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WHY SOME JOBS COMMAND WAGE PREMIUMS: A TEST OF CAREER TOURNAMENT AND INTERNAL LABOR MARKET HYPOTHESES.

Academy of Management Journal 1991
The wage premiums associated with jobs in a large organization were identified through comparing their pay to the prevailing wages in the relevant outside labor markets. We then examined the characteristics of those jobs to investigate why some commanded larger premiums than others. Jobs at the tops of promotion ladders, jobs requiring many organization-specific skills, and to a lesser extent, jobs with access to influence commanded greater wage premiums. Wages above market rates appear important in supporting the internal labor market mechanisms associated with these jobs. Findings may clarify the factors compensation managers should consider when positioning wage rates. Examination of these issues is a potentially important bridge between the study of internal labor markets in organizational research and the study of wages in economics.

ADAPTIVE CHANGE IN CORPORATE CONTROL PRACTICES.

Academy of Management Journal 1991
Multidivisional organizations are not concerned with what structure to adopt but with how they should exercise control within the divisional form to achieve economic efficiencies. Using an information-processing framework, I examined control arrangements between the headquarters and operating divisions of such organizations and how managers adapted control practices to accommodate increasing environmental uncertainty. Also considered were the moderating effects of contextual attributes on such adaptive behavior. Analyses of panel data from 97 multihospital systems suggested that organizations generally practice selective decentralization under conditions of increasing uncertainty but that organizational age, dispersion, and initial control arrangements significantly moderate the direction and magnitude of such changes.