Қазақстан Республикасының

103
УДК 330.14
I.v. OnYushevA, 
PhD.
A.K. MussInA, 
master student.
University of International Business
tAnGIbLe  AnD  IntAnGIbLe  AsPeCts 
In  the  MODeRn  sYsteM  OF  PeRsOnneL  MOtIvAtIOn
In the given article tangible and intangible aspects in the modern system of personnel motivation are considered.
The definitions of tangible and intangible motivation are given in the view of modern economic relations. The term of
motivation is given as the process of encouraging each employee and the work team as a whole to be active to meet
their own needs and to achieve the goals of the organization. Tangible motivation figures as one of the most effective
ways to encourage employees by financial remuneration to increase labor productivity. A salary is the fundamental
component of tangible aspect of personnel motivation. Labor remuneration functions within the social reproduction
phases: production, distribution, exchange and needs are described. Factors of salary differentiation are revealed
and their influence on the level of labor remuneration is stated. Further, based on the study and systematization of
theoretical  aspects  of  motivation  the  author  describes  some  means  of  intangible  incentives  and  options  for  their
practical application in varieties of companies. The article emphasizes the economic importance of the theories and
methods of personnel motivation, as well as the ability of their practical application by managers. The considered
methodology  of  complex  using  tangible  and  intangible  incentives  for  the  personnel  improves  the  productivity
and quality of work in the company, creates favorable conditions for employee commitment to the company and
constructive desire to develop it further, according to the strategic objectives.
Key words: motivation, tangible and intangible incentives, salary, personnel.
The concept of motivation is closely connected with the issue of human resource management.
Modern economic relations generated by the market competitiveness put forward new requirements
for personnel. It is not only recruitment, training and placement, but also the formation of a new
consciousness, mentality, and consequently the system of motivation.
Motivation is the process of encouraging each employee and the whole work team as a whole to
be active to meet their own needs and to achieve the goals of the organization.
An  effectively  developed  model  of  motivation  facilitates  the  functioning  of  the  management
system.
Enterprise motivation mechanism is a comprehensive system of tools and methods of influence
on employees to ensure the achievement of the objectives of motivational policies, i.e. the quality and
productivity of employees, as well as a way to bring in the best talents and retain them in the company.
Stimulation (from Latin ‘stimulus’) is the process of applying the incentives that are designed
to  provide  a  submission  to  man  in  general  or  focus  his  behavior. This  is  achieved  by  limiting  or
conversely to improve its capacity to meet the needs.
Experience shows that the more stimulation occurs, the more frequently the desired action will
be repeated, and the stronger the impact of incentives is the more a person needs to manage his or her
wealth.
Generally, there are two types of incentives: hard stimulation and soft stimulation. Hard stimulation
involves forcing people to certain actions and is based on a certain minimum of values (fear). The
example is piecework salary or pay for the final result (you cannot get it), lack of social protection.
Such stimulation does not replace the legal and administrative methods of influence, but complements
them. The goal is to force people to do more and better than that provided by standard tasks.
Soft stimulation is based on the motivation to work in accordance with the value-maximum. Its
instrument is, for example, wage supplement (benefits, guarantees).
The  ideal  option  of  motivational mechanism  suggests  that  internal  motivation (desire)  should
dominate  the  external  positive  reasons  (impulse),  and  those  should  take  precedence  over  external
negative motives (compulsion) [1].
Tangible  motivation  is  one  of  the  most  effective  ways  to  encourage  employees  by  financial
remuneration to increase labor productivity. The material motivation of personnel is considered to be

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the most widespread in modern companies, including Kazakhstan, as other methods do not bring the
desired results.
The fundamental component of material incentives is salary. Salary is the labor remuneration
corresponding to the value of commodities and services that provide a reproduction of the labor force
to meet the material and immaterial needs of the employee.
According to the Labor Code of the Republic of Kazakhstan salary is “remuneration depending
on the qualifications of the employee, complexity, quantity, quality and conditions of work, as well as
the compensational and incentive-based payment” [2].
The essence of salary is reflected in its functions that it performs in the social reproduction phases:
production, distribution, exchange and needs.
In conditions of the market economy salary fulfills reproductive, distributive, stimulating, social
and status functions.
Reproductive function describes the ability of salary to provide the necessary goods sufficient
to meet the needs of workers and their families. The value of salary is required to reimburse the cost
of reproduction of labor power at a certain quality level, including the cost of food, clothing, shelter,
education and training, cultural and service and medical care, employment, and other costs.
The distributive function is to establish the percentage of workers in the generated product since
salary accrued for the manufacture of products. It depends on the participation of every employee in the
manufacturing process and can serve as a measure of its contribution to the activities of the company.
In addition, the distributive function is manifested in the distribution of the enterprise income between
employees and employers.
Stimulating  function  is  to  motivate  employees  to  achieve  the  desired  results  of  work  for  the
enterprise by providing interconnection remuneration and labor contribution. Action of stimulating
function  manifests  itself  in  the  promotion  of  growth  in  production  volumes,  improved  product
quality, as well as training of employees, the rational use of all kinds of resources, securing staff at
the enterprise and ensure the effective application of the progressive forms of remuneration, bonus
systems, payments, allowances and other kinds of promotion allowing to link salary to individual and
collective results of work of employees.
Status function is manifested in the fact that salary largely determines the social and employment
status of the employee within the social structure, characterizes the image of the profession in the
labor market, as well as the status of the company.
Social function sets the differences in wage levels. These differences must be essential to ensure
the engagement of employees in professional development, as well as to differentiate salary depending
on the seriousness and responsibility of labor. The level of salary differentiation should be appropriate
to the employees about fairness of its distribution between social groups working in the company [3].
All the typical functions of financial remuneration are closely interrelated, and the essence of
salary only together can be properly understood. Thus, reproductive and stimulating functions play
social role simultaneously, reproductive function is realized through a stimulating function affecting
on the status function. However, in general, one of the functions of unity (or several) to some extent
may be opposite to the other or even preclude its reducing action results. Inherently some functions
lead to wage differentiation, and others, on the contrary, to its alignment. The stronger the alignment,
the weaker differentiation and stimulating effect of salary. It can be explained by the phenomenon
based on the internal unity and struggle of opposites.
Furthermore, it is necessary to consider the following factors of salary differentiation influencing
the level of labor remuneration.
The cost of labor expressed by the cost of funds to ensure life and disability of the employee (costs
of meeting the material and moral needs of the worker and his family), which in turn depends on the
achieved level of social welfare.
Skills and qualifications where a skillful worker certainly will have a higher remuneration. For
example, a CEO will have higher salary than a sales manager as management suggests fulfillment of
more complicated tasks, or another example is comparison of the skills and remuneration between a
doctor and a nurse. Terms of employment also affect the level of remuneration as work in hazardous,
heavy, and dangerous to life and health conditions must be adequately compensated.

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The situation on the labor market that is characterized by the ratio of labor demand and supply, the
degree of intensity of competition between applicants for workplaces, the unemployment situation.
Unemployment increase leads to salary decrease and vice versa.
The results of business operations of the company. A high level of profits gives opportunity to pay
bonuses (quarterly and annual) to employees that has a positive impact on the level of their salary.
The personnel policy of the company. Working on staff development or workers’ ‘promotion’ to
positions increasing responsibility and creativity of the staff affects the level of remuneration definitely.
The degree of salary socialization concerning the part of the salary amount that “go” through a
variety of taxes and contributions to the state (for pensions, for free or discounted medical services)
and the higher these deductions, the less money is available to the employee [4].
It should be noted that each modern company sets their own forms and systems of remuneration.
The state just determines the national minimum salary that represents the lowest salary rate in the
country.
Besides salary payment employees have opportunity to get bonuses on the basis of balance of the
work of the entire enterprise, i.e. the payment for performance of financial and economic activity of
the enterprise. They are paid out from profits of enterprise remaining at its disposal. The bonus size is
determined by the enterprise independently. For each worker they depend on his personal results, its
contribution to the overall performance of the enterprise, continuous service with an enterprise and
other conditions stipulated by the Regulations on bonuses. An example of such payments is the so-
called thirteenth salary that is rather widespread in Kazakhstan and other post-Soviet Union countries.
Intangible motivation subsists in order to attract employees to work and their desire to work for a
particular purpose should not be based on material gain.
The following categories of intangible motivation can be distinguished.
Personnel fringe benefits – granting the right to flexible working hours; compensatory time off,
prolongation of paid leave for certain achievements and success at work.
Creating a favorable social atmosphere, the elimination of status or administrative barriers between
employees, the development of trust and mutual understanding within the team.
Moral encouragement of employees such as career promotion, in-service training.
Favorable working hours and working conditions. Labor capacity depends on working conditions
of employees. The significance of the problem is amplified by the emergence of new market-oriented
organizations, when there are significant qualitative changes in the management of economic and
social processes.
The rational organization of the workplace provides maximum comfort and favorable working
conditions,  increases  the  meaningfulness  of  work.  There  are  currently  more  than  5  000  projects
dedicated to the organization of workplace for different categories of administrative personnel.
Favorable  sanitary  and  aesthetic  conditions.  There  should  be  optimal  temperature,  lighting,
furniture in the working rooms. These measures are directed to the more efficient use of labor potential
of the enterprise.
Thus, it is important to systematize the categories and pay attention to the following aspects of the
intangible incentives and options for their practical application.
Firstly, underlying the important role of the employee (chef greets him by the hand and invites to
a private party in honor of his birthday, consults with them on important issues, and etc.).
Secondly,  encouragement  of  employees  by  all  sorts  of  diplomas  and  prizes;  organization  of
professional  competitions;  Internships  at  the  expense  of  the  company  and  other  opportunities  to
improve their skills and emphasize the high status of specialists due to striving of these people to self-
improvement in their field.
Thirdly,  it  is  division  of  powers. This  technique  has  long  been  used  by  many Western  firms.
Employees  receive  the  shares  after  turning  of  a  firm  into  a  joint-stock  company.  Now  they  are
interested in its well-being and prosperity, because it affects their income as shareholders. So, the
level of employee loyalty and the quality of their work increase.
Fourthly, it is providing new opportunities. This may be a transfer of an employee to a higher
position, giving him or her more independence in decision-making processes (if it does not make
harm to the company as a whole), the assignment of complex projects and creative tasks that will

106
be interesting to fulfill, providing him or her with all the necessary conditions, for example, modern
office equipment, separate cabinet and other benefits if they are really necessary for improvement of
the quality of work.
Finally, it is creating a favorable psychological climate in the team. The task is not as simple as it
may seem, so use of the professional services such as psychologists and experts in consulting may be
effective solution of the problem [5].
In order to improve the psychological climate in the team the leader must first of all take into
account praise and encouragement as key psychological instrument. In the event of a serious blunder
an employee can be deprived of bonuses. If the manager wants to declare him a reprimand, it must be
done privately with a calm tone.
The head sometimes need to talk with employees on non-business topics if the size of the team
allows it. The head of office can designate HR manager to prepare gifts and greetings from the company
for birthdays of employees.
It is possible to carry out corporate entertainment events such as holiday parties or team building
events, if it is possible to avoid the banality and boredom. In general, the best leader imagines life
situations, dreams, desires, and the mindset of his or her employees, the easier it is to predict their
behavior and create incentives to provoke their interest. Of course, the search for creative solutions
will require finding a way around the interests of the company and the benefit of a specific person.
But truly successful leader is able to acquire the skill of surrounding himself with smart and talented
people. Sooner or later the development of the organization comes to a stage when the head faces
difficulties to do everything himself and he will have to delegate authority. As far as employees would
be successful, active and loyal largely depends precisely on the head of the team.
To sum up, the motivation plays an essential role in the structure of the organization. It permeates
all aspects of organizational interactions, allows all the participants and processes to function normally,
removing the contradiction between the social and the individual needs of the organization, motivation
performs such important functions in the organization as integration, training and adopting.
Knowledge  of  theories  and  methods  of  motivation  as  well  as  the  ability  of  their  practical
application  is  vital  for  any  leader.  The  complex  using  tangible  and  intangible  incentives  for  the
personnel improves the productivity and quality of work in the company, creates favorable conditions
for employee commitment to the company and constructive desire to develop it further according to
the strategic objectives.
LIST OF LITERATURE
1  Веснин В.Р. Менеджмент. – М.: Проспект, 2009. – 134 c.
2  Трудовой кодекс Республики Казахстан от 15 мая 2007 г. № 251–III (с изменениями по состоянию
на 04.07.2014 г.). – Алматы: Издательство «LEM», 2014. – 292 с.
3  Тихомирова Т.П. Организация, нормирование и оплата труда на предприятии. – Екатеринбург,
2008. – 185 с.
4  Steel P. Motivation: Theory and Applied. – Boston, MA: Pearson Learning Solutions, 2012. – P. 49–52.
5  Петрова  Е.A.  Система  дополнительного  вознаграждения  в  международной  компании  //  Руко-
водство по управлению персоналом. – 2010. – № 6. – С. 32–35.
LIST OF LITERATURE
1  Vesnin V.R. Menedzhment. – M.: Prospekt, 2009. – 134 c.
2  Trudovoj kodeks Respubliki Kazahstan ot 15 maja 2007 g. № 251–III (s izmenenijami po sostojaniju na
04.07.2014 g.). – Almaty: Izdatel’stvo «LEM», 2014. – 292 s.
3  Tihomirova T.P. Organizacija, normirovanie i oplata truda na predprijatii. – Ekaterinburg, 2008. – 185 s.
4  Steel P. Motivation: Theory and Applied. – Boston, MA: Pearson Learning Solutions, 2012. – P. 49–52.
5  Petrova E.A. Sistema dopolnitel’nogo voznagrazhdenija v mezhdunarodnoj kompanii // Rukovodstvo
po upravleniju personalom. – 2010. – № 6. – S. 32–35.

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Түйін
Осы мақалада қазіргі заманғы жүйеде қызметкерлерді уәждемелеудің материалдық және бейматериал-
дық аспектілері қарастырылады. Материалдық және бейматериалдық уәждемелеудің анықтамасы жаһандық
бәсекеге  қабілеттілік  мәнмәтiнде  қазiргi  экономиканың  жарығында  әкелiнген.  «Уәждемелеу»  терминінің
мәні  ұйымның  мақсатына  жету  үшiн  және  өз  қажеттіліктерін  қанағаттандыру  үшін  әр  қызметкердi  жәнеі
ұжымының барлық мүшелерiн белсендiленуге бағытталған үрдіс. Қызметкерлерді өз жұмыстарын сапалы
әрі  тез  орындауға  материалдық  уәждеме  мадақтаудың  тиімді  әдісі  болып  табылады.  Жалақы  уәждеменің
материалдық аспектісінің негізгі элементі болады, сонымен бiрге қоғамдық өндiру фазаларында жалақының
мынадай функциялары қарастырылған: өндiрiс, үлестiру, айырбас және қажеттiлiктер. Жалақының диффе-
ренциация факторлары анықталған және жалақының деңгейінің оларға деген әсерi негізделген. Автор уәж-
деменің теоретикалық аспектілерін жүйемелдеу негізінде бейматериалдық марапаттаудың кейбір тәсілдерін
және оны әр түрлі типтегі ұйымдарға қолдану нұсқаларын зерттейді. Мақалада уәждеменің теориясы мен
тәсілінің және қызметкерлерді мадақтауының экономикалық маңыздылығы, сондай-ақ басқарушы кадрдың
оларды тиімді қолдануы көрсетіледі. Команданың белсенді және жемісті болуында компания басшысы ең
басты буын болып табылады. Ұсынылған әдістеме бойынша қызметкерлерді мадақтаудың материалдық және
материалдық  емес  түрлерін  кешенді  қолдану  ұйымдағы  жұмыстың  өнімділігін  және  сапасын  арттырады,
компания  қызметкерлерінің  жұмысқа  деген  шынайы  берілгендігін  жетілдіру  үшін  қолайлы  жағдайлар  ту-
ғызады.

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