Problem Solution Interclean

Problem Solution: InterClean, Inc.

The choices we make today will tell what will become of us tomorrow. Organizations are challenged everyday by changes internally and externally. These transformational changes can be beneficial with strategic plan. However, the changes may also have a negative impact on the organization. InterClean, Inc. has realized that there are big changes ahead in their industrial cleaning and sanitation industry, which includes the new governing environmental safety laws. They realize the need to globalize, which they succeeded in by buying EnviroTech, but now they are faced with new struggles. The integration of two companies will most likely include some layoffs as well as new product development and solution packages for clients, which will mean more work on the sales department. With having a tight budget, the need to hire experienced professionals is a priority as well as keeping the current employees focused, feeling secure with the impending changes, and the having the ability to keep employee morale high.

Situation Analysis

Issue and Opportunity Identification

InterClean has been facing various issues that have hurt and will continue to hurt the company. With the new environmental issues taking place, Interclean seizes the opportunity to buyout a strong competitor, EnviroTech and go full force globally. The President and CEO of the company, David Spencer, tends to take risks in order to grow the business and feels it is his responsibility to carry on his father’s name, which he inherited the company from. Due to the transition of companies and new products on the market to follow environmental laws, the employee morale is low and resistance is growing from the employees because they fear they will lose their jobs. Everyone must undergo intensive training on products, tailored packages for their clients, and all safety regulations. The time frame is short has Mr. Spencer wishes to begin a media blitz to publicly announce the new strategy within the next three to six months. And while all of this is going on, there will be organizational restructuring going on so the company can meet the impending changes and future needs.

Although at this time there seems to be quite a few issues happening at InterClean, there are also quite a few opportunities as well. By taking the risks that Mr. Spencer is announcing, the company has the opportunity to become a well known, top company within its industry. They can create positive, long lasting business relationships with their current and future clients. They have the opportunity to become the first company to offer solution based services integrated with their products and increase customer retention rates.

Stakeholder Perspectives/Ethical Dilemmas

The stakeholders of InterClean Inc. include but are not limited to David Spencer, President and CEO, all of InterClean’s management and employees, and their customers. Mr. Spencer inherited the company from his father and made the company an industry leader. Although he can be risky at times, the company is in his best interest. He understands the need for the company to grow globally, create products the customers need, as well as follow all environmental laws to be successful. The management is responsible for helping the company transition easily. They all have their own perspectives on what should be done and need to come to a unanimous agreement to help their employees, current and future. The clients deserve to deal with a company that they can trust. They deserve outstanding service, competitive pricing, products that suits their needs, as well as follow environmental safety regulations for their health.

Problem Statement

Successful companies offer innovative products and (customer) services that bind customers and that they have aligned, visionary management capable of communicating and managing change in such a way that employees commit to the change. An appropriate problem statement therefore is: InterClean, Inc. will successfully evaluate its selection alternatives during employee recruitment process by recruiting internally and promoting current employees. They will then restructure incentive pay plans, training and skill development orientation to attract the best talent. They will then create a successful training and development system that will allow employees to understand the tasks and goals required for success in their roles. Finally, InterClean will restructure its current organizational structure, which will enable the organization to better suite the demands of the new business strategy.

End-State Vision

InterClean successfully integrates the two companies with positive organizational alignment while promoting employees within to create positive morale. Using the rewards system to enhance productivity and sales, the company will boom forward with a 40% increase in revenue. They will have better relationships with their current clients and many new clients contracting with them. Their employee turnover will be reduced significantly as the company is branded the best in their industry. Having open communication within the company and all management trained well to help their employees, InterClean will be able to have the necessary trust and good work environment that will create satisfactory levels to keep the company moving forward for years to come.

Alternative Solutions

Based on the benchmarking studies, several alternative solutions have been identified and discussed.

Recruiting and Selection Alternatives

The necessity of InterClean’s success to evaluate its selection alternatives during decisions to layoff employees is vital. InterClean will need to reevaluate their selections in the employee recruiting process. InterClean should have a human resource plan, personnel policies, and recruitment sources. “Employee recruitment involves those organizational activities that one influences the number and/or types of applicants who apply for a position and/or two affect whether a job offer is accepted” (Barber, 1998, p. 4). To hire the best individuals for the positions, InterClean will need to follow a process closely to ensure employee commitment to the organization. Employee turnover has cost InterClean money and to ensure it stays competitive in the market it will need to evaluate each candidate closely, this will ensure the company is hiring the right people for the correct jobs. “Numerous organizations and industries nationwide are making the recruitment and retention of diverse