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 ***** proposed dissertation concerns employee motivation and job satisfaction and what impact incentive pay has on these areas.

Definiti*****s of Key Terms:

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

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

Scope of the Proposed Study.

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


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

Importance of *****:

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

***** Review

***** job satisfaction ***** employee motivation are inextricably 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 theories ***** theorists are discussed further below.

***** Theories.

***** Hierarchy of Needs. Based on his observations of 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 ***** 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 ***** *****s view high productivity ***** a means to achieving *****ir own personal goals ***** likely be the extent to which ***** employees will become high producers in the work*****; conversely, to ***** extent that low ***** is *****ed as a means 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 ***** two hundred engineers ***** accountants using the critical-incident method for data collection in 1959; based on their findings, Herzberg developed his two-factor theory of


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