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A Study on Compensation Management and Job Satisfaction Among Employees in Small-Scale Industries in Malappuram District

DR. JAISHREE.T
Assistant Professor & Research Guide
TERF’S Academy College of Arts and Science, Kovilpalayampudur Tamil Nadu
IRSHAD P
Research Scholar
TERF’S Academy College of Arts and Science, Kovilpalayampudur Tamil Nadu

Abstract: The present study examines the relationship between compensation management and job satisfaction among employees working in small-scale industries in Malappuram district. Compensation management plays a crucial role in influencing employee attitudes, motivation, and organizational performance. This study focuses on five dimensions of compensation management such as Base Pay Adequacy, Incentives and Bonuses, Benefits, Pay Fairness, and Promotion and Pay Growth Opportunities and analyses their impact on employees’ job satisfaction. A descriptive research design was adopted for the study. Primary data were collected from 132 employees working in registered small-scale industries using a structured questionnaire. Convenience sampling technique was employed to select respondents. The findings revealed that employees perceive compensation management practices at a moderate level, and overall job satisfaction is also at a moderate level. The results of multiple regression analysis indicate that all five dimensions of compensation management have a positive and statistically significant impact on job satisfaction. The study concluded that fair and structured compensation practices significantly enhance job satisfaction and can contribute to improved employee retention and organizational effectiveness in small-scale industries.
Keywords: Base Pay Adequacy, Compensation Management, Employee Benefits, Incentives and Bonuses, Job Satisfaction.