Problem Solution: Interclean, inc.
Interclean inc. is a service company that is a participant in the cleaning and sanitation industry. The success of the company is not based on the development or the designing of products that are meant to be superior in the market following the industry’s evolution overtime. The customers in the cleaning and sanitation industry are more interested in the company providing cleaning and sanitation solutions and services than the development of new products. The solution and the services that are desired by the customers are expected to perfect their cleaning efforts in keeping pace with the environmental safety requirements. For example, the customers in the health care require solutions that are meant to enable them to keep in pace with regulations that are governing the maintaining of their sterile environment. Therefore, the market condition dictate for the providing of solutions and services other than the manufacturing of products, if the company was to maximize its returns on investments (Mathis and Jackson, 2006).
Following the requirements from customers as provided above, the cleaning companies stand at a better position of providing greater value to their customers by enabling them to attain the solutions in keeping the desired sanitation standards. The
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Interclean company as a participant in the cleaning industry is engaged in the selling of products to the customers through the utilization of their sales team. The selling involves the demonstrating on how the products are effective with an attempt to convince the customers to purchase the products. Therefore, the company rather try to convince the customers to purchase their products other than addressing the needs of the customers (Sims, 2006). This means that the clients’ needs are addressed partially, implying customer dissatisfaction.
The paper is aimed at providing a solution that is meant to the improve the company’s performance, enhance market sustainable, and expand its market size and share. It mainly focuses at human capital at an intervention point for attaining the desired results.
The Interclean company has been exercising the selling of the company’s products through the doing of demonstrations to potential clients and then persuade then to purchase their products as a means of generating income. This is the approach that has been used in ensuring the success of the company. Overtime, the cleaning industry has been evolving depending on the changes that has risen concerning the rules that are meant to govern environmental safety. The changes have posed more work that has to be done by the clients themselves and also the cleaning companies, that is, they have created new opportunities in the cleaning industry that need to be tapped. The evolution in the industry require the cleaning companies to change from selling products to the clients to the providing of solutions and services to meet the needs of the clients as pertains to the changes in the requirements in environmental safety. That is, a company is required to change its operations from solely sales-based organization to a solution-based organization. In other words, the company’s operations will shift to addressing the needs of the clients more than the designing of products for sale to the clients.
The theoretical reason behind the shifting from the designing of products to the addressing of the client’s needs is to enhance client satisfaction that will in turn improve the company’s performance through the creating of loyalties (Dreher and Doughherty, 2001)). This will have a further impact of making the company relevant in the cleaning industry because its sole aim is to serve the clients. The failure to meet the client’s needs will expose the company to the risk of becoming irrelevant in the market, that will expose the company to the likelihood of experiencing reduced demand for its services.
On attaining this shift, the company is expected to make changes in its human capital, that is, reshuffle the human capital responsibility allocation and enhance capacity building with an aim of improving their efficiency when performing the tasks entrusted to them. Therefore, the issue on the company taking an advantage on the opportunity is by reshuffling its human resources and enhancing capacity building through training.
Stakeholder Perspectives and Ethical Dilemmas
The main stakeholders in Interclean company include the employees, the managers in various departments, and the Chief executive officer. The interest of the employees is to retain their posts, that is, job security following the reshuffle that is meant to shift the company’s operations following the new strategy direction. Its is better for them to retain the posts or get a promotion to a better job within the company. The interests for the administrators in various departments in the company is to ensure that the goals of the company are attained by performing their roles in ensuring that the shift is a success. The chief executive officer can be perceived as the main strategy designer. The interests of the Chief executive officer include the improving of the company’s performance, enhancing reputability of the company, enable the company to go global and also to ensure continuity of the firm following the evolution in the cleaning industry.
The cleaning industry requirements have been changing overtime, that poses more work among the clients and also the cleaning companies. The clients are now less concerned with the products but require solutions that are meant to enable them to attain the required sanitation level. Companies in the cleaning industry therefore require to change their operation from the providing of products to the providing of solutions to the clients with an aim of attaining sustainability in the market. In attaining this, the Interclean inc. require to do a major reshuffle within is human resources and more especially in its sales team in enhancing this transition. The problem is on how to solve the challenges that are certain to arise among the company’s human resources following the change in the strategy direction and more especially the sales teams.
The transition of the Interclean company from a solely sales-based organization to a solution-based organization is likely to enable the company to realize improved performance, but the transition is likely to pose some challenges in the human resource management that require to be addressed if the company was to realize optimal results from the transition. First, the reshuffling of the human resources in the allocation of responsibilities with an aim of allocating human resources in an optimal manner will have a negative impact in the morale of the employees if the already existing employees are demoted to perform tasks that are lesser authoritative than the ones that they were doing therefore before (Poole, 1999). Termination is also another issue that is likely to occur if the skills of the employee do not match with the current existing opportunities in the organisation. The other challenge that is likely to arise is the failure for the employees to coup with the changes that are meant to transform the company’s operations. This follows from the fact that, the employees were used with the initial way of doing things, therefore, it may require a longer time to grasp the required skills in enhancing their effective performance.
Following the need to transform the company operations, there are a number of issues that need to be addressed in ensuring the realizing of the intended goals, that is, an attempt to solve the possible obstacles that may hinder the company from realizing the intended goals.
First, the company is expected to revise the responsibilities entrusted to each department and ensure that the department activities are operated in a coordinated manner. This will eliminate the possibility of there being conflicting activities. All the departments should be engaged in the transition and activities carried in a coordinated manner.
The current staff may be lacking skills to carry out the new responsibilities entrusted to them, therefore, a training is required that is will be meant to instill skills to the employees and specifically the sales team in carrying out the new responsibilities. The training syllabus should be guided by the skills that are necessary and the ones that may be felt required to enlighten the sales team, and that are likely to improve their performance. The recruiting criteria should also be governed by the skills that are required to ensure effective performance, thus only qualified staff will recruited (Pieper, 1990).
The company’s operations are aimed at going global. The company’s going global will pose a human resource management challenge that follows from the varied cultural practises, labour economics and the labour laws that vary from one country to the other. This requires the company to adapt distinct human resource management practises for each territory. This will save the company from going against some labour laws in different territories where it will extend its operations to. On avoiding cultural conflicts, the company should utilize the locals in every country in which they have operations (Punnett, 2004). That is, the sales team should mainly be comprised of the locals. The company’s human capital in respective countries of operation should be a reflective of the society in which they are operating, that is, it should absorb human labour from the community in eliminating possible conflicts with the society in terms of corporate social responsibilities of the company.
Analysis of Alternative Solutions
The alternative solutions provided above have varied weight in contributing to the identified goals intended by the company as provided in table three. The training of staff hold more weight compared to the other alternatives because it contributes much to the attaining of the goals than other alternatives. It will impact the company’s performance positively, enhance market sustainability, promote human capital development, promote client satisfaction, and enhance the company to expand its market through increased competence in satisfying the clients’ desires. The utilization of the local comes as the second, organization structure as third, affirmative action as forth and distinct human resource management practices for each country as the last.
Risk Assessment and Mitigation Techniques
Following the alternative solutions that can be used in attaining the goals of the company, the alternative solutions have various risks that are associated with them as shown in table 4. The risks that are associated to the alternatives do not have an impact of narrowing the choice because the mitigation techniques are likely to overcome the risks in attaining the aimed results.
The optimal solution that will enable Interclean inc. to change from a solely sales-based organization to a solution-based organization will include the providing of training to the staff, and making adjustments in the organization structure. For it to go global as one of its goals, the company should utilize the locals, apply a limited affirmative action, and observe human resource management practices that are distinct depending on the local labour laws and economics. This solutions will enable the company to switch to a solution-based that will make the company relevant in the market in relation to the cleaning industry evolution.
The implementation plan will follow as provided in table 5. The main activities include the providing of training, changing of the organization structure and also going global. The training will take six months and will basically aim at providing skills to the sales team. That is, it will run for three months before the official launch of the programme and three months after the official launch of the programme. The training before the launching of the program is meant to prepared them on what they should expect. then the training after the launching will be ‘the on job training’ that is meant to equip them with skills on how to coup with the dynamics in the real practice. The training shall still continue even after the six months, but now in an informal manner.
Changes in th organizational structure will be guided by the desires of the clients, that is, a structure that will fit the desires and the needs of the clients. It will be a structure that is meant to provide a complete suit in one, that is, ranging from information sharing, training of staff, suppling of products and contracting to provide cleaning services.
Going global will be after one year. The first year before going global will involve the doing of research in the foreign markets in determining the market conditions on establishing strategies on how best to enter into the markets. The first years before going global will also enable the company to develop a competitive advantage that will enable it to enter the into the international market with much easy.
Evaluation of Results
The evaluation of the results in an effort to attain the company’s goals will be done using quantitative measures as provided in table six. The achievements will be evaluated by comparing the attained results and the targeted results. The validity of he evaluation will be done by making a comparison with the competitors results on establishing the realism of attaining the target results ( Poole,1999).
In a service industry like Interclean inc., human capaital play an important role in determining the company’s performance and market suitaibablity. This can be enhanced by providing the aready existing employees a training that is meant to instill skills that will make their services relevant in the industry. The skills instilled should be guided by the customer needs, that is, skills that are meant are to adress needs of the customers in enabling customer satisfaction. The necessary remedies should be taken to avoid the negative consequences that may arise in implemetnting some alternative solutions. The alternatives solutions that contribute more positively to the organization in attaining its goals should be prefered in consindering also the risks inherent in them.
Dreher G. and Doughherty T. (2001). Human Resource Strategy: A Behavioral Perspective for the General manager. New York: McGraw-Hill.
Greer C. (1995). Strategy and Human Resources: A General Managerial Perspective. Prentice Hall.
Mathis R. and Jackson J .(2006) Human Resource Management, Thomson South-Western.
Punnett B. (2004) International Perspective on organizational behaviour and Human Resource Management, M E Sharpe.
Pieper R. (1990). Human Resource Management: An international Comparison. Waleter de Gruyter.
Poole M. (1999). Human Resource Management: Critical Perspective on Business and Management. Routedge.
Sims R., (2006). Human Resource Management: Contemporary Issues, Challenges, and Opportunities. IAP.
Issue and Opportunity Identification
Reference to Specific
Interclean company has been using the solely sales-based approach in serving the needs of the clients. following the evolution in the cleaning industry that have lead to the changes in the requirements for environmental safety. The company is now intending intending to intending to shift to solution sales-based approach that is meant to provide solutions to the clients in meeting their needs with an aim of creating customer satisfaction.
This shift require the company to make a major reshuffle in its human capital allocation of responsibilities and proving training to its staff in enabling the company to take advantage of the arising opportunities (*********).
Interclean can attain the benefits of customer satisfaction following the increased work among their clients. This will impact the performance positively
Changes in the organization’s strategies on improving the performance of the organization normally affect the human capital. It requires major changes in the allocation of responsibility and providing of training (Greer, 1995).
Effects of Strategic changes in human capital
The Interests, Rights, and
Values of Each Group
They are interested in retaining their posts or provided a promotion in the new organizational structure.
The chief Executive Officer
Enhance improved productivity of the company, Increase the company’s reputability, ensure the continuity of the company and going global.
Perform their tasks as required in meeting the goals set by the Chief Executive Officer.
Analysis of Alternative Solutions
Risk Assessment and Mitigation Techniques
Risk Assessment and Mitigation Techniques
Risks and Probability
Consequence and Severity
Human Resource management practices distinct in every country
· Will disadvantage some employees in some countries where the labour laws do not provide protection to employees. This may lead to demonstration.
· There will be demonstration for employees from different countries when they feel oppressed by the labour laws or on realizing that there colleagues are favoured.
· This will lead to a decline in the employee’s performance due to the distorted morale.
· The company should apply laws with fairness in ensuring that the employees are treated fairly. For example, the employees should be compensated according to the labour hours.
· The issue of minimum wage should be applied uniformly regardless of the country, that is, equal compensation for the equal job done.
Changing of the organizational structure
· The changing of the organisational structure as a strategy for enhancing the transformation will carries the risk of causing conflicting responsibilities.
· The transferring of responsibilities from one department to the other may also be impractical in an organization if continuity was to be enhanced, therefore, it poses the risk of not having a smooth transformation
· There will be an ineffective organizational structure that will not enable the company to realize its goals following the conflicting activities that are certain to undermine the efforts of another department.
· It will take long for the other department of adapt the practices inherited from another department. This will cause inefficiencies and failure to enhance a smooth transformation in adapting the new direction of strategy.
· The changing of the organization structure should be gradual. It should be slow in enabling the other adapting department to learn how the activities were run before taking the activities for their own in enabling a smooth transformation.
· There is possibility that the company’s performance will decline as the unqualified persons who are absorbed in the workforce in the act of affirmative action are unlikely to perform.
· The company will experience low human capital productivity that will both affect client satisfaction and the company profitability negatively.
· Training of Staff in instilling some skills will be challenging following the lack of basic skills among the human capital that could have otherwise made the training process effective.
· The company should allocate the staff that is recruited in an act of affirmative action less technical assignment. This will eliminate the possibility of them messing up with the operations of the company in a significant way like when they were entrusted to be technical responsibilities.
Optimal Solution Implementation Plan
Who is Responsible
Training of Staff the sales team
Six Months(The first six months)
Heads from different departments will present their respective syllabus on what they want the sales team to know and experts in various fields of sanitation and cleaning will be invited to provide lectures on th current progress in the industry.
Changing of the organisational structure
One Year( The first year)
The chief Executive Officer. he should however work with each department in analyzing on which activities are appropriate to relocate and on how best should the relocation be to enable a smooth transformation.
Starting after the second year
Chief executive officer and the sales team
Evaluation of Results
Income from sales
$ 200, 000 per month
Expanding the Market
Number of customers
200 customers per Month
Number of customer loyalties created
4000 clients per year
Human Capital Development
Productivity per sales person
$8000 per sales person, per month
Rank in the industry
The highest profitable company in the industry