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:

The 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:

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

Per*****mance-Related *****: For the purposes ***** the ***** study, this term ***** refer to all incentive ***** schemes that link an employee's performance with the amount of money ***** employee receives as a result (De*****n, 2002).

Scope ***** the Proposed Study.

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


***** of the fundamental limitations anticipated ***** the proposed d*****sertation is the ability to generalize the study's findings to other industries; however, the use of ***** pay is used in a v*****riety of industries and ***** findings ***** the ***** study are expected ***** be applicable, at least in a general fashion, to companies and *****dustries with similar ***** programs currently in place or ***** are anticip*****ing adopting *****m.

Importance of *****:

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

***** Review

Because ***** satisfaction and ***** motivation are *****extricably related ***** organizational performance and profitability, it is l*****tle wonder these topics have *****en the focus of numerous studies over ***** years. Some of the more prominent *****ories ***** theorists ***** discussed further below.

Motivation Theories.

***** Hierarchy of Needs. Based on his observations of human reactions to food scarcities during World War II, Abraham Maslow developed ***** hierarchy ***** 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 Vic*****r Vroom and Kurt Lewin, among others, argue *****ly that to the extent ***** employees view high productivity ***** a me*****ns to achieving *****ir own personal goals ***** likely be the extent to which ***** employees will become high producers in the workplace; conversely, to ***** ***** that low ***** is viewed as a me*****ns to achieving such goals, such ***** will be low ***** in the workplace (M*****er, 2002).

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


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