Drawing on a single large U.S. corporation's personnel records for the years 1989–93, the authors analyze an example of the kind of formal salary system used by most large firms. They find that this firm's practices were consistent with most of the important conclusions of prior empirical...

Drawing on a single large U.S. corporation's personnel records for the years 1989-93, the authors analyze an example of the kind of formal salary system used by most large firms. The system was highly centralized, covering salary levels, salary ranges, raises, and bonuses. Supervisors had little...