Interclean and Envirotech Merger

A. Issue identified in the scenario that is also facing the company.

B. How the company responded to the issue.

C. Outcomes of the company’s response to the situation.

InterClean is merging with Envirotech. Management sees the merger as a strategic move to become the leading company in their field. With the merger this will bring 60 new employees to be employed with InterClean. There have been talks amongst the employees at the water cooler. The employees see the merger as a lost of employment for most of the staff. The employees of InterClean are panicking. InterClean employees are unsure if they will be able to keep their jobs or if they will be terminated. Some employees have volunteer for the training that will be offered and some have left the company. Morale is extremely low at InterClean. The human resource management department is keeping decision that is made on a need to know basis. Employees at InterClean are left to their imaginations, which cause a panic throughout the company.

On the other hand Ford Motor Company is also going through a similar problem. The company is losing lots of sales. The company has to downsize. This will cause the company to lose many valuable employees. Ford Motor Company is also faced with terminating employees and trying to find ways to retain many of their skilled employees.

Ford motor company decided that despite being in the middle of downsizing the company would give employees bonuses. The company is trying to maintain employee morale in the middle of the company downsizing because of the lost of sales which is expected to last into 2009. The company encourages employees to focus on performance against objectives. The management team believes pay should recognize performance of staff. The company management team believes performance is the key to maintaining a skilled and motivated workforce.

A survey was completed from the automaker, which showed only 47 percent of Ford workers have confidence that the company will