Evaluation of foreign personnel motivation systems will allow improving the efficiency of Russian enterprises, if applied in the light of adaptation to domestic realities. For Russia, it is important to study the experience of stimulating the labor of such countries as the USA, Japan, and the countries of Western Europe. 25-30 years ago, in these countries, the tendency to reduce the incentive effect of wages was discovered, in connection with this, completely new ways of stimulating the work of staff were developed.

The Methods

Such methods include participative management, which includes remuneration programs for work, seeking to increase the internal motivation and interest of employees in the labor process by expanding their authority in the activities of the company.

They are also called industrial democracy or participation economies. Unlike most remuneration systems based on the recognition of the individual contribution of employees of a company, participatory management is based on the recognition of the mutual interests of all members of the company, which helps to integrate these interests and increase the interest of employees in the results of labor. Participatory management exists in the following forms.

  • employee participation in profits and property
  • employee participation in incomes
  • employee participation in management

Participation in income is a motivation program to reduce the company’s expenses according to the established criteria: reduction of labor costs and working time per unit of production, improvement of product quality, etc. You can make your visit to https://imperiallegal.uk/immigration/representative-overseas-business/ for more.

The Benefit

This program helps to strengthen labor activity, orients them to coordinate activities and interaction,overcomes the shortcomings of specialization. This form of participation is most effective in relatively small and stable firms, where the interrelationships existing between departments are clearly visible and there is an opportunity to control costs and develop activity standards.

Sometimes workers are involved not only in income, but also in the loss of the company. Employee participation in profits and property represents a program for motivating them by distributing some part of the firm’s profits among them, either based on work in the form of conditional payments (bonuses), or after a certain period of time in accordance with trust management agreements for employee shares. This system of participation is most effective in fast-growing firms that receive high profits, allowing you to set substantial incentives for employees.

In addition, the system is recognized as effective when applied to managers and professionals who, with their decisions, significantly influence the activities of the company.

For the company, this form provides an additional effect, as it allows you to change the size of wages in the course of adapting to market conditions. If a firm’s profit declines, it allows it to reasonably reduce employee benefits and vice versa.

Employee participation in management is a program of motivating them by providing an opportunity to participate in the discussion and decision-making on the activities of the company.

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