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Economics and management
UDC 331.101.3 DOI: 10.29013/AJH-20-3.4-20-29
N. LUKHUTASHVILI 1
T. VALISHVILI 2 M. DENOSASHVILI 3
12 3 Akaki Tsereteli State University, Kutaisi, Georgia
MODERN METHODS OF MOTIVATION MANAGEMENT IN THE INNOVATION-ORIENTED ORGANIZATIONS
Abstract
Objective: The object of research is represented by study and analysis of the motivation system in the innovation-oriented organizations, as well as research investigation on the modern direction of the process of its formation and development. But, scope of research is the forms of motivational behavior and methods for activation of staff.
Methods: during the research were used general scientific methods (the analysis of theoretical base, synthesis, deduction, induction, generalization, testing, poll, observation, forecasting, scientific abstraction, statistical analysis, logical), also acceptances of group and classification, methods of comparisons.
Results: In order to obtain success in the organizations, in general and within their structures, it is not only desirable, but compulsory to ensure the creation, existence and functioning of a staff motivation system in its continuous development mode. It must be flexible, individualized and situational, where necessary.
Scientific novelty: In spite of numerous publications, theses of the conference, articles or books, in conditions of innovations boom, the methods of job evaluation and motivation directions are changing. From this point of view, the given article is a research study, which fully describes specifics of motivation management in the innovative organizations, taking full account of which will enable the appropriate organizations to be successful.
Practical significance: The paper has both practical and theoretical bearing. It dwells on those practical issues, a knowledge of which is necessary not only for managers engaged in business sphere, but also for government managers, and, generally, for all specialists interested in motivational management. It will help managers to better adapt to the existing environment under conditions of rapid innovations.
Keywords: motivation management; motivation system; innovation-oriented organiztion; human resources.
For citation: Lukhutashvili N., Valishvili T., Denosashvili M. Modern methods of motivation management in the innovation-oriented organizations, Austrian Journal of Humanities and Social Sciences, 2020, No.3-4. - P. 20-29. DOI: https://doi.org/10.29013/AJH-20-3.4-20-29
Introduction
Significant challenges are looming at the current stage of development of management theory and practice. Many of them are associated with fact that today, the organizations have to work under conditions of continuous innovations, and consequently taking into account the mutual influence of many factors of these
and external conditions, modern management needs to develop the capacity to adapt to its constantly changing environment. Moreover, in the existing aggressive business environment, when the level of technology development allows the successful organizations for replicating the "yesterday's" innovation within a very short time, competitive advantage can be achieved only through the
adequate motivation of the staff. And motivated staff is a prerequisite for the consistent implementation of a strategy of the organizations, strengthening their market positions and ultimately for success of these organizations.
Establishment and development of effective motivational mechanisms should contribute to reducing conflicts, harmonization of the relationships between staff, enhancing the self-organization, self-development and self-fulfillment, which ultimately rise labor productivity and quality of performed work. It is important to create an effective mechanism of staff motivation management, achieve a right ratio of material and non-material incentives, because only a balanced system of them allows us for retaining the loyalty of staff, reducing the negative results of resistance arising when adopting innovative changes and organizational novelties, and by that, achieving the full implementation of the strategic goals of the organization.
The necessity of motivation management, as well as in-depth study of its manifestations become even more relevant in the innovative organizations, because achieving competitive advantage, especially its maintaining, is impossible without innovations. In fact, there is no successful management with no innovation. Consequently, it is necessary to provide consistent motivation for employees and study its contemporary manifestations in the innovative organizations. And this confirms the need for performing more in-depth studies of the mentioned area that determines the relevance of the topic of this paper.
Actually, a certain system of staff motivation is in place in all organizations. However, each of them, along with its positive sides, is characterized by negative manifestations as well, which prevent them from taking full advantage of the existing competences of staff that in fact, inhibits further development of these organizations. That is why study of specifics of job motivation in the innovative organizations enables managers of these organizations to the shortcomings of their own motivation system, and to concern with its further improvement. Accordingly, at the current stage, it is ofhigh importance to develop scientist-practical recommendations and methodologies for theoretical justification for the creation of the effective motivation mechanisms.
Conceptual framework of motivation in the process of development of innovative organizations
It was justified that the development of management sciencs was directly or indirectly associated with the development of motivation policies. Moreover, the meth-
ods and means of motivation of the subordinates were appropriate to the level of production development, the state of society, the needs of people, culture, traditions and religion of a nation, and it will always remain so.
The results of research investigation on motivation problems, as a rule, have been reflected in the theories and approaches, the number of which today exceeds 50. Their use allows managers for predicting the subordinates' behavior. An American professor Richard Daft, in addition to three basic approaches to motivation (traditional approach, approaches from the position of human relations and from the position of human resources), highlights one more direction, which he describes as modern approaches [1, P. 504].
According to R. Daft, modern approach is formed under the influence of three basic theories - essential theories, procedural theories and crowding theories of motivation. In particular, if the essential theories of motivation are focused on interrelation between the needs and motivation, and they analyze the factors impacted on them, unlike it, the motivation procedural theories are studying the process of determining his/her own behavoir by the executive. And the crowding theories of motivation analyze the relationship between the employees behavior and its consequences [2, p. 119-120; 3, p. 122-125; 4, p. 143-154; 5, p. 257-274].
Based on the traditional classic theories, at the current stage, there have been developed the alternative theories of motivation, which are mainly focused on the personality factors. Accordingly, when choosing the motivation theory and approach, it must be remembered that motivation is such a tender tool that the reverse effect of the ill-conceived system goes far beyond the possible positive effect [6, p. 2-6; 7, p. 60-64].
That is why the managers, especially the innovation-oriented ones, for supporting the changes when designing the motivation system, have to take into account the personal and individual-typological characteristics of employees.
In contemporary motivation theory, the category of "motivation" has a broader interpretation [8, p. 145-146; 9, p. 65-67]. It is interpreted in different ways by modern researchers, whose studies and analyses allow us for concluding that motivation is an internal process of choosing one or another behavior by the person for satisfying his own needs, which is defined by the cumulative impact of the external (incentives) and internal (motivations) inspirational, inciting, rousing and driving forces. With
this position, the motivations are classified by the needs (material, job and status motivation), used techniques (normative motivation, coercive motivation and stimulation) and commitment to achieving goals (positive and negative motivation).
But in general, the nature of motivation of the person consists in the following:
• the basis for springing up motivation is represented by the person's needs, and since the individual needs are characteristic of every employee, motivation is also individual for every employee;
• employee demonstrates a high level of his/her motivation only in case when he/she sees his/ her job as real opportunity for satisfying his/her own needs and achieving the goals;
• motivation ofthe same employee may have changed in the meantime, just as well as his/her needs.
Staff motivation can be considered effective only if the directions of two vectors of its behavoir (the active desires and needs of the employees; goals and objectives of the organiztion) coincide. It is obvious that to ensure this coincidence is quite difficult, but not impossible. There are some principles, which we believe will have significant impact on coincidence of these vectors, and, in general, on increasing motivation in the innovative or-ganiztions. In particular, these principles are as follows:
• setting clear goals and objectives;
• linking the goal with rewarding and determining its assessment criteria;
• establishing a healthy climate in the organization;
• strengthening the role of moral incentives, along with material incentives;
• perceiving a specific person in accordance with personal qualities, values, skills and other individual characteristics;
• using more positive incentives.
Motivation management in the innovative organizations is characterized by specificities. Its success depends largely upon such principles as: the principle of setting clear goals and objectives; a healthy climate principle; a particular role of moral incentives and other characteristics.
Innovative changes in the organization and problems of motivation management
It is clear that, choosing the effective ways to motivate the staff is even more difficult in innovation-oriented
organizations, including higher educational institutions. In terms of analyzing the motivation system and study the staff satisfaction, two higher educational institutions were discussed within the research.
The education sector has been a long time, and remains one of those innovative sectors of the economy, which, in fact, determines the innovative activities of almost all other sectors, creates an innovative climate and competitive environment in the country's economy. Introduction of changes (innovations) in the education system can be associated with:
• the improvement of the goal of the education system, teaching/learning methods, the form of organization and management system;
• the style of teaching activities and organizing the teaching-cognitive process;
• the knowledge monitoring system and the assessment of education level;
• the funding system;
• educational and methodological support;
• educational activities;
• the improvement of educational curricula;
• the activities of teachers and students.
In general, the essence of innovation in education consists in searching for new approaches of young generation to education and to its successful application. The basic types of the technologies, which are being actively introduced in the universities educational processes, and the application ofwhich for teaching purposes, are being increasingly extended, include: Internet technologies; electronic mail technologies; computer education programs; Web-technologies; the Dean's electronic offices; e-learning, the mirror teaching methods and so on. In addition, focus should be shifted from problems relating to the implementation of technological changes in higher schools to those ones, which are directly related to the expected behaviors of teaching staff in higher education institutions. These problems include: [10, p. 30-31].
1. Creativity barrier. Members of the teaching staff, who are accustomed to working with the old programs, have no desire to make a difference, conduct training, take exams, develop, much less to spent money on all this. Mostly, they are hostile to all novelties in the educational system;
2. Conformism. Lack of desire for development, the fear of looking out of place and ridiculous. Members of the teaching staff often refused to make the unsual educational decisions;
3. Trait anxiety. Due to self-doubt, a lck of confidence in their own abilities, low self-esteem and because of fear in expressing their own views, some members of teaching staff are opposed to any change;
4. Rigidity of thinking. Members of teaching staff holding rigidity to past positions feel that their views are the only right solution, which they see as irreversible. They are not eager to acquire new knowledge and skills.
The main reason for evasion of innovations in the modern education system consists in fact that with the appearance of new technologies and new devices, the quaetion arises as to whether these means will replace living labor. However, we should remember that these technologies mainly impact not on the number of jobs, but on the quality requirement of labor.
For the purpose of studying of the attitude to innovations and, generally, to the changes in the organiztion, we have carried out an anonimous opnion polls among professors, teachers and the invited specialists of Akaki Tsereteli State University and Kutaisi University on their attitude to innovations [11, p. 56-57].
Willingness of teaching staff of KU to work where there are some diversity and changes is slightly higer - by 4,4%, but the attitude to the changes or a positive perception of them - is higher by 7,9%, than among the members of teaching staff ofATSU. The cause of this variance should be sought in proprietary relationships. In particular, Kutaisi University is a limited liability company, but ATSU - a legal entity of public law. As a rule, achieving competitive advantage, and especially its maintenance, are impossible for the private universities without the accelerated pace of innovations (see Table 1).
Willingness to come up with an innovative idea, or activity is much higher (16,9%) at ATSU than at KU, and the implementation of the ideas of the employees is also much highr (14,5%) at ATSU. Consequently, the desired results of their activity are also different that we believe is associated with proprietary relationships, again and again.
In general, regarding teaching staff in Kutaisi, we can say that 87% ofthem have a positive perception ofchanges, and 83,3% of them are ready to work where there are some diversity and changes, and activity ofthose who wish to come up with the innovative ideas is also high enough (64,5%).
Table 1. - The attitude of the teaching staff to the changes (innovations)
Wou work are s< and d you where jme di chang ike to there versity es?% Have you ever come up with an innovative idea?% Have your idea ever been implemented in the organiztion? % To which category of the attitudes to the changes do you pertain?%
o fc Not sure s o Z Not sure s o Z Have no idea Partially Seldom I perceive the changes positively I feel no excitement over the changes I actively oppose to them I oractically oppose to them I do not even realize Depends on the type of changes
ATSU 83.1 4.2 12.7 66.9 23.7 9.4 45.9 32.3 19.6 0.9 1.3 85.9 3.4 2.6 5.1 1.3 1.7
KU 87.5 - 12.5 50.0 31.3 18.7 31.3 18.8 37.5 6.2 6.2 93.8 6.2 - - - -
Total, on average 83.4 3.8 12.8 64.7 24.8 10.5 44.3 30.8 21.8 1.5 1.6 87.0 3.8 2.3 4.5 0.9 1.5
Based on this, we can conclude that it is desirable that the development the innovative activities in higher education institutions would not be the reslt of only the pressure from the univerities administrations. First of all, the shift should be translated into the targeting of the es-tablishement of mnotivation system for these activities. Thus, the objective of the management of higher education institution is to see these incentives and use their capacities to achieve the desired objective.
Modern methods of motivation management in the innovation-oriented organiztions
The employees' job motivation diagnosis in practical activities of HR specialists is a mandatory element of correct, sound personnel policy in any progressive organization. It allows us for maintaining a high level of motivation of the employees, by ways of improving the methods for correcting and influencing their behavior. Of methods of staff motivation diagnosis (V. Gerchikov's Motype method; F. Herzberg's methodology; S. Richie and P. Martin's
Motivational Profile; Catalin Zamfir's and others' methodologies) [12, p. 31-35], with account for their essence, capacities, the nature and specifics of their results obtained, for the mentioned two accredited universities in Kutaisi, as the innovation-oriented organizations, on the basis of the methodologies of C. Zamfir and F. Herzberg, we have developed the questionnaire for survey, as well as the methodologies for conducting this survey and processing materials obtained as a result of research. However, unlike the Catalin Zamfir's methodology, which is mostly based on 7 incentives, and by means of which the motivational complex is determined with three main components, such as internal motivation, external positive motivation and external negative motivation factors, we have chosen 15 incentives, which we believe express more comprehensively motivational profiles of employees. These are:
• Internal motivation factor: the opportunity for your full self-fulfillment from given activities; the level of satisfaction from the process itself and from the performance; pursuit of career advancement; a sense of independence and freedom in decision making, and the professional and creative growth;
• External positive factors: salaries and material incentives; flexible working hours; demand for social prestige and respect; physical working environment; the relations between the teaching staff; the feedback in activities, obtaining systematic information, which allows for analyzing the results of your activities, and improving them; recognizing a job well done and rewarding -moral encouragement;
• External negative factors: fear of loosing a job; a desire to escape a possible punishment
and troubles; a desire to escape criticism from managers and colleagues.
According to the survey results, the relationship between the external positive, external negative and internal motivations among the teaching staff of both universities and in the obtained results, has the following form: external positive motivation > internal motivation > external negative motivation. It should be noted that as the best, optimal motivational complex, there are considered two types of the combination of motivation components: internal motivation > external positive motivation > external negative motivation; or, if internal motivation = external positive motivation > external negative motivation.
However, as cen be seen from the obtained results, internal motivation is slightly less (by 0,22) than external positive motivation that allows us for concluding that internal and external motivations among the teaching staff in Kutaisi are almost balanced. This, on the one hand, indicates that, at present, the external encouraging methods have a higher priority among the teaching staff in the city of Kutaisi, but on the other hand, it points to an adequate level of their self-fulfilment, as well as to aspiration of improving their professional skills and achievements. In addition, if we take into account the difficult economic situation in the country, such result should come as no surprise. However, anyway, it is a good thing that among this staff, internal motivation is higher than external negative motivation.
In addition, it should be also noted that internal motivation is higher among the invited specialists (many of them are PhD students) and assistant professors; internal motivation is also higher among the employees having a length of working at the University up to 10 years that can be explained by their pursuit of career advancement.
0 2 4 6 3
Figure 1. Incentive values and incentive satisfaction
Based on the F. Herzberg's two-factor theory, we have also tried to study the importance of 12 incentives we have chosen for the universities employees, and the level of satisfaction by these incentives. And schematically, this imbalance has the following expression (see
Fig. 1).
As is seen from the results of research, the highest level of dissatisfaction by the incentives is among the significant incentives, such as:
• salaries and material incentives - 1.59
• physical working environment - 1.06
• recognizing a job well done and rewarding - 0.97
• the possibility of the professional and creative growth - 0.88
• the level of satisfaction from the process itself and from the performance - 0.85
• the feedback in activities, which allows for analyzing the results of your activities, and improving them - 0.84.
From the hierarchy of the teaching staff's incentives (see Fig. 2) composed in accordance with the significances of individual incentives, the effective incentives (incentive, which increasingly affects the employee's activities) might include: salaries and material incentives (4,77); good relations between the teaching staff (4,71); physical working environment (4,70); recognizing a job well done and rewarding, or moral encourigment (4,62); the possibility of the professional and creative growth (training, retraining, professional improvement) (4,59); flexible working hours (4,55), and the feedback in activities, which allows for analyzing the results of your activities, and improving them (4,51). The rest of the incentives, which have been moved to the bottom of the hierarchy, do little to incite people to work, and therefore, there are called potential incentives, since over the time, the "weight" of individual incentives may change under the influence of various social and psychological factors.
0 12 Figure 2. The hierarchy of incentives
For the purpose of job motivation diagnosis among the staff, the structure of the respoondents participated
in the survey is as follows: 26-35 years old - 24%; 3645 years old - 20%; 46-65 years old - 48%; and over 65
years old - 8%. From them, 17% of respondents hold the academic position of professor: associate professors -47%; assistant professors - 9%, and 27% are the invited specialists. 19% of respondents have working experience of up to 5 years, 14% of them have working experinence from 6 to 10 years; 26% - from 11 to 20 years; and 41% of respondents have working expoerinece of over 20 years. 40% of repondents are male, and 60% - females. Of them, 30% are unmarried, and 70% are married.
In order to offer the administrations ofhigher education institutions in Kutaisi those factors of the teaching staffs motivation, which are currently most relevant in these institution, and focus on which would to the suc-cesful solution of the objectives set before these institutions, we used the factor analysis, which is based on the Pearson correlation, and by means of which many variables are reduced to the relatively less number of more fundamental values[13, C. 87-100]. For this purpose, of the presented pairs, we left the possibility of the creative growth (training, retraining, professional improvement), since it is linked functionally with the remaining incentives more than any other one. Consequently, the University's administration will atempt to organize training, retraining and professional improvement and internships for the teaching staff and so on, will have opportunity to develop many other motivating factors for the staff.
Regarding the complex procedural assessment of motivation, the results of research have shown: 69.3% of professors and teachers belive that they are rewarded adequately, 24.8% of them think that they are paid adequately, and 55.3% of them belive that the remunaration of their labor partially corresponds to the compensation of employees; for 35.5% of respondents, the workload is fairly distributed among employees, but 30% of them believe that it is distributed just partially fairly; from the system of rewarding, the system "those who work harder, make more" is acceptable to the majority of staff (66%); also, it should be noted that the work provides a sense of satisfaction to 78% of employees, and helps them to achieve outcomes; at the same time, it is regrettable that less than half of the teaching staff (47.8%) consider their job as stable, and 53.3% of them are compelled to improve their skills, for fear of losing a job.
In order to ensure that the system allows the organization for achieving its goals, and to make it effective, the organization has to stimulate the achievement of results, but not exercising the duties envisaged in the job description. In other words, employers are required to work for achiev-
ing the goals, but not to be only on duty in the workplace. The practice when the stimulation is tied to satisfactory execution of the job description is totally wrong.
It is necessary to note that promotion of staff motivation is a complex and continuous process. When establishing the motivation system, we have to take into account the relatively different factors, such as: on the one hand, the employees' interests; the organization's strategies; corporate culture, resource constraints, personnel policies and so on; on the other hand, as a rule, the changes occur continuously in all organizations, and it is natural that they face the new challenges, the objective of the organizations are changing, the ways and motivating resources for their solving are being updated, and even the needs and views of people are changing as well. Consequently, in order to contribute to enhancing the performance of the teaching staff, and ensure motivation of professional activities, it is necessary to take into account the objective specific characteristics of this profession, such as professor's work content and his/her working conditions, as well as personal specific qualities of employees, such as values, purposefulness, interests, needs and incentives.
The incentives associated with professional activities of the teaching staff can be split into three groups: incentives of labor activities; career choice incentives and job choice incentives [9, p. 270-272]. It can be said that concrete activities of employees of higher education institutions are ultimately defined by a cumulative impact of these incentives. The relationship of these incentives determines the behavior of employees, creates its motivational structure, which is more or less stable, although it is subject to the targeted formation. In other words, in fact, every employee has his/her own motivational structure, in which the leading place is occupied by a motivating kernel.
The motivating kernel reprsents the combination of of leading motivations and incentives used to determine their behavior. In the motivating kernel, a distinction is drawn between the layers, which are associated with: labor values, job practical requirements and an assessment of the probability of implementing these requirements in a particular situation.
The results obtained by the generalization of survey conducted for identifying the motivating kernel in the structure of the teaching staff incentives, have shown that incentive for choosing a profession as a workplace, where the conditions for self-fulfilment of the teach-
ing staff are created, is conditioned by the followng: a desire to be in the intellectual environment - 59.3%, material benefit - 59.3%; a desire of self-development -54.0%. Along with these incentives, among incentives for choosing the particular institution of higher education, a distinction is drawn between the implementation of a scientific educational potential - 56.3% and the image and prestige of educational institution - 51.8%. And of incentives associated with content of professional activities, the motivating kernel includes such incentives
as: relations with the younger generation - 66.8%; the pursuit of self-fulfilment - 63.8%; the possibility of sharing own knowledge and experience - 54.8%.
In an hierarchy of incentives, the priority of incentives for choosing a profession as a workplace, the particular institution of higher education and for professional activities, is indicated by fact that 50% of respondents have chosen them that allows us for including them in the structure of motivating kernel of incentives of the teaching staff (see Diagram 1).
Diagram 1. Motivating kernel of professional activities of the teaching staff
Thus, the motivating kernel of the teaching staff of higher school in Kutaisi includes those incentives, which are mostly associated with work content (a desire for self-development, the possibility of sharing own knowledge and experience; implementation of a scientific educational potential; relation with younger generation, the pursuit of self-fulfilment) and specific working conditions characteristic of higher education institutions (a desire to be in the intellectual environment; material benefit; the image and prestige of educational institution).
In our view, in order to obtain success in the oganizations, in general and within their structures,
it is not only desirable, but compulsory to ensure the creation, existence and functioning of a staff motivation system in its continuous development mode. It must be flexible, individualized and situational, where necessary.
The system of motivation of professional improvement of the teaching staff implies a set of elements, which is created for achieving preset objectives. This system implies a complex of the components of social relationships, which conditions high working efficiency and work satisfaction [14, p. 27-31]. There are many versions of the job motivation systems, and consequently, managers wishing to obtain success, integrate into the
motivation system those directions, which are particularly important at a given time.
Based on the carried out research investigations, we also highlighted those directions of motivation and incentives, which are currently most relevant for higher education institutions in Kutaisi. In particular:
• bringing the level of wages in line with the requirements of the labor market, and binding the level of remuneration rate to job performance;
• fair working conditions, equal opportunities of career and recognizing personal contribution to the overall success;
• creating appropriate physical conditions for work;
• providing opportunities career development, advancement and realizing their scientific educational potential, and developing the programs for education, career retrining and training;
• creatiung an atmosphere of mutual trust in the team.
Conclusions and recommendations.
As has been mentioned above, our goal is to study manifestation of specifics of job motivation in the innovative organiztions. For this purpose, as a result of theoretical and experimental studies we carried out, the conclusions and recommendations have been obtained as follows:
Motivation of the teaching staff can be con-sidred effective only if there are ensured: the pressing desires and needs of professor as a person, which can be met at the given university, as well as his/her ability to fulfil the University's objectives.
In motivation management, mmanager is required to ensure more activation of those incentives, which already exist inside of employees. In order to ensure that the system allows the organization for achieving its goals, and to make it effective, the organization has to stimulate the achievement of results, but not exercising the duties envisaged in the job description. In other words, employers are required to work for achieving the goals, but not to be only on duty in the workplace. The practice when the stimulation is tied to satisfactory execution of the job description is totally wrong. In order to obtain success in the oganizations, in general and within their structures, it is not only desirable, but compulsory to ensure the creation, existence and functioning of a staff motivation system in its continuous development mode. It must be flexible, individualized and situational, where necessary.
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Information about the authors
Nana Lukhutashvili, Doctor of Business Administration, Candidate of Technical Sciences, Assistant-professor, Assistant-professor of the department of Business Administration; Akaki Tsereteli State University, Kutaisi University Address: 4600, Kutaisi, st. Bukhaidze, 19
E-mail: Nana.lukhutashvili@atsu.edu.ge; tel.: +995 (595)96-31-89 ORCID: http://orcid.org/0000-0001-7279-0214
Tea Valishvili, Doctor of Economics, Associate professor of the department of Business Administration; Akaki
Tsereteli State University, Kutaisi University
Address: 4600, Kutaisi, st. Bukhaidze, 4/21
E-mail: tea.valishvili@atsu.edu.ge; tel.: +995 (571)31-18-82
ORCID: http://orcid.org/0000-0002-3990-7609
Mariam Denosashvili, BA Student, Student of the department of Business Administration, Akaki Tsereteli State University;
Adress: 4600, Kutaisi, st. Bukhaidze,19
E-mail: Denosashvili.mariami@atsu.edu.ge; tel.: +995 (595)21-31-51 ORCID: http://orcid.org/0000-0002-6245-3430
