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In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.

Previous studies focused predominantly on wage dispersion within men’ sports teams. This study aims to reveal how the relationship between wage dispersion and team performance applies for women’s sport.

The sample comprises 168 observations of four consecutive National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) regular seasons (2018–2021). Eight econometric models are performed for comparing the leagues.

The findings indicate that the wage dispersion within the squads affects the women’s and men’s basketball teams differently. Cohesiveness theory is applicable for WNBA teams, while NBA teams follow the tournament theory.

To the best of the authors’ knowledge, this is the first paper which inspects the relationship between wage dispersion and team performance using data from women’s sports. Further research may examine whether the differences found in sports also apply in different labor markets.

The purpose of this paper is to understand different aspects of structural dispersion in virtual teams (VTs). The study measures five types of dispersion, their impact on VT performance and the moderating effect of electronic communication.

The authors collected data from 44 globally distributed VTs representing 403 members. The authors used details of the members’ locations to measure five elements of dispersion for each team: spatial, time-zone, number of locations, extent of numerical balance across locations and extent of isolated members for a team. The authors used two items to assess effective electronic communication and measured team performance on four items from three sources – members, leaders and third-party stakeholders.

Using regression, the authors found that the number of sites, degree of team balance and isolation had a negative impact on team performance. Spatial and temporal dispersion did not impact performance. Effective electronic communication moderated the relationship of team performance with team balance and the number of sites.

Study presents novel findings on the role of team configuration in VTs. Limitations: the study provides pointers to the likelihood of a non-linear relationship between spatial distance and performance; however, the scope of the paper does not permit an examination of this model. Future research can study this relationship. Second, the study does not examine how team configuration impacts the team processes that discount performance. Finally, the study treats each index of dispersion as independent of the others. The analysis does not study the interplay between and among the indices.

The findings provide clear indicators for managers and researchers of VTs on the issues associated with the location and configuration of the teams. Managers, while designing and managing dispersed members are now informed of the impact of the number of sites and the sub-group dynamics. The study underscores the importance of effective electronic communication in managing dispersion.

The study presents how faultiness based on location of VT sub-groups (as represented in the configuration of a team) can hamper performance. Literature suggests that this faultiness can also extend to social identities (based on gender, culture, etc.). The indicators provided by this study in this respect provide a topical focus for research because diverse dispersed teams are becoming more prevalent.

The study is the first empirical exploration of dispersion in VTs beyond the traditionally acknowledged dimensions of spatial distance and time-zones. It is a timely response to the recent trends in literature. Additionally, the study derives data from a unique data set of global VTs, thus making findings easily generalizable.

The existing literature on abusive supervision, defined as a perception by subordinates that their supervisor displays hostility toward them (but falling short of physical abuse), is deficient insofar as it fails to account for workgroup differences in employees' perceptions of abusive supervision. We therefore sought to study such differences, which refer to as “abusive supervision dispersion (ASD).”

We interviewed 40 employees from a variety of organizations in Australia, focusing on the role of affective events in ASD dynamics, with a view to understanding how this phenomenon relates to individual and team processes.

We found that ASD stimulates employees to harbor negative emotions and resentment toward their supervisor, causing them to perceive even positive events negatively. We found further that, while low ASD facilitates team-member exchange by forcing abused members to band together resulting in low team conflict, high dispersion facilitates formation of subgroups and high team conflict.

These findings illuminate the paradoxical nature of ASD and suggest that employees experience dispersion through three paradoxes: (1) dispersion paradox, (2) resentment paradox, and (3) team paradox. Overall, these findings suggest that subordinates' perceptions of high ASD are associated with detrimental impacts on team performance.

The purpose of this paper is to estimate the influence of workplace teams on wages and wage dispersion within UK establishments.

Four types of workplace teams are analyzed using linked employer and employee data from the British Workplace Employee Relations Survey.

Workplace teams are positively associated with wages but negatively associated with wage dispersion within establishments. The four team variables examined have the same directional influence on both wages and dispersion suggesting that it is the use of teams that is important not necessarily the particular characteristics of teams that are being used. The role of occupation is also examined as teams may be more likely to form in certain occupations. The team results for both wages and wage dispersion are robust to the inclusion of detailed occupational information.

The influence of workplace teams is examined on both employee wages and wage dispersion within establishments. Additionally, the paper extends the previous empirical literature on teams by controlling for occupations at a fine level of detail not previously explored.

This paper aims to evaluate the effects of both salary dispersion and incentive pay on team performance using data complied from the National Football League over the years 2000‐2007.

The authors consider the effect of pay structure on both in terms of on‐field and financial performance. Salary disparity and its subsequent consequences has been a topic of economic research on corporate pay structure and also professional team sport organizations. Analysis of pay structures incorporating the effects of incentive pay on performance is also recurrent in the literature. The paper uses regression analysis and incorporates both fixed and random effects models.

A relationship between improved on‐field performance and increased payroll, lower levels of salary dispersion, and increased incentive payments is found. However, when employing team revenue production as the measure of performance, a positive relationship with salary dispersion is found.

The findings are of particular interest because a conflict of objectives is seen. When financial incentives are primary, hierarchical pay structure is optimal. It is shown that more compressed pay structures improve on‐field performance.

This study is unique in addressing how salary dispersion in combination with incentive pay correlates to team success as measured by both winning and revenue production. While the authors used the NFL as the organization of interest, this type of analysis could be applied to other professional sport leagues incorporating some type of salary cap. In addition, future research could also involve a mixed methods approach to help gain an additional understanding of the decision making of those in managerial positions of influence within sport and non‐sport organizations.

The study is unique in that most previous empirical work analyzing payroll structure in sport organizations does not consider disparity in conjunction alternative methods of improving performance through structure of compensation.

The purpose of this paper is to investigate the interactive effect of collective personality fit and its diversity on relationship conflict in a team context.

Data were collected from 1,265 employees and their leaders in 110 work teams in a Korean manufacturing company.

The results show that the two-way interaction between collective personality fit and its dispersion affects relationship conflict in teams. The effect of collective fit on relationship conflict was found to be weaker when the dispersion of collective fit is low than when it is high. This study reports that a high level of collective fit dispersion may help resolve relationship conflict in certain conditions, such as when the level of collective fit is high.

This paper implies that the diverse perception of fit does not always hamper intragroup consonance, and relationship conflict can be reduced as long as the overall level of collective fit is high. The diverse or heterogeneous personalities of team members contribute unique attributes of each member to the success of the team because some members of a heterogeneous team may play the role of filling the gap left by others.

This study argues that collective fit is a new construct, not a simple aggregation of individual fit traits, and the pattern of relationships at the individual level is not replicated at the group level, either conceptually or empirically.

Explained pay dispersion theory (Shaw, Gupta, & Delery, 2002) contends that the consequences of pay dispersion depend on two critical contingencies: (1) the presence of legitimate or normatively acceptable dispersion-creating practices, and the (2) identifiability of individual contributions. In this chapter, the first 20 years of empirical evidence and theoretical offshoots of this theory are reviewed. Other recent studies on the outcomes of horizontal and vertical pay dispersion are also evaluated. The review concludes with an evaluative summary of the literature and the identification of several potential fruitful areas for future research.

The purpose of this paper is to test the conditional effect of team composition on team performance; specifically, how collective team orientation, group consensus, faultline configurations and trust among team members explain the objective performance of project teams in cross-cultural contexts.

Employing path analytical framework and bootstrap methods, the authors analyze data from a sample of 73 cross cultural project teams. Relying on ordinary least-squares regression, the authors estimate the direct and indirect effects of the moderated mediation model.

The findings demonstrate that the indirect effect of collective team orientation on performance through team trust is moderated by team member consensus, diversity heterogeneity and faultlines’ strength. By contrast, high dispersion among members, heterogeneous team configurations and strong team faultlines lead to low levels of trust and team performance.

The specific context of the study (cross-cultural students’ work projects) may influence external validity and limit the generalization of the findings as well as the different compositions of countries-of-origin.

From a practical standpoint, these results may help practitioners understand how the emergence of trust contributes to performance. It will also help them comprehend the importance of managing teams while bearing in mind the cross-cultural contexts in which they operate.

In order to foster team consensus and overcome the effects of group members’ cross-cultural dissimilarities as well as team faultlines, organizations should invest in improving members’ dedication, cooperation and trust before looking to achieve significant results, specially in heterogeneous teams and cross-cultural contexts.

The study advances organizational group research by showing the combined effect of team configurations and collective team orientation to overall team performance and by exploring significant constructs such as team consensus, team trust and diversity faultline strength to examine their possible moderated mediation role in the process.

Existing research on collaborative innovation mechanisms from the perspective of global operation is very limited. This paper aims to address the research gap by studying the factors influencing globally distributed teams’ innovation performance, especially how effective knowledge sharing between distributed teams promotes collaborative team innovation.

This research proposes a model to investigate how collaborative knowledge sharing affects global operations [team dispersion, task orientation, information and communication technology (ICT) usage] and innovation performance based on the data collected from 167 managers in 40 local Chinese IT and offshoring firms. Using the theory of Cognitive Diversity and Innovation Diffusion and Synergy, separate hierarchical regression analysis was used to test the proposed model.

The findings of this study demonstrate that effective collaborative knowledge sharing plays a crucial role in enhancing innovation performance in a global operation. Specifically, innovation capacity can be improved by task orientation, ICT usage and team dispersion.

This research study contributes to the development of global distributed operations and innovation among distributed teams in multinational corporations.