Food for thought

Tuesday, January 3, 2012

Negative effects of highly dispersed pay are even seen in professional sports. Studies of baseball teams are especially interesting because, of all major professional sports, baseball calls for the least coordination among team members. But baseball still requires some cooperation—for example, between pitchers and catchers, and among infielders. And although individuals hit the ball, teammates can help one another improve their skills and break out of slumps. Notre Dame's Matt Bloom did a careful study of over 1,500 professional baseball players from 29 teams, spanning an eight-year period, which showed that players on teams with greater dispersion in pay had lower winning percentages, gate receipts, and media income. 
-from Pfeffer and Sutton, "Evidence Based Management," Harvard Business Review, January 2006.


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