Flexibility of compensation and rewards systems a way to promote entrepreneurship

Compensation and reward systems play critical roles in attaining، maintaining and motivating human resource of any organization. This paper aims to examine the impact of compensation and reward systems on entrepreneurship. A survey questionnaire was designed for the purpose of this research. Personnel of Research Institute of Petroleum Industry (RIPI) completed the survey. Research data are analyzed using descriptive، correlational analyses and Structural Equation Modeling. Research results indicate that compensation and rewards have a positive and significant relationship with organizational entrepreneurship. Equitable، incentive and performance based compensation also have positive and significant relationships with organizational entrepreneurship.