The study critically explored the effects of compensation management on organisational productivity. Descriptive Survey Design was adopted in the study. A total number of One Hundred (100) copies of questionnaire were administered to the respondents during the study. Chi-Square (X2) test statistics was used to test the hypotheses in order to establish the relationship between the dependents and independents variables in each hypothesis. Data analysis was carried out at five percent 0.05 (5%) level of significance. The thrust of the study was to evaluate the role of compensation management in organisational productivity; vis-à-vis reward system, employment benefits and compensation policies. Three (3) hypotheses were tested; and the entire alternative hypotheses were accepted; as the result showed that compensation management is a significant determinant of organizational productivity; the findings also revealed that there is a significant relationship between reward system and employees’ commitment. The study recommended that organizations should provide a compensation package that provides a competitive edge required to attract the best skills in the labor market, to retain and motivate them.