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Compensation or reward is something that is received by the employee because during certain periods have been doing work in accordance with jobdesk or objectives of the company. Compensation systems in the organization should be connected with the objectives and organizational strategy so as to boost the motivation of employees in order to constantly improve its performance that will have an impact on improving the productivity or performance of the company. Mathis and Jackson (2006) claimed compensation is an important factor affecting how and why people choose to work in an organization than any other organization.
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