The many faces of pay variation

Gupta, Nina; Conroy, Samantha A.; Delery, John E.

doi:10.1016/j.hrmr.2011.12.001

Cited by 105 publications

(127 citation statements)

References 53 publications

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“…The article builds on recent reviews and analyses of the pay dispersion literature (e.g., Gupta et al 2012) and focuses on the literature relevant to organizational psychology and organizational behavior. I focus primarily on the research conducted in the past 15 years, with selective attention to certain older pioneering works and founding theoretical perspectives.…”

Section: Introductionmentioning

confidence: 99%

Pay Dispersion

Shaw

2014

Annu. Rev. Organ. Psychol. Organ. Behav.

134

179

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This article describes and evaluates the substantial literature on the performance-, turnover-, and attitude-related outcomes of pay dispersion. In the past 15 years, compensation researchers have identified and pursued the resolution of well-known theoretical dilemmas about reward allocations and, as a result, have made much progress in terms of understanding the consequences of pay structures. This review explores the evolution of several contingencies of these relationships, including the effects of explained versus unexplained variation in pay, the role of work interdependence, and the nature of other pay-system characteristics. The article concludes with a summary evaluation, the proposal of several stylized facts about the consequences of pay dispersion, and a research agenda to aid researchers in addressing unresolved issues in the literature.

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Section: Introductionmentioning

confidence: 99%

Pay Dispersion

Shaw

2014

Annu. Rev. Organ. Psychol. Organ. Behav.

134

179

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“…Pay dispersion refers to a firm's pay structure in which employee compensation is distributed across job positions (vertical dispersion) or within the same types of jobs (horizontal dispersion) (Gerhart & Rynes, 2003;Gupta et al, 2012;Milkovich et al, 2011). Compared to pay differences within the same types of jobs, the pay gap distributed across the organizational hierarchy indicates how much a firm emphasizes final outcomes and competitiveness (Gerhart & Rynes, 2003;Milkovich et al, 2011).…”

Section: Pay Dispersion and Organizational Performancementioning

confidence: 99%

“…These psychological and economic theories seem to offer conflicting conclusions; yet, their arguments are interconnected because positive and negative effects of pay dispersion coexist (Gupta et al, 2012;Shaw et al, 2002). Thus, it is important to capture when and why the negative effect of demotivation due to unfairness and relative deprivation overwhelms the motivating effect and ultimately influences the decline of organizational performance.…”

Section: Nonlinear Relationship Between Pay Dispersion and Workforce mentioning

confidence: 99%

“…However, theoretical arguments and empirical results are inconsistent regarding the effects of pay dispersion on organizational performance, compared to the relatively consistent findings about the relationship between pay dispersion and individual performance (Downes & Choi, 2014;Gupta, Conroy, & Delery, 2012;Milkovich et al, 2011); some research reported the positive effects of pay dispersion on firm performance (Eriksson, 1999;Kepes et al, 2009;Lee et al, 2008), while other studies demonstrated the harmful effects on organizational effectiveness (Bloom, 1999;Cowherd & Levine, 1992;Grund & Westergaard-Nielsen, 2008;Levine, 1991;Siegel & Hambrick, 2005). To reconcile the conflicting conclusions about pay dispersion and organizational performance, compensation researchers have suggested the possibility of curvilinearity (Brown, Sturman, & Simmering, 2003;Yang & Klaas, 2011) or investigated contextual factors (Bloom & Michel, 2002;Shaw et al, 2002).…”

Section: Introductionmentioning

confidence: 99%

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Pay Dispersion and Organizational Performance in Korea: Curvilinearity and the Moderating Role of Congruence with Organizational Culture

Park

Kim

2016

The International Journal of Human Resource Management

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This study examines the curvilinear relationship between pay dispersion and organizational performance. According to the pay dispersion literature, a large pay gap has benefits and drawbacks for organizational performance because employees can feel motivated or demotivated depending on the degree of pay dispersion. We investigate the possibility of nonlinearity in the context of these countervailing forces, and aim to uncover the condition under which the positive effect of high pay dispersion prevails. Our empirical analysis of data from 436 Korean cross-industry firms shows that pay dispersion and organizational performance have an inverted U-shaped relationship. Moreover, when a pay scheme matches current organizational culture, the positive relationship between pay dispersion and organizational performance is more pronounced. We discuss the implications for future compensation research and practice.

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“…Thus, they contended that nurses may be more motivated by their jobs than their pay. Gupta, Conroy & Delery (2012) in a study on pay variations and organizational outcome examined whether pay differences across organizational hierarchy help in achieving organization's strategic objective and whether the variation also influence employee's performance. They defined pay variation as the extent to which pay varies within a collective.…”

Section: Literature Reviewmentioning

confidence: 99%

Survey of pay satisfaction, job satisfaction and employee turnover in selected business organisations in Lagos, Nigeria

Asekun¹

2016

Glo J. Soc. Sci.

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The study was an attempt at investigating the relatedness of pay satisfaction, job satisfaction and employee turnover in business organizations in Lagos Nigeria. Data were collected from workers of various organizations who were students of a part time educational programme in Lagos, Nigeria. Of the 140 questionnaires distributed to the survey participants, only 96 of the 120 questionnaire returned were usable. The survey used Pay Satisfaction Scale (PSS), the Minnesota Satisfaction Questionnaire (MSQ) and Turnover Intention Questionnaire (TIQ) as measures in the study. The data obtained were analyzed using Correlation Analysis and Regression Analysis. The results of the analysis indicated that the relationship between pay satisfaction and employee turnover intention was positive, this was the expected direction. The result also confirmed the second hypothesis that there was a positive association between pay satisfaction and job satisfaction and lastly the study suggested that, pay satisfaction and job satisfaction could jointly predict employee turnover. Implications of the findings to the challenge of achieving effective growth and enhanced organizational performance among managers were discussed.

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The many faces of pay variation

Cited by 105 publications

References 53 publications

Pay Dispersion

Pay Dispersion

Pay Dispersion and Organizational Performance in Korea: Curvilinearity and the Moderating Role of Congruence with Organizational Culture

Survey of pay satisfaction, job satisfaction and employee turnover in selected business organisations in Lagos, Nigeria

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