Problem Solution: Interclean, Inc

InterClean, Inc. has been a leader in the 8 billion dollar industrial cleaning and sanitation industry. The industry has evolved and clients are becoming more and more interested in not just products, but solutions and services. For InterClean, Inc. the only option that remains viable for market dominance is to move from a solely sales-based organization to a solutions-based organization. In response to the markets complete solution demand the company acquired Envirotech. The acquisition has prompted training, and recruiting actions to align the company with its new strategic direction. InterClean, Inc.s case is classical it requires direction from the executive level to promote synergy within the company to achieve objectives. David Spencer (CEO) in a memo to his employees stated it best, it's possible that discoveries made in the review process could necessitate internal organizational changes to help ensure a more seamless transition. It is important that our departmental teams are structured in a manner consistent with our new direction

Situation Analysis

Issue and Opportunity Identification

A series of events revolving around the new strategic direction lead to many issues within InterClean, Inc.; however those issues brought forth many new opportunities. InterClean, Inc. has always been able to fill gaps and sell products in certain areas, but as they move towards a full solution provider they will encounter a new internal personnel and training need that will need to be addressed through Performance Management Systems.

Performance management systems are what link people to work the standards and measures, financial and non-financial rewards and feedback that reflect stakeholder interests. Proper attention to this flow promotes accountability for performance by defining, noting and rewarding it and penalizing its absence. (Ulrich, D. & Brockbank, 2005). Dreher & Dougherty, explain that hundreds of different types of rating formats have been proposed and tested, and it is possible to make judgments about operating results, employee behaviors, or person-centered attributes like personality dimensions.(2001, Chap. 3). Performance management can be designed to work at individual, work team, or organizational level. They can be also designed to monitor specific organizational problems. The performance management systems vary to suit a wide scope of applications.

Two InterClean, Inc. employees were having a discussion at the water cooler one of them overheard Jim in Marketing Support say that if InterClean, Inc. wants to sell sanitation services to hotels and convention centers, all the staff will have to achieve higher sales quotas each month. In response the other associate stated have you seen the report summarizing our sales team efforts over the past year. I'm not sure why this is being circulated to the Executive Team except to remind them what a lousy year we had. I know I had a lot of leads fall through because of the new client tracking system the IT department wanted us to use.

There are two types of performance management systems to measure progress; results-oriented and process-oriented. InterClean, Inc. is presently onboard with results oriented performance management systems. Result-oriented performance management systems reflect numbers. In essence they tend to be objective, reliable (captured with minimum error), and verifiable; thus perceived as credible. Results-oriented systems are contaminated in the sense that they do not genuinely reflect the employees performance at all times because of variables that can be beyond the employees control. Such as the InterClean, Inc. associates whose performance was negatively affected as a result of the new client tracking system. An opportunity to consider a process-oriented performance management system exists for InterClean, Inc. to set the pace for employee motivation.

There is serious concern about what course of action is necessary to train employees with the new strategic shift. Janet Durham, VP of HR stated I'd like you all to start thinking about training strategy as well. If our training and development budget is tight -- and I expect it will be based on previous experience -- then our new hires must need minimal orientation. We'll probably need to focus more of the budget on training managers to implement these changes High-performing firms display a greater commitment to training and skill development than their lower-performing counterparts. This practice, a core HRM activity, is related to other ideas about the need for continuous improvement and development over time. Knowledge and skill acquisition will not lead to improved firm performance unless employees are allowed and encouraged to use job-related knowledge and skills when performing their jobs. Thus, firms must