Evaluating elasticity of costs for employee motivation at the industrial enterprises

  • Released On
    Friday, 16 February 2018
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ppm.16(1).2018.12
  • Article Info
    Volume 16 2018, Issue #1, pp. 124-132
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Employee motivation at the industrial enterprises is one of the most important principles of modern management. The practice of production and commercial activities of domestic enterprises speaks for essential modifications in the approaches to identifying the methods of employee motivation.
In the meantime, at many industrial enterprises, motivational modules are limited to the level of salary payment. Therefore, the search for approaches to the formation of effective methods of employee motivation and the analysis of their classification peculiarities require implementing the complex scientific research and determine the relevance of the chosen topic. The purpose of the article is to adapt the notion of function elasticity to increase the employee motivation effectiveness at the domestic industrial enterprises. Increasing the effectiveness of employee motivation at an industrial enterprise is the object of the research.
The research findings are obtained using the theory and practice of expert methods and system analysis, whereby 26 basic (key) motivational measures were determined, which were divided into six block-modules: jurisdictions, effectiveness, social and psychological, indirect financial influence, and direct financial influence.
The weight of each of the motivational factors is determined and they were also classi¬fied according to this indicator. The notion of motivation elasticity is proposed, which makes it possible to assess the motivational measures performance both for every block-module and for every employee, team, production department or enterprise.
Motivation elasticity ratio for ten employees of Kharkiv Machine Engineering Plant FED is calculated. Recommendations for further research on the paper’s subject are proposed.

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    • Figure 1. Essence of the methodological approach to motivational factors’ formation, evaluation and ranking
    • Table 1. Classification of key motivational factors according to their influence on the employee performance
    • Table 2. Block-module classification of key motivational factors
    • Table 3. Scale of elasticity ratio values of motivational measure costs Ex (Y)
    • Table 4. Calculation data of motivation elasticity ratio of KhMEP FED for “Skills set” block-module