Theoretical fundamentals of formation of the motivation system at enterprise

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Theoretical fundamentals of formation of the motivation system at enterprise

motivation individual enterprise

О. V. Popelo, Doctor of Economics, Assistant Professor,

T. V. Zabashtanska, Candidate of Economic Sciences, Associate Professor,

K. O. Chorna, Master Student

Abstract

Keywords: motivation; motive; material motivation; intangible motivation.

Анотація

Теоретичні засади формування системи мотивації на підприємстві

О. В. Попело, д. е. н. доцент, Т. В. Забаштанська, к. е. н., доцент, К. О. Чорна, магістр.

В умовах загострення конкуренції надзвичайної актуальності набуває питання створення ефективної системи мотивації персоналу на підприємстві. Від обраної системи мотивації залежить рівень жаги працівників до роботи. Саме тому керівникам компаній необхідно раціонально поєднувати матеріальні й нематеріальні методи мотивації персоналу. Закордонний досвід доводить, що нематеріальні та матеріальні методи мотивації відіграють однаково важливу роль в організації праці підлеглих. Саме тому дослідження питання процесу обрання методу мотивації персоналу на підприємстві набуває дедалі більшого значення. У статті досліджено теоретичні засади формування дієвої системи мотивації на підприємстві. Виокремлено основні мотиви, які лежать в основі мотивації. Окреслено та проаналізовано теорії мотивації. Здійснено аналіз головних складових системи мотивації: матеріальних та нематеріальних. Розкрито фактори, що сприяють формуванню дієвої системи мотивації на підприємстві. Обґрунтовано можливості поєднання матеріальних та нематеріальних видів мотивації на підприємстві. Доведено, що мотивація має значний вплив на життя кожної людини та є рушійною силою в будь-якій господарській діяльності. Людина - це особистість, тому ключовим завданням керівників компанії є обрання мотиваційних важелів відповідно до індивідуальних якостей працівників. Для отримання максимального ефекту від праці підлеглих, керівнику необхідно визначити мотиви кожного працівника.

Ключові слова: мотивація; мотив; матеріальна мотивація; нематеріальна мотивація.

Urgency of the research. In modern conditions of aggravation of competition, the question of creation of effective system of motivation of the personnel at the enterprise acquires extreme urgency. The level of employees' thirst for work depends on the chosen system of motivation. That is why company executives need to rationally combine tangible and intangible methods of staff motivation.

Target setting. Domestic experience shows that at this stage of development of the motivational component, the material methods of stimulating employees are more important. At the same time, foreign experience proves that intangible and tangible methods of motivation play an equally important role in organizing the work of subordinates. That is why the study of the process of choosing a method of staff motivation in the enterprise is becoming increasingly important, which confirms the relevance of the chosen to research topic.

Actual scientific researches and issues analysis. The theoretical foundations of motivation are highlighted in the works of such famous scientists as F. Herzberg, K. Alderfer, A. McKelland, A. Maslow and others. Many researches are devoted to the actual question of today, search of tools of formation of effective system of motivation V. Bocharov, O. Magopets, M. Polyuk, A. Ustilovskaya, O. Shubna.

Uninvestigated parts of general matters defining. Despite the large number of studies on the problems of staff motivation, the issue of a systematic approach to the theoretical foundations of the motivation system in the enterprise needs further study and analysis.

The research objective. The purpose of the article is to study the theoretical foundations of the formation of an effective system of staff motivation in the enterprise.

The statement of basic materials. Motivation is essential in everyone's life. That is why it is considered that motivation is the driving force that motivates an employee to perform job responsibilities.

Throughout the history of mankind, many definitions of the concept of motivation have been formed. Summarizing, in our opinion, motivation is a certain stimulus that motivates a person to action in order to meet their own needs through certain activities. Motivation is based on psychophysiological aspects that control human behavior and determine how organized, activity-oriented, stress-resistant and active in everyday life [2]. In psychology, there are six types of motivation, which are presented in (Fig. 1).

Fig. 1. Types of motivation in psychology. Source:* developed by the authors

As a rule, external motivation is not related to certain activities and is aimed at certain external circumstances, which are the driving force for a person. A characteristic feature of external motivation is the activity of the employee under the influence of certain external factors (tangible and intangible). External motivating factors can be high salaries, career growth, power opportunities, respect among colleagues, and so on (Fig. 2).

Fig. 2. Schematic example of the influence of external motivation. Source:* developed by the authors

As for intrinsic motivation, on the contrary, it is activity-oriented and unrelated to external factors. Internal motivation arises in the middle of the person and does not depend on external factors. A characteristic feature of intrinsic motivation is the presence of employee satisfaction with their own work. Internal motivating factors can be the desire for self-realization, self-development, achieving dreams and goals. A striking example of external motivation is to participate in corporate events in order to obtain positive emotions.

It is known that motivation is a set of motives, which in turn affect human behavior and push it to certain actions. A motive is a certain tangible or intangible object that acts as a meaning of achievement and is characterized as an internal phenomenon that motivates a person to action. The subject, in turn, may experience positive or negative emotions depending on the achievement of the desired or, conversely, dissatisfaction with the existing situation. Varieties of motives that motivate a person to action are presented in (Fig. 3).

Fig. 3. The set of motives that underlie motivation.

Source:* developed by the authors

The motive of affiliation or joining is a motive that motivates a person to establish and maintain constant contact with other individuals. In today's world, interpersonal contacts play an important role, it is at the heart of affiliation is the desire to work in a team and improve relations between colleagues. The leader as a leader must create and maintain a friendly atmosphere in the team. It is under such conditions that employees will have a friendly relationship with each other and teamwork will become more productive.

The motive of self-affirmation motivates the individual to actions, which in turn are aimed at obtaining a certain status in life and self-affirmation in society. Every employee seeks respect from colleagues and superiors. Sometimes such employees strive to achieve their goals in any way that is not always good for the organization.

The motive of achievement causes the desire of the individual to achieve the best success in their own activities and avoid any failures. Employees are aimed at quality performance of tasks received from the manager in order to obtain recognition. Managers can entrust such employees with tasks of any complexity and be sure that the tasks will be performed efficiently and on time.

The motive of power is characterized by the desire of the individual to influence others, in his actions there is a desire not to enjoy work, but primarily to obtain power to manage a group of people. This type of motive is clearly expressed in the leaders and directly in the leaders of organizations. Sometimes a person driven by the motive of power becomes obsessed, so when appointing line managers should pay attention to the basis of the motivation of a potential candidate were laid and other motives.

Procedural and substantive motives are clearly expressed in individuals who enjoy their own work. They are interested in the process itself and, as a rule, such individuals succeed in their own activities, because for them both the process and the content of work are equally important. Employees who are driven by a procedural and substantive motive are good performers, so the manager can safely delegate some powers to such employees.

The motive of identification forces a person to strive to acquire similarities with a certain other individual. In the business environment, it can be well-known investors and entrepreneurs, whose success impresses and motivates a person to take actions aimed at achieving similar results. Therefore, the leader must be an example for his subordinates, constantly strive for self-development, be punctual and responsible.

At the heart of prosocial motives is the responsibility of the individual to others. An employee with prosocial motives feels a sense of belonging to a certain group and strives to achieve the goal. Employees driven by prosocial motives strive to perform their tasks well. Often prosocial motives can be found in leaders who are not afraid to take responsibility for their own actions and even the actions of their team.

External motives as well as external motivation are not aimed at activity, the main purpose of the individual, which is driven by external motives is to obtain certain material benefits. Most employees in any organization are driven by external motives, because the goal of each employee is to make a profit. Performing certain work, the employee seeks to receive material remuneration. In a team where employees strive for material rewards, motivation must be built on material factors, such as basic wages and additional payments.

Every successful individual has a motive for self-development, because he is responsible for personal development and the desire to constantly develop in any environment. The main goal is to realize one's own potential. Modernity dictates such rules that if a person wants to be successful, he must develop every minute, try something new to gain his own experience and absorb useful information that can be used in their own activities.

Thus, motivation is directly a phenomenon, which is the driving force on the way to activity in order to achieve the desired result. Having considered the main types of motivation and motives that are allocated in psychology and manage individuals, we can move on to aspects of the formation of a system of motivation of employees in the enterprise. Staff motivation is an integral part of management. The system of staff motivation is a system that is designed to stimulate employees to work through moral and material incentives. The incentives are based on external factors influencing the employee, this is the main difference between the incentive and the motive [5].

The goal of each manager is to create a system of motivation in their own organization, which is able to increase employment and ensure maximum effect from the activities of each employee.

In the process of developing such a phenomenon as motivation, many theories of staff motivation have emerged. Motivation theories are designed to identify employee needs and explain the relationship between employee needs and actions. Theories study what motivates employees to perform their duties effectively. As a rule, there are three groups of motivation theory: meaningful motivation theories; theories are based on the principles of a specific picture of the employee; procedural theories of motivation (Fig. 4).

Fig. 4. Theories of motivation

Source:* developed by the authors based on [7; 9]

Substantive theories of motivation, as a rule, study the needs of the individual and are designed to clarify the internal motives that motivate the individual to action. The relationship between the physiological needs of the individual and motivation is a major issue studied in meaningful theories of motivation (Tab. 1).

Table 1 Meaningful theories of motivation

Theories based on the principles of a specific picture of the employee study the motives that motivate the employee to activities aimed at the common result of the organization. Each of the theories describes certain qualities that an employee must possess. In this way, the leader has the opportunity to use certain tools of motivation to achieve common goals (Tab. 2).

Table 2. otivation theories are based on the principles of a specific picture of the employee developed by the authors based on [7]

Procedural theories of motivation study how a person distributes efforts to achieve goals and which model of behavior is chosen. The pattern of behavior describes certain expectations and how a person perceives his environment

Table 3. Procedural theories of motivation

Source:* developed by the authors based on [7]

Theories of motivation are the information foundation in the formation of an effective system of motivation in the enterprise, the success of which directly depends on the efficiency of each employee. The leader as a leader is obliged to provide an effective system of motivation that would motivate subordinates to action. In a global sense, as defined in our study, motivation is a psychological process in which stimuli and motives lie, which are the driving force.

The introduction of an effective system of motivation will provide a solution to many tasks set before the head, namely (Fig. 5):

• improving labor productivity, efficiency and effectiveness of subordinates;

• attracting highly qualified specialists, increasing the number of qualified personnel in the company;

• retention of existing specialists (managers, marketers, economists, analysts), minimization of staff turnover;

• ensuring a comfortable climate inside the company;

• increasing the interest of subordinates in the development of the company;

• ensure compliance with subordinates of a high level of discipline.

When developing an effective system of motivation, the leader must take into account the instability of the team and take into account demotivational aspects that may adversely affect the further actions of the team. The ideal system of motivation should include six factors on which the leading criteria of efficiency of a parity of activity and needs of the worker are based. It is based on the criteria of effectiveness that the appropriate method of motivation is chosen.

There are two main methods of motivation in personnel management - the material method and the intangible method. Receiving tangible or intangible incentives is usually associated with the interests of the company. Thus, both employees and managers of the company win (Fig. 6).

Material methods of motivation (economic) - involve employees to perform the tasks assigned to them for a certain financial reward. Material methods of motivation are considered the most common and more effective. This method of motivation includes any economic methods of incentives based on the financial component. A reasonable approach to material motivation increases productivity at times [2].

Fig. 5. Factors of an effective motivation system

Source:* developed by the authors

Varieties of material method of motivation include monetary and compensatory incentives. Monetary incentives are additional payments for high achievements in work in the form of bonuses, interest and salary increases; payment of medical and social insurance; increased wages, under harmful working conditions; cash payments in emergencies; compensation of transport costs; pension allowances for highly qualified retired workers.

Varieties of monetary motivation:

A decent salary is the best motivation for an employee. The manager must set the salary according to the level of efficiency of the subordinate. Impartially low wages lead to high staff turnover. Wages are the basis of motivation, if the company can not provide a decent wage, other methods of motivation will not be effective. The task of the head is to establish an appropriate fixed salary for each subordinate and provide a flexible part of it.

Cash bonuses - an effective type of motivation, the main difference from wages is that bonuses are issued unstable and directly depend on the level of work of the subordinate. It is the stability of the

payment of bonuses and their quantitative value characterize the image of the employer. If the company has a clear scheme of payment of bonuses and it is clear to employees, as a result the company will receive high productivity and economic effect from work of subordinates.

Fig. 6. Varieties of motivation of subordinates

Source:* developed by the authors based on [4]

Additional interest is a common way to motivate in trade. Due to the fact that there is no fixed wage and pay depends directly on the efforts of the employee, the work of workers becomes more productive. Subordinates understand that the more they sell goods, the higher their wages - this is a great incentive to work.

Bonus system of motivation is of two types fixed and variable "floating". As a rule, the company sets a plan for a month, quarter or year, employees in turn must implement it. Bonus payments are accrued for the implementation of the plan. The manager's task is to develop a bonus program and explain its goals and objectives to employees.

Selling shares is a newer method of motivation. The essence of this method is that an employee who has increased sales by n-quantity, has the opportunity to buy shares of the company at a price below market. Thus, becoming a shareholder of the company will increase interest in its development, because the success of the organization depends on the share price and in turn the material well being of the employee.

Compensatory incentives are one of the types of staff motivation. Reimbursement is an additional social package that successful companies can provide to their employees. Typically, these costs include: rent, gym memberships, vacation vouchers, training sessions and seminars, transportation costs, mobile communications and meals. Enterprises can also provide the opportunity to use social institutions of the enterprise (kindergartens, schools, sanatoriums); free or partially paid vouchers; preferential terms for purchasing the company's products; improving working conditions and logistics; free tickets to the cinema, theater or concert.

Monetary and compensatory incentives are usually referred to as incentives. There is also a system of fines.

The system of fines is certain financial sanctions for violation of discipline, namely lateness, non fulfillment of the current plan and provocation of conflict situations in the team. Sanctions are designed to prevent negligent attitude of employees to work and are a kind of compensation to the company in case of illegal actions of employees. The system of fines is based on the principle of influencing a particular employee and thus prevents such actions among colleagues. The manager must understand that financial penalties should not affect the basic salary. Financial penalties, as well as bonuses, are additional incentive funds that can be issued for a certain result or, conversely, withdrawn. Some companies make the mistake of imposing innumerable sanctions, which in turn adversely affect the work of employees, because they understand that punishment is inevitable and cease to be taught to the maximum, and some are fired altogether.

Thus, financial rewards are designed to encourage employees to take the initiative in work, to implement the plan and tasks, to take an active part in the development of the company and to strictly adhere to discipline. Thanks to the financial reward, employees are full of enthusiasm and feel that they are a valuable employee of the company. The system of material motivation must be constantly improved in order not to lose efficiency in the long run.

Intangible methods of motivation are usually not expressed in monetary terms but carry certain incentives that encourage improved productivity. As a rule, there are the following types of intangible motivation: social, organizational, moral and psychological [2].

Social stimulation is a method of motivation, the characteristic features of which are giving the head of his subordinates certain powers, assigning an important level of tasks and giving the opportunity to advance in the career [10]. Employees should know that for certain achievements they will be able to advance in their careers, but the manager's task is to find a measure, otherwise it will lead to competition among subordinates and teamwork will not be possible. An important incentive is professional development at the expense of the company, providing opportunities to develop and improve their professional qualities.

Organizational incentives are a method of motivation whose characteristic features are the provision of decent working conditions, the arrangement of a comfortable working month for the subordinate, providing a place to rest and dining, providing the opportunity to work with the latest technology [10]. For a large number of employees, the organizational incentive is a flexible work schedule. Organizational incentives systematize the work of the enterprise. There are such subgroups of organizational incentives as:

The organization of meetings and planned activities for the team, the involvement of all employees in the current work of the enterprise, informing about the current tasks and goals of the organization, contribute to the involvement of employees in the process of achieving common goals.

Administration includes the formalization of the functional responsibilities of subordinates; creation of a code of ethics for the company's employees; study of the regulatory framework related to the functioning of the enterprise; creating rules for a culture of communication with clients and colleagues; formation of a system of personnel incentives.

Grading is one of the newest methods of increasing the productivity of subordinates. The purpose of which is to form a hierarchical structure based on the value of employees for the company. On the basis of which a system of incentives and distribution of remuneration among employees is created. The evaluation criteria include: qualifications, level of education, responsibility, productivity and diligence.

Moral stimulation is a method of motivation whose characteristic features are the celebration of the achievements of subordinates, as a kind of public or personal praise, the expression of gratitude by the leader for significant achievements in the work and performance of tasks [10]. The leader must note not only the failures but also the achievements of employees, in turn, subordinates seek not to disappoint the leader. That is why even nowadays boards of honor are used, where the worker of the month, quarter or year is celebrated. Awarding certain diplomas and giving gifts is another effective moral stimulus. Gifts to employees for certain achievements, as a rule, increase trust in managers and demonstrate the company's image. Gifts can be functional (electronic devices, small appliances), corporate (souvenirs with company symbols, products of own production) and symbolic (diplomas, awards, diplomas, medals). Moral stimulation also includes constructive criticism, thanks to constructive criticism the company's employees improve their professional qualities.

Psychological stimulation is a method of motivation whose characteristic features are the provision of organizational conversations with a psychologist, stimulating employees by personal example of success of the leader, the organization of corporate events for communication in an informal setting [10]. Corporate events such as holiday banquets, team games, outdoor activities and cultural events contribute to the formation of a trusting relationship between the leader and subordinates and creates a friendly atmosphere in the team. An important element of psychological stimulation is feedback, providing employees with the opportunity to express themselves, contributes to the formation of a quality socio-psychological climate in the team, and as a rule, a good atmosphere helps to increase productivity. The task of the leader to make it clear to his subordinates that their opinion is important for the organization.

Intangible ways of motivation are designed to correctly set goals, priorities and create incentives that will encourage employees to take an active part in the work process. This method of motivation helps employees to express themselves and be more proactive. However, the peculiarity of intangible motivation is that the leader must find a personal approach to each subordinate separately, and for this you need to understand the self-motivation of subordinates.

So, as a rule, there is no single right method of motivation that suits any company and team. The choice of tangible or intangible ways of motivation is left to the head of the company. Only the manager has the right to choose which methods of motivation will be more effective in order to achieve maximum productivity in his company and in today's market. Based on the experience of many successful companies, we can conclude that the system of motivation should be comprehensive and combine tangible and intangible methods of motivation.

Conclusions. Motivation has a significant impact on everyone's life and is the driving force in any economic activity. Everyone is an individual, so the goal of company leaders is to choose motivational factors in accordance with the individual qualities of employees. To get the maximum effect from the work of subordinates, the manager must determine the motives of each employee.

It is studied that the most useful for company managers are theories of motivation, which are based on the principles of a specific picture of the employee, because they reveal the essence of internal incentives that motivate employees to work to achieve organizational goals and personal needs.

An effective system of staff motivation should include tangible and intangible ways of motivation. It is proved that to create a successful system of motivation it is appropriate to combine both tangible and intangible ways of motivation. Domestic practice shows that first of all employees are still interested in the material aspect, namely wages, interest on sales, bonuses. But intangible ways of motivating staff also play an important role in shaping the motivation system, especially aspects such as workplace organization, friendly atmosphere in the team, respect for superiors affects the productivity of workers and the overall economic effect of the company.

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