The influence of controllability on compensation: a view through data of Major League Baseball

Abstract

Purpose

The purpose of this paper is to illustrate the effect of controllability on compensation of Major League Baseball.

Design/methodology/approach

The sample consists of Major League Baseball players who have publicly published compensations figures and who have actively played in the Major Leagues. All data used in the study are publicly available. Multiple regression is employed to test the relationship between player's performance and starting salary of the next season.

Findings

The paper proposes that strikeouts, bases on balls, and home runs are relatively controllable for both hitters and pitchers because these performance measures are essentially independent of other teammates' performance.

Research limitations/implications

The distinctness of professional baseball players by nature may constrain the generalization of this paper. It is recommended that further interpretation of the effects of controllability on compensation for other high‐interdependency organizations should be made with caution.

Originality/value

It is suggested that managers in low‐interdependency organizations should make a stronger linkage between subordinates' controllable performance and their compensation. If the compensation plan is designed to maximize the subordinates' reward for performing a controllable task, they will be motivated to expend greater effort on it.

Citation

Ou, W. and Wang, H. (2009), "The influence of controllability on compensation: a view through data of Major League Baseball", International Journal of Commerce and Management, Vol. 19 No. 4, pp. 321-336. https://doi.org/10.1108/10569210911008494