A multilevel approach to the effects of pay variation

Conroy, Samantha A.; Gupta, Nina; Shaw, Jason D.; Park, Tae-Youn

doi:10.1108/s0742-730120140000032001

Cited by 34 publications

(56 citation statements)

References 155 publications

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“…Therefore, the relevance of cultural settings in predicting pay dispersion outcomes is highlighted. Our findings also fit with the theory and evidence that suggests the negative effects of vertical pay dispersion are likely to be more pronounced in an environment of high work or task interdependence (Conroy et al, ; Shaw, ; Shaw et al, ). However, the negative outcomes of pay dispersion evident in environments of high work and task interdependence are mitigated when the pay dispersion is accompanied by individual incentives as in the case of horizontal (performance‐based) pay dispersion (Shaw et al, ).…”

Section: Discussionsupporting

confidence: 88%

Moderating effect of pay dispersion on the relationship between employee share ownership and labor productivity

Sengupta

Yoon

2018

Human Resource Management

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The moderating effect of pay dispersion on the relationship between employee share ownership (ESO) and labor productivity is examined in an unbalanced panel sample of 533 organizations (1,156 organization‐year data points) in Korea. Pay differential between job levels (vertical pay dispersion) is theorized to negatively moderate the ESO–productivity relationship. On the other hand, pay differential within a job level (horizontal pay dispersion) is theorized to positively moderate the ESO–productivity relationship. These predictions are partially supported. Consistent with the prediction, vertical pay dispersion negatively moderates the ESO–productivity relationship in that the relationship is more negative when vertical pay dispersion is high. However, we found no support for the moderating effect of horizontal pay dispersion in this relationship. The results challenge the simplistic view that pay dispersion per se can be detrimental to the ESO–productivity relationship.

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Section: Discussionsupporting

confidence: 88%

Moderating effect of pay dispersion on the relationship between employee share ownership and labor productivity

Sengupta

Yoon

2018

Human Resource Management

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“…Regardless of the level at which performance is measured, pay is ultimately allocated to individuals. When performance is measured at an aggregate level, rules for allocating pay to individuals must be developed (Conroy, Gupta, Shaw, & Park, 2014). The most prominent allocation rule categorization was developed by Leventhal (1976) and Deutsch (1975).…”

Section: Construct Claritymentioning

confidence: 99%

Team Pay-For-Performance

Conroy

Gupta

2015

Group & Organization Management

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Teams are an important part of most organizations. As such, it is necessary that organizational leaders make a number of decisions regarding how to pay teams. In this article, prominent themes in the teams literature and the pay-for-performance literature are integrated to develop a framework of team pay-for-performance effectiveness. Using this framework as a guide, the literature on team pay-for-performance is reviewed. Important dimensions of the team pay-for-performance construct are identified, and mediating paths between these dimensions and team outcomes are clarified. This integration leads to identification and discussion of valuable areas for future work.

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“…Lower satisfaction is assumed to hurt individual and organizational performance. Conroy et al () summarized these perspectives as the motivation/performance paradigm and the affect/turnover paradigm . Instead of considering these two schools of thought as competing approaches, we argue in this study that they outline different paths.…”

Section: Introductionmentioning

confidence: 99%

“…Pay dispersion, that is, the structural differentiation in pay across people and/or across jobs (Gupta, Conroy, & Delery, ), has received considerable attention in the past couple of decades (e.g., Conroy, Gupta, Shaw, & Park, ; Shaw, ; Trevor, Reilly, & Gerhart, ). Even so, the literature remains beclouded, with scholars continuing to assert that pay dispersion has beneficial, detrimental, or no effects on organizational functioning.…”

Section: Introductionmentioning

confidence: 99%

“…Thus, organizational‐level horizontal dispersion can occur despite the use of equality criteria because the pay pool for different groups can vary on the basis of the intensity of performance‐based pay and because leaders of different groups can use different allocation approaches (Conroy et al, ; Conroy & Gupta, ; Wang & He, ). The preservation of the distinction between incentive intensity (dispersion/compression) and allocation criteria (equity/equality) is essential for clarity.…”

Section: Introductionmentioning

confidence: 99%

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Disentangling horizontal pay dispersion: Experimental evidence

Conroy

Gupta

2018

J Organ Behavior

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Summary Although horizontal pay dispersion has been explored extensively using cross‐sectional field methods, it has received little attention using the control available through experimental designs. Many of the questions relevant to pay dispersion research can be addressed by taking an individual‐level experimental approach because this allows for clean separation of pay policies and individual effects. In this paper, we hypothesize both the motivation‐based and affect‐based effects of pay dispersion policies and test our hypotheses with a sample of over 400 participants in a real‐pay, real‐effort experiment. Results of the experiment provide support that two pay dispersion‐related pay policies, performance‐based pay dispersion and allocation criteria, have unique effects. Whereas motivation and performance effects are direct, pay satisfaction and interest in continuing work effects are the result of interactions, incorporating the performance level of workers. In follow‐up analyses, we find evidence that the temporal nature of responses to pay dispersion should be incorporated into future studies of pay dispersion.

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A multilevel approach to the effects of pay variation

Cited by 34 publications

References 155 publications

Moderating effect of pay dispersion on the relationship between employee share ownership and labor productivity

Moderating effect of pay dispersion on the relationship between employee share ownership and labor productivity

Team Pay-For-Performance

Disentangling horizontal pay dispersion: Experimental evidence

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