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 *****s.

Definiti*****s of Key Terms:

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

Performance-Related *****: For the purposes ***** the proposed study, ***** 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 ***** ***** Proposed Study.

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


***** ***** the fundamental limitations anticipated ***** the proposed dissertation is the ability to generalize the ********** findings to other industries; however, the use of performance-related pay ***** 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 ***** industries with similar ***** programs currently in place or which are anticip*****ing adopting them.

Importance of *****:

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

Literature Review

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

Motivation Theories.

***** Hierarchy of Needs. Based on his observations of human reactions to food scarcities during World War II, Abraham Maslow developed ***** hierarchy ***** 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 Vic*****r Vroom and Kurt Lewin, among others, argue *****ly that to the extent that employees view high productivity ***** a means to achieving their own personal goals will likely be the extent to which these employees will become high producers in the workplace; conversely, to ***** ***** ***** low productivity is viewed as a me*****ns to achieving such goals, ***** employees will be low producers in the workplace (M*****er, *****).

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


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