Compensation Management Theory

Compensation Management Theory explores how organizations develop strategies to reward employees fairly and effectively. It considers factors like salary, benefits, incentives, and workloads to motivate performance, attract talent, and retain staff. The goal is to create a compensation system aligned with organizational objectives, cultural values, and employee needs, ensuring that rewards are equitable, competitive, and sustainable. By managing compensation thoughtfully, companies aim to boost productivity, job satisfaction, and commitment, ultimately supporting overall business success.