Methodological Basis of KPI Motivation

Abstract

A well-built system of motivation can become a source of long-term competitiveness of the enterprise development. The article presents an overview of the main stages of the KPI motivation development and its deployment process. The purpose of this research paper is to reveal the fundamental aspects of building a motivation system based on KPI. The general theoretical basis of this study is the concept of methodology "Management by Objectives", method of "Performance management". It is proposed to integrate the KPI's system into the enterprise management system. It has been proven that the KPI system is a tool for specifying and bringing business strategy to each department and employee through the mechanism of motivating each employee to achieve this goal. The article identifies the place of the KPI system in the structure of business processes. A typology of KPI system options is based on the resources required to develop and implement such system. It has been proven that the system of motivation based on the KPI is a tool for achieving long-term and short-term company goals and is not just a monetary and non-monetary incentive system.