For this research study explanatory variable i.e. compensation structure that is
further investigated as explanatory variable, but limited to four major elements
including pay level, basic pay, bonuses and other benefits to see if an employee is
satisfied with all its compensation structure then what is its impact on organizational
effectiveness that directly influence the overall performance of employees within
the organization and eventually resulting in increased organizational effectiveness.
Compensation is the monetary and non monetary pay offered to employees of the
organization against the services provided by them. Compensation serves as
controller when given as salary and as a motivator when given as incentives (Cooke,
1999). There may be various components of a compensation structure but this
research is limited to the under-mentioned factors only