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 areas.

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

Job Satisfaction: For the purposes of ***** ***** 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 ***** appraisal of one's job or ***** experiences" (p. 129).

Per*****mance-Related Pay: For the purposes of the proposed study, this term ***** refer to all incentive ***** schemes ***** link an employee's performance with ***** amount of money the employee receives as a result (Dean, 2002).

***** of the Proposed Study.

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


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

Importance of Topic:

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

***** Review

Because job satisfaction and 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 ***** the more prominent theories ***** 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 ***** needs that maintains humans must first satisfy basic needs such as air, water, *****, shelter and 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 ***** a me*****ns to achieving their own personal goals will likely be the extent to which these employees will ********** high producers in the work*****; conversely, to ***** ***** that low ***** is *****ed as a me*****ns to achieving such goals, such ***** will be low producers 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 ***** *****, Herzberg ***** his two-factor theory of


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