InterClean-Enviro Tech Merger Paper
With the impending merger between InterClean and EnviroTech, it has become very important that both companies realize the most important issue that will make their merging successful; and that is understanding that customers are becoming more concerned about the rigorous environmental safety requirements that have started to plague the industrial cleaning and sanitation industry. Health care clients are being put on notice as to the new regulations that are rising about the maintenance of how sterile they are able to keep their environment. This merger will not only provide customers with the usual offering of products that can only cut through the grime and kill most of the germs that are present in these clients environments, but it will also give the client the opportunity to receive training for the clients employees, regular monitoring of the satisfaction of the product, possible full cleaning service contracts and also consistent information sharing of guideline changes.
At this point, the plans that the CEO David Spencer expects to meet as far as staffing is concerned are as follows: •Inventory the skills of the current sales force, and identify skills and competency levels needed for the new sales direction. Determine which gaps need to be filled with new hires. •Establish optimal size and composition of the sales force. •Project estimated training and development costs.
•Develop a staffing audit process, and identify phases of execution. (Universty of Phoenix, 2013, p. 4).
The CEO, Mr. Spencer has opted to try and acquire 60 of EnviroTechs sales staff and operations specialists for the InterClean merger. Once the above mentioned tasks are completed, then The HR department will be able to determine whether or not they will need to start doing possible rightsizing within the company. Although it seems obvious that this is not the current plans for the company, when mergers take place there is always the possibility that some employees may lose their positions.
Rightsizing, according to “Rightsizing vs. Downsizing? Big Difference!” (2012), tends to be less detrimental for an organization than downsizing is. Downsizing tends to come at the time when an organization is put into the position of having to let go of employees due to economic issues, natural disaster, and other uncontrollable circumstances. However, rightsizing is looked at in a more positive light by some. Even though it is pretty much the same outcome, rightsizing is a more proactive stance for the organization to take because instead of waiting for disaster or hard times to hit that will cause lay-offs, the decision makers are constantly assessing the market trends and needs, new ideas for the organization and also new technologies available for the organization.
Rightsizing focuses on the future of the organization and does a sort of forecasting to determine what skills they will need their employees to have in order to guide the organization in the way that is desired. Once this is done it will give the decision makers, mostly managers and HR staff, a better vision of who they need to hire, what training is needed for new and existing employees and/or what employees that may need to eliminate. Understanding the position that InterClean is in right now, this would be the best opportunity for them to determine if they are going to take part in rightsizing within their organization. The HR staff is taking all the necessary steps to determine if they any staffing changes will be necessary during this merger.
If it comes to the point where InterClean sees that it will have to make adjustments and layoffs some of its employees the most ethical and legal way to do so will be for them to use the performance evaluations of the employees and measure their abilities to perform the jobs to help them determine who goes and who stays. They can also take the step of retaining the senior employees in each department as well. However, there are senior employees that coming over from EnviroTech as well so they must be kept in
consideration to retain their positions as well, because they are the senior employees for the acquired company and their knowledge will be needed for the direction the company is trying to travel in. The company may find that some of their senior employees are not the best qualified. Seniority based layoffs can raise important but thorny procedural internal labor market issues, such as how to exactly county seniority and what bumping rights employees targeted for layoffs might have (Heneman & Judge, p. 26, 2009). Therefore, InterClean must ensure that must be in line with the laws and regulations that have been set up for things of this nature. Layoffs must be based on legitimate basis such as merit, seniority, or performance.
When and if the choice comes for InterClean to make the choice of involuntary separations, they should still make sure that all the necessary steps are taken to ensure that all employees from both companies are afforded the opportunity to have their performance evaluations reviewed to make sure they are given the best chance to be retained among all other employees. They must make sure that they have reviewed the laws for involuntary layoffs and have their contingencies in place just in case those employees that may have been let go try to fight the decision the company has made.
Anytime an organization is consideration the acquisition of another company, there is always the possibility that some employees may be eliminated. In the acquisition between InterClean and EnviroTech, the CEO seems to have made it clear that he wants to try and bring as many employees over from EnviroTech to utilize their expertise in the organization and also towards the plans and direction he has envisioned for the organization. While rightsizing is similar to downsizing and can even be thought of as the same, rightsizing does not seem to have such a sizable negative impact, unlike downsizing: partly because, the managers are consistently trying to implement strategic ways to help the organization become more efficient, competitive and profitable.
Heneman, H., & Judge, T. (2009). Staffig Organizatons (6th ed.). Retrieved
from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx Rightsizing vs. Downsizing? Big Difference!. (2012, September). The Growth Strategist, . Retrieved from http://ambler.com/article-library/rightsizing-vs-downsizing-big- difference/
Universty of Phoenix. (2013). InterClean-EnviroTch Merger Scenario. Retrieved from University of Phoenix, HRM/548 website.