Human Resource play a vital role in bringing about the process of production/business. Compensation is a major function in Human resource management that helps in maintaining a satisfied workforce. Effective administration of compensation makes the employees feel that they are a valued. This study investigates the effects of compensation and its components such as payment, promotion, recognition, working condition and benefit in motivating the employees. Various articles were taken initially and studied, out of which 30 articles were shortlisted to be reviewed for this study. These 30 articles were reviewed thoroughly to understand the discussions of the various authors about compensation and motivation. The learning of the article review process was used to form implications of the study and later the conclusion which indicates compensation as a crucial aspect of performance as it fuels the motivation of the employees
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