In modern management, motivational aspects are becoming increasingly important. Employee motivation is the primary mean of ensuring optimal use of resources, mobilization of available human resources. The main objective of the process of motivation is to stimulate the activities of employees of the company, to achieve the strategic challenges facing it. The peculiarity of personnel management in market conditions is the increasing role of the individual of employee. Accordingly, the ratio of incentives and requirements on which the system of incentives may rely on is changing. To motivate employees of the company, both tangible and intangible methods of remuneration are used. The problem of motivation has become quite relevant in recent years.
As a manager, under the conditions of rapid changes in the corporate policy of the company, I would turn to the some forms of motivation.
Forms of motivation
1) The first is immaterial motivation. Since the immaterial motivation is a very broad concept, first of all I would make it possible for the employees to reach self-realization. For examle, this can be achieved through horizontal job rotation in a company. Horizontal job rotation means the opportunity to work in another department. For instance, a sales manager or production manager can go to the post of personnel manager by the contest, and personnel manager can try himself as a sales manager or production manager. The horizontal rotation as a means of motivation not only highly motivates an employee, but often helps to retain employees in the organization for many years (Hiam, 2008).
Also, a good means of immaterial motivation is the use of any skills that the employee appreciates in himself. This way of motivation lies in the fact that the variety of tasks and situations, faced by the organization, often provides an opportunity to use the nonkey skills and knowledge of emloyees. Although these may be temporary project tasks, even time consuming ones (need additional working hours), but they might help an employee to understand that the manager appreciates all of his multi-faceted skills and will do his best in order not to let an employee forget the useful things he learnt before. In addition, with regard to immaterial motivation, the main focus lies on improving the employee’s living conditions, increasing his comfort in the workplace. It is important to introduce the diversity into employees’ labor activity, strengthen a sense of belonging to a common cause, team spirit, using the internal motivation and ideas of every employee (Hiam, 2008).
2) The second is material motivation. It includes such kinds of rewards as partial or full payment of health insurance and life insurance, car insurance of employees, reimbursement for fue, the compensation cost of public transport, financial assistance on vacation in the amount of full salary, discount cards on food, etc (Thomas, 2009).
Also, I would use the following non-standard ways of material motivation:
annual contribution to the retirement savings of the employees;
issuance of interest-free loans for the purchase of new clothes according to the dress code of the company;
annual cash payment to employees who lead a healthy lifestyle, regularly visit the doctors, go in for sports, or commute to work by bicycle;
reward for continuing education;
migration support in case of changing the place of residence;
opportunity to send flowers to beloved girlfriend at the expense of the company;
permission to go to a day off on the whole day to the employee, who broke a personal or family relationship (Thomas, 2009).
I consider that the system of material incentives should be varied without any limits, and the main thing is not to get hung up on one form of remuneration, which can become boring and look like bying the workers off.
3) The third is the motivation system on the basis of KPI. KPI means the Key Perfomance Indicator. This term refers to some measurable indicators of employee performance. Motivation system on the basis of KPI allows competent approach to employee motivation. Since the KPI is a measurable rate, the employee will know exactly what results their premium will be based on. If the system is built on objective criteria, it will be easier for an employee to accept presence or absence of premium for some definite quarter. This situation is better than the cases when the award is granted just for good work or just because of tradition (Sophea, 2011). Formation system of variable monetary remuneration on the basis of KPI encourages employees to achieve the highest individual performance, as well as to increase their contribution to the collective results and achievements in the implementation of strategic goals of the company. In this case, the size of the compensation package must be economically justified (Sophea, 2011). I consider that it is much nicer and quite motivational to receive bonuses for personal achievement, than be in the list of divisions that traditionaly have bonuses on holidays.
In conclusion, I would like to note that redesigning and updating of motivation must be a cyclical process. Therefore, companies would constantly evolve, their market environment would change and new challenges would come to the individual units and business in general. Over time, the existing incentive mechanisms will inevitably lose their relevance and effectiveness. Therefore, it is important to periodically monitor the performance of the incentive system and its consistency with the objectives and tasks of the business. Then the process of re-engineering will be a planned process.
Hiam, A. (2008). Motivational management : inspiring your people for maximum performance. Toronto: AMACOM, American Management Association
Sophea, S. (2011). Strengthening staff motivation at a public sector : staff motivation strategy. Saarbru%u0308cken, Germany: LAP, Lambert Academic Publishing
Thomas, K.W. (2009). Intrinsic motivation at work : what really drives employee engagement. San Francisco: Berrett-Koehler Publishers