The Role of Reward and Compensation System in Employee Motivation:a CASE Study of Madagascar Railway

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The question of valuing human ressources in the world of work has led to enormous changes in the implementation of organizational strategies.Setting up an adapted management system in order to attract the best competences, to retain them and to ensure their motivation is therefore a real challenge for any organization that hopes to succeed in performing.The theme we propose to deal with will conern the motivation and how rewards and compensation can motivate employee.  Compensation is what is paid to an employee,whether in the form of wages,salary or incentives by the employer for a specific amount of time,skill and effort made available by the employee in fulfilling specific job requirements.  Compensation is important in organisations as it conveys information to an employee about their relative importance to the organisation and provides a scale to identify how much recognition they are receiving for their contribution.Compensation shows employees how much they are appreciated and worth.The most important differentiating element between jobs is the effort involved in performing a job.  The compensation issue is currently at the top of human ressources management pratices,in the logic of the consideration of the human factor as a strategic lever leading to the achievement of objectives.It appears necessary to put the question of the compensation of workers on astrategic point of view.Payroll management and pay practices become important because it is averyeffective means of motivating employees,wich leads to increased productivity.  
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