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:

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

Definitions of 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 the appraisal ***** one's job or job experiences" (p. 129).

Performance-Related *****: For ***** purposes of the proposed 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 (Dean, 2002).

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

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


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

Importance of Topic:

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

Literature Review

***** job satisfaction and employee motivation are inextricably 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 ***** theorists are discussed further below.

Motivation Theories.

Maslow's 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 as social needs and self-actualization (Green, 2002).

Expectancy Theories. Expectancy theorists such ***** Vic*****r Vroom and Kurt Lewin, among others, argue generally that to the extent ***** employees view high productivity as a me*****ns to achieving their own personal goals ***** likely be the extent ***** which these employees will become high producers in the work*****; conversely, to the extent that low productivity is viewed as a me*****ns to achieving such goals, such employees will be low ***** in the workplace (M*****er, *****).

Herzberg's Motiva*****r-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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