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Theoretical and methodological aspects of the labour remuneration system formation as one of the ways of provision of incentives for mine workers

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Category: Economy and management

Last Updated on 19 March 2014

Published on 26 February 2013

Hits: 3981

Authors:

O.V. Kalinichenko, Cand. Sci. (Econ.), State Higher Educational Institution "Krivoy Rog National University", Senior Lecturer of the Department of Management and Administration, Krivoy Rog, Ukraine

Abstract:

Purpose. To improve the theoretical and methodological postulates for motivation and remuneration system providing the basis for the generalization of the conclusions and recommendations for further development of management at enterprises.

Methodology. In order to improve the theoretical and methodological postulates for motivation and remuneration system we have used scientific and special methods: method of critical analysis and synthesis of theoretical studies, method of systematic approach, method of economic and mathematical modeling. The timeliness and accurateness of the calculations have been provided by Excel 7.0 software.

Results. We have proved that the mechanism of compensation should be organically integrated into the strategy of mining companies and it should be the main object of improving the systems of personnel management in the current economic situation.

Originality. On the base of the flexible fare concept we have improved so-called dynamic model of wages. In this model, the tariff should have the main incentive load.The optimal wage structure has following proportions: rate – 85%, the periodic premium for individual achievement – 10%, the premium for the results of the company as a whole – 5%. Periodic bonus should encourage employees to make additional efforts related to the development of new technology and introduction of new forms of work organization, mastering related professions, working methods, etc., which lay the foundation (base) to the productivity increase.

Practical value. A basic scheme for the formation of wages in relation to strategy development management of mining enterprises, which is a set of individual integrated components, intended to meet the needs of the employees and the interests of employers, which correspond to the general concept of the innovation development of Ukraine.

References:

1. Манів З.О. Економіка підприємства / З.О. Манів, І.М. Луцький – К.: Знання, 2006. – 580 с.

Manіv Z.O. and Lutskyi, І.M. (2006), Ekonomіka pіdpryiemstva [EnterpriseEconomy], Znannia, Kiyv, Ukraine.

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