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7MOTIVATION AND INCENTIVES TO WORK IN HUMAN RESOURCE MANAGEMENT
Abstract
This article presents such concepts as "motivation" and "stimulation" for labor activity in personnel management. It outlines basic terms and concepts, explains the purpose, formation and head role in motivation and stimulation.
Keywords
motivation, stimulation, labor activity, worker, head, economic efficiency, motivation goals and stimulation incentives, motivation and stimulation link
AUTHORS
Inna G. Ivanova
PhD, Associate Professor Kuban State Agrarian University. 13, Kalinina Str., Krasnodar, 350004, Russia.
E-mail: [email protected]
Anastasiya S. Elagina
Student. Kuban State Agrarian University. 13, Kalinina Str., Krasnodar, 350004, Russia.
E-mail: [email protected]
Vera I. Babenko
Student. Kuban State Agrarian University. 13, Kalinina Str., Krasnodar, 350004, Russia.
E-mail: [email protected]
Introduction
1.1 Relevance of a problem
The problem of personnel motivation is particularly relevant nowadays; proper motivation has an impact on the entire enterprise operation, especially during the innovative technologies implementation. "Motivation" and "stimulation" are two greatly similar concepts; stimulation plays a considerable role in the enterprise operation, it is directed to motivation of personnel for the high quality work. The enterprise income goes for taxes payment and production expansion, but work stimulation influences on the national economy development. Improvement and practical application of the latest motivational systems in the organizations attract more new highly skilled employees who can be at the head of both small-scale and large-scale enterprises; therefore they are accented on personal motivation with the help of quantitative and high-quality personnel work.
Personal interests, such as collective and public have a completely different focus. They solve various problems with the help of the stimulus, which considers various interests. For instance, the reward for work has a different impact on the worker interests, which occurs with a certain result necessary for the head, considering the interest of both public and collective. According to Maslow's hierarchy of needs we can identify the principal regularity, the only one for all people that works as a trigger to
systematically move from fundamental physiological needs to self-actualization. Maslow identifies 5 basic levels of human needs and motivations:
1) Basic physiological needs;
2) Safety needs;
3) Belongingness and love needs;
4) Esteem needs;
5) Self-actualization.
Considering the above-stated theory, leading position is the satisfaction of material needs.
1.2 The value of motivation
The value of the motivation is not disputed by any science or practice, because of the fine work the effective motivation system depends not only on improving the social and creative activity of a particular employee, but the final results of the work of organizations and businesses.
Many scientists since ancient times and in our day as engaged and involved in the knowledge in the field of motivation (Maslow, Gertsberg, Sidorenko, et al.).
All models of motivation in some degree different, and differ both in content and in form. It exists as quite a natural phenomenon, because, in general, does not exist any one of the motivational model that was used to successfully exclude the specifics of all the organizations.
All innovations and the importance of the work in practice lead to the fact that the problem of motivation and incentives for staff in our time is ineffective, not depending on the number of theories and concepts. In practice, the development of theoretical models occurs with great difficulty, as the manager is required to correct the effective implementation of the system of motivation in accordance with the specifics of the enterprise and evaluation of operating personnel
Methodological Framework
2.1 Performance goals
Considering the above-stated theory, leading position is the satisfaction of material needs. Basically, all heads and managers converge in a common opinion that salary may consist of several parts and should not be strictly fixed. For instance, payroll may consist of the following steps: major payment rate + work experience payment + skills and extraqualification payment. It makes the basic salary; afterwards it is possible to add various rewards as simulative bonuses. This kind of system allows you to attract more qualified employees who are able to perform the best results. This is more significant if we remember the Pareto principle, which says that 80% of result is achieved by 20% of cost. This principle applies to personnel performance evaluation. You must always remember that quality is over quantity.
The main purpose of the system of motivation and stimulation of labor in relation to the organization's personnel may may be the following sub-goals:
1) the involvement of employees in the organization. labor incentive system must be competitive in order to effectively attract those categories of professionals that are needed for successful work;
2) preservation of the organization. If employees can not get from the organization of the level of payment and social guarantees offered by other companies, this leads to
an outflow of personnel. And first of all the organization leaving the most qualified workers;
3) encouraging performance. Now used a system of incentives to maintain high interest of workers in achieving the indicators to meet the requirements of the organization;
4) a fair assessment of the labor contribution of workers. The level of payments and benefits provided to the employee must adequately reflect the contribution that it makes to the work of his department and the organization as a whole;
5) effective business development. Organization costs motivation and simulation system should not be excessive, which could adversely affect the success in the implementation of the goals. At the same time lowering wages and reducing the cost of social benefits offered to employees, can lead to a weakening of human resources and the organization as a whole;
6) the optimal ratio of cost of material incentives and social protection measures. This ratio is determined mainly by two factors: those that offer their employees the main competitors, and financial capabilities of the organization. (Tolmachev, Lisovskaya and Ivanova 2016).
2.2 Incentives
Nowadays, in addition to the material factor in economy, we also have the importance of moral stimulus and social benefits. Employee also pays a significant attention to the enterprise benefits package. The legislation system says that any enterprise must have the benefits. An enterprise may introduce certain benefits, such as providing personnel with medical care, additional payments for the pension fund, insurance, children leisure activities and company trainings. Many companies have compensation packages such as transport pass, gasoline or car repairs reimbursement and communication services payment. Nowadays Russia is on the level of development and formation of market relations, it causes the management restructuring, manager's initiative increase and responsibility for the company final results in general.
2.3 Remuneration
It is possible to identify a certain list of basic needs, which allows motivating personnel for high quality work with the help of motivational factors. Any head must adhere to the following list of requirements:
1) To link reward directly with the activity that leads to productivity increase and enterprise work efficiency in general;
2) To provide a public and tangible recognition to people whose efforts and outcomes are above the average for this employees category;
3) To implement the principle that every employee must get some money for the labor productivity increase in an enterprise in general;
4) To involve employees in participation with head in the goals and indicators development, which can help to reliably assess the employees performance;
5) To focus on the difficulties middle managers face during the duties and jobs improvements;
6) To avoid the emergence and situations development, which makes employees' interests to conflict with the objectives for improving company prosperity;
7) Not to increase quality standards up to that time, when the company is able to pay all the associated costs;
8) Not to create a significant gap between heads declarations and actual system;
9) Not to present the case, that the productivity increase programs are actually aimed at improving job satisfaction and its importance;
10) Not to approve the establishment of special privileges for heads which expand the gap between heads and working personnel.
2.4 Improvement in work
If the head adheres these rules, it will not only improve motivational factors, but also will significantly reduce the interests conflict which is possible in any motivational management model. Therefore, any management structure has different company and its employee's interests, but not all of them are opposite and different. It is always possible to find a path to agreement. Nowadays, improving motivation and stimulation strategies are in high demand, but they are hard to develop. The following principles are:
1) Absence of employees possessing evaluation methods, which allow to periodically obtain the information in the field of personnel motivation and stimulation;
2) Shortage of employees possessing experience of such strategies development;
3) Extremely small number of open valuation methods, which allow to obtain necessary information in the field of personnel motivation and stimulation. (Kolomyts and Ivanova 2016).
2.5 Departments of motivation
One of the best suggestions for improving stimulation systems is the establishment of personnel motivation departments. These are not the innovation; these departments actively operate in the Russian enterprises. But the number of such enterprises is not great. That is why there is the need to accelerate these departments popularization. Functions of personnel motivation departments should consist of the following regulations:
1) Stable motivation study of various enterprise departments;
2) Enterprise systems effectiveness evaluation and the methods of work stimulation;
3) New methods definition and implementation for labor activity stimulation;
4) Justification of new salary systems to different groups of employees;
5) Study the experience of domestic and foreign enterprises on the assessment of motivation and application of different stimulation methods.
2.6 Method
Social-psychological motivations must take a special place in the enterprise mechanisms. Here are presented some recommendations for heads, which will contribute to the favorable collective microclimate, concerted relations between head and employees, as well as conditions for effective and productive organization activities:
1) Personnel recruitment should be in compliance with clear requirements and criteria;
2) The control system should be agreed with the performance process regulations of and its evaluation;
3) You are not allowed to create only a team image and support it, you should be a real team;
4) Any company should have responsibilities distribution between departments, management structure should not be vague;
5) A head should not postpone his/her ideas and must implement them;
6) Any company should have a sanctions system for discipline breaches.
(Ivanova and Surnina 2015).
Results
3.1 Recommendations
These recommendations are proposed primarily to improve the effectiveness of motivation and stimulation events. Following recommendations above, it should be noted that a head who wants to have effective and stable relations with employees, must not forget about the stimulation availability for their productive activities improvement. It is usually assumed that the employee will feel satisfied with his/her salary, in case of incorrect attitude to his/her jobs, employee can be fired. Everybody has his own idea how to improve it's productivity. You should organize the work in order to provide your employee with desire to implement all the plans.
3.2 Views of scientists
Process of motivation is difficult and ambiguous. In the world there is a huge number of various theories of motivation trying to offer an explanation for this phenomenon. In modern researches are allocated:
1) theories of content of motivation (the theory of hierarchy of needs of A. Maslou, the theory of FRG of K. Alderfer, the theory of the acquired D. Makklelland's needs, the theory of two factors of F. Gertsberg, etc.);
2) procedural theories of motivation (theories of expectation of K. Levin, preference and V. Vrum's expectation, the theory of a reinforcement of B. F. Skinner, the theory of justice of Porter — Loulera (authors of the theory — L. Porter and E. Louler);
3) model of the choice of risk (D. Atkinson);
4) theory 'X" and "Y" (D. McGregor).
The first theories give special value to the analysis of factors which are the cornerstone of motivation. Ch. Barnard was one of the first researchers of motivation. He considered a set of different types of satisfaction of the person in the organization, allocated concrete motives: material, personal non-material for difference of prestige and the power, spiritual. But he didn't create the theory of motivation. On by this A. Maslou and K. Alderfer put forward theories of hierarchy of requirements. Across Maslou, requirements which were at the lower level demand initial satisfaction, and the movement of requirements goes from below up. Alderfer, unlike Maslou, considered that the movement of requirements goes from below up and from top to down. He called the movement up levels process of satisfaction of requirements, and the movement down — frustration — process of defeat in aspiration to satisfy requirement.
At Makklelland requirements aren't located hierarchically and don't exclude each other. He considers requirements - as received under the influence of vital circumstances, experience and training, and influence of these requirements on behavior of the person in many respects depends on their interference.
F. Gertsberg allocates two main groups of requirements depending on with what process they correlate. In his opinion, satisfaction and dissatisfaction are not two poles of one process, and two absolutely different processes. Factors which cause dissatisfaction at their elimination not necessarily result in satisfaction and vice versa, from the fact that any factor influences on satisfaction growth, doesn't follow in any way that when weakening its influence dissatisfaction will grow. On process "satisfaction — lack of satisfaction" the internal, motivating factors, and influence process "lack of dissatisfaction — dissatisfaction" — external factors of health. One of the most ingenious conclusions which was drawn by Gertsberg from the analysis of factors of health was a conclusion that the salary isn't the motivating factor. Life showed illegality of a number of statements of
authors of substantial theories of motivation. Requirements are differently shown depending on many situational factors (content of work, situation in the organization, a sex, age, etc.): rigid following of one requirement for another isn't obligatory, the satisfaction of the top requirements not necessarily leads to weakening of their interaction on motivation, etc. The merit of these authors is that they defined requirements as a factor of motivation of the personality, made attempt to classify requirements, showed their interrelation. Classification of requirements on primary and secondary is supported also by most of modern researchers though there is no uniform, accepted by all classification still.
Procedural theories of motivation recognize that people estimate different types of behavior through the received results. A source of the theory of expectation are K. Levin's researches and his schools.
The main developers of the concept of expectation are on bigger degree V. Vrum and D. Atkinson.
V. Vrum's models included three variables: expectation of the fact that efforts will yield desirable results, expectation of the fact that results will cause remuneration, and the expected remuneration value. D. Atkinson (model of the choice of risk) entered one more variable — achievement of success (failure). In its formula the tendency of success (failure) is result. In general researchers of the theory of expectation were interested only the work of variables in a concrete situation, and to them all the same that it is more: salary or promotion.
The synthetic model of motivation which includes elements of earlier considered theories of motivation was developed by Lyman Porter and Edward Louler. According to their theory the motivation is function of requirements, expectation and justice of remuneration. Effectiveness of work depends on assessment of value of remuneration, the made efforts, assessment of probability of communication "effort — remuneration"; from characteristics and potential opportunities of the worker and a self-assessment the last of the role. They distinguish external and internal remunerations, and also the remuneration perceived as fair.
Porter's model — Loulera shows that the motivation is not a simple element in a chain of relationships of cause and effect; it is integrated within uniform interconnected system such concepts as efforts, abilities, results, the remuneration perceived as justice, satisfaction as result of external and internal remuneration taking into account their justice. People according to the theory of justice always subject to value judgment the remuneration and compare it to the fact that other workers received for similar work. One of the most important conclusions of this theory consists that productive work always leads to satisfaction of the worker. (Ivanova and Petrucenko 2015).
Discussions
4.1 The Russian experience motivation
The motivational and stimulating events which are held in Russia cardinally differ from those which are carried out abroad. Motivations inherent in system in Russia distinguish usually following features:
1) in production economic activity of the organizations of Russia long time mainly only motivational model of "carrot and stick" which is at the moment very urgent was widely put into practice.
2) models of motivation of our country were and remain standardized and firm, any deviation from these standards is considered violation of the existing standard acts and local normative documents which are based and make the function on the basis of acts.
models of motivation of our country were and remain standardized and firm, any deviation from these standards is considered violation of the existing standard acts and local normative documents which are based and make the function on the basis of acts.
3) the labor contribution, was estimated biassedly, formally that resulted in indifference and not interest as in individual, and collective results of work, reduced social and creative activity.
4) the motivational models operating in Russia absolutely excluded opportunities in the field of development of unspecialized career and development of combination of positions. Only in recent years need of development of unspecialized career and combination of positions began to admit.
5) social stimulation of work happened in general without results of a personal labor as used the social benefits of collective work as the workers who reached high rates in work and the workers who aren't showing particular interest in work.
6) any of motivational models of the enterprises of the capitalist countries didn't consider and doesn't consider at present blocks of moral incentives as at them in general there is a reflection of material incentives, social and material, natural and social career.
7) stimulation is considered has to be considered, as a rule, through a prism of a socialist competition. The competition if to reject ideological dogmas, not only didn't become obsolete, but still surely is one of driving motives of increase in social and creative activity of workers in acceleration of rates of scientific and technical progress. As opposed to Russia, competition per se is widely applied and used at the enterprises of Germany, the USA, Japan and other countries.
The mechanism of realization of all blocks of model of motivation depends, first of all, on desire or unwillingness of definitely taken enterprise of Russia. And the main tendencies of use of motivational models in the organization of the developed countries inform us that any of motivational models not in forces up to the end to eliminate contradictions in work incentives of hired workers. Such situation doesn't allow to gain specifically full development of the personality and her self-realization.
4.2 Russian awards
In Russia, quite wide circulation earned the following rewards, such as:
1) awards, system of participation in profits, possession and management of various types of securities of the company.
2) the room of various records about achievements of the worker in his personal
file.
3) gratitude.
4) gift certificates (certificates which allow the worker to buy goods for a certain sum, to visit theaters, cinema, rest in sanatorium).
5) additional training at the expense of the employer for more highly paid work.
6) rank "the best worker of month".
7) the direction on a seminar, a conference outside the city placements of the company on the subject interesting the worker.
8) granting big powers.
9) flexible hours of working hours.
4.3 Problem of Russia
But seeing what is shown by practice, in Russia today in a number of the companies payment of any bonuses and awards to staff of the serving divisions isn't provided at all. Only the fixed salary is, as a rule, paid economists, accountants, financial experts, IT
specialists, and also HR managers. Managing directors of the companies usually consider that activity of employees of data of divisions doesn't influence financial result at all, doesn't bring money in the company and therefore their awarding is unjustified. (Ivanova, Zagorulko and Picarev 2016)
Conclusion
The motivation of personnel is one of the major elements in human resource management. Having studied motivation of working personnel and stimulation of their work, a conclusion followed that ensuring such level of motivation can promote increase and improvement of results of work of personnel at the enterprise, and also efficiency of all production.
Theoretical basics of motivation of personnel were covered, management of stimulation and motivation of work of personnel is studied, and also a number of recommendations about improvement of system of motivation of personnel is provided. Theoretical basics of motivation of personnel were covered, management of stimulation and motivation of work of personnel is studied, and also a number of recommendations about improvement of system of motivation of personnel is provided.
Having considered the Russian experience of motivation and work stimulation, it is necessary to draw a conclusion that it is necessary to try to obtain the necessary and desirable result from the worker in two ways: or to pick up the person with the set level of internal motivation, or to use external.
Considerably an important role is played by development of recommendations about improvement of motivation of personnel. Following recommendations, the head or the HR manager can quit and with ease to increase motivation of working personnel at the enterprise, so quality and efficiency of their work. Conforming to the basic rules, the managing director will be able to provide a good microclimate in collective, mutual understanding of the head and employees that will increase efficiency and efficiency of activity of the organization that will promote further development of success and prosperity of the organization.
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