IDEA #56
I’m in charge – check my paycheque
When pay disparity can improve team outcomes.
What you need to know
Led by Nir Halevy, assistant professor of organisational behaviour at Stanford Graduate School of Business, a team of researchers investigated the impact of pay dispersion (i.e., pay disparities within teams) on the performance of American National Basketball Association (NBA) teams between 1997 and 2007. Previous research on dispersion has suggested that wide financial disparities (or operational disparities – e.g., some team members have more playing time than others) create a sense of hierarchy that hurts commitment, cooperation ...
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