Pay Dispersion and Performance in Teams
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Pay Dispersion and Performance in Teams. / Bucciol, Alessandro; Foss, Nicolai J; Piovesan, Marco.
In: PLOS ONE, Vol. 9, No. 11, e112631, 2014.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Pay Dispersion and Performance in Teams
AU - Bucciol, Alessandro
AU - Foss, Nicolai J
AU - Piovesan, Marco
PY - 2014
Y1 - 2014
N2 - Extant research offers conflicting predictions about the effect of pay dispersion on team performance. We collected a unique dataset from the Italian soccer league to study the effect of intra-firm pay dispersion on team performance, under different definitions of what constitutes a "team". This peculiarity of our dataset can explain the conflicting evidence. Indeed, we also find positive, null, and negative effects of pay dispersion on team performance, using the same data but different definitions of team. Our results show that when the team is considered to consist of only the members who directly contribute to the outcome, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of the team causes this effect to disappear or even change direction. Finally, we find that the detrimental effect of pay dispersion is due to worse individual performance, rather than a reduction of team cooperation.
AB - Extant research offers conflicting predictions about the effect of pay dispersion on team performance. We collected a unique dataset from the Italian soccer league to study the effect of intra-firm pay dispersion on team performance, under different definitions of what constitutes a "team". This peculiarity of our dataset can explain the conflicting evidence. Indeed, we also find positive, null, and negative effects of pay dispersion on team performance, using the same data but different definitions of team. Our results show that when the team is considered to consist of only the members who directly contribute to the outcome, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of the team causes this effect to disappear or even change direction. Finally, we find that the detrimental effect of pay dispersion is due to worse individual performance, rather than a reduction of team cooperation.
U2 - 10.1371/journal.pone.0112631
DO - 10.1371/journal.pone.0112631
M3 - Journal article
C2 - 25397615
VL - 9
JO - PLoS ONE
JF - PLoS ONE
SN - 1932-6203
IS - 11
M1 - e112631
ER -
ID: 127492515