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 of 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.

Definitions of Key Terms:

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

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

***** ***** the Proposed Study.

The scope of the proposed study will extend to an analysis of how performance-related pay is used in o*****r countries but will focus specifically on the United States.


***** of the fundamental limitations anticipated ***** the 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 to be applicable, at least in a general fashion, to companies and industries with similar ***** programs currently in place or ***** are anticip*****ing adopting them.

Importance of Topic:

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

Literature Review

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

***** Theories.

Maslow's 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 needs such as air, water, food, shelter and clothing before moving on to ***** higher level ***** such as social needs and self-actualization (Green, 2002).

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

Herzberg's Motivator-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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