BUS101 Report: Evaluating Business Problems at ASOS Company

This report evaluates the business problem of low employee job satisfaction and high turnover at ASOS, a British online fashion retailer. The study employs the Job Demand Resources Theory to analyze the issues, focusing on the impact of long working hours, lack of breaks, and inadequate compensation. Qualitative analysis, including interviews with ASOS staff, reveals insights into the causes of dissatisfaction. The report identifies a lack of job resources as a key factor contributing to the problem. Recommendations are provided to the CEO, focusing on addressing employee needs and improving the work environment to enhance employee engagement and reduce turnover. The report provides a detailed examination of the problem, offering actionable strategies to improve employee satisfaction and retention.

Running head: BUSINESS PROBLEM EVALUATION
Business Problem Evaluation
Name of the University:
Name of the Student:
Authors Note:

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Table of Contents
1. Introduction......................................................................................................................4
2. Literature Overview.........................................................................................................4
2.1. Previous Empirical Work on Job Satisfaction and Employee Turnover..................4
2.2. Job demand Resources Theory in Analyzing Business Problems............................5
2.2.1. Concept of Job demand Resources Theory.......................................................5
2.2.2. Justification of Job demand Resources Theory in Explaining Business
Problem....................................................................................................................................7
2.2.3. Managerial Decision Statement, Research Objectives and Questions..............7
3. Methods and Results........................................................................................................9
3.1. Qualitative Analysis Concept...................................................................................9
3.2. Collection and Analysis of Interview Findings........................................................9
4. Recommendations and Conclusion................................................................................12
4.1. Recommendations to CEO in Solving Business Problems.....................................12
4.2. Conclusion..............................................................................................................13
References..........................................................................................................................15
Bibliography......................................................................................................................17

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Table of Figures and Tables
Figure 1: Job- Demands Resource Model
Table 1: Transcripts on Employee Satisfaction
Table 2: Transcripts on Employee Turnover

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1. Introduction
Addressing arising business problems are deemed to be important in addressing a
business problem through employing a theoretical framework that can facilitate in dealing with
most common business issues such as employee turnover and decreased job satisfaction. The
company case that is selected to be analyzed in the current research is ASOS that is positioned as
a British online fashion and cosmetic retailer focused on offering their own range of accessories
and clothing in more than 200 nations (Albrech et al. 2015).
The company is dealing with issues of low employee job satisfaction and high turnover.
The objective of the current report is to address a business issue through employing a theoretical
framework that can facilitate in offering relevant information on business issues along with
necessary explanations for business concerns. Moreover, based on the findings of the paper
certain necessary recommendations are offered to the company in enhancing its business
decisions and enhancing job satisfaction and employee turnover within the selected company
ASOS.
2. Literature Overview
2.1. Previous Empirical Work on Job Satisfaction and Employee Turnover
Bakker and Demerouti (2017) indicated that several researches have been carried out in
analyzing the job satisfaction level as implemented to distinct setting and has recognized job
satisfaction to e dependent on several factors. It has also been revealed that employees those
indicate nature of satisfaction towards their jobs is not that likely to be involved in frequent
absenteeism and there are chances of low turnover. In contrast, research conducted by Bakker

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(2014) elaborated that job satisfaction enhances individual employee performance along with
organizational performance. Previous researches have recognized a string association among job
satisfaction and performance over the past years. Moreover, this has turned out to be a vital
aspect to the human resource strategies on employee commitment, participation along with
employee productivity. Coal (2015) stated that employee turnover is considered as a complex
issue that takes place from employee job disaffection within the workplace. The reasons for
employee turnover can be related with their slurries, designations along with work benefits
offered by the organization. Previous researchers also investigated the impact of enhancing job
satisfaction among employees and it was revealed that such measures have positive association
in decreasing cumulative employee turnover rates in companies.
2.2. Job demand Resources Theory in Analyzing Business Problems
2.2.1. Concept of Job demand Resources Theory
According to Braun and Clarke (2014) it has been observed that “Job Demand Resources
Theory” has the proposition that motivation has a positive effect on employee job performance
and on the other hand job strain has an adverse impact on job performance. The model below
indicates six major components of this theory that includes job crafting, motivation, job
performance, strain, self-undermining and job demands that impacts employee job satisfaction
and turnover.

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Figure 1: Job- Demands Resource Model
(Source: Debus and Unger 2017)
Halbesleben et al. (2014) explained that “Job Demand Resources Model” includes certain
job and personal resources those impacts motivation or work engagement of employees at the
time the job demands are high. The assumptions made under such model are relied on the
premises of “Conservation of Resources (COR)” theory. Li et al. (2014) also added that in this
theory the two mentioned job demands are considered to be the aspects of work that need
increased effort and are related with psychological and physical costs. This theory proposes that
the process of health impairment that initiates with employee job demands are hugely
independent from the process of motivation that initiates with job resources.

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2.2.2. Justification of Job demand Resources Theory in Explaining Business Problem
It has been evidenced from the case of ASOS Company, it has been identified that there
exist high levels of employee turnover with low job satisfaction. The business problem in such
scenario is observed to take place from long working hours and the employees not being allowed
to drink water or visits washroom for meeting company’s Key Performance Indicators (KPI’s).
Such Moreover, it has also been observed that in the company, the employees are not even paid
for their extra working hours and moreover, they also faced with extra difficulty in attaining
extra time off. These issues are resulting in decreased employee job satisfaction along with high
employee turnover. From the research conducted by Denneson et al. (2017) it has been
recognized that such business problem is related with the two segments of job resources
explained in “Job Demand Resources” theory. In consideration to the business case it can also be
stated that the company is dealing with issue of not addressing the basic job demands or
resources explained within the model. From explanation of Denneson et al. (2017) it has also
been revealed that the criteria explained in this theory that includes “Self-undermining and loss
spirals” is observed in case of ASOS that is leading to such business problem. This is stated as
work pressure and exhaustion has adverse impacts on motivational process that can cause job
strain and high turnover.
2.2.3. Managerial Decision Statement, Research Objectives and Questions
From analyzing the business problem in ASOS based on “Job Demand Resource” theory
the managerial decision statement considered in this research is:
 To increase employee satisfaction and address the issues related with addressing the job
demands and resources as mentioned within “Job Demand Resource” theory to develop
work environment in increasing employee work engagement.

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The research objectives based on the identified research issue and analysis of existing
literature on the subject are explained under:
 To analyze the ways in which the job demands and resources can enhance employee
satisfaction in workplace
 To investigate a wide range of demands and resources necessary for employees of ASOS
in decreasing their turnover intention
 To analyze the issues regarding lack of job resources existing in ASOS that is leading to
low job satisfaction and high employee turnover
 To recommend necessary actions to CEO of ASOS in dealing with the business problem
of low job satisfaction and high employee turnover
The research questions that are to be answered through completion of this study are
indicated below:
 What are the ways in which the job demands and resources can enhance employee
satisfaction in workplace?
 What are the range of demands and resources necessary for employees of ASOS in
decreasing their turnover intention?
 What are the issues regarding lack of job resources existing in ASOS that is leading to
low job satisfaction and high employee turnover?
 What are the recommended necessary actions to CEO of ASOS in dealing with the
business problem of low job satisfaction and high employee turnover?

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3. Methods and Results
3.1. Qualitative Analysis Concept
Qualitative research data analysis can be explained as an investigation of textual, visual
or artifact data along with explanations of such pattern in attaining suitable research outcomes
(Foo, Salleh and Mamat 2015). Qualitative analysis employs social theory in order to
decontexualise the raw data in segments along with recontexualising them in codes so that
necessary research objectives or hypotheses can be developed (Hadded et al. 2015). Qualitative
data for the research has also been gathered from conducting interview of 30 minutes with the
staff members of ASOS Company. One floor manager (FM 1), one packer (PACK1) and three
pickers (PICK 1, 2, 3) were selected and the interview was conducted onsite within a meeting
room.
3.2. Collection and Analysis of Interview Findings
The interview questions and the responses that were offered by the selected participants
are indicated under:
 Question 1: Explain the work conditions in the company95
FM 1: I am permanent employee of the company and I have my own office desk where
everything is organized. This also helps me in accomplishing all my work in an easy
manner. Moreover, I also develop certain employee motivation training sessions that can
encourage them to work smartly under pressure.
Pick 1: The working environment of the company is okay, however, it lacks work timing
flexibility and there is a high work pressure.
Theme Sub-theme (categories) Direct quote

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Job satisfaction Workplace environment
 Office surrounding
 Parking area
“I get my own working
space, which is great”
Opportunities
 Training
opportunities
“I help in developing
training workshops for
employees in encouraging
their motivation”
Table 1: Transcripts on Employee Satisfaction
(Source: Authors Creation)
 Question 2: How do you like working conditions in your company? Do you enjoy
your responsibilities and tasks in your job role?
PICK 1: I have no such issues with the working conditions prevailing within the company. I
am focused on meeting my daily targets in the company. However, sometimes I face certain
concerns regarding break timings. Most of the people also do not take them because of extreme
work pressure and for meeting the job tasks assigned by the management.
Theme Sub-theme (categories) Direct quote
Employee Turnover  Job Resources
 Personal Resources
“I have made attempts in
improving job resources
such as work timings and

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recreational activities”
Opportunities
 Implementing
categories of “Job
Demand Resources”
theory
“I have attempted to make
job tasks easy for employees
that can facilitate attainment
of KPI’s with low stress”
Table 2: Transcripts on Employee Turnover
(Source: Authors Creation)
 Question 3: What do you understand by avoiding the management
PICK 2: Few individuals belonging to the management team are supportive and help in
listening the issues faced by the employees. However, there are few members of the
management those are rude and held casual behavior towards addressing the problems
faced by us in attaining any job role or regarding any employee benefits offered to us.
PICK 3: I am not that satisfied regarding the employee benefits or the work plan
provided by the management. I work just to support my family. The pay structure of the
company is not aligned with the job roles or overtime work because of which I feel panic
and anxiety to meet KPIs set by the company.
 Question 4: Are you satisfied with your job?
FM 1: I am satisfied with my job and enjoy managing my team. However, I face certain
concerns regarding the fact that the employees seem to have high expectations, they leave
workplace and I feel work ethics are missing in the company.

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PICK 1: I like my job role but I feel bored at times as no fun activities happen in the
company and I find work to be very monotonous.
PICK 2: Like I said before, I just work for supporting my family. The company has faulty
facilities like malfunctioning scanners and coffee machines. The management is also not
concerned to resolve such issues.
4. Recommendations and Conclusion
4.1. Recommendations to CEO in Solving Business Problems
Based on the findings of the research, certain recommendations are offered to the CEO of
ASOS in dealing with the business problem faced by the company regarding low job satisfaction
and high employee turnover rate: These recommendations are explained below:
 The management of ASOS is recommended to focus on addressing the basic personal
demands of its employees in order to retain them and enhance their job motivation for
persuading them in attaining common job objectives.
 Encouraging communication is another recommendation offered to the management in
communicating with the employees through employing messenger application or live
chats, internal newsletters along with project management. Such employee motivation is
also deemed to be aligned with the work culture and implementing system that is well
suited to the company.
 Offering training opportunities is necessary for the management to be offered to the
employees based on the criteria of the “Job Demand Resource” theory that includes
ensuring employee well-being, psychological contract fulfillment along with

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implementing processes of job control and feedback. Top-down and bottom-up
approaches of communication must be utilized by the company in gathering employee
feedback on the job benefits offered by the company and based on such recommendations
certain necessary facilities and motivating job factors are to be incorporate in ASOS.
 For enhancing employee satisfaction levels and decreasing their turnover rate, the
management of ASOS is recommended to incorporate certain considerations that include
changing the way of working through decreasing overtime work and paying incentives
for overtime. Moreover, changes also must include simplifying the process of work and
implementation certain recreational activities to refresh minds of its employees during
high work pressure. This can increase satisfaction and job engagement behavior among
ASOS employees those are dissatisfied and are planning to leave the organizations due to
no job resource benefits.
4.2. Conclusion
The company case that is selected to be analyzed in the current research is ASOS that is
positioned as a British online fashion and cosmetic retailer. It has been evidenced from the case
of ASOS Company, it has been identified that there exist high levels of employee turnover with
low job satisfaction. The business problem in such scenario is observed to take place from long
working hours and the employees not being allowed to drink water or visits washroom for
meeting company’s Key Performance Indicators (KPI’s). Moreover, the findings from the
interview revealed that employees face certain concerns regarding break timings. Most of the
people also do not take them because of extreme work pressure and for meeting the job tasks
assigned by the management. To address the identified business problems, the company is
recommended to the management of ASOS is recommended to focus on addressing the basic

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personal demands of its employees in order to retain them and enhance their job motivation for
persuading them in attaining common job objectives.

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References
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engagement, human resource management practices and competitive advantage: An integrated
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Bakker, A. B. And Demerouti, E., 2017. Job demands–resources theory: Taking stock and
looking forward. Journal of Occupational Health Psychology, 22(3), p. 273.
Bakker, A.B., 2014. Job demands–resources theory. Wellbeing: A complete reference guide,
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Coal, A.B., 2015. A job demands–resources approach to public service motivation. Public
Administration Review, 75(5), pp.723-732.
Braun, V. and Clarke, V., 2014. What can “thematic analysis” offer health and wellbeing
researchers?. International journal of qualitative studies on health and well-being, 9.
Debus, M.E. and Unger, D., 2017. The interactive effects of dual earner couples’ job insecurity:‐
Linking conservation of resources theory with crossover research. Journal of Occupational and
Organizational Psychology, 90(2), pp.225-247.
Debus, M.E. and Unger, D., 2017. The interactive effects of dual earner couples’ job insecurity:‐
Linking conservation of resources theory with crossover research. Journal of Occupational and
Organizational Psychology, 90(2), pp.225-247.

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Denneson, L.M., Cromer, R., Williams, H.B., Pisciotta, M. and Dobscha, S.K., 2017. A
qualitative analysis of how online access to mental health notes is changing clinician perceptions
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issues. IEEE Communications Surveys & Tutorials, 17(4), pp.2461-2492.

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