Abstract

1.1    Background of the Study

          Organizations are established with the aim of effectively utilizing various available human and non-human resources to achieve certain objective. Among these resources in human, which is commonly seen as the most valuable asset an organization could use to earn competitive advantage and achieve its objective, hence the need for human resources management to ensure optimum productivity and organizational continuous existence.

          According to Sono (2014) organization is treated as a dynamic process and a managerial activity which is essential for planning the utilization of company's resources, plant an equipment materials, money and people to accomplish the various objectives. According to Noe (2012) human resource has been tagged the most valued asset of any organization. Its strategic approach emphasized a "tight fit" between individual needs, rights, ambitions, and goals within the organization which make compensation system central in the affairs of emerging students, scholars and HRM practitioners in the world over. The emergence of human resource management posed great threat to the conventional personnel management and industrial relation because it evolved from the core approach or organization relationship.