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Abstract of the qualification work

Content

Introduction

Rationale of the issue

Labour motivation at an enterprise is conditioned by the number of problems one of which being dismissal of employees through a wrong motivation to act based on a stimulus, that is, a reward, promotion, or an administrative approval, an order. This issue is important for entrepreneurs because the solution of problems the society faces is possible only upon condition of creation of a proper motivational foundation capable of impelling the personnel to act efficiently.

The contemporary theoretical scientific achievements in the sphere of stimulus and motivation of the personnel at enterprises are based upon a more than one hundred year-old world experience in the work organisation. Thus, the regularity of motivational action and development of ways and mechanisms for its realisation as to enhancement of efficiency of labour activities are considered in the works of classic economists: F. Herzberg, D. McGregor, F. Gilbert, A. Maslow, and V. Vroom. Likewise, many domestic scientists devote their works to the motivation issues, in particular: D. Bogynya, À. Afonin, V. Vasylchenko, O. Krushelnytska, Î. Grishnov, Yu. Andriyako, À. Kolot, L. Dolgov, Î. Sosnin, Î. Melnik, À. Grinenko, Î. Baklan, V. Zadorozhniy, and S. Shapiro.

Despite the rich experience in labour stimulation of the personnel in the economic science, it leaves much to be desired. The labour stimulus systems, the criteria of their efficiency and selection with due regard to a more rational usage of manpower and operating resources of industrial enterprises in tough competitive environments, are still remain understudied.

The aim and tasks for the research work

The aim for the work lies in the analysis of labour motivation and attainment of an efficient stimulus for the personnel with the help of combination of a broad range of instruments for exerting an impact on labour efficiency. In accordance with the set aims, the following tasks were formulated and solved: a study of theoretical and applied problems of motivation, acquaintance with the social and economic aspects of public needs, review of impact of motives upon the actions carried out by people, analyses of categories of “motive”, “interest”, “stimulus”, the right understanding of “labour motivation” and “labour activity motivation” constructions, dependence of labour activity’s efficiency on motivation and labour stimulus, monitoring of economic interests of employees and the principal components of labour motivation.

The object and the subject of the research work

The object of the research work is the process of stimulating of an employee or a group of employees to act for the attainment of the goals set by an enterprise through satisfaction of their own needs. The subject of the research is theoretical and methodological, as well as applied provisions as to stimulating an employee or a group of employees to carry out their activities.

The practical significance of the research work

The results of the research work may be used at any enterprise with the aim of labour stimulating and motivation with the help of various methods and approaches.

The content of the research work

1. THE ORETICAL BASES OF MOTIVATION OF LABOR BEHAVIOR STAFF

Motivation and stimulation are the significant factors in the management of the personnel. The world-known authorities in the sphere of management emphasise that “...the people should be the priority; if there are no adequate personnel; the other factors of production won’t do for attainment of the set goals.” (T. Peters, R. Waterman). “When you already have a staff consisting of well-prepared, smart and enthusiastic people, the next step you should do is to stimulate their creative capacities” (A. Morita).

The term “motive” is derived from the Latin and means “to set in motion,” or “prompt.” Although the motive is differently construed in economic literature, the most frequently it would mean a conscious impelling to act [2]. Not only a motive impels a person to act, it also defines what is to be done and in what way exactly such action is to be done. A model of labour motivation through the needs is shown on Picture 1.

Conduct of a person is certainly defined not with one sole motive, but with the total of his or her motives [3]. At that, one of these may be the principal, leading motive, while the others perform the function of additional stimuli. Motives arise, develop and are formed on the basis of needs. At the same time, they are comparatively independent as far as the needs do not necessarily define the totality of motives, their force and constancy. With the same needs, different people may develop different motives and actions.

The notion of “labour motivation” can be construed in various ways, although the majority of its definitions have one idea in common. According to some authors, motivation is a conscious striving for a certain type of satisfaction of needs, or to a success. According to the others, labour motivation can mean anything which would set people’s activities in motion. Yet others consider motivation to be a hope for success and fear of failure. The authors of a well-known manual on the basics of management define motivation as a process of prompting others and oneself to act in order to attain both personal aims and goals of their organisation [7]. Quite widespread is the definition of labour motivation as a driving force of one’s conduct as a person’s aspiration for energetic actions with the aim to satisfy his or her own needs.

By the present time, under influence of the contemporary theories of motivation, there has been formed a new philosophy of personnel management at leading firms [4]. It reflects both conventional and (especially) unconventional approaches concerning impact upon people’s conduct and their interests.

The material stimulus systems are based upon comprehensive monitoring of economic interests of employees, consideration of their working and living conditions, marital status, working practices, and are an effective mechanism for combining of the material interests of the personnel and efficiency of their labour [8].

Here we should give the main components of labour motivation implemented at world-known IBM firm. Its example allows for seeing at first hand that it is unconventional approaches to commencement of labour activities that are the leading methods under the present conditions.Today, there are 15 most important principles clearly defined on which motivation is based at this corporation, and which are widely applied at other thriving companies around the world. These principles are being realised on a full scale virtually at all levels starting from the corporation as a whole and down to the department (affiliate) and units levels, and include the following:

• strong convictions, values and culture;

• respect to a personality;

• lifetime employment;

• hiring of high-class employees;

• a possibility to make a career;

• extended preparation;

• a common status;

• a system of attestations and interviews;

• a system of salary levels;

• a holistic approach towards employees;

• participation of the personnel in management;

• maximum responsibility;

• scheduled restrictions to management;

• horizontal liaisons;

• encouragement of differences in views [6, 9].

Along with “motive” category, there is also “stimulus” term widely used both in the theory and practice of labour activities motivation. Despite the fact that these categories have a long historic “record,” no unambiguous interpretation of how these correlate can be found in the economic literature. Although there is a widespread opinion the contents of “motive” and “stimulus” categories are identical, these notions are not equal. The “stimulus” (derived from the Latin stimulus that is a stick, whip, or lash) means an incitement to act, or a compelling reason. Proceeding from the etymology of the term, there are outer causes (material, moral, etc.) at the basis for these compelled actions. So, the notion of stimulus means the outer causes with their goals. The essence of the relative term “stimulation” in its overall meaning is the process of application of concrete stimuli for the benefit of a person or an organisation. To stimulate is to exert an influence, to prompt for actions, to give an impulse from outside. Stimulation is one of the means with the help of which labour activity motivation may be implemented [5]. The higher the quality of the manpower, the more perfect the labour relations, the lesser the need in stimulating as a means of management, the more organisation members, without any outer impact, manifest their interest in activities and goals of their organisation.

Thus, stimulation of the personnel is an inducement through a material concern, that is, to stimulate is not to compel people to work in general meaning, but to encourage them to do better (make more) something which is supposed to be done with their labour relations. As far as labour stimulation is concerned, and remuneration for work in particular, it is necessary to note that remuneration is one of the most efficient instruments of motivation in the majority of cases. The system of remuneration and its implementation is most often interpreted by employees as an indicator of managerial relations, and organisational climate at large.

2. IMPROVEMENT OF MANAGEMENT SYSTEM OF STIMULUS LABOUR AT AN ENTERPRISE

Formation and implementation of systems of stimulation of employees’ conduct is a quite long process of implementation of essential changes within the system of stimulation and their gradual alteration which takes years [1]. Any programme for stimulation, if it is to attain the set goals, should be previously discussed with the personnel. In order to improve the motivation of labour activities of the employees, it is necessary to:

- recognise the value an employee has for the organisation, and give him or her free hand in manifesting creativity;

- implement a flexible schedule, part-time work week, and a possibility to work both at his or her working place and at home;

- provide the employees with discount on the product the company they are engaged with produces;

- pay monthly bonuses to the best employees with the enterprise;

- pay the end-of-year bonuses [10].

For the further improvement in management of stimulation of the personnel, it would be expedient to elaborate a prospective plan. This plan should rest upon fundamental analyses of, first, needs in stimulation of the employees’ conduct, and, second, evaluation of the necessary ways of systems introduction. Along with the prospective plan on each conduct stimulation system envisaged for introduction, independent plans or measures should also be elaborated. Every stimulation system should have an estimated efficiency. Development and implementation of the system of material stimulation of employees’ conduct, as an important line in the personnel management and governance of the enterprise as a whole, is a new business. There are a lot of problems to solve on this path: to elaborate methods for analyses of conditions under which it would be expedient to make use of such system; to develop the methods of evaluation of economic and social efficiency of various systems; to define mechanisms for interaction of stimulation systems, as well as these systems with other managerial sub-systems made use of at an enterprise. Organisation of an efficient system of both material stimulation and non-financial incentives for the personnel is an important factor of development of an enterprise and its gaining higher profits.

Conclusions

Labour stimulation is a decisive factor of the efficient activities carried out by enterprises which should be attained with the help of a definite strategy and plan. Although the material approach is one of the most important stimuli for enhancement of labour efficiency, non-financial methods remain to be an important factor of impact on the management personnel.

The work produces relevant and important results in view of recommendations obtained in the process of work. Implementation of these recommendations shall allow for right stimulation of the personnel, namely, applying the way of remuneration of employees for their participation in the production process based on comparison of labour efficiency and process requirements.

The list of references:

1. O.F. Varenik. Improvement of the system for material stimulation of the personnel’s labour at an enterprise

http://archive.nbuv.gov.ua/portal/Soc_Gum/Vbumb/2011_4/16.pdf

2. V.R. Vesnin. The Basics of Management: Course of lectures for High School Students. – M.: 2007. – P.88-89

3. D.G. Dayants. Management of the Personnel at Mining Enterprises: Manual for High Schools / Juliette Gurghenova Dayants; Nina Pavlovna Romanova; D.G. Dayants, N.P. Romanova. – Ì.: Edition MSMU, 2006. – P.103-107

4. A.P. Yegorshin. The Personnel Management / Alexander Petrovich Yegorshin; A.P. Yegorshin. – Nizhniy Novgorod: NIMB, 2009. – P.91-94

5. A.M. Kolot. Motivation, Stimulation and Evaluation of the Personnel: study guide / Anatoly Mikhailovich Kolot; editor I.O. Solomarsky; Kiev, National Economics University – K.: KNEU, 2008. – P.44-51

6. D. Mersner. IBM: management at the most prosperous corporation on the world. – M.: Progress, 1991. – P. 97-103

7. M. Mescon., M. Albert, F. Hedoury. Management Basics / Translation from English. – M.: “Delo,” 1992. – P.28-33

8. M.I. Murashko. Management of the Personnel: Manual. – K.: Znannya, 2002. – P.21-33

9. T. Peters, R. Waterman. In Search of Excellence: Lessons from America’s Best-Run Companies / Translation from English. – M.: Progress, 1986. – P.74-88

10. V. A. Rozanova. Management Psychology: Manual/V. A. Rozanova. – Ì. Business-school “Intel-Synthes,” 2007. – P.71-72