[JGuru]

First extract the compressed file, open the Terminal Window

$ gzip -d package.tar.gz

Now, you'll get a TAR archive file in the same directory.

$ tar xvf package.tar

To install a software package:

$ su -
# ./install.sh
Or you may get a file by name package-install.sh
Also read the file README for full instructions.

To install the package from the Source code:

First you should have installed the C/C++ compilers (gcc, g++, etc.,)

$ ./configure
$ make
$ su -
# make install

You can follow the steps given by @Mediator, I'm just making things more clearer
& simple for you to understand.