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

Definiti*****s of Key Terms:

***** 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 the appraisal ***** one's job ***** job experiences" (p. 129).

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

***** of the Proposed Study.

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


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

Importance of *****:

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

Literature Review

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

***** Theories.

***** 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 ***** clothing before moving on to ***** higher level needs such ***** social needs and self-actualization (Green, 2002).

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

Herzberg's Motivator-Hygiene Theory. In an effort to improve job design and employee *****, 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 ***** *****, Herzberg ***** his two-factor theory of


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