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Compensation and span of control in hierarchical organizations
Ortín Ángel, Pedro (Universitat Autònoma de Barcelona. Departament d’Empresa)
Salas Fumás, Vicente (Universidad de Zaragoza)

Data: 2002
Resum: This article presents evidence on the relationship between compensation ratios and spans of control within hierarchical organizations. We find that compensation ratios are lower than span of control at any position within the hierarchy, which is consistent with an elasticity of compensation to a number of subordinates lower than one. Managers’ human capital endowments determine a significant part of the salary differences throughout hierarchical levels, as predicted by models of talent allocation in hierarchies. Differences in the size of firms should be attributed more to differences in their number of hierarchical levels than to variations in the span of control.
Drets: Tots els drets reservats
Llengua: Anglès
Document: article ; recerca ; publishedVersion
Matèria: Span of control ; Hierarchical organizations ; Compensation
Publicat a: Journal of labor economics, Vol. 20 Núm. 4 (October 2002) , p. 848-876, ISSN 0734-306X

DOI: 10.1086/342040

29 p, 165.3 KB

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