STAFF MOTIVATION IN MODERN BUSINESS REALIA IN UKRAINE

Abstract

The paper seeks to provide a comparative analysis of the categories of ‘entrepreneurship’,’motivation’ and ‘encouragement’ based on research studies by Ukrainian scholars. It is argued that entrepreneurship and small and medium-sized business in particular, in the context of market transformations in Ukraine should become a critical factor in boosting socioeconomic development of the country. Extensive study of a vast body of statistical data and domestic research findings has revealed the specifics and trends of doing business in modern Ukraine. The paper also discusses and provides deeper insights into the basic aspects of shadow economy in Ukraine which hinders the development of the national economy competitiveness, growth of social living standards as well threatens Ukraine’s further integration into economic space of developed European countries. The current state of the shadow economy in Ukraine has been tracked along with revealing the essential factors driving the national shadow economy and suggesting a set of relevant consistent actions to combat this negative phenomenon. The paper also describes the key methods of employee encouragement and motivation at domestic enterprises together with providing the monitoring results on the common leadership and management mistakes that occur in the process of staff motivation in the national business settings. Based on the authors’ diverse personal experience of working in different domestic companies, an individual scheme of staff motivation is proposed which can harmonize the common objectives of the employer and the employee, thus contributing to enhance the competitiveness of domestic enterprises. In the frameworks the given conceptual analysis of specific characteristics of doing business in modern Ukrainian realia and shadow economy effects, a methodology and principles of personnel motivation are suggested which facilitate an increase in labour productivity and boost employees’ personal interest in their due diligence and effective performance.