Academic journal article European Research Studies

Motivation as Factor of Improving Efficiency of Trade Company Operations

Academic journal article European Research Studies

Motivation as Factor of Improving Efficiency of Trade Company Operations

Article excerpt

1. Introduction

In the context of the current development of the economy it is now very important for the society that the companies should possess capabilities to effectively position and develop their advantages under the conditions of global competitive struggle (Gukalova, 2015; Thalassinos, 2007) thereat, operational efficiency is largely predetermined not only by economic potential of productive systems, but also by the use of the modern concepts of business management, by the application of business optimization methods (Velichko, Goncharova, Zabolotskaya, 2012).

The experts note that one of the key elements of any successful business is represented by the capability of an organization to engage, to retain and to develop talented employees (Osabiya, 2015), to increase its intellectual capital. Under the conditions of globalization of the economy the mobility of human resources increases, and organizations have to search for the ways to maintain and to improve the efficiency of staff performance, to boost their corporate image and to fulfill their corporate objectives (Cetin, 2013). In this context the issue of investing not only in production and management, but in human capital as well is now of actual importance (Balynskaya, Sinitsina, Kuznetsova, Nazarova, 2015; Sibirskaya et al., 2015; Medvedeva et al., 2016).

Within the framework of modern competitive struggle each organization wants to attain advantages over its competitors. However, this could not be achieved without proper involvement of the staff, without the application of different methods of human resource and motivation management (Sekhar, C., Patwardhan, M. and Singh, R.K. 2013; Giannarakis, 2016; Breckova, 2016).

The changes in the market environment affect human resource management and stipulate its strategic significance in the success of a company. The intensified competitive struggle makes companies become more flexible and client-oriented to achieve the long-term sustainable success. Motivation development becomes one of the strategies to fulfill higher objectives of an organization.

To reach prosperity, organizations develop different competitive strategies to improve their operational efficiency (Chukwuma, 2014). Thereat, it is usually noted that motivation strategy is based on the overall strategy of the company and constitutes a part of the human resource management strategy (Balynskaya, Kuznetsova and Sinitsyna, 2015; Garanina, Gonin and Goncharenko, 2010; Pociovalisteanu, 2015; Pociovalisteanu et al., 2010).

Motivated staff is the company's most important asset capable of creating new values (making use of one's creative abilities and professional skills) that affect the success and the competitive power of the organization thus predetermining the strategic significance of human resource management for the company (Balynskaya, et al., 2014; Bondarenko, et al., 2017; Epifanova, et al., 2015; Seniwoliba and Nchorbono, 2013). Each organization is interested in attaining sustainably high performance indicators by virtue of its human resources and, in the first place, by virtue of improving its labor efficiency (Ngima and Kyongo, 2013; Rong, 2015; Zameer, Ali, Nisar and Amir, 2014; Aghajeri and Aghajeri, 2013; Firescu and Popescu, 2015).

According to earlier studies including the works of Hashim Zameer, Shehzad Ali, Waqar Nisar, Muhammad Amir (2014), motivation affects human resources, and thus the company should motivate the employees for better fulfillment of their tasks or for the fulfillment of the company's objectives and for improving the labor efficiency. At the same time, motivation is a principal tool for reducing the staff turnover rate. The lack of adequate (effective) motivation of human behavior results in failure to fulfill the targets and objectives of the company and thus in poor operational efficiency (Vnuchkova and Klupakova, 2013).

Current importance of the investigation of the issue of motivation has never been doubted by science and practice, inasmuch as the precisely developed and efficient motivation system does not only stimulate social and creative activities of the employees, but it also predetermines the final results of the operations of the companies of different forms of ownership. …

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