How to tar and compress a directory

You want to compress the folder "setup", located in /u01/admin/scripts, with all its contents including subfolders:

cd /u01/admin/scripts
ls -latr 
drwxr-xr-x  8 oracle dba  8192 Mar 13 09:17 .
drwxrwxr-x  2 oracle dba  4096 Mar 13 09:40 setup

tar -cvzf setup.tar.gz setup