conomies around the world saw a booming trend and governments in different nations began to play a larger role in American workers pay determination and remuneration. The American government soon ratified the Act Executive order 11246, Title 7 of equal pay within the Civil Rights Act of 1963 (Noe, et al., 2003).
In this context, one can cite the case of Nigeria, where Decree of 1987 provided for details of workmen compensation wherein all businesses and companies had to give a workman’s compensations coverage that was designed for the benefit of employees even in case of any injury or incapacity to work while being on the job. The Decree was modified and followed by the Reform Act in 2003, which made it mandatory for companies to have a life insurance policy for each employee, working in favour of employees. Such insurance was to account for a minimum of 3 times the total gross emolument of the employee compensation (Bernadin, 2007).
Compensation has a significant effect on success of any organization. This comes through with the treatment of employees as a capital investment. The company should focus towards improvement of their skills and productivity along with the comprehensive human element in the workplace. The prime objective of the compensation design program was to divide the entire compensation format into two basic groups, which were the direct compensation group and the indirect compensation group. Direct compensation is related to direct wages and salaries, while indirect compensation relates to benefits that are enjoyed by workers from the company. It was devised by Cascio (2003) that integration of the two formats contributes towards attainment of organizational goals through employee motivation and content.
The term compensation might have quite a few meanings through its diverse attempts to conceptualisation.