Abstract
For the purpose of this paper compensation is regarded as the HRM practice that deals with every type of reward that individuals receive for performing organizational tasks. The determination and management of compensation was once relatively straightforward (Despres & Hiltrop, 1995). It focused on individuals, hierarchies and the division of labour. The building blocks of compensation systems were jobs, pay scales and grades while control and secrecy were principle operating philosophies (Zobal, 1998). However, increasingly competitive business environments are forcing many sport organizations to move away from traditional compensation strategies to improve organizational performance (Appelbaum & Mackenzie, 1996).
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