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The HoneyComb Paradigm for Research on Collective Human Behavior
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Pay dispersion and performance in teams.

Alessandro Bucciol1, Nicolai J Foss2, Marco Piovesan3

  • 1Department of Economics, University of Verona, Verona, Italy.

Plos One
|November 15, 2014
PubMed
Summary
This summary is machine-generated.

Pay dispersion negatively impacts team performance when focusing on core members, but this effect diminishes as the team definition broadens. The detriment stems from individual performance decline, not reduced cooperation.

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Area of Science:

  • Organizational Behavior
  • Sports Economics
  • Human Resource Management

Background:

  • Conflicting research exists on pay dispersion's impact on team performance.
  • Intra-firm pay dispersion is a critical factor in organizational success.
  • Defining 'team' is crucial for understanding performance dynamics.

Purpose of the Study:

  • To investigate the nuanced effect of pay dispersion on team performance.
  • To analyze how different team definitions influence the pay dispersion-performance relationship.
  • To identify the mechanisms through which pay dispersion affects performance.

Main Methods:

  • Utilized a unique dataset from the Italian soccer league.
  • Examined pay dispersion effects under multiple team definitions.
  • Differentiated between impacts on individual performance and team cooperation.

Main Results:

  • High pay dispersion negatively impacts team performance when the team is narrowly defined (core contributors).
  • The negative effect diminishes or reverses when the team definition is broadened.
  • Detrimental effects are attributed to decreased individual performance, not reduced team cooperation.

Conclusions:

  • The definition of a 'team' is critical in understanding the pay dispersion-performance link.
  • Pay dispersion's impact is context-dependent, varying with team scope.
  • Interventions should consider team composition when addressing pay structures and performance.