A Study on Compensatoion Management and Employee Attitude

Abstract

Compensation management is one of the most important functions of human resource management because it influences employees' motivation, job satisfaction, commitment, and overall workplace behaviour. A well-planned compensation system combines financial and non-financial rewards to recognize employee contributions while supporting organizational goals. This study explores how compensation management affects employee attitudes through an analysis of secondary data collected from academic journals, books, government publications, professional reports, and research articles. The review indicates that fair salaries, attractive employee benefits, performance-based incentives, recognition programs, and transparent reward policies contribute to positive employee attitudes and improved organizational outcomes. The study concludes that organizations should adopt equitable and competitive compensation practices to enhance employee satisfaction, retention, and long-term organizational performance.