July 3, 2009

A Research Proposal on Employees in some companies are still not receiving performance related incentives even when they success to perform: A case study in multinational firm in Saudi Arabia

The need to find out through primary and secondary research as to why some MNC employees in some companies are still not receiving performance related incentives, this will be the central research question that places in the focus of research. Why does performance incentives not given in spite of successful performance at work? The research investigation will look into several MNC's operating and doing business in Saudi Arabia as there will demand for at least two MNC's in Saudi.

The main methodology indicates to a particular case study of multinational company in Saudi Arabia. Case study approach is used and be executed so, there has been a crucial role of literature review to come in adhering to performance related incentives, aspects, processes and anything that goes with the incentives as an outcome of performance. Thus, looking at MNC operations in human based pattern, engaging employees capabilities to perform, worthy of incentives in cash basis or any other type of incentive there is.

1. What is meant by incentives? How does incentive work in employee performances? Discuss

2. What constitutes of performance related incentives? Elaborate some performance incentives that MNC employees in Saudi deserves to have.

3. What comprises of Saudi MNC employees? How does MNC do business operations in Saudi such as those pertaining to MNC level of performance?

4. What are some of the reasons why some employees of MNC do not receive performance incentives even if they perform the job successfully? Explain and analyze case situations accordingly

Most work on performance work systems has examined only direct relationship between set of management practices and performance outcomes. There presumes that any connection operates through the incentive and motivational effects captured as high commitment' or involvement' employee outcomes. No attempt has been made to examine alternatives which expects performance gains from new management practices to arise instead from work intensification, offloading of taskcontrols, and increased job strain. There is little question that incentives motivate behavior, the perceived value of an incentive lies in the extent to which there supports an individual's goals (Brendl and Higgins, 1995), thus same incentive can motivate individuals differently depending on personal goals or needs. Some theories of motivation have proposed that individual needs moderate the effect of incentives on goal directed behavior. For instance, Tolman (1955) and Atkinson and Litwin (1960) construed motivation as the multiplicative combination of incentive and need, with being required for motivation.

The examinations of effect in performance incentives on task performance have produced varied results as Huber (1985) and Pritchard and Curtis (1973) found that incentives for goal attainment led to better task performance. Promotion focus is concerned with advancement, growth, aspirations or accomplishment. The strategic inclination is to make progress by approaching matches to the desired end state. Employee with promotion focus is in state of eagerness to attain advancement and gains, prevention focus is concerned with security, responsibilities as well as safety. The strategic inclination is to be prudent and precautionary and to avoid mismatches to the desired end state (Brendl and Higgins, 1995; Higgins, 1996; Higgins et al., 1994). To able to examine performance incentive effects of MNC focus, an incentive focus independent of differences in actual work performance. In addition, some issues are to be addressed. The first is the pay to performance incentives created by evaluation of MNC in Saudi, the pay to performance sensitivity of MNC team as would approximately double, it is shown that different option granting plans have significantly different pay to performance incentives since changes in current stock prices affect the value of future option grants in different ways. The empirical evidence suggests that pay to performance relationship in practice is stronger for stock option grants relative to salary and bonus, fixed number plans relative to non-fixed number plans.

The compensation policy is one of the most important factors in an organization's

success. Not only does it shape how top executives behave but it also helps determine what kinds of executives an organization attracts. This is what makes the vocal protests over CEO pay so damaging. By aiming their protests at compensation levels, uninvited but influential guests at the managerial bargaining table intimidate board members and constrain the types of contracts that are

written between managers and shareholders. As a result of public pressure, directors become reluctant to reward CEOs with substantial, highly visible financial gains for superior performance as the latter becomes reluctant to impose meaningful financial penalties for poor performance. The long term effect of risk adverse orientation is to erode the relation between pay and performance and entrench bureaucratic compensation systems. The interaction with incentives is substituting type in which either the person factor or the situation factor incentives blocks the effects of the other factor.

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