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Master of Donetsk National Technical University Olga Strusevich

Master of DonNTU
Olga Strusevich

Educational and Scientific Institute “Higher Shcool of Economics and Management” (IEM)

Faculty: Management (М)

Department: Personnel Management and Labour Economics (PMLE)

Speciality: “Personnel Management and Labour Economics” (PMLE)

Theme of Master's Work: “Stimulation of Workers Labour Activity”

Scientific Supervisor: Ph. D.(in Economics), Associate Professor of the department PMLE Nataliya Podlujnaya

 
Autobiography

ABSTRACT
of the qualification master’s work
"Stimulation of Workers Labour Activity"


CONTENT

INTRODUCTION
1 THEME URGENCY
2 COMMUNICATION OF WORK WITH SCIENTIFIC PROGRAMS, PLANS, THEMES
3 PURPOSE AND RESEARCH TASKS
4 THE SCIENTIFIC NOVELTY
5 PRACTICAL VALUE OF THE RECEIVED RESULTS
6 APPROBATION OF THE WORK RESULTS
7 THE REVIEW OF DEVELOPMENTS AND RESEARCHES ON A THEME
      7.1 Methods of financial stimulation of labour
      7.2 Methods of non-material stimulation of labour
8 STIMULATION OF ACTIVITY OF CREATIVE WORKERS
CONCLUSION
BIBLIOGRAPHY


INTRODUCTION

The path to effective professional activity lies in understanding his motivation. Knowing what drives a man that prompts him to work, what the motives underlying his actions, you can try to develop an effective system of forms and methods of management. To do this you need to know how to arise or are caused by these or other motives, and by what means motives can be brought into effect, how the motivation of people. Today there are an enormous number of ways to influence the motivation of a specific person, and their range is constantly growing.

The basis of persistent economic growth provide the level of development and the dynamism of innovation sphere and occurs when using knowledge and innovation. Innovation leads to the formation of new branches and industries, as the initiator of them is human creativity and innovator. Therefore, the development of effective measures to stimulate the creative staff at the enterprise is a prerequisite for improving productivity and increasing profits at the company, which makes the relevance of the research topic.

A large amount of literature on incentives is accompanied by a variety of points of view on their nature. That, of course, prejudge the great interest in the problems of motivation and incentives for people to work, in particular professional. Motivation work widely reported in the scientific literature and foreign scientists. Among them: Afonin A.S., Vitevska T.F., Zdravomislov A.G., Kovalev V.I., Kolot A.M., Nelga A.V., Podmarkov V.G., Yadov V.A. and others.

Motivation is the process of establishing a system of conditions or motivations that affect human behavior and channel it in the right direction for the organization which govern its intensity, and the limits that lead to the appearance of integrity, perseverance, diligence in achieving the goals.


1 THEME URGENCY

The urgency of this subject stems from the role played by management personnel. Managers are often called the executive heads, as the main thrust of their activities is to ensure that the work of this organization. Managers should always be aware of the need to encourage people to work for the organization. Understanding the mechanism of motivational sphere of rights, managers can effectively manage personnel, increasing the productivity of enterprises by motivating their staff.


2 COMMUNICATION OF WORK WITH SCIENTIFIC PROGRAMS, PLANS, THEMES

Qualification master’s work was carried out during 2008-2009 years according to scientific directions of the chair « Personnel Management and Labour Economics» of Donetsk National Technical University.


3 PURPOSE AND RESEARCH TASKS

The aim of this work is to study the characteristics of the stimulation of labour workers activity, modern foreign practice incentive. In the task of master's work includes:

  1. Define the concept of motive, need, stimulus and stimulation.
  2. Consider the modern concept of stimulation of labour workers activity.
  3. To review the basic methods of financial and non-material stimulation of labour.
  4. Study methodology and practice of building systems, incentives for stimulation in foreign countries.
  5. Develop methods to improve systems of stimulation workers.

The object of investigation methods for motivating creative activity in the enterprise.

The subject of research are theoretical and practical approaches to incentive schemes for staff to modern enterprises.

Research methods. In this paper we used the method of analysis and synthesis, with the combination of which provides a systematic approach to such a complex phenomenon as the promotion of labor, the method of dialectic, which reveals the mechanism of stimulation, as well as modeling techniques, i.e., building models, which represent the main economic indicators, factor analysis with assess the factors that affect the financial results, the method of chain substitutions.

4 THE SCIENTIFIC NOVELTY

The scientific novelty of the work consists in:

  1. Were further developed methods of enhancing the motivation of creative workers in the enterprise.
  2. Improved methods of assessing performance creative workers.


5 PRACTICAL VALUE OF THE RECEIVED RESULTS

The results can be used to stimulation of labour workers activity, especially the stimulation of creative workers in enterprises of different ownership forms. They also help to improve the existing systems of motivation in companies and may become the basis for developing a new system of motivation for new enterprises.

6 APPROBATION OF THE WORK RESULTS

  1. Olga Strusevich. Stimulation of labor as an element of the management personnel of the enterprise / Actual problems of economic and social development of the productive sphere/ Abstracts of the conference. - Donetsk: Donetsk National Technical University, 2009.
  2. Olga Strusevich. Stimulating activity of creative activity of employees / Current trends of management: legal and economic aspects / Abstracts of the conference. - Donetsk: Donetsk National Technical University, 2010.
  3. Olga Strusevich. Features stimulate creative work in the enterprise / Actual problems of economic and social development of the productive sphere/ Abstracts of the conference. - Donetsk: Donetsk National Technical University, 2010.

7 THE REVIEW OF DEVELOPMENTS AND RESEARCHES ON A THEME

7.1 Methods of financial stimulation of labour

Under the material motivation should understand the desire for wealth, a certain level of wealth, material standard of living. The aspiration of man to improve their well-being makes it necessary to increase the contribution of labor, and, consequently, increase the quantity, quality and efficiency of labor.[1]

The leading role of motivation in physical labor belongs to wages as the main form of income employees.

Impact of high wages in the motivation of work and increase production efficiency multidimensional and manifests itself primarily in this. First, high wage level (against the market average of its value) helps reduce staff turnover and, hence, ensures the formation of a stable workforce. In the case of reducing staff turnover employer has the opportunity to reduce costs in its hiring and training, giving the funds released for production development, which, in turn, will improve the competitiveness of products. Secondly, the policy of high wages makes it possible to select the labor market the most prepared, experienced, motivated, success-oriented employees whose productivity potentially higher secondary level. In this case, also achieved savings in training, retraining just taken a job. Third, higher wages, a factor increasing a diligent, responsible attitude to work, its intensification. This motivates an attempt to "work out" fee, which is higher than the market average, and fear of being fired and losing favorable terms of sale of their business services.[2]

Relationship of high wages, efficiency and income growth, shown schematically in fig. 7.1.

Figure 7.1 - Relationship of high wages, efficiency and income growth

Figure 7.1 - Relationship of high wages, efficiency and income growth
(Animation: volume - 8,34 КB; size - 694х580; delay between the last and first shots - 80 ms; number of repetition cycles - infinite)

The most important direction is the incentive bonus. The award encourages special elevated results of labor and its source is the material incentive fund. It is one of the major components of wages. For the object of incentive bonus is divided into individual and collective.

Individual bonuses (incentives directly to individual workers) should be used only when the organization of production includes the work of each member of the team independently of the others, if taking into account individual performance of labor or when the work is done, for which required special skills, such as working on unique equipment and so forth. In this case, all parameters and conditions for awarding bonuses are set directly behind the professions or types of work, but there are premium on the basic salary of each worker, depending on the progress of individual results.

Collective bonus can be used in collective and individual at the organization work. His goal - to interest the workers in the overall performance of the brigade, the site of the shop. Collective award comprise (depending on whether the collective performance) on the basic wage Brigade (site, shop) and distribute it among employees based on their personal contribution, based on the basic wages, hours worked and labor force participation rate.[3]

Surcharges and allowances - is an independent element of salary in terms of its structure.

Compensation - cash payments, set for the reimbursement to employees for expenses related to their employment or other statutory duties.

7.2 Methods of non-material stimulation of labour

Profound changes in the structure and quality of labor, the content of labor, the exhaustion of reserves growth of labor efficiency due to the physical capabilities of man, in need of innovative approaches to enhance motivation. This task is to give effect to the possibilities of man, which are related to his skill, education and training, facilities, development of labor potential, commitment to creativity, self-actualization. Such findings are not only theoretically justified but also confirmed the practice.

Methods of non-material stimulation of labour include:

1. Planning a career as a motivational factor.

In the socio-economic literature, the concept of career is ambiguous. The most common definition is treated as a career advancement in their chosen field of work, which gives more powers, authority, the supreme status. Define his career and the totality of all posts (qualification levels), which fit into a working life. Usually two types of career: professional and intra-firm. Professional career - this is, in fact, different stages of professional activity: education, work and gradual development of individual professional skills, professional growth, and, finally, retirement. These stages are an employee may take one or in different organizations.

According to the theory of justice, when employees see the dependence (on themselves) between the level of performance and career advancement, it contributes to their work activity. At the same time a person starts to focus on the prospects for its growth, promotion, because, in its opinion, will be accompanied by fair compensation. Stability of employment, a clear growth perspective - no doubt the priority needs and motivational factors of work. And, therefore, career planning should be given priority.[5]

2. The regulation of working hours and encourage the provision of free time.

One of the basic needs of each person is free now and favorable business hours. With this in mind the priority areas to strengthen the motivation of work may include regulation of working time and the promotion of free time. World and domestic experience shows that currently in practice have developed a number of models of flexible working time arrangements and the role of free time, which are considered as components of unconventional methods to strengthen the motivation to work.

The provision of additional free time. This tool is implemented external motivation differentiation (change) the duration of primary and variety of additional leave their split in certain parts, providing opportunities to work part-time or part-time, shorter working periods and the like.

The redistribution of working time. This method of promotion in recent years has expanded greatly. By offering the employee the ability to decide the beginning, end and duration of the workday, but subject to a monthly (weekly) norms of working time, mandatory compliance with established labor standards (targets), preservation (maintenance) of the normal course of the production process [6].

3. Awareness of the team as a motivating factor.

Theoretically substantiated and proven practices that there is a direct relationship between the level of awareness of the collective, and hence transparency of corporate activities and motivational attitudes of staff.

Forms awareness of staff varied, among them to name just a few of which are widely used in foreign companies and deserve the attention and use in domestic practice.

Directory of staff - a booklet that contains basic information about the organization. These guides have appeared in leading companies in the world still in the prewar period, and is now an important part of the communication process in most companies in developed countries.

In-house publications (newspapers, magazines, factory newspaper, and the like) - a periodical that publishes a variety of materials on professional and social life in the company, other information which may be of interest to employees.

Recognition for a job well done. The statement of man well done thanks for the robot are an effective means of promotion. Most managers are taking it casually as to some fun, who coined by psychologists and has little relevance to real life where you want to be cruel and demanding of myself and to others. However, studies still show that the statement of recognition is very important for the morale of the people and their moods on a high-impact work.

Articles in the corporate print media. One of the most important for the employees of the encouragement of the organizations concerned are materials in which marked their merits. In this case the task is put not only pay tribute to the best workers, but also show a broad spectrum of what behavior is and what the results have merit and honor in the company.

Gifts from the leadership. As gifts, you can use gift products with company logo (icons, tie clips, mugs, t-shirts, caps, ties, etc.), it enhances the favor of employees in your organization. Typically, employees are pleased badges, t-shirts and baseball caps bearing the logo of his company. It is also an additional opportunity to advertise the company, a favorable image of her in the eyes of potential customers, partners and future employees.

Status symbol. Changing the status of staff (promotions, invitations to participate in new projects) is also an important form of immaterial incentives. By the same category can be attributed as follows: to provide the Secretary to provide a service vehicle, the improvement of working conditions, the proposal to participate in a more interesting or materially more favorable project (for project-type organizations), as well as the possibility of using company equipment for own projects, individual office, sign on the door with the name of the employee, additional equipment, office, special places for parking.

Organization of competitions and contests. Any manager understands that the success of his business is directly linked with the professionalism of its staff. A good bookseller should be able to provide comprehensive information about the product and attach the buyer. Realizing the importance of a literate work with potential buyers, large trading companies in different ways stimulate the sales staff and sales areas, to improve the quality of visitors and by themselves be the winner. Many companies will organize a competition between the workers and entire teams.

Raising - good reward for good work in the light of accompanying changes in salary, position, authority. However, rising as a strong incentive to be well calculated. While the employee is not ready for greater responsibility, higher could cause subsequent failures. On the other hand, very slow progress - sometimes the reason for dismissing an employee. [7]

8 STIMULATION OF ACTIVITY OF CREATIVE WORKERS

Stimulation - the means by which the motivation. In the practice of modern companies implemented two-stage approach to stimulate labor in the innovation process: the desire to maximize the creative personality and the direction of activity of the employee to achieve a specific business result.

This motivation is the process of establishing a system of conditions or motivations that affect human behavior and channel it in the right direction for the organization which govern its intensity, and the limits that lead to exercise integrity, perseverance, diligence in achieving the goals.

The analysis shows that the main motivating factors that lead to a better working knowledge workers are:

  1. High and a decent wage, and a variety of allowances, bonuses and benefits.
  2. Non-financial rewards of labor, which include all methods that do not directly relate to wages and that the company uses to reward its employees for good work and increasing their motivation and position in the organization. There are many types of non-material rewards, among which there are: the advantages associated with the schedule of work (a flexible work schedule, pay non-working time, etc.), material non-financial rewards (gifts from the company), pay-thanks "- this is the basic words of gratitude staff for their work, highlight their achievements in the media and posting their pictures on the leaderboard, fees associated with the change in status of the employee (increase employee training, the company's expense).
  3. The possibility of self-development and expression of workers.
  4. Creation of "environment" - certain conditions that encourage creativity. "Environment" shall include the provision of professionals need modern resources, the release of its janitorial work, providing it with independence. Another important point in creating an environment of creativity is the organization of informal communication (informal scientific communication during the work). This type of communication, during which information is exchanged, which increases the possibility of accelerating the impact of the innovation process.
  5. Socio-psychological climate in the team.

In practical became common variety of forms of moral incentives and rewards. Different methods of recognition of creativity, enthusiasm, initiative. This individual and team awards, honorary degrees and titles, a badge of honor, a public presentation of certificates, badges, competitions and publication of their results, in-house newspapers, newsletters.

Motivating creative employees to innovate is directly linked to public research and innovation policies. Therefore, another aspect of the motivation to innovate - a state of legal protection of intellectual property. Cost investments in research and development of intellectual products will pay off only if the intellectual property will be protected in the legal order.

Thus, for creative professionals monetary motivation is certainly important, but in some cases it becomes important motivators of self-expression as a means to meet the needs of the highest order. For example, the prestige, job satisfaction, career advancement, power and influence, to express themselves as individuals. It is therefore important to develop a system of incentives, tailored to the psychology of the individual.

CONCLUSION

As a result of research work have been collected and studied materials on issues related to the theme of master's work. There have been studying a variety of approaches to the material and spiritual promotion of employees. There were also highlighted their advantages and disadvantages for different categories of personnel. Particular attention was paid to promoting activities of artists.


BIBLIOGRAPHY

1. Колот А.М. Мотивація, стимулювання й оцінка персоналу: Навчальний посібник / Ред. І.О. Соломарський; Київ. нац. екон. ун-т. – К. КНЕУ, 1998. – 224с.
2. Богиня Д.П., Гріжнова О.А. Основи економіки праці. – К.: «Знання-Прес», 2001. – 313 с.
3. Вардянин И. Предложения по совершенствованию системы нематериального стимулирования // Управление персоналом. – 2005. - № 4. – С.34-42.
4. Полянский Н. Нематериальные формы мотивации // Менеджер по персоналу. – 2006. - № 9. – С. 30-33.
5. Сытник Н. Мотивационный подход к оценке карьеры // Управление персоналом. – 2008. - № 6. – С. 42-46.
6. Левина О. Управление временем – это управление собой // Управление персоналом. – 2006. - № 17. – С. 26-29.
7. Магура М., Курбатова М. Моральное стимулирование // Управление персоналом. – 2007. - № 13-14. – С. 361-384.
8. Веретено Д. Мотивація по-українські // Менеджер по персоналу. – 2007.- №4. – С.47-49.
9. Лобза А. Усовершенствование систем стимулирования труда в современных условиях // Менеджер по персоналу. – 2006.- № 4. – С. 18-21.
10. Лук'янихін В.О. Менеджмент персоналу: Навч. посіб. – Суми: ВТД „Університетська книга ”, 2004. – 592 с.
11. Овчинникова Т.И., Кобелева С.В. Современная концепция стимулирования деятельности работников // Кадры предприятия. – 2007. - № 10. – С. 97-101.
12. Хайем A. 17 способов повысить мотивацию сотрудников [Electronic resource]/ - Access mode to article: http://www.ubo.ru/articles/?cat=107&pub=1261


NOTE

When writing this abstract the master’s qualification work is not completed. Date of final completion of work: December, 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.


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