Productivity or effectiveness of an organization frequently suffers as a result of high level of absenteeism and worker turnover. There is evidence that all concerned owners, contractors and workers are interested in resolving problem. This study examines the source and size of problem and recommendations to reduce it. For this purpose we have conducted interviews and literature survey in order to investigate the organization effectiveness. This report describes an HR management tool for decreasing turnover at Dancom Communication. High employee turnover is like shrink. It cuts into the bottom line, but it can be controlled. There are many potential causes for turnover. Certainly, area economic conditions as well as other factors such as labor market conditions, effect general turnover rates. In voluntary turnovers are difficult to directly manage however are voluntary turnover that can be managed. The purpose of this literature survey is to allocate the important variables of our existing problem i.e "How does employee's turnover affect the effectiveness of organization". With the help of these variables we a can assess the variables related to our problem for structuring theoretical framework. This survey includes the situation which had occurred in past with others companies and how those companies deal with these variable means how they solved different problems. After completing literature survey and defining problem there is need to develop framework. In it we try to discuss the interrelationship among the variables that are deemed to be integral to the dynamics of the situation being investigated. Different variables can affect the effectiveness of organization we are considering all-important variables that can effect company. After the thorough study of literature survey we deduct some variables, which can become a cause that can effect the sales and keeping in mind we make schematic diagram of the theoretical framework so that the reader can see and easily comprehend the theorized relationship. The research design, which involves a series of rational decision-making choices, the various issued involved in the research design, will be discussed here. Like Purpose of the study, Types of investigation, Extent of researcher interference, Study setting , Measurement and measures, Unit of analysis, Sampling, Time horizon and Data collection method. But the hypothesis statement, which we are going to proof, it will come under hypotheses testing study. This study that engage in hypotheses testing usually explain the nature of certain relationships, or establish the differences among groups or the independence of two or more factor in a situation Causal type of investigation is done, when it is necessary to establish a definitive cause and effect relationship, however, if the researcher simply wants a mere identification of the important factors "associated with the problem" then a correlation study is called. Correlation type of investigation will be suitable for our research, actually our hypotheses is "effective compensation has positive impact on organizational effectiveness" That's why we select this method to identify the important factor associated with the problem. A correlation study is conducted in the natural environment of the organization, with the researcher interfering minimally with the normal flow of work. Organizational research can be done in the natural environment where work proceeds normally (no contrived settings) or in artificial, contrived settings. As we have selected correlation investigation method with minimum interference, then automatically our study setting will be no contrived. Its mean our research will be conduct under natural environment. What we are going to apply in our project that is ratio scale and interval scale because these scales give maximum accuracy in measuring the variable. Even though the method we have selected for investigation is correlation that provide less accuracy as compare to causal. In this project we selected" individuals and organizational" as a unit of analysis, and this selection is match with the definition of unit of analysis.. Why we chose probability sampling? Because the sample we get from probability have the quality of representatives. We have proved that there is positive relation between compensation and effectiveness.>