Compensation policy and organizational performance: The efficiency, operational, and financial implications of pay levels and pay structure

Mark P. Brown, Michael C. Sturman, Marcia J. Simmering

Research output: Contribution to journalArticlepeer-review

124 Scopus citations

Abstract

In this study, we investigated the relationship between organization-level compensation decisions and organizational performance. Specifically, we examined how companies' pay structures and pay levels relate to resource efficiency, patient care outcomes, and financial performance. We expected both nonlinear and interactive effects. Results from a large database of hospitals support our predictions. We discuss the implications for practice and compensation research theory development in light of the study's results.

Original languageEnglish (US)
Pages (from-to)752-762
Number of pages11
JournalAcademy of Management Journal
Volume46
Issue number6
DOIs
StatePublished - Dec 2003
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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