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 **********.

Definiti*****s of Key Terms:

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

Performance-Related Pay: For the 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).

Scope ***** ***** Proposed Study.

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


One of ***** 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 of the proposed study are expected ***** be applicable, at least in a general fashion, to companies ***** *****dustries with similar motivation programs currently in place or ***** are anticipating adopting **********.

Importance of *****:

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

Literature Review

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

***** Theories.

Maslow's Hierarchy of Needs. Based on his observations of human reactions to food scarcities during World War II, Abraham Maslow developed his hierarchy ***** needs that maintains humans must first satisfy basic needs such as air, water, *****, shelter and clothing before moving on to ***** higher level ***** such as social needs 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 that *****s view high productivity ***** a me*****ns to achieving their own personal goals ***** likely be the extent ***** which ***** employees will become high producers in the work*****; conversely, to ***** extent that low ***** is viewed as a means to achieving such goals, such employees will be low ***** in the workplace (Miner, *****).

Herzberg's Motiva*****r-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 ***** findings, Herzberg ***** his two-factor theory of


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