научная статья по теме SYSTEMS OF PERSONNEL MOTIVATION IN VARIOUS COUNTRIES OF THE WORLD Экономика и экономические науки

Текст научной статьи на тему «SYSTEMS OF PERSONNEL MOTIVATION IN VARIOUS COUNTRIES OF THE WORLD»

Systems of personnel motivation in various countries of the world

A.V. Soloviova,

student, Odessa national polytechnic university (65000, Украина, г. Одесса, просп. Шевченко, 1; e-mail: _annette_@live.ru)

Аннотация. В статье рассмотрены актуальные системы мотивации персонала в разных странах мира и их влияние на эффективность деятельности предприятия. Проведен сравнительный анализ зарубежных систем мотивации и мотивации персонала в России и Украине. Выявлена специфика каждого из подходов, основанная на внешних и внутренних факторах каждой из рассмотренных стран. Также даны рекомендации по созданию успешной системы мотивации для предприятий различного типа.

Abstract. The article contains a review of the current systems of personnel motivation in different countries of the world and their impact on the efficiency of the enterprise. Comparative analysis of personnel motivation systems in Japan, USA, Western Europe, Russia, and Ukraine is presented. Specific features of each approach in consideration of external and internal factors in each country are discussed. Suggestions are made for creating a successful motivation system for different types of enterprise.

Ключевые слова: система мотивации, персонал, стимулирование, эффективность.

Keywords: system of motivation, staff, stimulation, effectiveness.

In today's world, the labor crisis is nearly universal. For the vast majority of people work has become a matter of survival, which makes it difficult to evaluate effectiveness of productive efforts in various countries.

As employees are driven more often by material necessity than personal interest, modern management pays a lot of attention to various systems of controlling and stimulating personnel since the company's workforce is the key component of its effectiveness and competitiveness. This issue is particularly urgent as no single system of personnel motivation is known to produce reliable positive results.

The problem of personnel motivation has been analyzed extensively by such prominent researchers as L.M. Fridman, A.K. Markova, L.I. Bozhovich, A.N. Leontjev, E.P.Iljin, N.G. Morozova, M.V. Matjukhina, V.V. Cherkasova and many others. Each of these experts defines motivation as a psychological category that determines actions of a person.

The aim of this paper is to analyze systems of motivation used in different countries of the world and to isolate in each of them features most effective in managing company's workforce and driving it towards achieving company's goals. Suggestions regarding selection and application of various systems have also been made.

Motivating personnel is one of the main functions of proper management, as achieving company's goals depends on coordinated efforts of its workforce. Each administrator's task consists in creating the most engaging working environment that would stimulate interest, creativity, and responsibility on the part of the employees. Unfortunately, real-life examples often illustrate inept approach to motivation resulting in a high rate of staff turnover and low effectiveness of the business.

Personnel motivation consists of a set of stimuli capable of affecting employees' working efforts and, therefore, directly linked to the quality and results of company's operations. Furthermore, a good administrator can and should try to attract and retain the most skillful employees by creating conditions for their creative self-realization.

Motivation is squarely based on promoting good work efforts. Individually chosen material and moral rewards, such as adequate monetary compensation, incentive payments, bonuses, promotions, important project appointments, training at company's expense, etc., have been shown to be highly effective in that respect [1, p. 275].

Material stimuli typically include salary, commission payments, incentive payments, bonuses, and stock options. Combination of a regular salary and commission payments is a well-established arrangement under which in addition to wages an employee receives a certain percentage of the realized profit or sale. Bonuses are paid based on company's performance (typically at the end of the fiscal year). Incentive payments are usually made to reward professional skills and loyalty to the company, as well as to prevent particularly valuable key employees from leaving.

Non-material rewards usually consist of social benefits, additional pension allowances, medical insurance, etc. They may also include advancements, promotions, flexible working hours, various gifts and entertainment events organized and paid for by the company, professional training at company's expense, use of a car, computer or mobile phone paid for by the company, and so on.

The system of motivation is unique at each enterprise and is based on various external and internal factors that allow custom tailoring of the benefits to each particular employee (Fig. 1).

Journal of Economy and entrepreneurship, Vol. 7, Nom. 9

A.V. Soloviova Systems of personnel motivation in various countries of the world

Figure 1. Personnel motivation factors.

Motivation is generated when there is an unsatisfied need. Some needs are satisfied only briefly (e.g. need for food), others over a long time (friendship, relationship). Thus, it is important to determine which particular needs generate motivation in a given employee [2, p. 213].

Typically, the existing system of personnel motivation does not require modifications and improvements for as long as the enterprise functions successfully and remains productive and profitable. Given specific needs, goals and motives of employees' behavior, the system of motivation may require modifications in the following areas:

- increase in productivity and quality of work;

- improvement of employees' professional

skills;

- improvement in employees' social security;

- changes in the system of compensations.

In today's global economy, it has become evident that neither public nor private companies can remain successful without searching for new and better systems of personnel motivation. Problems of motivation have been analyzed extensively in Japan, USA, and countries of Western Europe where issues of personnel management have long been at the center of attention. In recent years, companies in Russia and Ukraine began to adopt some of these foreign motivation systems, as their effectiveness has been clearly demonstrated [3, p. 200].

Foreign systems of motivation are based on the following principles:

- opportunity to take the initiative;

- favorable career prospects;

- salary tariffication;

- by-the-hour payment system.

Japanese motivation model enjoyed the greatest success because its application allows easy introduction of technological innovations and quality control enhancements and improves work efforts on the part of the employees. This model is established on seniority-based approach to promotions, advancements, and project assignments, active involvement of employees (via workgroups and trade unions) in management of the daily activities of the enterprise, and permanent hiring system that guarantees employment and prevents industrial downtime.

An important advantage of this approach lies in its psychology-based foundation with workforce unity at its core. An individual and its group are one.

Competition between group members breeds discord and, thus, is not permitted, whereas intergroup competition is encouraged as it increases work efforts. The need to belong to a group, to be part of the integral workforce ensures high work motivation. By uniting the workforce and establishing common work discipline and trust this model creates strong corporate spirit that becomes an essential condition of the successful enterprise.

The Japanese motivation system has been successfully used in many countries. Its key arrangements, steady increase in salary according to the length of employment and permanent hiring until retirement, are attractive to both an individual employee who enjoys job security and the society overall as it decreases the unemployment rate.

American approach to motivation used to be a gold standard but lost its leading role to the Japanese system. That approach is built on the concepts of leadership and strict discipline and implies unquestioning obedience to superiors.

Personnel motivation in USA is based primarily on monetary incentives. Work compensation is typically comprised of the salary and various bonuses that may constitute up to forty percent of the total income [4, p. 67]. Career advancements also play an important part in the American motivation system as they usually lead to higher salaries. The following incentives are used within this system:

- preferred or discounted stock options;

- opportunity to participate in decision making process through membership in various committees;

- opportunity to select an individual benefit package (within specific limits) according to one's personal needs and preferences;

- participation in various projects geared to generate additional income;

- eligibility to various dividends on the basis of company's performance;

- employment with a brand-name company and its potential for future career advancements;

- opportunity to receive advanced training at company's expense, following a given length of employment.

One of the key concepts of the American motivation system is the issue of leadership. Presence of established, effective leaders in the workgroups is beneficial to the functioning of the entire enterprise.

Motivation system used in countries of Western Europe has much in common with the American

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approach, yet it is based on the principle of high social security as well as full employment, income leveling, compensations and benefits. Unique features of this system are partnership between employees and business owners and employees participation in day-to-day management of the enterpris

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