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Abstract 3
Chapter 1 Introduction 4
1.1 Background 4
1.2 Motivates and Objectives 5
1.2.1 Motivates 5
1.2.2 Objectives 6
1.3 Research questions 6
1.4 Dissertation Structure 6
Chapter 2 Literature Review 7
2.1 Background 7
2.2 Reward 7
2.2.1 Monetary Rewards 8
2.2.2 Non-Monetary Rewards 8
2.2.3 The element of the Rewards. 9
2.3 Reward Strategy 10
2.3.1 Reward strategy and performance 10
2.4 Reward Systems 11
2.5 Motivation 12本论文由英语论文网www.51lunwen.org整理提供
2.5.1.1 Theory of scientific management 13
2.5.1.2 Theory of Hierarchy of Needs 14
2.5.1.3 Theory X and Theory Y 16
2.5.1.4 Herzberg’s two-factor model 17
2.5.2 Contemporary theory of motivation 18
2.5.2.1 ERG theory 18
2.5.2.2 Equity theory 18
2.5.2.4 Goal-setting theory 19
2. 6 Integration of motivation theory 20
2.7 Performance management 20
CHAPTER 3: Methodology 22
3.1 Introduction 22
3.2 Research Approach and Strategy 22
3.3 Interviews 23
3.4 Questionnaires 23
3.5 Research approach for this study 24
3.6 Limitations, Validity and Reliability 26
3.7 Improvement to the Research Strategy 27
CHAPTER 4: Data Analysis and Findings 29
4.1 Survey of staff’s satisfaction degree to salaries 29
4.1.1 Satisfaction degree to the level of annual income 29
4.1.2 Comparison between overall revenue and average income level of the same positions in the local region 30
4.1.3 Self-fairness was poor 31
4.1.4 Sense of internal equity was worse 32
4.1.5 Sense of external equity was poor 32
4.2 Analysis of the problems existed in salary system of Amway corporation 32
4.2.1  Salary structure was unreasonable 33本论文由英语论文网www.51lunwen.org整理提供
4.2.2  The distribution system needed further improvement 34
4.2.3  The inertia of salary system was large 36
4.2.4  The salary system had an inferior impact 36
4.2.5  The remuneration system is not conducive to employees’ career development 37
4.2.6  Conclusion: Salary reform is imperative 38
CHAPTER 5: Conclusions and Recommendations 41
5.1 Conclusions 41
5.2 Recommendations 47
Appendix A 51
References 58

Abstract
Incentive reward systems are commonly used in many companies around the world. There is no such thing as a perfect reward system and that is why a company needs to adjust the reward system after their own needs, to more effectively reach their future goals. It is very important that the employees accept and feel motivated by the reward system. An improperly designed reward system, e.g. with too high goals, could lead to that the employees feel stressed and exhausted instead of motivated. Therefore, how to design one reward system suitable to Chinese enterprises with the characters of the state-owned enterprises in particular is one of the most important tasks in the state-owned enterprises’ reform.

When we enter in 1900s, many overseas direct companies come to china one by one. AMWAY is the leader in the many direct companies. AMWAY annually turnover had increased from 15 million 1995 to 17 billion 2004. The outstanding achievement makes anyone shocked.

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