Interclean-Envirotech Merger

Topics: Human resource management, Employment, Affirmative action Pages: 3 (869 words) Published: June 21, 2012
InterClean-EnviroTech Merger
HRM 548
InterClean-EnviroTech Merger
In the acquisition of EnviroTech, InterClean Inc. is looking to increase its service-based division. Because InterClean has also acquired personnel and other resources from EnviroTech, the organization will need to consider a reorganization to maximize and redefine sales staffing and customer service. The merged companies created a new strategic initiative to handle any transitions and integrations to increase sales by 40% (University of Phoenix, 2011). The company looks at right-sizing the personnel better to fit the needs of the company and consumer needs. Viable Options and Rightsizing

The company has a few available options. The first option, merging the existing EnviroTech personnel into the InterClean, Inc. sales team, requires little training other than an orientation into the corporate environment. Inviting the EnviroTech personnel into the culture helps to diffuse any “us vs. them” attitudes. The company needs to implement a hiring freeze as keeping employees may lead to over-staffing. The second option, InterClean disperses acquired employees throughout the company up through middle management. The tactic also helps new employees to be seen as integration and not a threat. However, integrating 60 employees will take time and careful reorganization. The third option, creating a new division to house the newly acquired employees will create more cost and may not be the most effective use of personnel (Heneman & Judge, 2009). The decision to create a new division will ensure feelings of isolation or threat.

Furthermore, right-sizing is necessary to create a lean sales team increasing profits by 40%. The company can take advantage of the talents from both companies in time. Though time consuming, InterClean creates a better team to serve the needs of service expertise and sales. The company must be careful of right-sizing or downsizing quickly to avoid any major loss...

References: Heneman, G.H., & Judge, A.T. (2009). Staffing Organizations (6th ed.). Retrieved from The University of Phoenix eBook Collection database.
Lawson, Jr., H. (2008, December). The Importance of Employee Engagement. Vision Monday, 22(14), 32-33. EBSCOHost.
University of Phoenix. (2011). InterClean - Enviro Tech Merger Scenario. Retrieved from University of Phoenix, HRM548 website.
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