Human Resources are the key drivers of the prosperity and success of any organization. Unless and until the organization does not offers salary, rewards and due benefits according to its employees needs and wants, it would not be able to conquer the highest level of efficiency and competence of the recruits. Compensation Management is one of the most complex and dynamic issues in the field of human resource management. The ability of a manager to achieve its stated objectives to a large extent depends on the effective implementation of compensational packages in order to motivate the subordinates and employees within and beyond their expectation. Compensation is a key element of the employment relationship and, in addition to being the single greatest operating cost for many organizations; it has been advocated as a tool for enhancing organizational performance and sustained competitiveness. Compensation management is one of the strapping feature that organizations use to attract and retain its most valuable and worthy assets. The present study is an attempt to identify the various factors affecting employee compensation and to study the relationship between compensation and job satisfaction, motivation and organisational organisational commitment of employees.