Setting greater pay differentials at the top of the pay structure is based on:
A)marginal productivity theory
B)institutional theory
C)equity theory
D)tournament theory
E)marginal utility theory

Question

Quizplus · Accepted Answer

Tournament theory suggests that greater pay differentials at the top incentivize employees to compete for higher positions, similar to a tournament where the prize motivates participants.

Setting Greater Pay Differentials at the Top of the Pay