Employeeis a valuable resource of any organization.
Productivity of labour a day nowhas become the main concern of the organization. It is usually accepted that employees learn avaluable source of competitive advantage for firms. There is a currentdiscussion of how human resources management policies impact the performance ofthe employee. Theorists HRM will make the effort and planning to try to buildan informal bond between HRM and performance. Effect of specific human resourceplanning the performance of employees in the banking sector. There are too manyinterests in this field day now. The study tried to find this gap byinvestigating the effects of strategy compensation on performance of commercialbanks.
Compensationadministration is one of the areas of human resource management that is mostimportant because compensation policy that good, programme and their effectiveimplementation is important to get, maintain and develop human resource of theorganization get effective decision from them. It involves selection, design,development trend and their programme to implementing compensation policy orincentive through pecuniary reward. Coast determined wage and salaryadministration as follows: “wage and salary administration referestablishment implementation and strong policy and employee compensationpractice.
It includes such areas as job evaluation, salary study and wage,analysis relevant organisational problems, development maintenance and wagestructure, prepared salary exchange control. Wage payment, incentive, profitsharing, launch change and adjustments, surcharge, compensation cost controland items other related. Traditional concept wage and salary administrationemphasizing on the only wage determination and wage structure in organizationsettings. In simple words, “compensation administration is a systematicprocedure create compensation structure good.”Rewardsystem in contemporary world, reward to performance and success that improve ismore than own real achievement.
Indeed, when financial crisis show that isglobal, reward is all for bank because they defend gamble that more recklessand increase risk. Because incentive system disabled, reward perceived as endappreciate that greater than process real winner. Therefore, interestmanagement should be viewed within the context what correct and only reward andwhat reward that is unbalanced. Point here is reward that should vindicateperformance and does not exceed them. What we mean with this good for reward toexecutive that high for his excellent performance but do not reach where catchup reward, individual will be careful with wind behaviour and bear that areunethical.