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

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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.

Definitions of Key Terms:

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

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

Scope of ***** Proposed Study.

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

Limitations.

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

Importance of *****:

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

Literature Review

Because ***** satisfaction and ***** motivation are *****extricably related ***** organizational performance and profitability, it is little wonder these topics have *****en the focus of numerous studies over ***** years. Some ***** the more prominent *****ories and theorists ***** 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, *****, 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 employees view high productivity as a me*****ns to achieving ********** own personal goals will likely be the extent ***** which these employees will become high producers in the workplace; conversely, to ***** ***** ***** low productivity is *****ed as a me*****ns to achieving such goals, such employees 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 with two hundred engineers and 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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