Theoretical foundations of the personnel incentive system

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Maksudasm
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Theoretical foundations of the personnel incentive system

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Experts have identified five basic principles on which the system of motivation and incentives for personnel is based:

Each employee must realize their value and irreplaceability. If the employee is motivated, this leads to their personal growth, creates healthy competition in the team. Unconsciously, everyone will strive to repeat his result.

Encouragement should be unexpected and not systematic. Periodicity in such action will soon negate all efforts in this direction, since employees will get used to it and will perceive it as a given.

It is better to praise specialists more often than to punish them. It has already been proven that working in a constant state of stress reduces productivity and labor safety.

The manager's reaction should be immediate. For employees, this is like feedback: the boss shows that he cares about both successes and failures in the production process in which his subordinates are involved.

The assessment of the intermediate result is equally significant for both ordinary performers and the manager. Its recording brings us closer to achieving the final goal.

The following four theories are most often used when developing motivational systems:

Theory Explanation
Herzberg's Theory The components of a job seekers database peculiarity is the use of both external and internal methods of motivation. The former are responsible for ensuring comfort when performing work, the latter control the positive impression of the company among employees
Taylor's Theory The object of stimulation is the instincts of workers and their desire to satisfy their needs. The most popular methods are payment for hours worked, pressure from the manager, the presence of minimum standards for fulfilling the plan, specific responsibilities, etc.
McClelland's Theory Based on the components: power, success, belonging. Most employees consider their status important: leaders want to retain power, loners try to improve their personal results. By applying such a classification, the manager can motivate each of them differently
Maslow's Theory
Based on a hierarchy (pyramid) of needs consisting of five elements:

1. Physiological needs (for survival).

2. Security (to maintain the standard of living you need to be protected).

3. Love (or the desire to please everyone).

4. Recognition (the employee strives to increase his authority in the eyes of others).

5. Self-improvement (continuous improvement of skills and personal qualities)


Methods of staff incentives
Incentives for personnel in an organization are divided into two areas: material and non-monetary.

Methods of staff incentives

Material incentives for staff
This is nothing more than money received by an employee for performing his immediate duties. It usually consists of a fixed and variable part. The first part is a salary or rate, the amount of which is specified in the employment contract. The amount of the variable part directly depends on the employee's productivity and is:

Percentage or commission. In the first case, the employee is paid a percentage of the cost of the goods or services sold. It is applied either together with the established salary or tariff, or independently. In the second case, the commission is the entire salary of the employee.

A bonus for achieving the assigned goals. It is paid to the employee if he/she efficiently and on time implements or exceeds the tasks assigned to him/her.

Specialist value bonus. This payment is given to those employees who have unique skills to perform the job, and whose departure from the organization would be a significant loss of human resource potential.

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