Essay - Impact of Performance-related Pay on Motivation and Job Satisfaction of...

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Impact of Performance-Related Pay on Motivation and Job Satisfaction ***** Sales Personnel in the Computer Industry with Recommendations to Improve Management Practices

MBA Dissertation Proposal


Selected Topic Area:

***** topic area selected for the proposed dissertation concerns employee motivation and job satisfaction and what impact incentive pay has on these *****s.

Definiti*****s of Key Terms:

***** Satisfaction: For the purposes of the proposed study, this term will follow the definition provided by Heiskanen and Hearn (2003) which states that job satisfaction is "a pleasurable or positive emotional state resulting from ***** appraisal of one's job ***** job experiences" (p. 129).

Per*****mance-Related Pay: For the purposes ***** the ***** study, ***** term will refer to all incentive pay schemes that link an employee's perform*****ce with the amount of money ***** employee receives as a result (Dean, 2002).

Scope of the Proposed Study.

The scope of ***** proposed study will extend to an *****alysis of how performance-related pay is used in other countries but will focus specific*****y on the United States.


***** ***** the fundamental limitations anticipated ***** ***** proposed d*****sertation is the ability to generalize the ********** findings to other industries; however, the use of performance-related pay ***** used in a variety of industries and ***** findings of the proposed study are expected ***** be applicable, at least in a general fashion, to companies ***** industries with similar ***** programs currently in place or which are anticipating adopting them.

Importance of Topic:

***** motivation can have an enormous impact on an organization's performance and pr*****itability. Properly administered, certain companies have found ***** *****-related ***** can result in improved employee motivation and ***** (Sims, 2002).

Literature Review

***** ***** satisfaction ***** employee motivation are inextricably related ***** organizational performance and profitability, it is little wonder these topics have *****en the focus of numerous studies over ***** years. Some of the more prominent theories ***** theorists are discussed further below.

***** Theories.

***** Hierarchy of Needs. Based on his observations ***** human reactions to food scarcities during World War II, Abraham Maslow developed ***** hierarchy of needs that maintains humans must first satisfy basic ***** such as air, water, food, shelter and clothing before moving on to ***** higher level needs such ***** social ***** and self-actualization (Green, 2002).

Expectancy Theories. Expectancy theorists such as Victor Vroom and Kurt Lewin, among others, argue generally that to the extent that *****s view high productivity ***** a means to achieving their own personal goals ***** likely be the extent to which ***** employees will ********** high producers in the work*****; conversely, to ***** extent that low ***** is viewed as a means to achieving such goals, such ***** will be low ***** in the workplace (Miner, 2002).

Herzberg's Motiva*****r-Hygiene Theory. In an effort to improve job design and employee productivity, Frederick Herzberg and his colleagues conducted extensive interviews with two hundred engineers and accountants using the critical-incident method for data collection in 1959; based on ***** findings, Herzberg developed his two-factor theory of


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