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Compensation: Theory, Evidence, and Strategic Implications provides a comprehensive, research-based review of both the determinants and effects of compensation. Combining theory and research from a variety of disciplines, authors Barry Gerhart and Sara L. Rynes examine the three major compensation decisions–pay level, pay structure, and pay delivery systems. provides a comprehensive, research-based review of both the determinants and effects of compensation. Combining theory and research from a variety of disciplines, authors Barry Gerhart and Sara L. Rynes examine the three major compensation decisions–pay level, pay structure, and pay delivery systems.Primarily intended for graduate students in human resource management, psychology, and organizational behavior courses, this book is also an invaluable reference for compensation management consultants and organizational development specialists.

Pay Structure: Relative Pay within Organizations
Pay structure: Relative pay within organizations

There is a fundamental ideological tension between the egalitarian premises that underlie participative management and the existence of large interclass reward differentials.

—Cowherd and Levine (1992)

Competition encourages increased effort…. But competition also discourages cooperation…. The larger is the spread between the compensation that the winner and loser receive, the more important is each of these effects.

—Lazear (1989)

In the previous two chapters, we concentrated on differences in pay level across employers, where pay level is the “average” of rates paid by an employer across different jobs or skill groups (Milkovich & Newman, 1999, p. 185).1 In the present chapter, we shift our focus to pay structure, which refers to differences in pay within employers based on ...

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