Masters Thesis

A study of motivation and compensation administration

Formalized compensation programs have for the most part been implemented in industry to control costs and thus maximize return on investment. Maximum return immplies a follow-through on the part of management beyond the installation and administration of the selected compensation program. It implies a requirement that the compensation function use optimum techniques 1n the administration of wages and salaries to insure that the monetary program truly motivates workers. This study commences with a review of compensation and the Wage and Salary function. This is followed by an examination of management theory with emphasis on the behavioral approach. The succeeding chapter involves a look at methods whereby motivational findings might be employed in the practice of Wage and Salary Administration. The next chapter examines the results of an actual survey of firms in the Southern California area. In the final portion of the paper conclusions are drawn regarding the extent of application or non-application of motivational techniques based upon the sample of compensation administration personnel examined in the study.

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