Pulling in different directions? Exploring the relationship between vertical pay dispersion and high‐performance work systems
Vertical pay dispersion (VPD), a hierarchical pay structure used to motivate employees, has traditionally been studied separately from high‐performance work systems (HPWSs). As a component of HPWSs, incentive‐based compensation schemes focus on employee‐ or team‐level incentives. However, the influe...
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| Vydáno v: | Human resource management Ročník 57; číslo 1; s. 127 - 143 |
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| Hlavní autoři: | , , |
| Médium: | Journal Article |
| Jazyk: | angličtina |
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Hoboken, USA
Wiley Periodicals, Inc
01.01.2018
Wiley Periodicals Inc |
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| ISSN: | 0090-4848, 1099-050X |
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| Abstract | Vertical pay dispersion (VPD), a hierarchical pay structure used to motivate employees, has traditionally been studied separately from high‐performance work systems (HPWSs). As a component of HPWSs, incentive‐based compensation schemes focus on employee‐ or team‐level incentives. However, the influence of the simultaneous utilization of VPD and HPWS on performance remains understudied. This study addresses the question of whether these approaches to managing human capital serve as complements or substitutes to one another. VPD and HPWS are argued to substitute for one another with respect to motivation‐ and skill‐enhancing practices. The opposite notion is true in regard to opportunity‐enhancing HPWSs, which serve to amplify the effectiveness of VPD. In a multisource, longitudinal sample of South Korean firms, the hypothesized predictions are supported. |
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| AbstractList | Vertical pay dispersion (VPD), a hierarchical pay structure used to motivate employees, has traditionally been studied separately from high‐performance work systems (HPWSs). As a component of HPWSs, incentive‐based compensation schemes focus on employee‐ or team‐level incentives. However, the influence of the simultaneous utilization of VPD and HPWS on performance remains understudied. This study addresses the question of whether these approaches to managing human capital serve as complements or substitutes to one another. VPD and HPWS are argued to substitute for one another with respect to motivation‐ and skill‐enhancing practices. The opposite notion is true in regard to opportunity‐enhancing HPWSs, which serve to amplify the effectiveness of VPD. In a multisource, longitudinal sample of South Korean firms, the hypothesized predictions are supported. |
| Author | Messersmith, Jake G. Kim, Kyoung Yong Patel, Pankaj C. |
| Author_xml | – sequence: 1 givenname: Jake G. surname: Messersmith fullname: Messersmith, Jake G. email: jmessersmith2@unl.edu organization: University of Nebraska‐Lincoln – sequence: 2 givenname: Kyoung Yong orcidid: 0000-0002-1917-6781 surname: Kim fullname: Kim, Kyoung Yong organization: City University of Hong Kong – sequence: 3 givenname: Pankaj C. orcidid: 0000-0003-4934-8166 surname: Patel fullname: Patel, Pankaj C. organization: Villanova University |
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| CitedBy_id | crossref_primary_10_1108_XJM_04_2024_0063 crossref_primary_10_1016_j_leaqua_2022_101621 crossref_primary_10_1002_hrm_22222 crossref_primary_10_1002_sd_3066 crossref_primary_10_3389_fpsyg_2021_710266 crossref_primary_10_1108_MD_05_2024_1062 crossref_primary_10_1108_PR_06_2024_0541 crossref_primary_10_1080_03075079_2023_2200478 crossref_primary_10_1177_15480518251362568 crossref_primary_10_1007_s11846_021_00502_8 crossref_primary_10_1177_00222429211026655 crossref_primary_10_1016_j_jbusres_2025_115401 crossref_primary_10_1093_icc_dtae038 crossref_primary_10_1002_hrm_22029 crossref_primary_10_1111_1748_8583_12571 crossref_primary_10_1080_09585192_2024_2330983 crossref_primary_10_1108_ER_04_2022_0188 crossref_primary_10_1111_beer_12486 crossref_primary_10_1016_j_hrmr_2024_101057 |
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| SubjectTerms | contingency theory high‐performance work systems Human capital Human resource management Incentives Motivation strategic HRM tournament theory vertical pay dispersion Wage & salary administration |
| Title | Pulling in different directions? Exploring the relationship between vertical pay dispersion and high‐performance work systems |
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