The role, essence, and problems of stimulation of the employees For development of industrial activity

S. Zhorzholiani, Candidate of Technical Sciences of Ak. Tsereteli State University

In the development of modern economics the business undertakings plays one of the great roles.

It must be said that labour relations are one of the difficult problem in the industrial activity, especially when the collective of the enterprise consists of ten, hundreds, and thousand of persons. That is why the businessman cannot achieve good results without good labour organization and efficient management of the employees in the competitive environment of the market.
Labour organization and employees’ management are very difficult processes. It includes those elements as are hiring and placing of the employees according to their qualification, including allocation of their responsibilities, work force training, and retraining, stimulation of activity and entirely its organization. Thus, stimulation of the employees is one of the main questions in the management of the staff.
Under conditions of market economy, the relation between employees and businessmen is built on a new basis. The main goal of businessman is to achieve success in the market and correspondingly to receive profit. The goals of the employees are to obtain material payment and satisfaction from performing of the work. The businessmen try to receive maximal profit with minimal expenses. The employees try to obtain more payment by performing less work. Just making of compromise between expectation of the employees and businessmen is the main essence in stimulation of the employees under conditions of market economy. For businessman the person is the most valuable resource, as the persons can permanently perfect themselves. Correspondingly, well handling of the persons can permanently improve management of the enterprise and increasing of the profit. That is why the businessman should know the persons well, their merits, and demerits and motives that prompt their relationships to labour.
In modern economy, stimulation of employees does not include only material payment but it is directed to perfection of the employee, formation of interest in successful achievement of organization to them, it also includes other forms as are social benefits, moral encouragement etc.
The concept of self – stimulation is connected to the concept of the industrial collective. The industrial collective and its each member is the object of stimulation. In the management of the industrial collective, the main attention should be paid to organization of the working process and stimulation of the employees. Organization of management of the industrial collective should meet exactly those problems raised before the organization in which the main is output of products, service, and realization that are based upon social and economical interests of the employee and the businessman who is an owner of the enterprise and the main goal of his activity is obtaining of profit.
Stimulation is directed to expanding, diversification, rising of technical level and quality with considering of scientific and technical progress. In its turn efficient and qualitative working increases profitability of production that gives opportunity to encourage the employees materially.
When we speak about employees, we mean all the employees of the enterprise. Thus, it is necessary to separate the essence of “efficiency of labour” and “labour productivity”. Labour productivity of the employees is defined not only by personal effort but it depends on other reasons as well: introduction of new techniques and technologies, utilization of new raw materials and materials, utilization of more perfect methods and forms in production. However, efficiency of labour of the employees is entirely depended only on them and their personal features.
The concept of stimulation of the employees is the following:
1. Stimulation of high labour showing of the employee
2. Formation of defined direction of the labour conduct of the employee that will be directed to development of the organization
3. Inducement of the employee to use his physical and mental abilities in the process of performing of the work imposed upon him.
That is why stimulation directed to increasing of motivation of the employee allows the businessman to increase own incomes. Though, there should be provided not only personal incomes but also taxes in federal and local budget. Thus, stimulation of the employees is not a problem of specific enterprise; also, it plays a great role in economical development of the country.
In market economy the employer and employee interacts on two levels:
1. In the labour-market where it is calculated the rate of salary and making of collective agreements
2. Within the enterprise where it is established the systems of payment on specified performed work
Within the enterprise, the relation between employer and employee is defined under the labour standards that provide definition of the workday and intensity of labour.
The employer offers the employee the work and provides him with safe conditions of the labour. The employee is obliged to perform the duties imposed upon him perfectly. Thus, stimulation of the employee in the enterprise is closely connected with scientific organization of labour that includes establishment of norm fixing with clearly defined labour responsibilities and qualitative and quantitative results that is requested from him.
When we speak about stimulation of the employee there must be considered such concept as labour motivation. Motivation is defined with two concepts: demand and reward. There are primary and secondary demands. Primary demands are physiological demands of the person: food, water, clothes, accommodation, holiday etc.
Secondary demands with their concept are psychological that include demand of respect and achievement of success.
While stimulation of labour, payment for labour to the employee that he uses for satisfaction of his demands, we must not forget that the persons have different reactions on these processes and assesses them in accord with their own values. For example: for the persons who have high payments spending of time for relaxation is more important then additional incomes that they would receive for overtime work. For many people for example for the employees who carry intellectual activity the important thing for them is to perform interesting work and respect of the colleagues then additional incomes that he would receive from business or becoming a commercial agent. Thus, payment for labour may be of two kinds: internal and external.
Internal payment – is a self-satisfaction that person receives from conducted work, respect that he feels from colleagues, finding his own place in the collective. External payment – it is a material profit, will of promotion, increasing of social state. That is why, while stimulating the employee it is essential to display requirement of employees in order requirements of down level to be satisfied at first then requirements of a high level. Also there must be considered that the requirements of the person always change and the manager should not believe that motivation, which made an influence once, would not be efficient again. With personal development is enlarging potential abilities of the person, requirement of self-displaying. Thus, the process of motivation for satisfaction of the requirements is infinite.
It must be said that nowadays, in our country stimulations in the working process is not paid much attention that makes the employee to feel self-perfection. According to present social state as the researches show for most of employees, the material interest is the main thing, only minority of them (mainly managers) says that it is essential to receive pleasure from work and feel your place in the collective. That is why, certainly, one of the main goals for stimulation of the employees must be returning of interest to labour, formation of their sense of participation to common cause in the collective.
When solving the question of stimulation of the employees, it is necessary to consider priorities of the employees. On different stages of social and economical development, labour motivation of the employees is different. The country must be developed so that the person can perform work not only for material interest but for receiving moral satisfaction from the work also, he must feel that he and his performed work is necessary for society and country. Due to instable economical conditions, on the first stage are satisfied primary requirements, will to earn money for living. For stimulation of the employees must be provided individual approaches based upon social and official state. Generally, as the experience showed the more is intensity of work and tiredness the better role acquires material factor. On the other hand, when moral satisfaction is the main thing for the employee there is his less interest to material factor. So, we can say that the role of material stimulations decreases with increasing of social state of the employee and the more influence is acquired by nonmaterial stimulations as are respect from colleagues, high level of importance, high social state, independence. At last, while defining the labour stimulations there must be considered personal features of each person. The businessman should realize that human factor is one of the defining elements in successful activity of the organization in the competitive environment of the market.