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Financial Analytics: Science and Experience
 

Problems of transfer to effective work contract in municipal non-profit organizations of cultural establishments

Vol. 8, Iss. 1, JANUARY 2015

PDF  Article PDF Version

Available online: 8 January 2015

Subject Heading: Budgetary policy

JEL Classification: 

Pages: 56-64

Tselishcheva E.F. Ural Institute of Management, Branch of Russian Presidential Academy of National Economy and Public Administration, Yekaterinburg, Russian Federation
Elena.tselishcheva@uapa.ru

Importance The research analyses the current system of teachers' labor remuneration in municipal budgetary institutions for supplementary education for children in the field of culture of Yekaterinburg.
     Objectives The paper aims to identify the shortcomings, to develop recommendations to improve the system of remuneration of labor based on the use of effective contract.
     Methods The study is based on the methods of economic and statistical analysis (median and relative values of index of wages of employees of institutions of further education in the field of culture) and modeling of the values of average wages (prior and after the distribution of incentive payments through an effective contract).Based on analysis of the existing remuneration system and identifying its weaknesses, I suggested to consider the efficient contract as one of the effective ways to increase the level of teachers' labor remuneration, to enhance their interest in achieving the excellent individual performance, creation of conditions for improving the performance of institutions as a whole. The article pays the special attention to the identification of possible problems and negative consequences of an effective contract with teachers (the impossibility by teacher to reach individual performance indicators of the efficiency, the low degree of reflection of teachers' efforts in terms of efficiency, increased paper work on monitoring, risk of reducing the wages of certain categories of teaching employees, brain drain from the industry (young teachers, faculty members), an increase in the level of teachers' wage differentiation). I propose and test the model of allocation of incentive payments to teachers of educational institutions of culture.
     Results The research's practical value consists in the possibility of application of proposed model of effective contract in other educational institutions.
     Conclusions and Relevance The paper substantiates the necessity of gradual transition to effective contract, drafting of individualized plan for improving individual performance indicators of the efficiency of teachers, as well as consideration of the issue about the use of different types of effective contract in relation to the different categories of workers.

Keywords: effective contract, effectiveness indicators, disaggregation, stimulation, teacher, additional education, salary

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