Problem Solution Interclean

Problem Solution: InterClean, Inc.

Introduction

InterClean, a premier sanitation company, seeks to transform from a sales based to a service based company in order to remain competitive in the marketplace. The recent merger with EnviroTech has produced several challenges as well as opportunities for InterClean. InterClean must begin to openly communicate with all employees in order to ensure a successful merger. “Top-performing companies pay a great deal of attention to a number of common motivational factors, or needs (Dreher & Dougherty, 2001).” Steps must also be taken to fully train management and staff in order to be ready for the media blitz that is to occur in the very near future. Providing superior service will allow InterClean to achieve its goal of becoming a world leader in the sanitation industry.

Situation Analysis

Dougherty, 2001).” This creates a dilemma whereby the company must constantly actively recruit qualified employees in order to meet customer demand and increase efficiency. “Organizational capability relates to hiring and retaining competent employees and developing Issue and Opportunity Identification

Interclean is an established cleaning supply company who recently purchased the company’s competitor, EnviroTech. The company has been very successful in the past but has a new vision of becoming a full service organization. “People must come to believe that change is necessary and must commit to abandoning the status quo for an uncertain future (Dreher & Dougherty, 2001).” The reason for this change is that “clients are more and more interested in not just products, but solutions and services that will streamline their cleaning efforts in the wake of more stringent requirements for environmental safety (InterClean Scenario, 2007).”

In light of this InterClean has seen an opportunity to greatly increase its profitability by providing customers what they want. This new merger is also an opportunity for InterClean to increase company worth. Since the company is transitioning from a sales based to a serviced based company the employees must also mesh well with this new vision in order to make the transformation successful. “High-performing firms display a greater commitment to training and skill development than their lower performing counterparts (Dreher & Dougherty, 2001).” All employees would eventually be trained to work any position that may be required on a short notice in the future. “Human resource development may safeguard productivity as well as supporting it, insulating firms from skills shortages by preparing employees for current and future jobs.” (Kumpikaite, 2007).

Since both sets of employees have a good working base of knowledge the training that must be undertaken right away will add to and build upon this base knowledge and should help the employees to retain what they learn. There is also the problem that in light of the merger and the amount of new clients the company will be taking on that there may not be enough employees to fill all available positions. “When people are able to perform multiple jobs, or are “multi skilled”, they represent a reserve of talent and are more likely to appreciate how their work and output levels affect the work of other employees in jobs related to their own (Dreher & those competencies through effective human resource practices.” (Dreher & Dougherty, 2007).

Stakeholder Perspectives/Ethical Dilemmas

Just as important are the stakeholders in this situation. There are in fact three main groups. These are the InterClean employees, the EnviroTech employees and the InterClean management staff. Since this is going to be a merger all three groups must learn to work together. All three groups have very similar items at stake, mainly their jobs, positions, and the future of the company. The welfare of the company is of primary importance to all three groups.

The InterClean employees currently have a very low morale that could potentially cause the new merged employees from EnviroTech to also have lowered morale. The InterClean employees have their jobs, retirement, and benefits at stake. Many fear that they may lose their jobs despite promised training by management because there has been inadequate communication and rumors have been allowed to spread. “Motivation drops because any hope of future promotions- or any future вЂ" with the company dies (Noe, Hollenbeck, Gehert, & Wright, 2003).”

The EnviroTech employees also have their jobs at stake but do not have the low morale of the InterClean employees so they are not being adversely affected. While the EnviroTech employees assume that they will be taking the lead jobs at InterClean, this is not entirely true and could lead to personal conflicts in the future. “They need to believe that they will be effective in the work roles called for in the new organization and that being effective in these roles will lead to desired outcomes (Dreher & Dougherty, 2001).”

The management at InterClean also has their jobs at stake as well as their responsibility to the company and their employees. “When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members (Noe, Hollenbeck, Gerhert, & Wright, 2003).” The responsibility to their employees has not been fully realized because communication has been inadequate in the past. The management is not adequately trained to deal with two sets of employees in a merger as is evidenced by the low morale at InterClean. “Business leaders need to be accountable for managing people, just as they are accountable for managing financial assets or meeting production and sales targets (Dreher & Dougherty, 2001).” The fact that InterClean management is not honest with EnviroTech employees about placing them in the best positions for InterClean as opposed to what the employee deems best has never been communicated.“The service expertise that comes with EnviroTech dovetails perfectly with our new strategic direction (Interclean Scenario, 2007).”

Problem Statement

InterClean will become more dominant in the sanitation industry by transforming the company into a service based organization. As InterClean strives to become more of a major player in the domestic sanitation industry it must come to terms with certain conflicts. The roadblock