Academic journal article E+M Ekonomie a Management

Changes of Employee Motivation of Slovak Enterprises Due to Global Economic Crisis

Academic journal article E+M Ekonomie a Management

Changes of Employee Motivation of Slovak Enterprises Due to Global Economic Crisis

Article excerpt

Introduction

The year 2008 can be considered the beginning of the economic crisis in Slovakia when we really started to feel the pressure of the financial crisis. However, hardly anybody expected it to have such substantial impact not only on the Slovak but also on the global economy. Interaction among countries, globalisation and international relations caused a domino effect. The economic crisis can also initiate some optimisation and organisational restructuring in enterprises. At the present time a massive downsizing occurs and many companies even stop their activities. In several enterprises, after organisational restructuring and downsizing, a problem with motivation of remaining employees occurs--how to motivate them without increasing the expenses. The best way is to start using other forms of motivation and investing in development of remaining employees. The aim of the paper is to compare the changes in levels of motivation in Slovakia before the economic crisis and the current state, to define potential significant difference in level of motivation factors and subsequently to determine potential changes in levels of motivation factors that would cause the change of the enterprise motivational programme.

1. Employee Motivation During the Economic Crisis

The period of recession is a difficult period not only for employees but for employers, too. In a situation when the enterprise does not face the recession, the process of employee motivation is relatively simple. As the recession influences the workplace atmosphere, it is particularly difficult for each senior manager to increase employee motivation. However, if employees work with enthusiasm even during the time of recession, it can also indicate that the enterprise may recover from the recession faster and without any serious damage. Senior managers should not forget the fact that their employees are influenced also by the way they communicate with them or by the body language. All superiors who have more power, responsibility and competences should be able to motivate their team and subordinates also at the time when the first impact of the recession occurs in the enterprise [21]. When the first impact of the economic crisis occurs in the enterprise, most of traditional methods of motivation applied by the management before this time cannot be carried out. Various incentives, extra holidays, corporate entertaining and rewards which are the most commonly used tools of motivation, seem to be less important in the atmosphere of insecurity. During the recession employees lose mainly the sense of security. This situation is very stressful for employees and consequently it affects the quality and employee productivity in a negative way [5], [15]. Some methods can be used to manage the period of crisis by means of non-monetary rewards of employees--to restructure teams, arrange educational activities in the enterprise, train employees, offer language and IT courses, management training, professional courses, seminars and trainings furthermore to benefit by several outsourcing tools of the market [17].

If the enterprise wants to keep employee productivity and their willingness to work it is appropriate to offer them motivational programme that makes them feel important for the enterprise [14].

According to the authors [4], [13], [20], [22] other ways and types of motivation applied during the economic crisis can be differentiated:

* Creating teams--building teams is a big step towards motivation that integrates all powers in the fight against barriers the enterprise is facing. The implementation of activities to increase skills in team building and team approach to work can be a way of motivation.

* Developing communication skills within a team--employee motivation starts with effective communication among individual team members. Lack of team support and coordination decreases motivation and creates tensions. …

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