Employee Benefit Systems and Organizational Efficiency in Kerala's Public Sector Undertakings: A Systematic Review and Critical Analysis

Abstract

This study examines the critical relationship between employee benefit systems and organizational efficiency in Public Sector Undertakings (PSUs) in Kerala, India. Through comprehensive analysis of comparative compensation structures, benefit systems, and behavioral outcomes, the research identifies significant disparities between PSU and State Government employees while establishing clear linkages between benefit systems and organizational performance indicators. The findings reveal that well-designed benefit packages significantly impact employee satisfaction, productivity, commitment, and retention rates, ultimately enhancing organizational efficiency. The study further demonstrates that supportive work environments moderate the relationship between benefits and performance outcomes, amplifying positive impacts when aligned with employee needs and organizational goals. This research contributes to management theory by integrating economic and behavioral perspectives on compensation systems while offering practical insights for policymakers and PSU management on optimizing benefit structures. The conclusion highlights the strategic importance of holistic benefit systems that balance financial and non-financial incentives within Kerala's unique socioeconomic context.