The impact of leader financial rewards on work group functioning

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This project aims to investigate when and why organisational leaders’ financial rewards improve or undermine social group functioning. Leaders’ pay has increased markedly in recent years, fuelling debate about the impacts on organisational functioning. While some studies have found high leader rewards have positive effects on group outcomes, others found negative or no effects. Expected outcomes include data on the effects of leader rewards on social identification with the group and contribution to collective goals, that will help policy-makers design reward systems that optimise functioning. This has the potential to significantly benefit Australian business and organisations to facilitate high-functioning groups and improve productivity.