“…This transformation process has shifted its paradigm of maintaining personnel functions to a new paradigm in forming strategic partnerships with their stakeholders and line administrators in organisations (Brewster, Mayrhofer & Smale 2016;Noe, Hollenbeck, Gerhart & Wright 2017;Watson, Wilson, Smart & Macdonald 2017). With the new shift, human resource administrators acknowledge that creativity and willingness to work hand in hand with their stakeholders and line administrators in order to enhance the effectiveness of managing human resource functions is a prerequisite, especially the compensation system (Berber, Morley, Slavić, & Poór 2017;Budhwar, Varma & Patel 2016;Noe et al 2017). The traditional compensation systems based on institutional regulations, minimum salary requirement, employee service agreements, trade unions and judicial decisions of the courts of labour are further influenced by the considerations of the job evaluation, rank of the employee, current living standards, the dearth or excess of the employees, the bargaining power of both parties and the inherent capability and skill sets offered by the employees therein.…”