IMPROVEMENT OF MECHANISM FOR LABOR STIMULATION IN AGRICULTURAL FORMATIONS THROUGH THE INTRODUCTION OF KPI (KEY PERFORMANCE INDICATORS)

Journal Title: Інноваційна економіка - Year 2017, Vol 70, Issue 7

Abstract

Purpose. The aim of the study is to improvement of mechanism for labor stimulation in agricultural formations through the introduction of KPI (key performance indicators). Methodology of research. The dialectical method of cognition and the systematic approach in the study of scientific works of domestic and foreign scholars became the theoretical and methodological basis of research. General scientific and special methods of cognition are the basis of research. The following methods are used in the process of the research: the system analysis, monographic and theoretical generalization, – in the study of scientific sources, statistical analysis Findings. It is established that the modern mechanism of labor stimulation in the agrarian sector of the economy is not at the proper level, since it does not ensure the interrelation of the results of labor with its payment. The weighting of factors of labor motivation of workers of agrarian formations of Cherkassy region was determined. It was found out that among the factors of motivation of workers of agrarian formations with a large margin, the size and timely payment of wages takes the first place. The volume and structure of the wage fund in agrarian formations were also analyzed and established. The analysis of the structure of the wage fund makes it possible to draw a conclusion on the independence of the amount of remuneration from the results of the work of the employee, since the share of basic wages in the structure of the wage fund is at the level from 90% to 92% in Ukraine, and at the level of Cherkasy oblast from 82% to 87%. In order to provide employees with the opportunity to receive "fair" wages, which include a motivating factor, since it directly depends on the results of the work, it is proposed to introduce a Key Performance Indicators (Key Performance Indicators) Originality. Typical KPI for the agrarian sector of the economy are developed. A mechanism for stimulating labor on the basis of KPI (Key Performance Indicators) is proposed for introduction. Practical value. The introduction of a mechanism for stimulating labor on the basis of KPI can motivate the employee for the final result of the activity and ensure the relationship pay with the results of the worker.

Authors and Affiliations

Maksym Zhelyeznyy

Keywords

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  • EP ID EP320246
  • DOI -
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How To Cite

Maksym Zhelyeznyy (2017). IMPROVEMENT OF MECHANISM FOR LABOR STIMULATION IN AGRICULTURAL FORMATIONS THROUGH THE INTRODUCTION OF KPI (KEY PERFORMANCE INDICATORS). Інноваційна економіка, 70(7), 55-60. https://europub.co.uk/articles/-A-320246