This book focuses on the criterion used by the entrepreneurs to reward their employees and to find out how the performance is measured in these small entrepreneurial ventures. It was intended to highlight the problems faced by the entrepreneurs particularly on the issue of rewarding seniority over performance and vis-à-vis. It also focused that rewarding seniority over performance has led to inequity in compensation evaluation that results in de-motivated workforce by further emphasizing that whether employees believe that they are being paid relative to their performance or not. It will also underline the problems faced by the entrepreneurs while rewarding their employees and will provide a guideline to the future researchers on the topics of Entrepreneurship and HRM. This is relatively a new but vital domain and not much research has been done particularly on this topic especially in Pakistan. This study will help future entrepreneurs to be aligned with HR practices and avoid the mistakes of the existing entrepreneurs. In addition to that it will also enable entrepreneurs to recognize the factors that affect the employee's performance and eventually leads to the de-motivation.