- The Oxford Handbook of Human Resource Management
- List of Figures
- List of Tables
- List of Contributors
- Human Resource Management: Scope, Analysis, and Significance
- The Development of HRM in Historical and International Perspective
- The Goals of HRM
- Economics and HRM
- Strategic Management and HRM
- Organization Theory and HRM
- HRM and the Worker: Towards a New Psychological Contract?
- HRM and the Worker: Labor Process Perspectives
- HRM and Societal Embeddedness
- Work Organization
- Employment Subsystems and the ‘HR Architecture’
- Employee Voice Systems
- EEO and the Management of Diversity
- Recruitment Strategy
- Selection Decision-Making
- Training, Development, and Competence
- Remuneration: Pay Effects at Work
- Performance Management
- HRM Systems and the Problem of Internal Fit
- HRM and Contemporary Manufacturing
- Service Strategies: Marketing, Operations, and Human Resource Practices
- HRM and Knowledge Workers
- HRM and the New Public Management
- Multinational Companies and Global Human Resource Strategy
- Transnational Firms and Cultural Diversity
- HRM and Business Performance
- Modeling HRM and Performance Linkages
- Family-Friendly, Equal-Opportunity, and High-Involvement Management in Britain
- Social Legitimacy of the HRM Profession: A US Perspective
Abstract and Keywords
This article reviews effects associated with two dimensions of pay structure. The first dimension, the extent to which a firm's pay structure is relatively hierarchical or flat (also referred to as ‘pay dispersion’), is specifically mentioned by Jim Sinegal, CEO of Costco. He states that a pay structure in which top executives make ‘100 or 200 or 300 times more than the average person working on the floor is wrong’ and intimates that Costco's egalitarian pay structure promotes organizational effectiveness. Another aspect of pay structure is the basis of pay. Along with research on pay dispersion effects, the article also reviews a limited number of studies examining the use of person-based, as opposed to job-based, pay systems. It begins with pay form, then review pay structure, followed by a discussion of pay level effects.
James P. Guthrie is the William and Judy Docking Professor of Human Resource Management in the School of Business at the University of Kansas. His current research interests include the impact of HR systems on firm performance and alternative reward systems.
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