Organizational Issues and Motivation: A Case Study of Kogan Company in Australia

This essay explores the organizational issues related to motivation in Kogan Company, a leading retailer in Australia. It discusses the causes and symptoms of the problem, and presents two motivational theories applicable to the issue. The essay also provides practical solutions to address the problem within the company.

ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company overview......................................................................................................................3
Organizational issue relevant to motivation, cause of problem and its symptoms......................4
2 motivational theories or models applicable to organizational issue.........................................4
Practical and appropriate solutions to address problem within company....................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Organizational behaviour is study of individual and group performance as well as activity
within 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.
MAIN BODY
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. Kogan.com
is the portfolio of services and retail businesses including Kogan marketplace, Mobile, internet,
Travel & Kogan money (Dieu Ho and et.al., 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 Kogan.com 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.
2 motivational theories or models applicable to organizational issue
Herzberg's Two factor motivational theory-

This theory is suitable and relevant in context of organizational issue that is Low pay in
Kogan. Theory defined two factors that company can used to influence motivation workplace
and to decrease employee turn over which is quite beneficial for business (Matei & Abrudan,
2016).
Motivators-
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.
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.
CONCLUSION
From above analysis, it has been concluded that Kogan company workers are facing
issues at workplace due to low pay, which results as high employee turnover that directly impact
on brand reputation in Australian retail market. Furthermore, in order to solve problem,
management take proper action, they personally analyse the whole situation and understand

people expectations towards firm. Manager of 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.

REFERENCES
Book and Journals
Chopra, K. (2018). Vroom’s expectancy theory to motivate academic library users in India using
grounded theory approach. Global Knowledge, Memory and Communication.
Dieu Ho, T. H and et.al., (2019). Improving the reliability of warehouse operations in the 3PL
industry: An Australian 3PL case study.
Golden, T. D., & Gajendran, R. S. (2019). Unpacking the role of a telecommuter’s job in their
performance: examining job complexity, problem solving, interdependence, and social
support. Journal of Business and Psychology. 34(1). 55-69.
Matei, M. C., & Abrudan, M. M. (2016). Adapting Herzberg's two factor theory to the cultural
context of Romania. Procedia-Social and Behavioral Sciences. 221. 95-104.
Moran, N., 2019. Examining attitudes on pay for low level workers: do consumers care?. Journal
of Consumer Marketing. 36(1). pp.136-145.
Purohit, M. (2016). A study on employee turnover in IT sector with special emphasis on Wipro
and Infosys. IOSR Journal of Business and Management. 18(4). 47-51.
Sanjeev, M. A., & Surya, A. V. (2016). Two factor theory of motivation and satisfaction: An
empirical verification. Annals of Data Science. 3(2). 155-173.
Yang, J. G., & Kwon, S. I. (2017). A Study on Participation of Korean University Students at
LINC Applying the Expectancy Theory. Journal of the Korea Academia-Industrial
cooperation Society. 18(12). 230-241.