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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.

The purpose of this paper is to analyse the challenges in undertaking occupational pay comparisons and why this matters for evidence-based reward management, union bargaining strategies and perceptions of pay equity.

The paper draws on the extant literature on pay and undertakes detailed quantitative analysis of teachers pay in Scotland relative to teachers elsewhere in the UK, graduates and other professional occupations in the private and public sectors.

The key finding of this paper is that alternative ways of analysing pay comparability produce significantly different outcomes – occupational pay comparisons require the identification of an appropriate comparator and appropriate measures of pay and hours, yet this is not straightforward. Different approaches to comparability may lead to key stakeholders holding widely differing views about pay equity, with employment relations implications.

Quantitative analyses of pay using large-scale survey data are crucial to understanding relative occupational pay. However, quantitative analyses cannot provide in-depth and nuanced understanding of the nature of particular occupations. Moreover, the paper focuses at the occupational level and does not assess individual employee characteristics that may influence pay.

These findings should inform employers (especially HR managers), employees and unions on pay policy, pay settlements and bargaining strategies.

There is relatively little contemporary literature on the importance of, and challenges in undertaking, occupational pay comparisons.

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 aim of this study is to find out whether managers can facilitate employee understanding of the pay system through a goal‐setting process. The paper draws from Thierry's largely untested Reflection Theory to study employee pay satisfaction.

Based on the theory, it is posited that managerial goal setting improves employee pay satisfaction through increased employee knowledge and perceived meanings of pay. The hypotheses are tested with survey data from one municipal health care organization.

The results of the study show that both knowledge and meanings of pay mediate the effects of goal setting on pay satisfaction. The paper finds support for the somewhat distinguishable roles of instrumental and symbolic meanings of pay. The regression analyses show that the former fully mediates the effect of pay level and the latter fully mediates the effect of goal setting on pay satisfaction. Even though the analyses do not provide evidence that common method variance would explain the results, it remains a potential issue.

Future research is needed to establish the dimensionality of meanings – positive as well as negative – a pay system can convey, and to explore the degree to which they can be managed.

The results of the study suggest that organizations can promote their ROI of pay systems by paying attention to the employees' interpretations of messages conveyed by the pay system implementation process. More specifically, the results demonstrate that managers can contribute to employee pay satisfaction via a goal‐setting process that informs employees about the functions of the pay system and use the system to give feedback on the job.

The study provides a unique but preliminary test for Reflection Theory.

The purpose of this paper is to focus on comparing the influence of majority and minority shareholders on executive compensation under conditions of CEO duality, examining majority and minority shareholder influences by measuring their investment and return activity. The paper seeks to uncover how CEO duality changes the impact the two categories of shareholders have on executive compensation, especially in an emerging nation.

In total, 30 corporations out of the 70 corporations listed on the BM&F Bovespa (a Brazilian stock market) were used for the paper. Quarterly data were collected on the companies from the Datastream database. The paper conducted a moderated regression analysis on the data to determine the conditional effects of majority and minority holders’ investment and returns on executive compensation.

There are incentives for executives meeting majority shareholder objectives, but minority shareholders’ influences act as a disincentive for executives. Only the influence of blockholders by their returns is affected by the separation of the roles of CEO and Chairman. The effect is such that firms with a separation of the roles have their executives rewarded in line with increments to the returns made to blockholders, but firms that have the roles merged pay a high wage that is inconsistent with managerial performance. Finally, the majority of variation in executive pay levels can be attributed to individual company traits.

The paper’s sample is biased to firm which had publicly available data on the total compensation payable to their top executives.

Advocates of minority shareholder rights may need to exercise patience with the implementation of more formalised governance structure, as they are not providing protection for minority shareholders within the period studied.

The paper provides empirical evidence within the Brazilian context of minority shareholder effects on executive compensation and the effect of CEO duality on the relationship.

The aim of the paper is to explore within-firm vertical pay inequality and its relation to firm size and firm performance.

Using firm-level microdata for Kazakhstan, the authors measure within-firm pay inequality as the wage differential between the top- and the bottom-level job occupations. The authors carry out their analysis based on panel regression models.

The authors find that within-firm pay inequality increases as firms grow. Further, they identify that this trend is mainly driven by top-occupation workers receiving more significant wage increases compared to lower-level workers as firms expand. Once the authors address concerns about endogeneity, they find that pay inequality is negatively associated with firm performance.

Developing strategies and policies that prioritize fairness and transparency in compensation practices is crucial during the expansion process of firms. By actively discouraging rent-seeking behavior, firms can create a work environment that promotes productivity and sustainability, ultimately leading to improved firm performance. The research findings highlight the importance of implementing context-specific interventions, recognizing that different environments may require tailored approaches to address pay inequality effectively.

This study contributes to the study of within-firm pay inequality, firm size and performance in an emerging economy, an area that has been largely overlooked in previous empirical research. The contrasting findings show the importance of the structural and industrial characteristics of emerging markets that contribute to broader and deeper impact of pay inequality compared to developed economies.

Literature on nontraditional firms has focused on behavioral differences with for-profit firms. Less attention has been given to the variations in behavior among nontraditional firms. This chapter examines differences across three types of Uruguayan nonprofit health care organizations.

This chapter draws on a unique dataset of Uruguayan health care organizations during the period 1982–1990, as well as interviews with doctors working in the three types of nonprofits during spring 2010. We use a simple OLS regression to identify differences in average behavior, and differences in reaction to a regulatory change.

The chapter shows that structure of stake holding and governance significantly affect behavior, even where many behaviors are highly regulated.

These findings highlight the importance of specifying governance structure when predicting behavior of nontraditional firms. Empirical tests of behavioral differences between traditional and nontraditional firms will be more meaningful if the governance structure of nontraditional firms is common and specified. A limitation of our study is our inability to control for the timing of degeneration of producer cooperatives. This would be one element of governance structure to consider in future data collection.

These findings highlight the need to avoid drawing broad policy conclusions from the behavior of a specific subset of nontraditional firms.

This chapter highlights the importance of carefully specifying stakeholder and governance structure when predicting behavior of nontraditional firms. It is of interest to anyone using a sample of nontraditional firms to test general hypotheses about their behavior.

Under the British Government’s current plan, the devolution of authority for civil service pay will be complete in 1996, with all departments and agencies receiving control over the pay of their employees. The process of pay delegation began some years ago with selected Next Steps executive agencies. What lessons does the progress of the Conservative administration’s pay reform programme hold for the future? In examining the success that the government has had so far with delegation of pay to executive agencies, centres on primary research involving a postal survey of executive agencies and in‐depth interviews with several agency human resources directors. Provides an insight into the shape that pay reform is likely to take as further devolution occurs. Reform is unlikely to be either as rapid, coherent or concerted as the government would like. Concludes that while there is little question that change is occurring, its pace has not kept up with the government’s deadlines, and its form is only partially in line with the government’s stated objectives. Identifies several factors explaining the slow progress, most importantly: the internal inconsistencies among the government’s pay reform objectives; the uncertain environment in which many agencies are operating; agencies’ lack of resources; and a failure to take account of the institutional context.

This special “Anbar Abstracts” issue of Women in Management Review is split into five sections covering abstracts under the following headings: Leadership Styles and Personality; Recruitment and Career Management; Dependant Care and Health/Family Issues; Job Evaluation, Appraisal and Equal Pay; Discrimination and Equal Opportunities.

This research identifies human resource (HR) management challenges and associated solutions of a medium-sized organization that reached a critical threshold of employees and required formalized HR systems. HR solutions focused on using labour efficiently, linking pay to performance and motivating or rewarding desired employee behaviour are identified.

This case study involved HR data analysis and 50 semi-structured interviews (SSIs) over 4 successive phases: HR audit, problem identification and job description validation, solutions analysis and feedback on outcomes. Additionally, HR files and schedules were reviewed to determine labour usage, organizational structure and compensation.

HR problems and solutions associated with job analysis (e.g. role identity, role conflict), HR planning (e.g. scheduling, motivation), employee performance management (e.g. validity, employee empowerment) and compensation (e.g. inequity, turnover intentions) issues are clearly identified.

Traditionally, HR theory or concepts are presented in a limited or isolated manner. However, this research provides an integrative assessment of numerous interrelated, complex, core HR concepts including role conflict, equity, employee empowerment, motivation, consensus building, accountability, change champions, communication and coaching.

This multi-phased, multi-stakeholder approach to small and medium enterprise (SME) management informs organizational leaders about HR problems and solutions they may encounter as they grow and require formalized HR systems. The proposed solutions can help safeguard organizational survival.

This research bridges HR theory with HR practices focusing specifically on SMEs. In addition, SMEs can benefit from the HR process information presented to conduct similar evidence-based HR problem and solution assessments.