Foreign Experience of Using the Organization’s Motivation and Incentive System

Abstract

Foreign experience of using the system of motivation and incentive of the organization’s staff has been studied and generalized. It is noted that Ukrainian managers consider motivation as an instrument based on individual payments to each subordinate, which indicates that the process of motivation is limited to material approaches exclusively. Foreign systems of motivation and incentive of workers are studied in detail on the example of German, French, English, Swedish, Japanese and American models. All the main pros and cons of each model are analyzed. Comparison of the Ukrainian incentive system with the systems by other European countries considered was made and it was found that the national system is at a pretty low level. The possibilities of Ukrainian potential to have introduced foreign models are considered. It is noted that today Ukrainian enterprises and organizations need to create a system of values and culture of work to establish the Ukrainian national model of staff management. An exact copying one of the foreign models in Ukraine is impossible. First, it has to do with the mentality of Ukrainians; secondly, with the economic and political situation in the country; thirdly, with the financial condition of enterprises, etc. It is proposed and substantiated to combine elements from the incentive and motivation systems of Germany, the United States, France and some elements from the Great Britain’s. It is concluded that managers need to focus on the optimal combination of material and intangible motivating elements. The system of stimulating the work of staff in Ukrainian enterprises should clearly define the goals, establish the types of incentives in accordance with the results that are achieved, determine the system of assessment, period and timing of remuneration payments. The sooner Ukraine begins to combine various elements of foreign systems of motivation and incentive, the sooner it is possible to improve the competence of employees and their efficiency.

Keywords

• motivation
• stimulation
• foreign experience
• system
• staff