources. Interclean needs to transform its position into a full service solutions provider. Interclean also acquired its domestic competitor Envirotech and has become a larger player in the sanitation industry. Interclean employees are concerned about layoffs as Interclean's transformation may cause some terminations and new hires. Envirotech has a great deal of experiences in providing full solution based services and has many employees with good experiences in the industry.

Interclean lacks required skill set to support its new vision of becoming full service solution provider as Interclean's employees have been focusing on specific cleaning services for its customers. Interclean's employees are worried about their job as they have doubts whether Interclean will spend time and money train them rather than hiring experts from outside. Interclean's major staffing challenges are with its sales team getting ready to promote the new range of products.

Envirotech's employees are concerned about their job because their company is acquired by Interclean, a competitor and it is very common that the acquiring company has more power that is dominant over acquired company in all the aspects of the organization. Table 1 lists list of issues and opportunities facing Interclean.

Table 1

Issue and Opportunity Identification

Issue Opportunity Reference to Specific

Course Concept

(Include citation) Concept

Interclean's sales force does not have necessary training to develop full-range service packages tailored to invididual accounts. Interclean can focus on setting up vigorous training programs to equip sales team with necessary skills needed for the company's new vision.

"High-performing firms display a greater commitment to training and skill development than their lower-performing counterparts.10 This practice, a core HRM activity, is related to other ideas about the need for continuous improvement and development over time." (Dreher and Dougherty, 2001, p.7) Training and skill development

Interclean's employees do not think that the change is necessary Motivating employees to embrace the change and help to transform the company "People must come to believe that change is necessary and must commit to abandoning the status quo for an uncertain future.32 Changing HRM practices represents a large challenge because many current organization members have been successful, and satisfied, under the previous system." (Dreher and Dougherty, 2001, p.7) Change management.

Organizational behavior issues: Interclean employees develop low employee morale and high resistance to change Interclean can create various incentive packages based on performance "The changing workforce, new information and communication technology

(ICT), and globalization have fueled substantial changes in employment relationships.

Employees face increasing turbulence in their work and employment

relationships due to mergers, corporate restructuring, and privatization" (McShane & Von Glinow, 2004, p.14) Organizational behavior

Lack of staffing strategy Interclean can do an inventory of current skills and plan for filling in gaps "Based on job analysis and design, an organization can determine the kinds of employees it needs. With this knowledge, it carries out the function of recruiting and hiring employees. Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals." (Noe et al, 2004, p.6) Recruiting and hiring employees.

Although change is necessary for Interclean and hiring internal and external candidates to fill in gaps is important, Interclean is faced with a great deal of ethical dilemmas. If Interclean hires external candidates, existing employees may not cooperate and feel ignored. Interclean can not just keep existing workforce if they are not willing to accept the change and open for necessary trainings. Janet Durham, Interclean's Vice President of HR is seen as a defender of status quo and loyal to long-term employees. Envirotech's employees seem to have more experience in the sanitation industry