“…A compensation system based on excellence can increase employee performance (Delaney & Huselid, 1996) in the same way as a profit-sharing system increases productivity and improves performance by, among others, reducing absenteeism (Kaufman, 1992).In reality, compensation and rewards leads to employees' motivation, commitments, satisfactions (Katou, 2008;ALDamoe, Yazam & Hamid, 2013) and eventually can enhance productivity, sales, and overall organizational performance (Delaney & Huselid, 1996;Dreher, 2006 Top management's leadership is crucial and central to the implementation of TQM/HRM practices in any organization (Ahire, 1996;Li, Chen & Cheung, 2000;Sureshchandar et al, 2001Sureshchandar et al, , 2002). An important condition for an effective policy statement by an organization is support by top management, such as the CEO's cognition and will (Smith, 1991;Martinez, 1993;Seal, 1991;Williamson, 1993;Laabs, 1991;Losey, 1993).…”