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:

The topic area selected for ***** proposed dissertation concerns employee motivation and job satisfaction and what impact incentive pay has on these **********.

Definitions of Key Terms:

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

Performance-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 (De*****n, 2002).

***** ***** the Proposed Study.

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


One ***** the 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 is used in a v*****riety ***** industries and the findings of the proposed study are expected to be applicable, at least in a general fashion, to companies ***** industries with similar motivation programs currently in place or ***** are anticipating adopting them.

Importance of Topic:

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

Literature Review

Because ***** satisfaction ***** employee motivation are *****extricably related ***** organizational performance and *****ability, it is l*****tle wonder these topics have been the focus of numerous studies over ***** years. Some ***** the more prominent theories ***** 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 needs such as air, water, food, shelter and 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 ***** employees view high productivity as a me*****ns to achieving *****ir own personal goals ***** likely be the extent to which these employees will become high producers in the work*****; conversely, to ***** extent that low ***** is ********** as a means 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 ***** accountants using the critical-incident method for data collection in 1959; based on their *****, Herzberg developed his two-factor theory of


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