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

Definitions of Key Terms:

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

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

***** of the Proposed Study.

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


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

Importance of Topic:

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

Literature Review

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

***** Theories.

Maslow's 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 ***** such as air, water, *****, shelter ***** clothing before moving on to satisfy higher level needs 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 *****s view high productivity as a means to achieving *****ir own personal goals ***** likely be the extent ***** which ***** employees will ********** high producers in the workplace; conversely, to ***** extent that low productivity is viewed as a me*****ns to achieving such goals, ***** ***** will be low ***** in the workplace (Miner, 2002).

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 their findings, Herzberg ***** his two-factor theory of


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