Compensation Strategy

Construction is one of the fundamental sectors that have an impact on the growth of infrastructure and the economy of the country. Construction business opens up many job opportunities for the community both in the urban and rural areas. It requires a lot of resources such as capital, human and non-human resources. Human resource is one of the main resources that is required in any organization. A study was conducted in a Nigerian construction company called Pecolo-Brunelli Engineering Limited. This study indicated that the compensation system is the major issues for personnel management. It has an impact on the performance and the sustainability of the organization. Any company that fails to identify the worth of compensation to its employees usually faces the dire penalties of that negligence. The study further indicated that any organization that fails to understand the significance of the compensation in the lives of its employees is at high risk failing. The organization needs to pay attention to the personnel resources inside the organization to ensure a smooth functioning of the organization. Source: Dahri, Ali, Memon (2020)


QUESTION 1: 25 MARKS
By looking at the above study explain the direct impact of the compensation strategy towards the performance and sustainability of the organization.