Pay Dispersion and Organizational Performance in Korea: Curvilinearity and the Moderating Role of Congruence with Organizational Culture
研究韩国436家跨行业企业发现，薪酬差距与组织绩效呈倒U型关系，且当薪酬方案与组织文化匹配时，薪酬差距对绩效的正向影响更强。
This study examines the curvilinear relationship between pay dispersion and organizational performance. According to the pay dispersion literature, a large pay gap has benefits and drawbacks for organizational performance because employees can feel motivated or demotivated depending on the degree of pay dispersion. We investigate the possibility of nonlinearity in the context of these countervailing forces, and aim to uncover the condition under which the positive effect of high pay dispersion prevails. Our empirical analysis of data from 436 Korean cross-industry firms shows that pay dispersion and organizational performance have an inverted U-shaped relationship. Moreover, when a pay scheme matches current organizational culture, the positive relationship between pay dispersion and organizational performance is more pronounced. We discuss the implications for future compensation research and practice.