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PROVIDING PRODUCTIVE PERSONNEL EMPLOYEMENT BY THE ACHIEVING AN ACCEPTABLE LEVEL OF WAGES IN UKRAINE

Автор Доклада: 
Dioba A. V.
Награда: 
PROVIDING PRODUCTIVE PERSONNEL EMPLOYEMENT BY THE ACHIEVING AN ACCEPTABLE LEVEL OF WAGES IN UKRAINE

УДК 005.32:005.52

PROVIDING PRODUCTIVE PERSONNEL EMPLOYEMENT BY THE ACHIEVING AN ACCEPTABLE LEVEL OF WAGES IN UKRAINE

Dioba Albina Valentynivna,
сompetitor of the Candidate of Economic Sciences degree of the Kharkiv National University of Economics

The article is devoted to the improving of the methodical providing productive personnel employment. The proposed methodical approach of providing productive personnel employment is based on the balancing of the actual and normative indicators of the industrial enterprises labour activity results.
Keywords: the productive personnel employment, the balancing of the actual and normative labour activity indicators, decent wage.

Productive employment is part of the concept of decent jobs, and an essential factor for poverty reduction. It is especially actual at the present stage, characterized the world financial crisis negative impact on the providing productive personnel employment at the Ukrainian industrial enterprises. Therefore necessary are development and acceptance of measures in theproductive personnel employment sphere, based on the International Labour Organization standards.

However, despite of the attained level of the scientific research of the employment sphere and the labour market, the unique methodical approach to providing the productive personnel employment is absent so far [1 – 7].

The purpose of the paper is to justify the methodical approach to the decision making aimed at the providing productive personnel employment at the industrial enterprises through the balancing of the actual and normative labour activity indicators.

The broad goal of providing productive personnel employment to obtain productive work in conditions of freedom, equity, security and human dignity. This basic human activity should be and provide guidance for analysing the labour market:«opportunities for productive work» refers to the need for all persons who want work to be able to find work, allowing personnel to achieve an acceptable level of well-being; «employment in conditions of freedom» underlines the fact that work should be freely chosen and not forced on individuals; it also means that personnel have the right to participate in the activities of trade union groupings; «employment in conditions of equity» means that personnel need to have fair and equitable treatment in work, without discrimination and with the ability to balance work with family life; «employment in conditions of security» refers to the need to safeguard the health of personnel and to provide them with adequate pensions and social protection; «employment in conditions of human dignity» requires that personnel be treated with respect and be able to participate in decision-making about working conditions. In particular, productive employment should enable personnel to earn enough to pull themselves out of poverty with their families on a lasting basis [1 – 3].

While productivity growth is universally recognized as one of the drivers of development, it is not an end in itself but a means to improve workers lives by providing the foundations for sustainable wage increases. If wage growth consistently exceeds productivity gains, this can undermine the sustainability of enterprises and harm their competitiveness. If wage growth lags behind productivity growth, workers do not fully participate in the fruits of progress and productivity gains do not fully translate into better living standards for workers. Wages are also an important source of domestic demand, which in turn is an important determinant of growth. For these reasons, labour productivity is widely accepted as a reference point for wages, in particular in advanced countries where the large majority of workers are wage earners. While short-run deviations between productivity and wages can often be explained by cyclical effects, a long-run divergence has more profound implications [2; 3].

Productive employment and wages are central to the world of work. Living standards of wage earners depend on the level of wages, and on when they are adjusted and paid. Wages are among the foremost subjects of collective bargaining between social partners. They are also a major determinant of aggregate demand and a key factor in the economic performance of countries. Each company is characterized by a certain level of the labour productivity, which may vary depending on certain factors. The increase of the labour productivity is the indisputable condition for the production progress and development [3; 4]. The labour productivity increase provides a real product and income growth, and that is why it is the important index of the economic growth. As the increase of the social product per capita means the increase of the consumption level, and hence the living standards, then the economic growth is one of the main purposes of the states with a market economic system [3]. Therefore it is necessary to conduct a comparative analysis of the actual level and normative indicators of the industrial enterprises labour activity results.

The statistical data of the following statistical reports was used in this scientific research: F1 (Balance sheet); F2 (Financial Reports) F1PV (Labour Report); F6PV (Number of different staff categories and training); F3PV (Working time Report). The analysis made by the industrial enterprises activity results of Kharkiv region since 2003 to 2009 . 

An important condition of providing personnel employment at the Ukrainian industrial enterprises is the achieving an acceptable level of wages. Fair distribution of work and its objective price stimulate both productivity and products quality [5]. It grounds the necessity of creation of the appropriate conditions for the realization of constitutional guarantees on work which provides an acceptable level of well-being for workers and their families. Thus, the previous analysis results leads to the conclusion that payment fund which formed on enterprises with the high level of productive personnel employment is the rational normative indicator [7].

The ratio results of the actual characteristics of payment funds per employee with the rational normative indicator for the industrial enterprises of Kharkiv region shown in the table. 1.

Tabl 1

The comparative analysis results

Enterprises

Deviation, %

Years

2003

2004

2005

2006

2007

2008

2009

OJSC «Experimental Electric Plant»

-12,72

-8,28

-17,64

8,1

-8,29

-35,03

-10,61

JSC «Svitlo shahtarya»

-33,33

-20,44

-20,32

-16,3

-11,46

-10,13

-7,79

JSC «Plant named after

Ordzhonikidze »

-48,67

-47,35

-47,4

-29,62

-29,76

-34,45

-17,69

«Kharkiv lifting-transport equipment» company

-39,37

-38,67

-36,61

-23,19

-26,72

-43,82

-32,92

LLC «Promelektro»

-52,01

-39,94

-47,64

-33,3

-37,81

-33,32

20,09

OJSC Kharkov Electrotechnical

plant «Uktrelektromash»

-35,37

-44,67

-44,62

-34,07

-35,54

-9,05

-21,22

State Enterprise Plant «Electrotyazhmash»

-53,57

-42,58

-37,79

-18,55

-15,27

-36,39

-3,08

Kharkov Electromechanical Plant

-55,15

-41,34

-45,66

-38,36

-49,22

-53,1

-33,42

As seen from the comparative analysis results, to provide productive personnel employment at Ukrainian industrial enterprises such changes are expedient in the payment funds per employee : to increase the payment funds per employee by an average on 27,36%, a maximum increase of the fund should perform at JSC «Plant named after Ordzhonikidze » (42,5%), minimum – at OJSC «Experimental Electric Plant» (14,0%). The trend of average values of deviations of actual indices fromnormative for the investigated period are shown in Figure 1.

Graph of the trend of average values of deviations

Fig. 1. Graph of the trend of average values of deviations, %

As seen from the graph, during the period preceding the global economic crisis, deviations trends were characterized by the reduction of break of the actual and normative indicators of payment funds per employee. The global economic crisis brought this positive trend to an abrupt halt. In Ukraine growth turned negative in 2008. The average deviations for the period amounted to the level of 33%, the maximum deviation was observed in 2003 at the level of 42%, and the minimum in 2006 at the level of 20%. On the analysis results can be concluded that the basic problem in providing productive personnel employment is in the imbalance of the actual and normative indicators of the industrial enterprises labour activity results. Beyond the crisis and post- crisis phase, a set of medium- and long-term policies is needed to resolve longstanding structural problems and institutional deficiencies in Ukraine, which greatly limit the capacity of their economies to provide productive employment.

Conclusions. The global crisis of 2008 has reversed some positive trends and had major repercussions on the economies and labour markets of Ukraine, particularly as a result of the growth of deviation between the actual and normative labour activity indicators and the decline in the productive personnel employment. Proposed methodical approach to the providing productive personnel employment by the balancing of the actual and normative indicators of the industrial enterprises labour activity results that makes it possible to take effective personnel management decisions. Directions of subsequent researches are related to classification of decision-making criteria in relation to providing of the productive personnel employment and personnel use efficiency on the basis of cluster analysis.

Literature:

  1. Špidla Vl. The European Commission Perspective on Productive Employment and Decent Work / Vl. Špidla // Full and Productive Employment and Decent Work – Dialogues at the Economic and Social Council. – New York, 2006.– P. 157–159.
  2. Петенко И.В. Занятость как социально-єкономическая категория / И.В. Петенко // Вісник ДНУ. – 2009. – № 2. – С.285–290.
  3. Grineva V. N. Decision making to providing the productive personnel employment on the basis of cluster analysis results / V. N. Grineva, A. V. Dioba // Бизнес Информ. – 2009. - №2(1). – С.24–28.
  4. Будякова О. Ю. Професійно-кваліфікаційна збалансованість ринку праці: теоретичний аспект / О. Ю. Будякова //Вісник ДДФА: Економічні науки. – 2008. – № 1 (19). – С. 30–36.
  5. Aart-Jan de Geus H.E. Creating a Conducive Environment for Full Employment and Decent Work – The Experience of the Netherlands / H.E. Aart-Jan de Geus // Full and Productive Employment and Decent Work – Dialogues at the Economic and Social Council. – New York, 2007.– P. 44–47.
  6. Калинина А. В. Организация и оплата труда в условиях рынка / А. В. Калинина. –К.: МАУП, 2001. – 312 с.
  7. Шелешкова С. Заробітна плата як мотиваційна складова продуктивної зайнятості / С. Шелешкова, Ю. Спасенко // Україна: Аспекти праці – 2006. – №2. С. 9–16
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