Organizational Problems Relevant to Motivation And Cause of Issue

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  • Level: High school
  • Pages: 8 / Words 1925
  • Paper Type: Essay
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Question :

This assessment will cover the following questions:

  • Kogan company is a retail company in Australia. Give a brief description of Kogan company.
  • Give a creative solution to address the organisational issue and justify the effectiveness of your solution/s.  
  • Identify an organisational issue relevant to motivation in any organisation you are familiar with.
Answer :
Organization Selected : Kogan


Organizational behaviour is the study of individual and group performance as well as activity within the company. It is effective application of knowledge about how people act at firms where they work. The present essay is based on Kogan company work in retail sector in Australia, it explains the brief overview of organization, organizational problems relevant to motivation and cause of issue. The objective of this study is to define 2 motivational theories applicable to organizational issue. Motivation is the key concept of this essay, management plays their role to solve problem and motivate workers.


Company Overview

Kogan is the biggest retailer in Australia, they are able to provide range of products from leading brands across broad range of categories regarding customers electronics, home-wares, toys, hardware, appliances etc. They operate and own piece of exclusive private label brands in order to increase its profitability rather than before. Ruslan Kogan is the founder of this organization founded in 2006, established their headquarter in Melbourne, Australia. is the portfolio of services and retail businesses including Kogan marketplace, Mobile, internet, Travel & Kogan money (Dieu Ho and, 2019). Firm focused on making in requirement services and products more accessible as well as reasonable. Through digital efficiency, they renowned for price leadership that is beneficial for overall business. Company is considered as the most recognizable face of online shopping and retailing revolution in nation. They achieved $3 million in third year of its opening, they are projected to make more than $350 million in 2014. Organization provide return facility to its consumer in case of wrong delivery or any damage to products. People can check their order status by logging into its account. Kogan is all about creativity, that will never change, not reason how big they obtain, the management of company is believed that there is always better way to deliver & creates technology people want. The expansion of company to UK will be run and operated through Melbourne office.

In addition, Kogan delivers is made via national courier network, they are able to create the best shopping experience, from easy buying to reliable after sales service and efficiency delivery.

Organizational Issue Relevant to Motivation, Cause of Problem and Its Symptoms

Low pay is one of the organizational problem that affect workers performance and productivity negatively. It is relevant to motivation, many workers in Kogan company faced issue that is low pay wages that impact on motivational level of staff. Employees do not obtain salary according to their expectations. Low pay refer to share of staff members earning less than two third of average earning (Moran, 2019). All the workers in organization are working effectively and do their job in effective manner, but still they do not get good salary packages that decrease their motivational degree and create negative environment around workplace. Management of Kogan, employed range of skilled applicants and managed existing workforce by developing different employment policies, but they do not provide good wages to its workers that leads to high employee turnover and low productivity, that directly impact on performance of business within their marketplace.

Low wages is associated with low self-esteem, increased stress and greater level to engage in unhealthy behaviours. It devastates effect people in term of disappointment and anger and unemployment.

When workers do not get their salary accordant to expectations and hard work, they decided to switch job that leads to high turnover. Poor or low wage is the main reason behind this circumstance that increase stress level and put high pressure on Kogan to motivate their staff. Employees within organization believe that they can earn money, more than expectations when they work hard. But the management of firm do not fulfil the expectancy of its team and provide low wages as result business workplace relations suffer a lot.

Workers who do not earn much as they can experience stress related to financial issues, people are working in job that do not pay enough to make finals meet that can increase stress due to lack of ability to meet monthly stimulate.

In simple words, low wages or poor pay drop levels of employee motivation in Kogan as they cannot be able to work with firm for longer and find out another job where they get the best salary package as compare to older job. Low level of motivation have impact on productivity and poor performance affect quality of services as well as products.

Motivational Theories or Models Applicable to Organizational Issue

Herzberg's Two-Factor Motivational Theory-

This theory is suitable and relevant in the context of organizational issues which is Low pay in Kogan. Theory defined two factors that a company can use to influence motivation workplace and to decrease employee turn over which is quite beneficial for business (Matei & Abrudan, 2016).


Growth and recognition are the two elements that work as motivator in regard to above problems. By recognizing the efforts and hard work performance of workers, management can pay fair and good wages to its staff that enhance performance as well as ability of work. They have to praise people for good work, recognition come from peers and superiors that inspire employees to contribute in achieving competitive advantages. By providing opportunity of growth, company can retain its people for longer and motivate all of them.

Hygiene Factors-

Salary is the main component of Hygiene factor in this theory that leads to increase performance and drop employee turn over. The management within Kogan focus on pay structure that has to be reasonable and fair. Low pay is issue that impact staff working ability while working in organization. It can be solved by offering fair salary packages, that increase motivational level.

Vroom's Expectancy Theory-

It assumes that behaviour outcomes from conscious choices among alternatives whose aim is to increase pleasure and decrease pain. When Kogan administration follow the principles of this theory they can motivate its staff and decrease employee turnover (Yang & Kwon, 2017).

Expectancy, valence and instrumentality are the principles or elements of Vroom expectancy theory that used by organization to retain skilled workers.

The level of motivation will increase when leaders at workplace provide right resources to its workers, they have to give essential support to its employees to get job done, they can understand expectations of staff and communicate with senior regarding it. Expectancy is belief that maximize efforts will lead to raise performance, when manager or leader support their team through guidance they can inspire people to work hard.

Instrumentality is the second variable of this theory, it believes that when management perform well that valued results will be obtained. Clear comprehension of connection between results and performance affect motivational level. Leaders have to build trust among team, they assure every work receive good salary and get reward based on performance at workplace.

Valence, it is essential that people place upon expected result, person will prefer attaining outcome to not attaining it. Within Kogan, all the employees will be placed on expected job post, where they can give additional time to gain better results instead of wrong place.

Practical and Appropriate Solutions To Address Problem Within Company

Solving organizational issues and problems of workers is the main role of manager in which they play role as to address the cause of problem and its impact for making further plan to solve it as soon as possible. High employee turnover due to low pay, issue is identified by manager at workplace in Kogan that impact on brand position in retail sector negatively in Australia. Manager is accountable to increase the effectiveness and efficiency of workers, projects and procedure as whole. Self-analysis is considered as practical solution that manager used to address organizational problem in effective way. In this manner, manager identify the reason of high employee turn over that is low pay, they understand the expectations of workers and make list of possible options.

After determining the reason, manager is able to communicate and interact to high management, they take decision to provide good salary packages all its people who are working with business on the basis of their performance and work efforts.

Alos read:- Motivational Techniques are Helpful For Company to Enhance Employee's Performance

Manager conduct meeting where they can meet to all employee one by one and make discussion related to their problems that turn to employee turn over. Face to face meeting provide a lot of benefits to Kogan company as they are able to understand issue and take actions in order to solve it. Face to face interactions will leads to solve above problem, helps manager increases productivity and decreases high turn over (Golden & Gajendran, 2019). It is one of the best and effective way to solve organization issue in efficient way, with the help of this technique manager determine cause of turn over and able to make plan quickly.


From the above analysis, it has been concluded that Kogan company workers are facing issues at the workplace due to low pay, which results in as high employee turnover that directly impacts on brand's reputation in the Australian retail market. Furthermore, in order to solve the problem, management takes proper action, they personally analyze the whole situation and understand people's expectations of the firm. The manager of the company decided to give good pay when people work hard and give their best, in short salary is given on the basis of effective performance.

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