Abstract
As most previous research on pay transparency focused on individual- or organizational-level dynamics, we have limited understanding of the impact of pay transparency on culture or climate within an organization. This study investigates how procedural pay transparency is associated with the motivational climate in work units within organizations. One might argue that, in the presence of pay transparency, employees may further engage in social comparisons to learn about how they are doing relative to their peers, which leads to an increased performance climate, where success is defined based on relative performance. However, the findings from this study suggest that procedural pay transparency is positively associated with mastery climate instead, that is, a work unit climate where success is defined based on learning, growth, and effort. Furthermore, the results suggest that procedural pay transparency is meaningfully related to sorting and motivational effects through its impact on mastery climate.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
