The rationale for this paper stems from the need to assess the role of compensation in the management of human resources as a wav of repositioning Babcock University for quality service. Rewarding employees in the organization produces positive impact both in individual and t organizational performance. Individuals in organization may feel satisfied or dissatisfied with pay when remuneration is not commensurate with their contributions, more especially when they go to the extent of making comparisons with those of their colleagues in other organizations. Input refers to the individual characteristics such as education, previous work experience; effort such as how long they persist in solving problems; and performance (e.g. number of units produced. Outcomes are what people get out of their jobs such as promotion pay recognition. Pay satisfaction occurs when people perceive that they are paid appropriately in relation to others which is evident in trust and commitment in the organization . When employees feel they are underpaid, they are dissatisfied and may engage in negative behaviors such as lateness, absenteeism, seeking alternative employment opportunity, incidents of theft, pre-union voting, resignation of appointment with the organization, and all forms of activities that culminate in industrial conflicts.
The fundamental objective of this paper is to contribute to knowledge by determining what will positively influence the attitudes and behavior of works in Babcock University. In addition, this paper will also attempt to determine what will attract, retain, and motivate employees (Senior or Junior) in organization and to examine what constitutes an effective compensation that will satisfy both the goals of the employer and the employees.