Interclean Problem Solution

Running head: PROBLEM SOLUTION: INTERCLEAN, INC.

Problem Solution: InterClean, Inc.

Marco Quiroz

University of Phoenix

MBA530

11/06/2007

Problem Solution: InterClean, Inc.

InterClean is facing many challenges and its President is looking for the opportunity to grow both domestically and global. In today's world some business are struggling due to an increased competition, economic contraction and changing in customers' demands. InterClean is categorized as a major player in the sanitation industry and to keep up with the increased demand will have to merge Envirotech in order to promote the new service base model that not only will concentrate on sales but also introduce high quality service packages tailored to individual accounts.

InterClean will have to re-engineer its operations and departments to accommodate the new service model and implement the merging. InterClean is considering 60 to 180 days to finish the whole process and launch a marketing blitz announcing its new service to the world but InterClean's President, David Spencer is not considering that satisfying new customers demands and undergo with a merging or acquisition process with a non-programmed decision, will lead to uncertainty and risk.

InterClean will have go through major challenges trying to obtain the required manpower skills and evaluate its actual HR capability to determine if additional recruiting is needed. HRM will be the key player in the whole operation and will have to implement an intensive training program to increase employees skills and deal with the employees' emotions to avoid internal conflicts since InterClean lacks organizational capability to implement the change in a short period.

Situation Analysis

Issue and Opportunity Identification

InterClean wants to introduce a new service to step away from the competition and satisfy customers and government new demands regarding to environmental and chemicals. The President, David Spencer is to launch a new service solution base model to surpass competition and increase profitability by 40% in one year. Mr. Spencer's view is too optimistic to be accomplished in a short period since its company lacks organizational capability - "The firm's ability to manage people to gain competitive advantage" (D. Ulrich and D. Lake, 1991) and when dealing with a non-programmed decision, the uncertainty and risk are high.

At present, InterClean is considering only its financial and market position without looking at its employees' skills for the implementation of the new service package tailored to individuals needs. Mr. Spencer's vision is too demanding and his executives are feeding his ego allowing him to see the future expansion both domestically and global successful. Janet Durham, VP of human resources, is creating a barrier between HR staff and the employees forecasting trouble with the new strategic direction before the implementation of the new service. Mrs. Durham already is seeing employees threatened by this change and it seems that she is not well prepared to understand the new position of the company. She is not using her emotional intelligence very well. "Emotional Intelligence; the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others." (J. D. Mayer, P. Salovey and D. R. Caruso, 2000).

InterClean will need to implement an intensive training program to prepare the sales team for the launch of the new service and will merge with Envirotech to use its employees' skills. On the other hand, Envirotech employees are concerned with the relocation within the new

company and want to occupy leadership positions. Envirotech employees are anticipating playing key roles base on their experience but are not taking in consideration InterClean's employees who could emerge into internal inter-group conflicts. "Inter-group conflicts-conflicts among groups, teams and departments are a common threat to organizational competitiveness." (R. Kreitner, A. Kinicki, 2004).

InterClean as a new company will have to implement a new way of communication in order to make the transition as smooth as possible. HRM will create a bi-weekly newsletter called "We want you to know" to communicate major issues involving all departments' input to avoid affecting its employees' morale since downsizing is inevitable. The new organization will face several challenges in keeping highly qualified employees and inviting to leave the non desirable employees. Management will have undergone extensive training to bring up its creativity. "Creativity; Carol Goman, well-known creativity author and consultant, defines creativity as-bringing into existence an idea that is new to you." (C. K. Goman, 2000). Management also will have to get out of the executive suite and meet directly with employees at all levels to understand fully the issues that are going on inside the new company.

Stakeholder Perspectives/Ethical Dilemmas

Three major stakeholders involved in this scenario; management, employees and customers. All have different concerns and interest; starting with management, Davis Spencer's optimistic point of view is willing to take the risk to fulfill his vision. Janet Durham, VP of human resources has strong ties with many sales force members and could interfere with the decision making process when the downsizing will take effect. Tom Jennings, VP of Marketing with his lack of patience could jeopardize the smoothness of the transition since he is seeing corporate restructuring as an obstacle. Carol Stanley will be in charge of conducting skills inventory but she is not part of HR department. Sally Lindley, CEO of EnviroTech wants to get bigger using her connection to key state and national elected officials. Management wants to please its President Mr. Spencer at all cost without considering the employees concerns. They are loyal or seem to be loyal to the company and will have to face some ethical issues.

Employees