Int. J. of Trade and Global Markets   »   2017 Vol.10, No.2/3

 

 

Title: Motivation of company's top managers during implementation of an innovational project: financial and non-financial constituents

 

Authors: Viktor P. Kuznetsov; Sergey N. Yashin; Egor V. Koshelev; Dmitry V. Podshibyakin; Anastasia O. Egorova

 

Addresses:
Department of Economy of the Enterprise, Kozma Minin Nizhniy Novgorod State Pedagogical University, 1 Ulyanov St., Nizhniy Novgorod 603002, Russia
Department of Management and Public Administration, N. I. Lobachevsky State University of Nizhny Novgorod, 23 Gagarina Ave., Nizhniy Novgorod 603950, Russia
Department of Management and Public Administration, N. I. Lobachevsky State University of Nizhny Novgorod, 23 Gagarina Ave., Nizhniy Novgorod 603950, Russia
Gazprom Mezhregiongaz JSC, Nizhni Novgorod, 5 Verkhne-Volzhskaya Dr., Nizhniy Novgorod 603005, Russia
Department of Economy of the Enterprise, Kozma Minin Nizhniy Novgorod State Pedagogical University, 1 Ulyanov St., Nizhniy Novgorod 603002, Russia

 

Abstract: The matter of a top manager's motivation is adapted to the consumer behaviour theory. The problem of bringing a non-financial motivation to a financial one may be solved with a certain error. This problem may be overcome by introducing a special metric of utility functions. For that end, the problem has been transferred to a space consisting of utility functions. The problem solution turns out to be a circle with a center at the reference point. It has been established that the financial resources allocated by a company for motivation are presentable in a graphical format by means of a line similar to the budget line reviewed in the consumer behavior theory. The obtained results are used to define a motivational optimum by analogy with the consumer optimum that is already well-known in the economic science. For an innovative project implemented in a company, an optimal value of net present value (NPV) is produced resulting in structuring an efficient motivation system for a top manager who becomes a 'friend' to the company in this case. It has been proven that the desired equilibrium value of NPV is in direct relationship to the bonus fund owned by the company.

 

Keywords: financial motivation; metric of utility functions; motivation of top managers; motivational optimum; non-financial motivation; optimal NPV.

 

DOI: 10.1504/IJTGM.2017.10006607

 

Int. J. of Trade and Global Markets, 2017 Vol.10, No.2/3, pp.186 - 197

 

Available online: 08 Aug 2017

 

 

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