How High Performance Human Resource Practices and Workforce Unionization Affect Managerial Pay

Alexander Colvin, Pennsylvania State University
Rosemary Batt, Cornell University
Harry C. Katz, Cornell University

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Suggested Citation
Colvin, A., Batt, R. & Katz, H. C. (2000). How high performance human resource practices and workforce unionization affect managerial pay (CAHRS Working Paper #00-12). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.
http://digitalcommons.ilr.cornell.edu/cahrswp/90

Abstract

Using data from a nationally representative sample of telecommunications establishments, this study finds that HR practices and workforce unionization influence managerial pay levels and the ratio of manager-to-worker pay. High performance HR practices, including investment in the skills of the workforce, in computer-based technologies, and in performance-based worker pay practices, are all positively related to managerial pay; but the use of workforce teams, which shift some managerial responsibilities to workers, has the opposite association. High performance HR practices also are associated with lower manager to- worker pay differentials. In addition, workforce unionization is positively associated with managerial pay levels, with worker base pay mediating the relationship between managers' pay and unionization.