Caring@Work: Unexpected Leadership Challenges in a Social Venture

Jill Herzog founded Caring@Work Support Services (Caring@Work) in 2014 with a desire to give back to the community. After running a successful plastics recycling business for many years and building goodwill in both her community and in the recycling industry, Herzog saw an opportunity to start a second business dedicated to social impact, one that focused on providing both paid work and support services for clients with intellectual and developmental disabilities.<br><br>Herzog expected that her team members would be highly engaged in their work, which involved helping people with disabilities live healthier and happier lives. However, she was shocked to find out that the opposite was true. Herzog noted several instances of Caring@Work employees lacking motivation and spreading gossip. Even more problematic was the fact that the service provided to the clients was being compromised, and employees frequently failed to complete the required note taking for Medicaid reimbursements. Herzog wondered if her goal of giving back to the community while earning a modest profit would ever be realized. Were the problems due to her leadership style? Were there larger, more systemic problems precipitating the counterproductive workplace behaviour?<br><br>Clearly, something had to change. After eight years in business, Caring@Work had yet to earn a profit. Herzog knew that her business could not grow to the point of being financially sustainable without a committed workforce that shared her passion for the company’s mission. When one of Caring@Work’s top performers, Sylvia Ward, threatened to leave due to the toxic work environment, Herzog knew she needed to act fast. Over the weekend, she drafted a speech to deliver at the next staff meeting on Monday, but she wondered if this was the right approach. Would the speech alienate her workforce even further? Or might it urge them to take their jobs more seriously?

This case is appropriate for undergraduate- or graduate-level courses in organizational behaviour, human resources, and leadership that cover topics such as employee motivation, social entrepreneurship, and leadership styles. The case also discusses various business management theories, including reinforcement theory, transactional leadership, Theory X and Theory Y, and self-determination theory. This case focuses on the conflict between a social entrepreneur and her employees, who do not share the same passion for her vision. The conflict between leadership and employee motivation is woven throughout the case and offers multiple opportunities to discuss with students the issues of employee motivation, handling problem employees, and leadership. After working through the case, students will be able to accomplish the following objectives:<br><br><ul><li>Diagnose and assess the root causes of employee motivation problems.</li><li>Apply motivational theories to real work problems to develop strategies to improve employee motivation and performance.</li><li>Develop concrete leadership strategies when faced with a crisis in employee morale.</li></ul>

• Motivation
• Leadership Styles