Interclean-Enviro_Tech_Merger_Hrm548

Memo To: Board of Directors, InterClean-Enviro Tech Merger From: HR Consultant Date: September 26, 2010 Re: InterClean-EnviroTech Merger Introduction InterClean has begun a shift in their strategic goal. The new direction of the company is one focused on a “solutions and service model” through the creation of “full-range service packages” that are designed to meet the individual needs of each client (University of Phoenix, 2010). In conjunction with this new strategic direction, InterClean has merged with Enviro Tech, a major competitor in the cleaning and sanitation industry with primary focus on institutional and industrial venues (University of Phoenix, 2010). As with any merger, there will need to be an evaluation of the options available in relation to workforce planning that is aligned with the organizational goals of InterClean. InterClean will need to determine if rightsizing, a factor of many mergers, is a viable option. In the event of job elimination, a plan must be developed to ensure the process is conducted ethically, legally, and the steps desired in the righsizing process. InterClean will need to “think outside the box” via brainstorming sessions to reach unique resolutions in overcoming daily workforce challenges (Cotton, 2007, p. 50 para 7). Viable Options In the event two organizations deem a merge is in the best interest of both companies, decisions must be made in relation to intertwining two different workforces. Such is the case with InterClean and Enviro Tech following a recent decision to shift the strategic direction of InterClean. The new strategic goal of InterClean requires a need to provide new training to the current InterClean sales force while incorporating 60 additional personnel from Enviro Tech (University of Phoenix, 2010). One viable option is for the company simply to incorporate the additional workforce generated by the merger of the two companies. Although this may be a viable option, InterClean may not have the funding to increase the payroll budget necessary to increase the workforce by 60 additional personnel. The personnel are not limited to a sales team but will include personnel from all Enviro Tech departments. According to Hornstein (2009), there are alternatives to rightsizing such as a performance level compensation system built upon a base salary pay scale with bonus depended on company profitability and achieving performance goals. Another option would be to reduce work hours and pay scales companywide to reduce the financial impact of an increase in the workforce as a result of the merger (Hornstein, 2009). During this time, decisions must be made on which personnel have the knowledge, skill, ability, and other characteristics (KSACs) to excel under the new business strategy. The human resources department (HR) will need to conduct job analysis and evaluate the skill levels of the current InterClean staff and the Enviro Tech staff. In addition, HR will need to create and implement new training material. Considerations for “environmental regulations of cleaning and cleaning systems and OSHA standards” as the new sales team must be trained in “legal, environmental, safety, ethical and regulatory issues that affect sanitation and cleaning in varied industries and settings” (University of Phoenix, 2010, para 14). Offering of early retirement packages or employee buyouts are additional viable options for InterClean. The decision of when to rightsize can only be made following gathering sufficient data such as education and skill levels of all employees (both InterClean and Enviro Tech), costs of additional training modules, conducting job analysis, reviewing, and possible job redesigns. The decision of the company to reduce the migrated workforce, a shifting of employee duties and the chain of command will have a bearing on areas such as loss prevention and quality control as managers and employees may not be properly trained in new duties (Kamery, 2005). Ethical and Logical Implementation of Plan InterClean is looking for novel avenues to lower the number of active employees without a major impact to sales. Modern day companies will look at how to redesign or reengineer current process necessary to complete necessary tasks with minimal effort (Kamery, 2005). According to Nimala (2006), there are several types of organizational justice that have a bearing on the ethical and legal obstacles a company such as InterClean may encounter during a rightsizing process. In the case of an organizational rightsizing, distributive justice relates to the methods that affect the decisions of the rightsizing such as the factors of the severance package and the level of outplacement assistance the company will provide to those whose positions are eliminated (Nimala, 2006). Another form of justice is procedural that deals with how the company reached their decisions on which employees to separate and the process with which the company notified the employee (Nimala, 2006). The last justice Nimala (2006) described was interactional justice that refers to how the company interacted with the employee during the separation process. As the company moves toward implementing the rightsizing process, the company must ensure it conducts itself in an ethical and legal manner. If the decision by InterClean to rightsize was made based solely on profit levels, then the company must recognize such a decision may not be an ethical decision. Although more than one person in a company is involved in the rightsizing process, all should be held accountable equally (Nimala, 2006). How the company treats departing personnel is also indicative of the ethical values of the company. The act of going to a workplace is not one based solely on the need for financial gain but for employees to find purpose or meaning to their existence (Miller, 1998). A workplace environment is one that creates a sense of friendship among employees, thus handling departing employees in a gracious manner can establish long-term credibility for the company by the surviving employees (Stanley, 2009). As the decisions are made on which employees will be separated, InterClean will need to ensure “procedural fairness and for basing separations on legitimate bases, such as merit, seniority, or performance” (Heneman & Judge, 2009, p. 713). In addition, InterClean must abide any contractual obligations it may have with any contract employee involved in the rightsizing. Involuntary Separation Steps The decision to rightsize InterClean is risky. Separated employees may see the potential for a lawsuit as a means to ease the pain of rejection and lower financial impact (Grace, n.d.). The first step is to ensure the decision to rightsize is based on viable business needs and not simply for increasing profits. All decisions must be consistent with the business needs and the future goals of the company. Create a group of individuals who are diverse in relation to gender, race, age, ethnicity to be involved in the decision making process. Such individuals should be ones that will survive the rightsizing process and voluntarily remain with the company should the need for defending the decision making process if the company is involved in any litigation proceedings (Grace, n.d.). All members of the decision making group must be well versed in equal employment opportunities and that they are given access to the legal department in the event a decision to separate an employee requires legal notice. Establish specific criteria used such as performance levels, management levels versus staff ratios, skill levels, and education levels. A final review of the selected employees must be reviewed to ensure the company is not in violation of any discrimination laws, perform an analysis of employee demographics to ensure there is a balance within protected affirmative action groups. Finally, determine benefits offered such as COBRA or displacement job services to the separated employees. In the event the company is offering a severance package for the selected employees, the company should solicit a release of claims against the company in the future from the employees (Grace, n.d.). Conclusion The recent merger of InterClean and Enviro Tech creates a new workplace that is progressive and looks toward the future (Stanley, 2009). After a review of all viable options available, the decision to participate in rightsizing is a risky one. As such, the company must ensure all rightsizing decisions are made in an ethical manner and abide by all legal requirements. To ensure the company remains socially just the company needs to ensure the process of rightsizing is “perceived as being implemented uniformly” by all involved in the process from those who implemented the process, those separated from employment, and those who survived the process (Nimala, 2006, para 26). Following the steps outlined above will help InterClean to lower future legal expenses from lawsuits while ensuring the merger has placed the right individuals in the right jobs for future strategic growth. References Cotten, A. (2007). Seven steps of effective workforce planning. Human Capital Management Series. Grace, A. (n.d.). Seven steps to downsizing. Heneman, G. H. & Judge, A. T. (2009). Staffing Organizations (6th ed). New York: McGraw- Hill. Hornstein, H. (2009). Downsizing isn’t what it’s cracked up to be. Ivey Business Journal Online. London: May/June 2009. Kamery, R. H. (2005). The effects of the trend to increase profits and stock prices: downsizing in the 1990s. Allied Academies International Conference. Academy of Legal, Ethical, and Regulatory Issues. Proceedings. Cullowhee: 2005. 9(1), p. 55. Miller, R. A. (1998). Lifesizing in an era of downsizing: An ethical quandary. Journal of Business Ethics. Dordrecht: November 1998. 17(15), p. 1693, 8 pgs. Nimala, M. C. (2006). An attempt to redefine organizational justice: in the rightsizing environment. Journal of Organizational Change Management. Bradford: 2006. 19(2), p. 136. Stanley, T. L. (2009). Supervising in turbulent times: a commonsense look at restructuring an organization. SuperVision. Burlington: January 2009. 70(1), pg. 3, 4 pgs. University of Phoenix, (2010). InterClean-Enviro Tech Merger Scenario HRM548 Week 2 Grading Rubric for Memo (Rev. 12/14/09) RUBRIC INSTRUCTIONS FOR STUDENT: After you complete your references section in your assignment, copy and paste this grading rubric to your Word document. That way, I can give you structured feedback in a more organized way. I can also evaluate your papers more quickly. All the grading rubrics are located in the Course Materials forum in OLS and Word format. Copy and paste from the rubric Word version to your paper. INSTRUCTIONS: To create the InterClean–Enviro Tech Merger Memo, • Review the following document to understand the issues that need to be addressed in the memo: o InterClean – EnviroTech Merger Scenario on your rEsource page. • Review following two documents in the Course Materials forum to understand how the memo is graded: o Week 2 Grading Rubric for Memo o Memo Format Guidelines for Course Assignments • Write at least a 1,050- word memo using a minimum of 6 different peer-reviewed sources. In the memo, you’ll determine when rightsizing is appropriate and which steps are necessary to implement this process for the InterClean–EnviroTech Merger. Be sure to address the following questions within the paper: o What are the viable options the company has at this point' When might rightsizing be appropriate for this company' o Assuming that all alternatives, other than job elimination, have been ruled out, how can the company implement the plan in a manner that is both ethical and legal' o When the choice is involuntary separations, what steps must be taken' • Submit your memo to WritePoint for editing prior to posting it. • Submit a copy of your assignment as a Microsoft Word® attachment to your Individual forum by the deadline of Week 2 Day 6. Content 60% Marked if Needs Improvement Points Available 7.5 Points Earned The first section, the introduction, describes what the memo is going to be about; it mentions the upcoming sections. The second section explains and justifies viable options for rightsizing. Describes when rightsizing might be appropriate. The third section identifies and describes how can the company implement the rightsizing plan in a manner that is both ethical and legal assuming other alternatives have been ruled out. The fourth section identifies and describes that steps must be taken during involuntary separations. The 5th section, the conclusion, summarizes what the memo was about and why it is important for the reader take make a decision and/or take action. The 6th section, the References, has 6 peer-reviewed references in APA format (with authors and dates) excluding the course texts and other Eresources. The references are incorporated throughout the memo with correct APA in-text citations. The 7th section contains this grading rubric. Each section is comprehensive, accurate, makes use of the subject matter addressed during the week, and is persuasive. Organization / Development 20% Marked if Needs Improvement Points Available = 2.5 (0, .85, 1.7, 2.1, 2.5) Points Earned The 7 required sections are organized separately in sequence as listed in the Content section. The memo is at least 1050 words in length. Each section has a clear label or header. Mechanics 20% Marked if Needs Improvement Points Earned 2.5 Points Earned Formatting or layout and graphics are pleasing to the eye (font, colors, spacing). Rules of grammar, word usage, punctuation, capitalization, and spelling are followed. Sentences are complete, clear, varied, and concise with proper syntax. Used size 12 Times New Roman font for main body text and references. Used double spacing between sentences and in References section. Used memo format. Submitted memo in Word format as an attachment to Individual forum. Used naming convention “FirstName_LastName_Week #_ Memo.doc” when saving and uploading file. Marked with Number of Days Late Total Points Available 12.5 Total Points Earned LATE POLICY: Students should submit assignments according to Arizona time (MST) based on the assigned due dates. Late assignments will be penalized with a 10% grade deduction for each day late. Deadlines will be defined as 11:59 p.m. MST. Assignments submitted more than four days late will not be accepted. Assignments submitted after the last day of class will not be accepted. To improve, I recommend that you correct issues identified above and: To what degree are concepts applied correctly' • None • Some • Most • All (but development and/stronger research needed) • All To what degree is this memo easy to read' • Unsatisfactory • Fair • Good