Armstrong (2005) stated that compensation management is an integral part of human resource management approach to productivity improvement in the organisation. It deals with the design, implementation and maintenance of compensation system that are general to the improvement of organisational ,team and individuals performance Compensation management is concerned with the formulation and implementation of strategies and policies that aim to compensate people fairly, equitably and consistently in accordance with their values to the organisation, (Armstrong, 2005). Compensation management as the name suggests, implies having a compensation structure in which the employees who perform better are paid more than the average performing employees (Hewitt, 2009). This encourages employees to work harder in order to regain more salaries. Armstrong and Brown (2005) postulated that compensation management is an integral part of human resource management (HRM) approach to managing people and as such it supports the achievement of business objective and it is strategic in the sense that it addresses longer term issue relating to how people should be valued for what they want to achieve.