Abstract

The ongoing reform of Russian railway transport entailed a change in the form of ownership and status previously all known monopoly represented by the Ministry of Railways of Russia, and its transformation into the Open Joint Stock Company “Russian Railways”. The change in the form of ownership of one of the largest subjects of the transport services market in Russia had a certain effect on the competitiveness of the country’s transport system and, in some way, reduced the level of monopolization of railway transportation. The methods for calculating the labor productivity of transport companies in Russia generally require a deeper method of measuring the performance of personnel, based on assessing the level of development of the company’s human potential in modern economic conditions, when the relationship between the results of personnel work and the company’s targets determines its competitiveness. The authors propose a new methodology for managing labor productivity and employee incentives, which is caused by the actualization of a number of functions of personnel management of transport companies and the transformation of production activities depending on changes in the external environment, which previously did not play a fundamental role, but now have a decisive influence on the efficiency of the company’s activity and social production of the country. Assessment of the performance of companies can also cause problems with the management system of labor productivity and human development, if the strategic goals and objectives of the company’s development are not known to a particular employee, are not balanced or outside of its sphere of influence.

Highlights

  • In the historical evolution of the development of methods for assessing the efficiency and effectiveness of labor, most of the personnel remuneration systems used in Russian transport companies were based on the amount of wages, the rate of its growth, without paying close attention to the growth rates of labor productivity

  • Many managers of large transport companies use the indicator “labor productivity” as the main indicator of efficiency assessment in order to justify the minimum wage increase that they already assigned to their employees

  • When developing a new methodology for managing labor productivity based on the development of the company's human potential, the scientific approach is to clearly substantiate the volume of freight and passenger transportation, the elemental cost structure in accordance with long-term, medium-term and short-term development goals of the company

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Summary

Introduction

In the historical evolution of the development of methods for assessing the efficiency and effectiveness of labor, most of the personnel remuneration systems used in Russian transport companies were based on the amount of wages, the rate of its growth, without paying close attention to the growth rates of labor productivity. World experience shows that many managers of transport companies look at labor productivity remuneration systems as ineffectively reflecting the individual efficiency of labor, as purposeless compulsory payments – bonus payment, as pointing at contradictory performance guidelines for employees.

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