Motivation of Management Subjects in Market Economy

Market economy is the stage of world history where a company (an enterprise) becomes the main subject of economic system. That is why motivation of enterprises’ activities here is the function that comes directly from the elements of macroeconomic mechanism inherent to the system.The main institutio...

Full description

Bibliographic Details
Main Author: T. Yarovikova
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2010-03-01
Series:Економіка розвитку
Subjects:
Online Access:http://www.ed.ksue.edu.ua/ER/knt/e101_53/e101yaro.pdf
Description
Summary:Market economy is the stage of world history where a company (an enterprise) becomes the main subject of economic system. That is why motivation of enterprises’ activities here is the function that comes directly from the elements of macroeconomic mechanism inherent to the system.The main institutional features are: emerging of stimuli for labor economy; formation of manufacturers’ personal freedom and freedom of taking decisions by the subjects of economics; "openness" of economic processes inside the country.General economic mechanism of industrial economics forms the following motivational institutions of market economy that act as outer factors (motivators) that form inner motives of enterprises’ behavior, and their change "turns off or on" these or that inner motives: factors of economic environment; factors of demographic and cultural environment; scientific and technologic determinants; political motivators; influence of labor force market; motivators caused by the industry and competitors; consumers’ factors; suppliers’ factors; factors of contact auditoriums.The main motives of the enterprises’ activities are: maximisation of income and profitability; satisfaction of consumers’ needs; production development; maximisation of trade volumes; social responsibility; saving expenses; wins in competence; leadership, prevailing on the market; minimisation of production risks; extension to the new markets; strategy; adaptation to the world market.So, this research allows us to say that motivational activities of economic subjects in market economy is formed on the basis of the most important macroeconomic features of industrial economics. These features condition existence of several institutions (outer motivators) of market media that directly influence the motives pursued by enterprises as they function and interact with other participants of the market.
ISSN:1683-1942