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

Date: 2002
Abstract: 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.
Rights: Tots els drets reservats
Language: Anglès.
Document: article ; recerca ; publishedVersion
Subject: Span of control ; Hierarchical organizations ; Compensation
Published in: Journal of labor economics, Vol. 20 Núm. 4 (October 2002) , p. 848-876, ISSN 0734-306X

29 p, 165.3 KB

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Articles > Research articles
Articles > Published articles

 Record created 2016-01-19, last modified 2019-07-20

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