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Yana Kalinina

Faculty of economy

Department of economy of enterprise

Speciality Economy of enterprise

Management salaries to public sector enterprises

Scientific adviser: Ph. D., Associate Professor Andrey Meshkov

Resume Abstract

Abstract

Content

• Introduction
• Main content of work
• Conclusion
• References

Introduction

Relevance of the topic. In the context of the restructuring of Ukraine's economy, creating new social and economic relations in society plays an important role business pay, as the progress of society and its specific entities (enterprises, organizations), is implemented primarily through the strengthening and development of personal financial incentives, the main form which is wages. Lately fundamentally changing policies wages, social support and protect the interests of workers. Significant part of the functions I state in the implementation of this policy transferred to enterprises that independently establish the forms, systems and labor remuneration, material incentives of its results. Transition to a market economy has led to a reduction in real wages and living wage. There was a huge difference between the wage social groups. Wages ceased to be a motivating factor that complicates the motivating policy. All this necessitates a deep theoretical rethinking of the nature and value of wages as an economic category, the need to reform the wage system in Ukraine, what is objectively necessary and appropriate forms of appropriate scientific research and its high relevance. In this regard, reform wages should be an important part of market reforms. The basis of the reform of wages should be put on the definition of the transition rates as labor cost of funds for personal consumption employee to determine the real cost of labor as the value of the funds needed to expand the reproduction of the working person.

Analysis of recent research and publications. Many of our scientists engaged in this issue, conducted research in the area of remuneration, tried to reform it and provide specific recommendations, in particular that N. Luk'yanchenko, A. Meshkov, L. Mikhal'chuk, V. Polishchuk, Y. Simutina, V. Shevchenko, a significant contribution to the theory and methodology of calculation of wages made by the scientists M. Kravchenko, T. Kostyshyna, I. Schirba, L. Shilova, et all. However still some issues remain unresolved in this area, namely, almost no attention is paid to assessing the wage system and the methods of its enterprise management of public sector to form a competitive market economy in Ukraine.

Research objectives. Based on the formulation of a goal in the following tasks:

1. To discover the essence, the core content and feature payment at the enterprise as a control object.
   
2. To consider the basis for the organization of wages of public sector enterprises.
   
3. Explore the legislative aspects of wages.
   
4. Analyze trends wages at the enterprises of Ukraine.
   
5. Identify the factors influencing the system management salaries of public sector enterprises in Ukraine.
   
6. To assess the condition of the wage system as an example of modern Ukrainian enterprises.
   
7. To develop a set of measures to improve the mechanism of wage on modern Ukrainian enterprises.
   
8. Develop recommendations for improving the system of remuneration for public sector enterprises.
   
9. An assessment of the proposed measures to optimize the management remuneration as an example of modern Ukrainian public sector enterprises.

Work purpose. The purpose of this study is to rework the theoretical and methodological principles and guidelines regarding the establishment of improving management salaries in the public sector.

Object of work – process management salaries in the enterprise in current economic conditions in Ukraine.

Work subject – theoretical principles and methods of forming the system of remuneration for public sector enterprises.

Research methods. Theoretical and methodological basis of the work are the main provisions of the economic theory, scientific works and development of domestic and foreign scholars in the field of management salaries in the enterprise. For sequential resolution set out in the work tasks were used basic common scientific and applied research methods and methods of comparison groups – to study and analyze the content of the category of pay system analysis – to assess the importance of the dynamics of development of financial and legal institutions, and certain changes in the payment system labor in the factories of public sector at the macro and micro-economic development of the state; situational analysis – to explore and approaches to the definition of wages in the enterprise; system analysis and grouping method – to improve the approach and offers recommendations that are based on mathematical analysis of economic-management salaries in the enterprise. Informative base for the study are normative and legislative acts of Ukraine, the general provisions of scientific works of Russian and foreign scientists in the framework of research theme, express information Statistics Committee of Ukraine, materials research conferences, periodicals.

The scientific significance of the research is to analyze and improve the management of wages in enterprises, the development of recommendations to improve the mechanism of wages of public sector enterprises.

Approbation of results of work. The basic scientific and practical provisions of work were presented at all Ukraine scientific and practical conferences: conference of students and young scientists Modern problems of management of investment and innovative activity in 2013–2014, Donbass – 2020: prospects of development by eyes of young scientists in 2014 and Management of economic processes at the macro and micro level: Problems and prospects of solving in 2014, Lviv.

Main content of work

In introduction the actuality of a subject of a master's thesis is considered, the research objective, object, a subject and research methods are given, practical value of results reveals.

The ifirst section of work Theoretical Foundations of wages is devoted to the consideration of the essence, the main content and features of the remuneration, as an economic category, the main organization for remuneration of public sector enterprises, reviewed and analyzed the legal aspects of wages in Ukraine.

Effective functioning and social development depends primarily formation of appropriate individual and collective material incentives, the leading form of the realization of which is the wages of different categories of personnel [6]. The main source of income wage earners and there will remain a wage. Now it belongs to the prevailing wages in the value of motivational mechanism. Wages as an economic category is among the most difficult. It is for this reason, unfortunately, now in Ukraine there is no common understanding of the wages. The main legislative act regulating the questions of wages is the Constitution of Ukraine, which is based on all legislation, including labor laws [1]. Wages and salaries – this remuneration, calculated, usually in monetary terms, which under an employment contract owner or its authorized body shall pay an employee for work performed. Wage depends on the complexity and conditions of work, professional and business qualities of the worker, the results of its work and business enterprise. Procedure of calculation and payment of wages provides the collective agreement. Table 1 shows the determination of remuneration of different authors.

An important element of the mechanism determining individual salaries are the forms and systems of remuneration. Last act, on the one hand, a connecting link between the valuation of labor and tariff system, and on the other – a means to achieve certain quality indicators [8]. These elements of the organization of wages is a way of establishing the dependence of wages on the quantity, quality of work and its results. The word system should be understood set of principles that are the basis of any doctrine. In relation to remuneration system includes two components: the organization of labor and payroll. The first is the view of the time spent, and the second – with the amount of work done. According to Article 96 of the Labour Code of Ukraine foundation is organizing wage tariff system of remuneration, which consists of tariff schedules; tariff rates; scheme salaries; tariff-qualifying characteristics; wage-rate; qualification handbooks for managers, professionals and employees; schemes salaries or unified tariff [7].

Very necessary to take responsibility for the organization of collective pay systems, especially contractors and rental groups. Should take into account the conditions determining the feasibility and need for collective forms of compensation and benefits [4]. The State shall regulate salaries of state employees by: establishing minimum wage and other government rules and safeguards; establishing conditions and wages on the basis of legislative and other normative acts of Ukraine, general, regional and sectoral agreements, collective agreements within appropriations from general and special funds; taxation of income workers. The main forms of wages in budgetary institutions is time-based and piecework, but prevails, usually an hourly fee. Basis of the organization is the wage tariff system, which includes tariff grid tariffs scheme salaries, wage-qualifying characteristics. State-owned enterprises established uniform tariff conditions wage workers and employees on general (cross-cutting) professions and positions. They consist of a single wage scale, and the list of common occupations of workers and employees with relevant tariff category. Tariffing carried out by their employees on the basis of certification of qualification requirements for industry-wide positions and positions that are specific to certain sectors of public sector [5].

The second section Research specifics of pay in the present conditions of economic management analyzes the scope of remuneration on the enterprises of Ukraine, to study processes of management salaries in the budgetary organizations, conducted the analysis and assessment of the situation with respect to the remuneration system for the modern Ukrainian enterprise public sector.

With the development of competitive relations necessary to define approaches to competitive wages, which can become a powerful driving force for the development, improvement of living standards, build human capital and competitive advantages of the nation state. Today, such a mechanism economics imperfectly developed, and the existing remuneration does not fully carry out their functions, does not satisfy the requirements of becoming competitive relations in the economy [3]. According to the State Statistics Service of Ukraine [2], the average nominal wage full-time employee in 2013 compared with 2012 increased by 2,39 % and amounted to 3265 UAH. There continues to be cross-sectoral differentiation in wages. Most salaried workers in the country were air transport and financial institutions in which wages in 2–2,7 times higher than the average for the economy. Among the industrial activities at manufacturing of coke, refined petroleum products and production of energy minerals wage level 1,5–1,6 times higher than the average for the economy and almost half of its industry. However, wages working in educational and healthcare institutions is lower (15,5 % and 31,4 %) average in the economy. This testifies to the low cost of labor in activities that deliver important social services. Also, when storing trend growth rate of wages is much lower wage workers in agriculture, fisheries and aquaculture, hotels and restaurants, as well as the production of textiles, clothing, fur, leather and leather products. Ratio of wages in these activities with the average for the economy does not exceed 63 %. Increases the number of employees which payment is within the minimum wage set by law. Compared with 2012, their share in the year-end total grew by 30 %. Half of all workers monthly wage was less than the national average (3265 UAH). At 34,6 % received wages that exceed 3500 UAH. The vast majority of these workers were employed in activities with a high level of remuneration, particularly in mining enterprises of fuel and energy minerals, air transport, financial activities. Distribution of employees by salary size indicates the absence of salary depending on the size of the professional qualification of workers in the service sector and manufacturing. In educational institutions, where workers have higher qualification and professional level, in December 2013 less than a quarter of employees accrued wages over 2500 UAH., In health care and social assistance even less – 10 %. Index of real wages compared to the year 2012 was 108,2 %. 2013 for arrears of wages must variables in nature, but these changes were slower than in the previous year. The amount of debt on January 1, 2014 reached 808,2 mln., which is 10,5 % less than at the beginning of 2013.

Paying employees of budgetary institutions in the current economic and political situation in Ukraine is quite problematic, because there is no clear system of wages of different categories of public sector employees, as well as there is a negative trend in the system of allowances and bonuses . But despite this, it is necessary to take all necessary measures to stabilize the issue, will guarantee the effective functioning of the apparatus wages of state employees and will not harm the development of motivation mechanism of public employees [9].

In the third section, Recommendations for improving the management of wages in enterprises are encouraged to develop a package of measures to improve the mechanism of wages at the enterprises of Ukraine, to offer recommendations for improving the system of remuneration for public sector enterprises, as well as to evaluate the effectiveness of the proposed measures to optimize the management of wages on modern Ukrainian public sector enterprise.

Conclusion

At the enterprises of Ukraine wage management system is imperfect and depends on the economic development in the country. In some enterprises, there are only a few ways of improving wages, much depends on legislation aimed at regulating relations in the field of remuneration, as the economic situation is forcing businesses to lead a moderate policy on systems staff motivation and encouragement. Therefore, effective management remuneration is today an important issue for almost all businesses of our state.

In operation, the following problems were solved:

1. Essence of wages in enterprises as an economic category.
   
2. Discusses the methodology of calculation of wages in various systems and tariffs.
   
3. Analyzed the dynamics of wages by activity in the regions of Ukraine.
   
4. The features and processes for managing salaries of public sector enterprises.
   
5. The factors of influence on the remuneration system in enterprises.
   
6. An assessment of instruments for managing mechanism wages in enterprises.
   
7. Recommendations on management salaries of public sector enterprises.

This master's work is not completed yet. Final completion: December 2014. The full text of the work and materials on the topic can be obtained from the author or his head after this date.

References

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