Home  Journals  Financial Analytics: Science and Experience  22(304) - 2016 June

Improving the efficiency of workforce use in gas distribution networks: Evidence from the branch of OOO Gazprom Gas Distribution Vladikavkaz in the Alagir District

Vol. 9, Iss. 22, JUNE 2016

Article PDF Version

Received: 5 October 2015

Received in revised form: 30 March 2016

Accepted: 17 May 2016

Available online: 15 June 2016

Subject Heading: Economic policy

JEL Classification: J33, L95, M21, M52

Pages: 29-42

Objectives The article examines how workforce can be more efficiently used and illustrates the branch of OOO Gazprom Gas Distribution Vladikavkaz operating in the Alagir District of the Republic of North Ossetia – Alania.
Methods The research involves logic, cause-and-effect and comparative methods of analysis.
Results We suggest the variable part of salaries and wages should prevail over the fixed one. Entities should implement an understandable system of additional payments and bonuses for performance results. The article describes how the entity in question could be restructured so to increase the efficiency of workforce use and save RBL 3, 647, 621 in salaries.
Conclusions and Relevance Our researches identify some difficulties in operations of the branch. We conclude that workforce can be used more efficiently if functions of salaries are ranked, thus determining priority tasks for improving the efficiency of the existing compensation mechanism. To ensure the social function of salary, its indexing should be linked with consumer prices for gas. The entity should also be restructured so to reduce a number of departments and increase the control coefficient.

Keywords: personnel, gas facilities, payroll, restructuring, control coefficient

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