The Performance Effects of Pay Dispersion on Individuals and Organizations
- 1 February 1999
- journal article
- Published by Academy of Management in The Academy of Management Journal
- Vol. 42 (1), 25-40
- https://doi.org/10.5465/256872
Abstract
Pay distribution research is relatively scarce in the compensation literature, yet pay distributions are viewed as critically important by organizational decision makers. This study is a direct test of the relationship between one form of pay distribution—pay dispersion—and performance conducted in a field setting where individual and organizational performance could be reliably observed and measured. Findings suggest more compressed pay dispersions are positively related to multiple measures of individual and organizational performance.Keywords
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