The effects of individual and group pay for performance and pay dispersion on performance: A Hierarchical Linear Modeling Approach (HLM) in Mellat Bank

Document Type : Research Article


1 Associate Prof., Faculty of Management, University of Tehran, Iran

2 Prof., Faculty of Management, University of Tehran, Iran

3 Ph.D. in Mmanagement, University of Tehran, Iran


Today's organizations change their pay structure and pay for performance role increased in pay package. Performance pay in every organizational level has been appear. Many researches show that in high performance organizations, variable pay has critical role. Another variable that is very important in designing compensation strategy is pay dispersion. With using hierarchical linear modeling and real salary and wage data from Bank Mellat, research show that performance pay and pay dispersion influence performance and pay dispersion has a moderator role. also research show that individual performance pay and pay dispersion are more important than group pay for performance.



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