This research delves into the strategic implementation of pay compression within self-managed work teams, aiming to investigate its efficiency rationale. Pay compression, characterized by minimized pay differentials between team members, has gained attention as a potential mechanism to enhance collaboration and performance in self-managed teams. Through a comprehensive analysis of organizational practices, employee perceptions, and performance outcomes, this study seeks to uncover the nuanced dynamics of strategic compensation in self-managed work teams. The findings contribute valuable insights to organizational management strategies, shedding light on the implications of pay compression for team dynamics, motivation, and overall efficiency.

Strategic compensation, pay compression, self-managed work teams

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