ISSN:
0268-3946
Source:
Emerald Fulltext Archive Database 1994-2005
Topics:
Psychology
,
Economics
Notes:
Purpose - The purpose of this paper is to examine the impact of pay diversity between groups, for example, across competing workplace teams. Design/methodology/approach - In Study I, 60 future managers from Newcastle, Australia, were paid either $1 or $2 to work on an identical intrinsically motivating task, either on an individual basis or as members of pay-diverse groups. In Study II, with 84 future managers in Darwin, Australia, the $1/$2 group pay dichotomy was made more realistic, by positioning the pay either at the bottom ($1) or top ($2) rungs of a pay ladder, or embedding it within a wider pay scale ($1 at a first, and $2 at the second tertile). Findings - In Study I, between individually paid workers, both below- and above-average payment were linked to low intrinsic motivation, whereas between groups, those in the higher pay bracket remained more motivated compared to their lower-paid group counterparts. In Study II, when pay was polarised, intrinsic motivation was higher in the higher-paid compared to lower-paid groups; but when pay was embedded, this comparative advantage dissipated. Originality/value - Taken together, Studies I and II suggest that pay diversity across groups will de-motivate both lower- and higher-paid groups, except perhaps when a group tops the pay ladder.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1108/02683940510602969
Permalink