Running head: MEMO: INTERCLEAN ENVIROTECH MERGER

Memo: InterClean EnviroTech Merger Name HRM/531 Date Instructor Name

Running head: MEMO: INTERCLEAN ENVIROTECH MERGER

InterClean, Inc
Memo
DATE: TO: FROM: RE: March 1, 2005 Sales Department - Supervisors Sue Smith, Sales Manager Management Behavior InterClean Inc., - EnviroTech, Inc., Merger

I am writing as a follow-up to the recent team meeting in which we discussed the pending merger with EnviroTech, Inc. As we discussed at the meeting, it is critical to the success of our company to ensure that the sales management team exhibits behaviors that support the merger, optimizes profitability during and after the transition, and we support staff before, during and after the changes that we are about to face. As we discussed, I expect you to ensure we maintain worker productivity, meet or exceed all human resource management legal requirements, and maintain or promote diversity within the workforce. Behaviors that support productivity As supervisors you can have a significant impact on your teams productivity. This is particularly true during turbulent times when there is a tendency for employee morale to dip, feelings of insecurity to rise, and stress to run rampant. These factors can lead to absenteeism, tardiness, work stoppages, and other productivity drains. In the extreme, seasoned professionals that believe that their positions are at risk may seek positions elsewhere leading to organizational brain drain, and the need to hire new staff at considerable cost to the company. We can mitigate the negative impacts on by taking a proactive approach to managing the situation. You must establish strong, two-way communication with your teams. The transfer of information both up and down the organization is critical to address issues before they become significant problems. You can expect that employees will be experiencing a significant amount of stress because of the uncertainty that this merger may bring. Please remind your team members that they have access to the confidential employee assistance program to address individual circumstances (Nickels, 2008). In addition, we will meet as a management team to prepare and initiate a complete training program for each team to ensure that staff can address the transition to the new turn-key service focus. As we merge the two companies, we have an opportunity to think strategically about ways in which we can implement new work-life programs to retain key staff, bolster morale, and attract new team members to the organization. I encourage you to begin working with your teams to determine what program elements are of most importance to staff.

Running head: MEMO: INTERCLEAN ENVIROTECH MERGER

Your attitude to the transition is key. I expect you to act professionally at all times, treat your coworkers with respect, and be empathetic. Human resource management legal requirements It is critical during these turbulent times that we adhere to all federal laws that govern employment. It can be tempting to focus on the structural and technical elements of restructuring during the merger; however, it is the responsibility of each of you to make sure that we are also upholding all of our statutory requirements regarding human resource management. As a reminder, these laws are in place to ensure that we do not practice unfair discrimination, and we protect our employees from an inappropriate abuse of power. These are federal laws that apply to our company and our employees. These laws apply to persons who apply for positions, are currently employed by us, contract with our company, and those employees who transition out of the organization, either voluntarily or involuntarily. In summary it is a requirement that we: 1. do not discriminate on the basis of race, religion, national origin, age, sex, physical disability or sexual orientation in hiring, promotion, or other employment practices; 2. ensure that regardless of gender, all employees are paid for work based on the degree of skill, effort, responsibility and their working conditions; and 3. protect our employees from various forms of harassment (Cascio, 2006). Not only do we risk legal action if we contravene these laws, but we also risk current and future federal contracts that require our company to meet affirmative action and equal employment opportunity (EEO) requirements. Each of you has a handbook that provides guidance on how to implement employment practices to ensure you operate within the law. If you are uncertain how to proceed in a specific circumstance please come and see me, or our human resources department staff for assistance. Supporting workplace diversity Our company has a specific policy of supporting diversity in the workplace. Mr. Spencer, President and Chief Executive Officer (CEO), has issued a directive that we will aim to promote diversity whenever and wherever possible. As you are aware, currently our workforce is predominantly Caucasian and Hispanic (80%). We will be merging with a company that has a similar racial/ethnic makeup. As you are aware, the workforce at large is made up of approximately 50% racial and ethnic minorities (Cascio, 2006). Over time I expect that we will see greater diversity in companies that we work with, and in the applicants we see applying for positions with our company. To ensure we are fostering a culture that promotes diversity in the workplace, we will ensure that our workplace aims to hire the best talent, regardless of ethnicity or gender, and we implement programs that provide a safe place for all employees to stretch their wings through mentoring, training, and planning career paths that allow women and minorities to enter decision-making positions. Over time, expect to see performance measures in your annual reviews that measure your success in cultivating this culture. I look forward to working with you on developing innovative programs that help our company be successful in encouraging diversity.

Running head: MEMO: INTERCLEAN ENVIROTECH MERGER

Conclusion and next steps The merger with EnviroTech Inc., will take place within the next three to six months. It is imperative that we work together to ensure that the company optimizes profitability before, during, and after the merger. To do this we need to ensure that our workforce achieves high levels of productivity; however, we cannot focus so much on the structural elements of the change that we take our eye off the need to meet statutory requirements, and promote diversity within our organization. Next Monday we will begin a series of management team meetings to discuss strategies to support the merger of InterClean Inc., and EnviroTech Inc.

Running head: MEMO: INTERCLEAN ENVIROTECH MERGER References

Cascio, W. F. (2006). Managing human resources: Productivity, quality of work life, profits (7th ed.). New York: McGraw-Hill. Nickels, W., McHugh, J., & McHugh, S. (2008). Understanding business (8th ed.). New York: McGraw-Hill. University of Phoenix. (n.d.). Week One Reading: InterClean-EnviroTech Merger Scenario. Retrieved from University of Phoenix HRM/531 Human Capital Management course website.