The impact of pay dispersion on organizational performance

• Autor(a) principal: Leite, Carolina Maria Ferreira Alves da Costa
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/19156
• topic: Pay dispersion; Compensation; Organizational performance; Firm performance; Dispersão salarial; Compensação; Desempenho organizacional; Desempenho empresarial

Although there are many theories and several studies aiming to explain the impact of pay dispersion on firm performance, the existence and direction of this relationship, as well as what factors moderate it, remains unclear. Using the PRISMA methodology, the present study performed a systematic literature review and gathered a sample of 26 papers on the topic to understand how pay dispersion is defined and conceptualized, if a relationship between pay dispersion and firm performance exists and if the impact of the first on the latter is positive or negative, to gather and study the existing theories that connect pay dispersion and organizational performance and understand which ones explain the found impacts, to verify if there are any variables that moderate this relationship and, if so, which ones. The present study has found that although studies on vertical pay dispersion mainly find a positive impact, confirming tournament arguments, and studies on horizontal dispersion find a negative one, confirming equity/fairness arguments, the existence of a relationship, its direction and intensity seems to depend on several contextual factors, pointing towards a contingency perspective.