Human Ressource Management
12 Personnel Compensation
Question
What effects can pay disparity have?
Answer
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In sporting team: worst collaboration, when low pay disparity: even the high payed athletes seem to do better
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Pay transparenty is a double edged sword: Can motivate the receivers of more money, demotivate others
- No pay disparity based on performance: High performers complain (-> public sector organizations!)
- Right balance is the right way, the current huge gap is not good for the vast majority of employees (not just for their pay that is)
- Envy ca be pretty bad and result in less helping for high payed employees