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Student of Donetsk National Technical University Bashmak
Maksim

Master of  DonNTU

Maxim Bashmak  

Faculty: Management

Department: Personnel Management and Labour Economics

Speciality: Personnel Management and Labour Economics

Master thesis topic

Improvement of Material Stimulation System of the Industrial Personnel

Scientific supervisor: Ph.D.(in Economics), Associate Professor of PMLE Department Elena Chumachenko


About author

Summary of research and developments


The purpose: Improvement of acting payment systems on the basis of implementation of broadband payment system.
Tasks:
·         to analyse wages differentiations in Ukraine and  in regions
·         to reveal relation of payments to sizes of jobs, qualification of workers
·         to develop and modernise the acting payment system at enterprises
 
Object: payment process and work stimulation at the enterprises of Ukraine
Subject: methods, which may help to maintain dependence of labour payment from complexity and quality of work
Introduction
 
How can management force labour to work in the most effective way? The answer to this question underlies any personnel policy. There is the most important wage system on the first place among the factors influencing productivity of labour usage. It is mostly a wage to be the reason, which forces the worker to work. Therefore, significance of the given problem is difficult to overestimate.
 
Urgency
 
Increase of a role of material interests is caused by that there in the conditions of market economy enterprises look for the new models ­ of labour payment, which could break wage levelling and give space for development of personal ­ material interests. An incentive scheme should focus not on the diploma qualification, but on a skill level of current work or work used while decision-making.
 
The analysis of the last researches and publications
 
Such scientists as I.Bondar, M.Volgin, J.Kokin, A.Kolot, E.Libanova, I.Lomanov, N.Pavlovskay, A.Chuhno, R.Jakovlev, G.Jaroshchenko and others investigated various aspects of the payment organisation for workers of industrial spheres, patterns of ownership and subordination, etc.
These scientists investigated usage of practical experience in the payment organisation for workers of industrial and budgetary spheres, administrative structures of the government, including change in the organisation system of payment and material stimulation of these categories. New approaches to labour payment, to improvement of current approaches in the payment organisation with allowance for economic development and changes in economic activities are offered also.
 
Summary
Place and role of material stimulation in business is difficult to overestimate. For a chief it acts as powerful control leverage. As for staff, it is affected by some factors: actually money, allowing to receive welfare, the factor of activity estimation, forcing to support certain quality of work, and the factor of the social importance, acting both in the team and  in various public sections.
Material stimulation is an encouragement of workers with monetary payments by results of labour activity.
Implementation of financial incentives allows regulating behaviour of management objects based on use of various monetary payments.
Material stimulation has two principal types:
  • Material stimulation by money resources (payment of tariffs and salaries, awards, after-payments, fines, etc.)
  • Material stimulation by various material benefits (apartments, consumer objects, etc.)
 
The important tools of material stimulation are after-payments, salary supplements, compensations, bonus payments:
  •          After-payments.
  •          Salary supplements.
  •          After-payments to basic wage rates.
  •          Compensations.
 
The development of personnel stimulation system
 
 
1 - at first it is useful to hold a training seminar for company executives, devoted to questions of motivation, stimulation and labour payment. Creation of high motivation at employees on achievement of the purposes of a company is a task for all chiefs, and not just for a general director or a personnel manager.
2 - it is necessary to carry out diagnostics of existing system of work stimulation in the organisation. The given stage is executed in order to find out formed situation in the organisation and the analysis of the real reasons of workers low motivation for performance of the official functions and requests of chiefs.
3 - it is necessary to carry out diagnostics and the analysis of personnel labour motivation structure in the company. At the given stage, written quiz of workers by means of the special questionnaire with further processing of the received information should be conducted.
4 - it is necessary to study features of existing wage system in the organisation. At the given stage the analysis of the accessible information is made to define the optimum wages size of workers.
5 - working out and reasoning of a constant component of wages are conducted. At the given stage scales of official salaries, standard indicators of results are defined or corrected, qualifying bonus payments and after-payments for particular working conditions are defined.
6 - working out of a variable part of wages is conducted. At the given stage there are analyzed possibility of usage in the organisation of various kinds of awards, such, as the award by individual results, the award for the investment in division work, the target award, the award by the general results of the company work.
7 - the analysis and reasoning of social package are at this stage. Principles of social package distribution are worked out (levelling, according standing, hierarchical), its structure and pecuniary valuation for various categories of workers in the company are defined.
8 – non-monetary types and forms of stimulation are developed. At the given stage diverse stimuli (natural, moral, organizational, paternalistic, etc.) with allowance for specificity of the organisation, requests of its chiefs, features of workers and jobs, organizational culture of the company, experience of other organisations are worked out.
Nowadays material stimulation of work is one of the most effective systems for workers prompting to active labour activity.
 
Conclusion
 
The carried out research of a labour payment sphere and stimulation of hired labour allows making a number of conclusions. Improvement of wage systems can already give us current growth of workers interest in effective work. Recently there emerged­ a necessity of such wage system, which would generate powerful stimuli of work efficiency strengthening. Now a worker is interested even in small payment increase.
The given research shows that efficiency of work and quantity of made production depends on the form of material stimulation and labour payment chosen by the enterprise.
          The competent policy of the state in the payment field can play the major role in stabilisation of the entire national economy, help to overcome a problem of inequality in reward distribution.
When writing this abstract the master"s qualification work is not completed. Date of final completion of work: Desember, 1, 2010. Full text of the work and materials on a work theme can be received from the author or his scientific supervisor after that date.

References

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