FORMATION OF MODERN INCENTIVE SYSTEM FOR MANAGERS IN THE CONTEXT OF EUROPEAN INTEGRATION PROCESSES

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  Olesia Vashchuk

Abstract

The article is devoted to the research of issues of the formation of the modern system of evaluation of effectiveness and motivation of managers and workers of an enterprise in the context of European integration processes in Ukraine. The object is theoretical and practical foundations of creating an efficient motivational profile of an organization with the help of formation of the modern system of employee efficiency analysis and formation of an individual system of employee motivation at the enterprise based on research of incentive systems of developed countries and EU countries. The main research objectives are established: determination of key priorities for the formation of the system of valuation and motivation; formation of an algorithm and economic and mathematical model of the system of evaluation and motivation of personnel efficiency, zoning of boundary priorities and formation of a matrix of opportunities, formation of an effective system for improving the system of personnel motivation and evaluation, and a model of the system of improvement of personnel motivation means. Methodology. The conducted comparative analysis of various motivation systems existing in the EU countries and the most developed countries allowed developing a hypothesis about the necessity to form a more effective system of personnel evaluation and motivation that would correspond to general European values and criteria. A model of motivation is proposed that is developed on the basis of the Management Functional Assessment Model (MFAM), which is elaborated by researchers of Sheffield Hallam University (Great Britain) and the company “IVA Consulting Group”. MFAM is based on six main management functions: Forecasting/Planning, Organization, Motivation, Control, Coordination, and Communication. Its main advantages are the evaluation by three parameters: personnel loyalty; personnel performance; company’s attractiveness in the labour market, information about which is available in free and convenient access. Evaluation of the enterprise management system based on the functional model (MFAM) is carried out by questionnaire method. Questions of the express evaluation questionnaire are divided into five groups according to model criteria. By an obtained mathematical model, analytical indicators, and grading scale, we define zones of effectiveness where enterprise management is taking place and build a matrix of opportunities for development of enterprise efficiency. Result. The research conducted confirms the methodology’s efficiency, its uniqueness, and instrumental suitability. Based on experimental calculations, the algorithm of formation of performance evaluation system is determined, gradients and limits of the enterprise development are identified, the matrix of opportunities is formed, directions to improve the system of personnel motivation and evaluation are formed, and the model of the system for improving personnel motivation means is developed. Results of the enterprise personnel performance evaluation according to the developed system of indicators gave a possibility for managers of the company: to make a separate generalized profile of the appropriate group of the most successful co-workers; to form profiles of ideal co-workers, which are built given the idea of the leadership about the optimal combination of motivating factors, and to form effective directions for improving the motivation system.

How to Cite

Vashchuk, O. (2018). FORMATION OF MODERN INCENTIVE SYSTEM FOR MANAGERS IN THE CONTEXT OF EUROPEAN INTEGRATION PROCESSES. Baltic Journal of Economic Studies, 4(1), 49-61. https://doi.org/10.30525/2256-0742/2018-4-1-49-61
Article views: 379 | PDF Downloads: 161

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Keywords

European integration motivation criteria, motivation system, MFAM, performance evaluation, matrix of opportunities, motivation system improvement, motivation model

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