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    HRM 538 Case: Right-sizing of InterClean-EnviroTech

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    This case study was from a Human Resource Management 538 course and answers the three case questions.

    Determine when rightsizing is appropriate and which steps are necessary to implement this process for the InterClean-EnviroTech Merger. Address the following questions:

    1. What are the viable options the company has at this point? When might rightsizing be appropriate for this company?
    2. 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?
    3. When the choice is involuntary separations, what steps must be taken?

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    Solution Preview

    1. The February 22, 2005 memo from President and CEO David Spencer, not only announces the acquisition of EnviroTech, but an integration of about 60 new employees - while in the midst of launching a major marketing campaign of new services (Scenario). With so many ambitious changes, with overall results completely unknown, now (April 2005) is not the time to consider rightsizing or significant staff changes. It has yet to be determined what the demand will be for the "one stop shop" options that will be provided by the new InterClean service system. To start eliminating positions now may result in having too few employees to meet customer demand. One viable option would be to develop a cross training plan. Within the two skills inventory evaluations conducted by Consultant Carol Stanley on InterClean and EnviroTech employees; there is an obvious variance in the years of experience and skill level of the two sets. Half of the sales force from InterClean have been with the company four years or less; whereas all 50 EnviroTech sales force personnel have been with the company 5 years of more. This presents an opportunity for mentorship; perhaps tasking a portion of the combined 19 employees from both entities with 20 or more years of experience to guide and assist with training of those with less than five years (Stats from A & B). The EnviroTech mentors should be heavily involved in development of the training manuals for compliance and technical specifications. Perhaps some of these same employees could be utilized in a teaching capacity as well, conducting training sessions with the InterClean sales force that is new to selling the "full package" service. Conversely, with InterClean having the "younger" sales force, requiring ...

    Solution Summary

    This solution is extremely in-depth, more than 1000 words, and contains a reference. The solution analyzes what viable options exist in the difficult scenario of a merger, in regards to employee staffing. There is an analysis of both the ethical and legal ramifications to job eliminations, and what must occur, from the organizational standpoint - when involuntarily separations are the only option.