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Pay dispersion and performance in teams.

Bucciol A, Foss NJ, Piovesan M - PLoS ONE (2014)

Bottom Line: 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.

View Article: PubMed Central - PubMed

Affiliation: Department of Economics, University of Verona, Verona, Italy.

ABSTRACT
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, , 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.

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Distribution of individual SIPAs (8,226 observations).
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pone-0112631-g003: Distribution of individual SIPAs (8,226 observations).

Mentions: Figure 3 plots the distribution of SIPAs in our sample. We see that SIPAs are concentrated between 4 and 9, with a peak around 6 (fair performance). Table 5 reports some summary statistics at the player level. First of all, we notice that SIPAs are generally higher when the team wins a match. However, low SIPAs are possible also in this case: players may indeed receive a SIPA of 4 even if their team wins the match. Moreover, the table lists some statistics about the main player's characteristics: his pay, his age, his past experience with the team and the first division, and his role (midfielder, forward, as opposed to goalkeeper or defender). We observe wide heterogeneity on these variables.


Pay dispersion and performance in teams.

Bucciol A, Foss NJ, Piovesan M - PLoS ONE (2014)

Distribution of individual SIPAs (8,226 observations).
© Copyright Policy
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4232514&req=5

pone-0112631-g003: Distribution of individual SIPAs (8,226 observations).
Mentions: Figure 3 plots the distribution of SIPAs in our sample. We see that SIPAs are concentrated between 4 and 9, with a peak around 6 (fair performance). Table 5 reports some summary statistics at the player level. First of all, we notice that SIPAs are generally higher when the team wins a match. However, low SIPAs are possible also in this case: players may indeed receive a SIPA of 4 even if their team wins the match. Moreover, the table lists some statistics about the main player's characteristics: his pay, his age, his past experience with the team and the first division, and his role (midfielder, forward, as opposed to goalkeeper or defender). We observe wide heterogeneity on these variables.

Bottom Line: 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.

View Article: PubMed Central - PubMed

Affiliation: Department of Economics, University of Verona, Verona, Italy.

ABSTRACT
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, , 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.

Show MeSH