Effective compensation management is paramount in a business setting and can be thought of as a continuous spectrum that ranges from compensation management strategies employed by the organization to employee performance and the overall organizational performance. The paper adopted a qualitative approach concerning data collection which encompassed interviews with the HR personnel as well as secondary data collection. As discussed in the literature, the compensation management system influences the employee performance, and this is also evident at the studied pharmaceutical company (in Amman Jordan) discussed in this paper.