2009
DOI: 10.1111/j.1533-8525.2009.01149.x
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Are Small Firms More Beautiful or Is Bigger Better? A Study of Compensating Differentials and Law Firm Internal Labor Markets

Abstract: Research on the size–job rewards relationship emphasizes extrinsic rewards that are typically more prevalent in large, complex organizations. We examine whether certain intrinsic rewards are more characteristic of small firms and shift the focus from manufacturing industries to professional service (law) firms. We find that small is not entirely beautiful. Smaller firms offer more autonomy but no more challenging work or better coworker relations, whereas larger firms offer lucrative salaries, enhanced benefit… Show more

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Cited by 25 publications
(19 citation statements)
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References 74 publications
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“…That is, the fact that an organization is large will not be a direct logical reason for members to become committed to the organization, but the experiences and the benefits of size could instigate organizational commitment. This is consistent with findings that experiences of organizational support (Islam et al, 2013;Meyer et al, 2002), opportunities for promotion (Slichter, 1919;Yang et al, 2004;Wallace & Kay, 2009) and career growth opportunities (Barber et al, 1999) were antecedents of job satisfaction and employee retention. We, therefore, determined that any direct correlation between size and commitment would be spurious and meaningless, but meaningful relationship between the two factors could be established through mediating factors.…”
Section: Designsupporting
confidence: 89%
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“…That is, the fact that an organization is large will not be a direct logical reason for members to become committed to the organization, but the experiences and the benefits of size could instigate organizational commitment. This is consistent with findings that experiences of organizational support (Islam et al, 2013;Meyer et al, 2002), opportunities for promotion (Slichter, 1919;Yang et al, 2004;Wallace & Kay, 2009) and career growth opportunities (Barber et al, 1999) were antecedents of job satisfaction and employee retention. We, therefore, determined that any direct correlation between size and commitment would be spurious and meaningless, but meaningful relationship between the two factors could be established through mediating factors.…”
Section: Designsupporting
confidence: 89%
“…This finding appeared persistent across other studies (such as Baron et al, 1986;Yang et al, 2004;Hollister, 2004) that found strong positive associations between organizational size, FILM and promotion ladders in organizations. In addition, Wallace and Kay (2009) found that larger organizations were associated with a larger degree of employee perceptions of ample promotional opportunities.…”
Section: Organizational Size Film and Organizational Commitmentmentioning
confidence: 98%
“…One explanation could be that in small firms each employee mostly has more individual responsibility and holds various functions that require more general skills while their counterparts at large firms need more firm-specific and specialized knowledge [220,221]. This opens greater opportunities for individual choices and more flexible career paths for employees in small firms [221]. Given the very slight difference between firms that implement PSS and firms that do not, results indicate that good internal career opportunities are not distinctive to fashion firms that implement PSS.…”
Section: People Management Systemmentioning
confidence: 99%
“…While mean earnings for men are between $100,000 and $125,000, the mean for women is one category lower at $80,000 to $100,000 (p < .001). Earnings for the average woman are about one-half standard deviation behind earnings for the average man, despite the fact that women are employed at larger firms which are typically more lucrative (Heinz et al 2005;Wallace and Kay 2009).…”
Section: Open-ended Response Analysismentioning
confidence: 99%