Final answer:
Compensation refers to the rewards or benefits received by employees. It can come from within the organization or from an external source. Compensation is important for attracting and retaining employees.
Step-by-step explanation:
In the context of the question, compensation refers to the rewards or benefits received by the employees of an organization. It can consist of both financial and non-financial components. There are two possible sources of compensation mentioned in the question:
- From within the requesting unit's force structure: This means that the compensation comes from the same organization or unit that the employee belongs to. For example, a teacher's compensation might include salary, health benefits, and retirement plans provided by the school district.
- From another source: This refers to compensation that is obtained from a different organization or entity. It could include bonuses, grants, or allowances provided by external sources. For instance, a teacher might receive a grant from a nonprofit organization to fund a special project in their classroom.
Overall, compensation plays a crucial role in attracting and retaining employees by providing them with the motivation and satisfaction they need. It helps meet their financial and non-financial needs, ensuring a fair exchange for their time, skills, and efforts.