Problem of Junior Production Personnel Reduction at the Dom Company Trading Chain

Abstract

At the end of 2005 Dom Company faced the problem of hypermarket junior production personnel turnover reduction and retention against the backdrop of intensive extension of its presence in the St Petersburg market. It turned out that the existing system of this category's personnel stimulation and labour remuneration failed to fully match the problems urgently faced by the company and was in need of improvement. The company’s management decided to undertake a survey in order to identify the problems within the labour remuneration and personnel stimulation system and elaborate an improved system for calculation of amounts of labor remuneration and bonuses payable to the personnel. Basic information was obtained by way of questioning junior production personnel and structured interviewing of managers of production divisions of Dom Company hypermarkets which enabled comparison of workers’ and management’s opinions of various aspects of labour organization and remuneration, personnel satisfaction and motivation.