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Increased understanding of buyer-seller negotiations (B2B) : the Influence of Variable Pay on Negotiation Behaviour

El Hoayek, Ralph (2021) Increased understanding of buyer-seller negotiations (B2B) : the Influence of Variable Pay on Negotiation Behaviour.

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Abstract:In recent years, variable pay has become an important aspect to consider when structuring compensation packages. There are many unanswered questions regarding variable pay and its effect on negotiation behaviour. The study conducted will examine the impact of the use of variable pay on negotiation behaviour from the perspective of both parties involved in a negotiation. The findings of the paper indicate that variable pay has an effect on negotiation behaviour with negotiators using both integrative and distributive behaviour. The findings also reveal that variable pay can be used as a motivational tool to encourage increased performance and better outcomes. It was also revealed in the results that negotiators who receive variable pay experience a change in behaviour with most of them opting for more of a distributive approach and somewhat aggressive behaviour. The study has limitations which are the sample size where a second study with a much larger sample size can validate our findings. Other limitations include the geographical location of the interviewees with the interviewees being from two countries which is not representative of the overall population while also considering that the interviewees work in different industries.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/88001
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