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:

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

Definiti*****s ***** Key Terms:

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

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

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

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


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

Importance of *****:

Employee motivation can have an enormous impact on an org*****ization's performance and profit*****. Properly administered, certain companies have found that ********** pay can 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.

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

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

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 ***** 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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