Improvement of the Mechanism and Methods of Increasing Labour Productivity and Wages in an Organization

Abstract

The efficiency of an enterprise largely depends on the quality of its labour processes and the organization of production activities, which directly affects labour productivity and employee compensation levels. In today’s environment of high competition and dynamic market development, organizations face the need for continuous improvement of
labour management methods and optimization of production processes. In this context, scientifically grounded
approaches that allow for systematic assessment of employee performance, identification of their needs, and transformation of these insights into concrete managerial decisions become particularly important.

The study analysed various approaches to evaluating labour efficiency, identified key performance indicators, and determined factors influencing the perception of work quality and the outcomes of departmental activities. The
interrelationship of these elements is presented as a labour management model based on monitoring indicators, regular employee training, performance assessment, and ranking, which enables the systematization of productivity enhancement processes and optimization of work functions.

The research identified the main issues constraining labour productivity growth, including the discrepancy
between actual results and expected goals, insufficient consideration of individual employee characteristics, low motivation levels, and weak coordination between departments. Implementing a comprehensive labour management mechanism focused on the employee motivation and engagement ensures improved performance, the formation of a fair compensation system, and the creation of conditions for sustainable organizational development in the competitive market environment.