Motivational theories and leadership challenges at Sanderson Soaps

Analysis and Evaluation - Case Study Review
Overview
Sanderson Soaps is having problems because of the nature of the way in which the company is run. A small family-owned and operated business, it has done well in the past but the original founders are now old and the next generation is about to take over. There are a few problems here because the next generation is not in agreement with one another about how the company should be run. Whether it is a problem with the ethics of testing products on animals or a problem with leadership, the company is facing serious challenges that need to be resolved before production goals can be hit that will allow the company to become a significant challenger to bigger brands. This paper examines the motivational theories that can explain the relationship between workers and leaders in the company; it looks at the prominent leadership styles involved in the company, how employee morale is impacted, the extent to which collaboration is found, ethical issues, and so on, to show what the company needs to do to improve.
Motivational Theories
Maslow’s (1943) theory of human motivation and the hierarchy of needs can be used to help explain the issues of low productivity within the company. One of the main problems is with John in Distribution. He is the oldest son and believes he will be CEO of the company one day. However, his workers hate him and think he is mean and too hard on them. John does not believe they are overworked and calls them slackers. He demonstrates no emotional or social intelligence towards them and thus none of his workers feel loyal to him. They even try to sabotage his health by tampering with his food when he has unjustly abused them. This is one of the effects of poor leadership, as Schyns and Schilling (2013) show: when leaders fail to connect with workers, the workers retaliate in negative ways. In order to get workers to be more productive, John should be more sensitive to their needs. When workers have their needs met—such as friendship, esteem and love—they are more likely to reach the level of self-actualization that can really increase production, as Maslow (1943) shows.
Locke’s (1970 job satisfaction theory can also be used to explain the issues the company is having with production. Workers who are not satisfied with their jobs and who do not have clear goals for themselves within the workplace that they can achieve are unlikely to feel motivated. What Locke (1970) shows is that to increase performance, leaders should motivate workers by aiming to increase their job satisfaction. This can be achieved by helping workers to identify and set goals for themselves and giving them the tools and support they need to achieve these goals. Essentially, this theory of motivation is all about serving the worker so that the worker likes coming in and doing his job as he feels an intrinsic motivation to excel. This theory could be used to explain why production is low at the company as so few employees are there just because it is the family business and they do not really take satisfaction in it, though some do, like Dave, who puts in extra hours just to keep everything on schedule in Distribution.
Leadership Style
The type of leadership style varies from department to department. In Distribution, John has a very authoritarian leadership style. It is his way or the highway. He does not engage with his workers in a democratic manner or try to serve their needs like a servant leader. This is not a very effective form of leadership and has led to high turnover rates in his department. It is just as Schyns and Schilling (2013) show, however: when a leader is confrontational or disengaged, followers and employees do not stick around long.
In Accounting, Anthony has good leadership skills: he incentivizes his workers and encourages them to be innovative. He gives credit where credit is due—except when he knows it would upset John. He is sensitive to his workers’ needs but also gives them a vision to work towards and thus inspires them to want to be productive. His leadership style is thus a cross between transformational and servant leadership, as he knows how to communicate a vision effectively, motivate his workers and provide the support they need to succeed—all of which are common traits of transformational leaders and have characteristics of servant leadership (De Vries, 1998).
There is also an element of authentic leadership at the company, particularly among Anthony, Dave, and Margaret. Authentic leadership is described as a style of leadership that focuses on building trust. Anthony and Margaret are especially good at this. Anthony’s leaders trust him because he is honest and decent. Margaret’s customers trust her because she builds relationships with all the clients and understands how to communicate with them.
These three styles of leadership can be found at the company, which is part of the reason the company is having problems. There is no cohesion among the various departments. Each department essentially has its own culture, informed by the leader and his or her style of leadership. This has led to the creation of silos in the company, which can further be an obstacle to production (Diamond, Stein & Allcorn, 2002).
Employee Morale
Management style affects employee morale in different ways. For instance, John’s dictatorial and authoritarian management style has a very negative effect on employee morale: his workers hate him and actually try to make him sick by tampering with his food, their goal being to get him to go home. However, because it is unlikely that he is ever to leave the company, many of his workers end up quitting, which is why he has the highest turnover in the company.
Anthony’s transformational and servant leadership styles have the opposite effect on worker morale. His workers want to come to work and enjoy doing their jobs. Under him they feel motivated and have a high degree of job satisfaction because he helps them to identify goals, gives them incentives, and encourages them to be creative. They are motivated to work and their morale is high as they feel esteemed and valued and even loved by their manager.
Under James, there is some tension because he does not fully appreciate all his workers or their culture. For example, Sanjay is the only non-white in the company and his views about animal testing are strong. Yet the company does not listen to Sanjay, which causes him to feel angry. The morale under James is thus divided because there is not a great deal of cultural competence on the part of James as a manager. To better address the situation of tension in his department, James would do well to be more of a transcultural manager and leader and take into consideration the culture of Sanjay in order to better understand his perspective (Leininger, 2008).
Collaboration
Collaboration is absolutely needed in order for this company to succeed. The consultant can help to point out the ways in which the company’s leaders can take appropriate actions and measures to address the concerns of employees, increase employee morale, and solve problems of leadership like what is happening in Distribution. Collaboration between the company and the consultant could also help in addressing marketing issues, which are likely to be a problem when Margaret leaves and no one is able to fill her shoes because no one has the sales technique and relationship-building skills that she has.
Collaboration is one of the most essential functions a company can utilize. As Pries and Stone (2004) point out, collaboration can lead to financial gain when the company streamlines practices, takes part in training exercises, develops leaders, identifies goals, creates and develops a vision, communicates that vision, and implements a stronger culture. Collaboration between the company and the consultant can make this happen.
The consultant can bring a fresh perspective to what is going on in the company—one that those who are close the work may not be able to see fully. Because the company is filled with family it can also be a challenge for people to assert themselves when they have good ideas. This is the case with John and Anthony. Anthony does not know how to handle John because of the latter’s temper. And this is where the consultant can come in to play and offer guidance, suggestions and advice as a neutral third party, who means no offense and will not be perceived as causing any. The good thing about collaborating with a consult, therefore, is that it reduces the risk of blow-ups between leaders and managers, as the good advice and recommendations will be coming from an outside observer whose main interest is in helping the company to succeed. There is thus less risk of hurt feelings or people feeling as though their toes are being stepped on by another person from within the company.
Consultant’s Role
When proposing changes, the role of the consultant is to act as an advisor and as a neutral third party, who can serve as a catalyst for change. The consultant does not take on a leadership position within the company. Rather he finds ways to empower the leaders in the company to make the right choices and decisions for the company. The consultant helps to identify risks, problem areas, barriers to productivity and performance, issues within the organizational culture, challenges in organizational behavior and so on. By fighting these problem areas and explaining them and by discussing ways in which they can be addressed, the consultant acts as a facilitator for change.
The consultant should not assume, like John the autocratic, authoritarian leader, that it is either his way or the highway. The consultant is not there to make decisions for the company. The consultant is only there to help the company to see what is in its best interest, where the pain points are, and what the company can do to address those pain points and move forward.
The company should not feel threatened by the role of the consultant but should rather welcome the consultant because the consultant can help to breathe new life into the company by offering a fresh and much needed new perspective on old problems (Pries & Stone, 2004). The added bonus is that the consultant is from outside the company: the consultant is external to the internal problems and issues that the company is experiencing. The consultant is not impacted by the same communication issues and familial sensitivities that impact others in the organization. The consultant can feel free to be honest and to tell the truth even if it makes some uncomfortable. His job is to do just that and then to allow the company’s leaders to take action accordingly, as they see fit.
Ethical Standards
Productivity has been affected by industry-specific ethical standards in the past. For instance, Amy let loose the rabbits that were being used for testing purposes back in the 1990s and that caused major production delays. She never told anyone about it, but it still haunts her is one of the reasons she tries to serve as a mediator when arguments break out in Product Development and Production. This is especially true with Sanjay there now, as he is a fervent supporter of animal rights and does not like the way the company tests on animals, even though this is something that is an accepted practice in the industry.
As Sanjay believes, there are other ways to test for the safety of products and animal rights should be observed and respected. The company does not really agree with Sanjay on this point, which is why this is an ethical issue that the company should address. Production has been delayed because of it in the past and there could be future delays if it is not resolved to everyone’s satisfaction.
Ethical Responsibility
The ethical responsibility that the consultant has in the relationship with the client company is to be honest, forthright, professional, and mindful of the client’s best interests at all time. The consultant should never attempt to offer advice that would negatively impact the company. The consultant has a duty to report all findings following an audit of the company and to offer recommendations that could help the company to address any internal issues or external threats that may pose a problem.
The consultant should also be available to offer training or to assist in the procurement of training should that need arise. The consultant is there to provide support for the company so that it can address internal issues and solve the problems; there is no other purpose for the consultant but this. That is why the ethical duty owed to the company by the consultant consists primarily of serving the company’s needs, offering advice, being truthful and honest about findings, and explaining the consequences and risks of pursuing the same course or of implementing changes.
Diversity
The relationship between diversity and productivity in the organization is slight. The fact is that the company consists almost totally of family members—so everyone is from the Sanderson family, except for Sanjay. However, the fact that everyone is from the same family does not mean they all get along—obviously they do not and that is part of the problem. Yet, the nexus of the problem is not rooted in diversity—it is rooted in a failure of vision to be effectively communicated.
Diversity of background and ethnicity is not a problem for companies that embrace multiple perspectives and points of view. It is when leaders of companies become closed off and dismissive of others’ points of view that the company begins to suffer. When diversity of people and perspectives is not respected, the company can go south in a hurry. Leaders are thus encouraged to be mindful of other cultures (Leininger, 2008). They are also encouraged to be open to diverse opinions and to be accepting of the points of view of others. This is what allows a company to be better prepared to move forward and address whatever issues and challenges may occur in the future. Unknown and unforeseen issues are always going to come up, but if leaders are prepared to be open to taking advice from various people of different backgrounds—such as from Sanjay—it can help to make for smoother transitions.
Diversity will cause problems for a company’s production only when the vision of the company breaks down and is not being embraced by all. When various workers have different ideas about how the company should be operating, it causes friction and collapses in productivity. Diversity of opinions can be good when they are communicated in a healthy and respectful way. When they are expressed in negative ways, however, the company can suffer. This is why a single vision needs to be promoted in a positive manner that is inclusive and respectful of the opinions of others—so that all can feel invested in the company and its goals.
Working Teams
Janet and James have made a great working team, as they are like-minded and appreciate one another. James views Janet as his right arm. However, others in the department do not share the same outlook as those two. Sanjay’s views differ greatly and this causes tension among the staff. Aside from this, there are not many working or functioning teams, primarily because the company has not really used or promoted the idea of working teams throughout the company’s structure in the past.
Working teams could be a valuable idea for the business going forward, as they focus on collaboration and can be good ways to foster communication—all of which are important when it comes to strengthening a company and boosting its focus on productivity. Part of the way to make working teams effective is for leaders to be part of them and to lead by example (De Vries, 2015). In this way, Anthony has already done that in his department. He has learned to incentivize his workers and motivate them to work together.
However, the rest of the company has not really followed his lead mainly because John is blocking the way and his arrogance and bad temper prevent him from being an effective leader. To make the company stronger, the problems that John is having really need to be addressed. This will help remove that obstacle to the implementation of more working teams throughout the company. The more that the company uses working teams to foster a spirit of collaboration and camaraderie, the more the company will begin to work like a fine-tuned engine and get production up to levels where it can compete with international companies like Unilever. The big issue preventing working teams from getting going is the lack of leadership currently being experienced by the company, with leaders like John frustrating any implementation of collaboration.
Conclusion
Sanderson Soaps needs to focus an addressing the leadership problems that it is experiencing because these are the primary obstacles that are preventing the company from coming together in a positive way and becoming more productive. The two main departments suffering from poor leadership are Distribution, where John is in charge, and Research where James is at odds with Sanjay. Margaret has not trained a successor, which is also problematic. In each of these cases, the leadership of the individuals has to be addressed. The best example of good leadership is Anthony who is a transformational leader. Then there is Dave, who is a genuine servant leader. John does not recognize the contributions of either, which is why he is such a problem. John’s issues of arrogance and self-entitlement are bad for the company and need to be resolved before collaboration and a better workplace culture can be implemented on any meaningful scale.

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