When compensation work effectively it’s profit for the organization and worker.it is effective if everybody work the collaboratively managers, staff, human resource, all play vital roll. to draw in the capable worker to the organization. Capable worker enhance the organization productivity and performance of the organization.to inspire worker towards bring home the bacon the structure goal. Compensation plays the vital roll to cut back ratio rate and to realize the inner and external equity. workers raise their performance level to realize the compensation and incentives, compensation. Compensation is essential roll to inspire the worker to realize the organization goal.performance management play the vital role rising the worth and strength of the organization. performance management embody take care of overall performance wherever the organization meet their target .performance management is that the series of the organization processand application designed to optimize execution of the business strategy .performance is that thevital tool that for supporting worker performance and enhancements. however the utilization of a performance management system affects overall structure performance. Some researchers notice that performance management enhances each the monetary and non-financial results of a company, whereas others don’t notice any positive effects or, at most, ambiguous effects. a vital step toward obtaining additional clarity during this relationship is to analyze the role performance management plays in making and maintaining a high performance organization.When talking together with your team concerning the method, take care to stress its edges, and encourage workers to requirepossession of their own performance and development.Use the annual performance review meeting to review the achievements, setbacks, development and coaching that have already been mentioned throughout the year — so use this data to ascertain goals and a development set up for the approaching year.