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According to Hackett and McDermott (1999) one of the main functions of Human resource management is to manage the functions of compensations in the workplace. The HR practitioner has to deal with different type rewards in exchange for performing organisational task. Organisations spend a huge amount of financial resources in designing, and managing the compensation system of the organisation. Therefore it is significant that the organisation develop a compensation system that will motivate the performance of employees. There has been numerous research based on the compensation management and performance, it is understood that individuals can be motivated to perform at their optimal simple by offering a good compensation package. Examine some of the main objective of a compensation system, in your discussion explain why it is important for any compensation system to be aligned with the strategic goal of the organisation.
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