ISSN 0798 1015
ISSN 0798 1015
Vol. 38 (Nº 25) Year 2017. Page 29
Gulmira Sovetovna SAKTAGANOVA 1; Didara Omurzakovna SMAILOVA 2; Galiya Kapbarovna AMRENOVA 3; Madina Karabayevna USPAMBAYEVA 4
Received: 09/03/2017 • Approved: 15/04/2017
ABSTRACT: At the modern stage structural changes in the economy and rapid development of science and technology resulted in the increasing role of the human factor in production and management. The goal of this work is to prove that every enterprise experiences a need in defining the size of the human resources, an efficient system of selecting, employing and allocating human resources, providing their activity taking into account interests of the production and the employee himself, a system of reimbursement for their labor, taking into account individual problems of employees and improving their everyday life and rest. In terms of the theory and methodology, human resources management is a specific type of management activity on forming, revealing and developing the person’s labor potential, his mental and physical abilities, intellectual and moral qualities, and finally based on it, the maximization of personal contribution of the employee in the efficient work of the organization. This author’s definition of “human resources management” emphasizes such organization of labor at the enterprise that would contribute to a fuller revealing and use of the labor potential of employees and based on it maximizing of their return for successful activity of the organization. The research results have shown that to a great degree the formation of the efficient system of human resources management depends on how it takes into account principles and regularities of the motivation theory when creating organizational and economic measures of the impact on the subject under management. The motivation theory means the person’s specific incentives to any type of activity and achieving goals by using the most accessible and best means for him. The analysis of people’s motivation shows that it is formed not only when people need it but also when the stimulation as a method to influence the motivation aims at activating their activity in the form of creating social benefits. It means that in order to increase the efficiency of the enterprise’s human resources management system, it is necessary to take into account not only administrative methods but also social and psychological factors formed in this team. Based on the results of researching the interrelation and efficiency of human resources management, a model of continuous improvement of the human resources management system has been developed. It is based on the estimation of the labor results and achievements of the set goals. Practical methods of appraisal and estimation of the organization human resources’ activity have been recommended. |
RESUMEN: En la era moderna, los cambios estructurales en la economía y el rápido desarrollo de la ciencia y la tecnología dieron lugar al creciente papel del factor humano en la producción y la gestión. El objetivo de este trabajo es demostrar que cada empresa experimenta una necesidad en la definición del tamaño de los recursos humanos, un sistema eficiente de selección, empleo y asignación de recursos humanos, proporcionando su actividad teniendo en cuenta los intereses de la producción y el propio empleado, Un sistema de reembolso de su trabajo, teniendo en cuenta los problemas individuales de los empleados y mejorar su vida cotidiana y el descanso. En cuanto a la teoría y la metodología, la gestión de los recursos humanos es un tipo específico de actividad de gestión para formar, revelar y desarrollar el potencial de trabajo de la persona, sus capacidades mentales y físicas, sus cualidades intelectuales y morales y, finalmente, Contribución del empleado en el trabajo eficiente de la organización. La definición de "gestión de recursos humanos" de este autor enfatiza la organización del trabajo en la empresa que contribuiría a una mayor revelación y uso del potencial laboral de los empleados y basado en maximizar su retorno a la actividad exitosa de la organización. Los resultados de la investigación han demostrado que en gran medida la formación del sistema eficiente de gestión de recursos humanos depende de cómo se tienen en cuenta los principios y las regularidades de la teoría de la motivación al crear medidas organizativas y económicas del impacto sobre el sujeto bajo gestión. La teoría de la motivación significa los incentivos específicos de la persona a cualquier tipo de actividad y el logro de objetivos mediante el uso de los medios más accesibles y mejores para él. El análisis de la motivación de la gente demuestra que se forma no sólo cuando la gente lo necesita, sino también cuando la estimulación como método para influir en la motivación apunta a activar su actividad en la forma de crear beneficios sociales. Esto significa que para aumentar la eficiencia del sistema de gestión de recursos humanos de la empresa, es necesario tener en cuenta no sólo los métodos administrativos, sino también los factores sociales y psicológicos formados en este equipo. Con base en los resultados de la investigación de la interrelación y la eficiencia de la gestión de recursos humanos, se ha desarrollado un modelo de mejora continua del sistema de gestión de recursos humanos. Se basa en la estimación de los resultados laborales y logros de los objetivos planteados. Se han recomendado métodos prácticos de evaluación y estimación de la actividad de los recursos humanos de la organización. |
Today a number of researchers confirmed that informing the contractor about the results of his labor improves the work results by 12-15%. Thus, in order to efficiently use money as an incentive, it is necessary to pay a competitive salary to attract and maintain specialists, as well as to relate the payment for labor to the quality of performance or a result for the reimbursement to be comparable with the real efforts of the employee (Leasbayeva, 2003). It is also possible to use the system of non-financial incentives. The organization head must be able to express his acknowledgement for the labor when the employee has deserved it. Thereby, pleasant emotions of the employee will be associated with the high quality and timely performance of the work (Figure 1).
Note: Compiled by the author according to Reference (Leasbayeva 2003)
Figure 1. Three Basic Psychological States that Have an Impact on
the Employee’s Motivation and Feeling of Satisfaction
In this process the system of estimating the final results of the activity, developing principles and approaches to selecting their levels estimation criteria play a key role (Spivak 2000).
In order to successfully implement the system of labor payment based on individual results, it is necessary to improve methods of estimating employees for the sufficient motivation of the human resources. Along with this, it is necessary to responsibly approach the determination of the correlation between the constant and variable parts of the salary, taking into account “the psychological threshold”. Below the latter the variable part of the salary loses its stimulating role, and is not perceived as an adequate reimbursement for the input labor.
Due to the fact that every employee’s payment for the labor is closely related to the quality of his labor, the estimation methodology that has a multi-factorial nature is especially valuable (Spivak 2000).
Today, in order to estimate the efficiency of both companies and separate employees, management applies a lot of methodologies. For example, this is the BSC (Balanced Scorecard) balanced system of indicators, MBO (Management by objective), BPM (Business Performance Management) business efficiency method, and KPI (Key Performance Indicators) that can be interpreted as “key performance indicators” and “key efficiency indicators” – management on the basis of key indicators of efficiency. “Efficiency” and “performance” are principally different notions. One of the most successful interpretations is “key performance indicators” (KPI) (Klochkov 2002).
The MBO (Management by Objective) technology was offered by Peter Drucker in the 1950s (Management by Goals). The system of management by objectives gives an opportunity to considerably increase the objectivity of personnel valuation that is carried out on the basis of the results of the specific executor’s activity rather than personal features.
This system relates the categories “labor satisfaction”, “result awareness”, and “remunerative incentive” into the integral unit which contributes to estimating the employee’s activity by using the comprehensive approach.
At the Republican State Enterprise L.N. Gumilyov Eurasian National University the basic motivation model of the labor payment is based in the multi-staged approach (Figure 2).
The source of employees’ labor and bonus payment is the wages bill.
Note: Compiled by the author according to Reference (Provision “On Paying
for the Labor of Employees of the Republican State Enterprise L.N. Gumilyov
Eurasian National University “, 2016)
Figure 2. System of Labor Motivation at Republican State
Enterprise L.N. Gumilyov Eurasian National University
According to Figure 2, the salary of the organization employees includes a wage, bonuses, bonuses for continuous working experience, remunerations according to the results of work per year, additional payments (bonuses) provided by the labor legislation for special working conditions (harmful, dangerous, hard works and other special working conditions), as well as for the working conditions that are different from the normal ones (when performing works of a different qualification, combining professions, work beyond the standard duration of the working hours at night, weekend, and holidays).
The labor payment is based on the basic wage for the fulfilled functions within a specific profession or position. In relation to individual work it can be increased or decreased depending on the professional preparation, level of education, and working experience. Later on bonuses for special working conditions, regular or one-time bonuses can be added. Herewith, social methods of management can be applied within special conditions specified in collective employment agreements or decisions made by top managers.
In spite of the fact that there is a differentiated additional payment to employees, the system of personnel work estimation itself has not been sufficiently developed. That is why it is necessary to implement the monthly system of estimation. We will make up a MBO matrix for the manager of the Economic Planning Department (Table 1).
Table 1. Example of MBO Matrix for the Manager of the Economic Planning Department
at the Republican State Enterprise L.N. Gumilyov Eurasian National University
Target indicator |
Weight % |
Ways of measuring |
% of the performance |
Result |
R |
Estimate |
|
expected |
achieved |
||||||
Processing work packages and providing them to the Accounting Department |
30 |
Untimely processing and providing work packages |
100 |
till 01.10.16 |
30.09.16 |
0 |
High |
Providing reports to the Statistics Department |
30 |
Punitive sanctions |
100 |
till 01.10.16 |
29.09.16 |
0 |
High |
Calculating core working hours sheets |
20 |
Untimely calculating and defining the price of works |
70 |
till 01.12.16 |
10.12.16 |
4 |
Low |
Determining tariffs and tariff rates |
20 |
Untimely calculation and determining cost of works |
65 |
till 01.12.16 |
20.12.16 |
3 |
Low |
In total |
100 |
|
|
|
|
7 |
Medium |
Note: Compiled by the author according to Reference (Management by Goals)
In order to make Table 2 containing indicators of the system related to estimating the personnel activity, the MBO matrix, i.e. management by objectives was used.
The plan of the employee’s work per month (MBO) is a list of indicators determined in accordance with this position responsibility zones. The weighing index is defined for the indicator. It reflects the value of the index for the employee. The sum of weighing indices is 100%.
The head of every department must develop individual qualitative indicators of the estimate, specify how to measure these indicators, and note the results achieved by employees.
In order to efficiently use the technology, it is necessary to put into practice and automate several management technologies: budgeting, CRM (Customer Relationship Management), quality management system (ISO 9001), etc. The implementation of these technologies gives an individual effect, and simplifies the collection of data for calculating the target indicators. Applying these technologies allows to collect data for the system indicators.
Figure 3 shows the system of labor payment taking into account the introduction of monthly system of estimating the personnel.
Note: Compiled by the author according to the materials of the Republican State Enterprise L.N. Gumilyov Eurasian National University
Figure 3. Schemes of Labor Payment System
It is possible to see from Figure 3 how the salary will be accrued and what measures it is necessary to take before implementing the monthly estimation system.
This system of labor payment on the basis of the monthly personnel estimation system has the following advantages:
The offered system of labor payment is practically important because the employee’s estimation after a specific period of work opens great opportunities in revealing the personnel labor potential that must be entirely fulfilled. Rather fundamental inspection on the availability of various qualities when employing an employee assumes establishing of the interrelation while estimating personal and business features and results of the activity. If during the selection the employee’s potential is estimated, it is necessary to reveal whether he has used all his opportunities and creative skills when fulfilling the position functions and tasks.
When developing indicators, it is reasonable for heads of departments to use the following recommendations:
At the same time when making such estimation, the system of workplaces appraisal system is formed.
The whole set of data must be fixed in documents on the company HR management and must be stored as results of the workplaces appraisal, including the results of their processing in the form of
Table 2. Estimation of Labor Conditions at Workplaces as Result of the Relevant Analysis
at the Republican State Enterprise L.N. Gumilyov Eurasian National University
No. |
Workplace / (profession, office) |
Unit of measuring |
1 |
Level of factor as a standard |
quotient |
2 |
Admissible level of risk when fulfilling functions |
% |
3 |
Size of fluctuations and their possible causes |
% |
4 |
Degree of harmfulness and danger in this kind of work |
% |
5 |
Provisions with individual protective gears |
yes/no |
6 |
Duration of risk factors impact |
time |
7 |
Level of vibration and noise |
quotient |
Note: Compiled by the author according to Reference (Law of the Republic
of Kazakhstan “On Labor Safety and Protection”)
Based on the estimation specified in Table 2, companies can define the rating of general labor conditions and ways of additional payments for this labor in percent, as well as to create the sheet of workplaces appraisal. Heads of technological services together with employees of HR services must participate in forming such sheets.
It is necessary to form such sheets for
- Comprehensive estimation of the current conditions and content of labor on the workplace,
- Estimating the level of injury prevention,
- Revealing workplaces that do not comply with the specific standards of work,
- Stipulating additional privileges and compensations, and
- Developing measures aimed at improving labor conditions and motivating employees at every workplace.
Conditionally as a standard appraisal as the result of such estimation, it is also possible to plan the future transfer of employees according to five groups of employees in the form of specific personnel potential of the enterprises. They include employees who
- Due to their obligations have to individually solve all set tasks and find new ways to achieve the organization goals,
- Can achieve only the planned results,
- Fulfill the majority of their obligations scrupulously. However, they cannot fulfill some of them due to objective reasons and that is why they require help (training, transferring),
- Cannot fulfill the majority of their tasks on a high quality level, and require the transfer to other positions, and
- Due to low quality labor, organizations do not need such employees, so they must be dismissed for good reasons.
For these groups it is necessary to define ways and sizes of additional payments and discounts to the basic salary, as well as a procedure related to dismissing or transfer to other positions for specific violations of labor conditions required from the employee.
Such appraisal sheet must be formed jointly with top managers. It is necessary to make full estimation jointly by three ways:
As an example, it is possible to recollect the principle of Japanese companies that think “there are no bad and good people, because people are different by their nature. That is why if a person works badly, he is either at the wrong place or he has a weak incentive for efficient labor which must be a basis for transferring the employee to another place or improving the motivation system”.
As a whole, the estimation of work results means the need to develop analytical tools of planning the results of work of every employee at the enterprise and to create the information base for the further improvement and development of the efficiency of incentives for employees according to the growth of their motivation to increasing labor efficiency (Dyrin, n. d.).
Modern international practice shows that in those companies that use the ways of motivating labor to the maximum extent on the basis of high quality estimation of the individual work results, the achieved results are considerably higher than at those enterprises where there is not such system of HR management, or it is weakly developed (Ashirov 2001).
Thus, it gives an advantage in selecting comprehensive management solutions that allow to
The process of labor resources management itself must be organized to obtain information not only about the need in personnel but also on creating the system of estimating every employee’s labor participation in general production processes in the form of control over the efficiency of using the labor resources the enterprise has. At the present time elements of such estimates are used in the system of HR management at the Republican State Enterprise L.N. Gumilyov Eurasian National University. However, such estimates mainly have a character of testing in the form of polling professors and teachers, and employees of the Republican State Enterprise L.N. Gumilyov Eurasian National University, and satisfaction polling of students, graduates, and doctoral candidates.
According to the poll, it is possible to reveal the degree of the employee’s satisfaction by his work. Its characteristic must be found in the development of changes planned in relation to using employees in production.
There must be a questionnaire about the level of motivation. The employer must answer its questions:
1. Are you satisfied with your wage?
2. What vacancy would you like to occupy?
3. Do you study somewhere, or where would you like to study?
4. Does your boss estimate your work correctly?
5. What work performed by you has not been paid for?
6. What working experience in relation to this position do you have?
7. What social assistance would you like to get?
8. Where and how do you live?
9. Do you have ill members in your family?
10. Is it comfortable for you in our team?
Processing of such questionnaires can allow to obtain information about the level of the employee’s satisfaction by the system of incentives. For answers credibility and objectivity such questionnaires can be anonymous because employees can have difficulties in answering questions 4, 5 and 10 and specifying their surnames. However, in this case questionnaires must be processed by the HR Management Department jointly with top managers, and they must not entirely inform the team about the obtained conclusions.
In order to estimate the efficiency of labor of the management heads and specialists, appraisal results are used. They are documented in specially developed appraisal sheets.
At the same time it is necessary to remember about psychological differences. And in this case, according to the experience of foreign companies, the inveracity of answers can be up to 20%, because employees put in their subjective attitude to specific persons and working conditions. That is why in this case it is necessary to focus on the majority of answers, but to clarify them by interviewing not only specific employees but also lower labor teams. Herewith, it is necessary not to hurry up to introduce changes. However, it is necessary to analyze their opportunities during preparing plans of HR management, i.e. when developing or correcting the enterprise policy.
The column “Employee’s characteristics” of the table specifies various qualities of the employee: education, working experience according to the specialty, professional competence, knowledge of normative acts, knowledge of national and foreign experience, ability of take quick decisions and quality of the completed work.
When appraising employees, it is possible to recommend the form of the appraisal sheet shown in Table 3.
Table 3. Estimation of Features that Define Professional and Personal Qualities
Employee’s characteristics |
Category of offices |
||
Top manager |
Specialist |
Other employees |
|
Education |
+ |
+ |
+ |
Working experience according to the specialty |
|
|
|
Professional competence (rating or results of tests) |
+ |
+ |
+ |
Knowledge of normative acts |
+ |
+ |
- |
Knowledge of national and foreign experience |
+ |
+ |
- |
Ability of take quick decisions |
+ |
- |
- |
Quality of the completed work |
+ |
+ |
+ |
Ability to adapt to new situation and take innovational decisions |
+ |
+ |
- |
Timeliness of performing works, responsibility for the results |
- |
- |
- |
Ability to perform larger volumes of work for a short period of time (labor intensity) |
+ |
+ |
+ |
Ability to work with documents |
- |
- |
- |
Ability to forecast, coordinate, and regulate the work of subordinates |
+ |
+ |
+ |
Ability to master new technologies |
- |
- |
- |
Production ethics, style of communication |
+ |
+ |
+ |
Creative approach to solving the set tasks |
+ |
+ |
- |
Ability to maintain a high working capacity under extreme conditions |
+ |
+ |
+ |
Ability to self-evaluation, and self-critics |
+ |
+ |
- |
Note: Compiled by the author according to Reference (Kibanov 2009)
The data must end with the surname and initials of the employee under estimation, date of registration, and a list of tasks he must solve. Concerning the motivation estimation of professional and personal qualities, results of the production activity, it must be made by the appraisal committee but not only employees of the HR service. The latter must be included in the committee that must consist of highly qualified specialists and employees of various services together with the representatives of the labor union organization.
It is necessary to carry out the appraisal as a preliminary stage of planning the stipulated need in the present and future personnel, above all, to reveal the level of the satisfaction by its labor motivation.
Figure 4 shows the scheme of the personnel management system taking into account the implementation of the system related to estimating the personnel activity results, in compliance with the strategy and mission of the organization, as well as the MBO technology.
Note: Compiled by the author according to Reference (FS-SMK-KP-059-2014 Map of HR Management)
Figure 4. Scheme of Forming a Model of Continuous Improvement of the Personnel Management System
Figure 4 shows that the model of continuous improvement of the personnel management system is based on estimating the results of labor and achievement of the set objectives. The advantage of the offered scheme is the feedback that allows to define the existing problems, and to develop a complex of measures on improving the efficiency of the personnel management system. Three areas are estimated: the results of the employees’ labor, the workplace according to the results of polling employees themselves, and the level of motivation when monitoring management are estimated. Practical applying and implementing of this model of continuous improvement in the personnel management systems will contribute to achieving strategic objectives of the organization, creating favorable conditions for work, determining the level of additional payments based on estimation and creating conditions for the promotion.
Thus, it is possible to make the conclusion that the implementation of quantitative methodologies of estimating and determining a direct inter-dependence with the labor payment system will provide the awareness of employees of the organization about the achieved results and indicators. It will contribute to improving the feeling of responsibility and importance of labor for the employee, increasing the labor satisfaction and work efficiency. The estimation of the personnel labor quality is a purposeful process of determining the compliance of the personnel qualitative characteristics with the office or workplace requirements. At the same time when making such estimation, the system of work places appraisal is formed.
In order to collect the required information, polls, interviews, appraisals, and anonymous questioning are carried out. The “feedback” collects information about the problems existing in the motivation system of the enterprise that must be resolved based on plans and forecasts.
Ashirov, D.A., (2001). Upravlenie personalom [HR Management]. Moscow: Prospect Publisher, pp. 432.
Dyrin, S.P. (n. d.) Otsenka konkurentosposobnosti spetsialistiv na regionalnom rynke truda: teoriya, metodologiya, praktika [Estimation of Specialists’ Competitiveness on the Regional Labor Market: Theory, Methodology and Practice]. Autoabstract of the Thesis of D.D in Economics.
FS-SMK-KP-059-2014 Map of HR Management.
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Kibanov, A.Ya., (2009). Upravlenie personalom organizatsii [Management of Organization Personnel]. Moscow: INFRA-M, pp. 356.
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Law of the Republic of Kazakhstan “On Labor Safety and Protection” dated May 15, 2007
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Provision “On Paying for the Labor of Employees of the Republican State Enterprise L.N. Gumilyov Eurasian National University “, (2016).
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1. L.N. Gumilyov Eurasian National University, 010000, Kazakhstan, Astana, Kazhymukan St., 11. Email: saktaganova_gs@mail.ru
2. L.N. Gumilyov Eurasian National University, 010000, Kazakhstan, Astana, Kazhymukan St., 11
3. L.N. Gumilyov Eurasian National University, 010000, Kazakhstan, Astana, Kazhymukan St., 11
4. L.N. Gumilyov Eurasian National University, 010000, Kazakhstan, Astana, Kazhymukan St., 11