Household Income in Romania. A Challenge to Economic and Social Cohesion

This paper examines the impact of employees' commitment on the productivity of organizations in the Republic of Serbia. Employees' commitment represents the willingness of employees to make efforts for the benefit of the organization and the desire to remain in them. It can be seen as: affective, continuous and normative commitment. Affective commitment reflects a belief in the goals of an organization and a willingness to actively participate in its development; normative commitment reflects a sense of obligation on employees to remain in the organization while continuing commitment is due to employees' assessment that leaving the organization causes greater costs than benefits. Previous research shows that all types of commitment have a major impact on the performance of organizations. As the number of empirical studies on this topic in Serbia is limited, this paper examines the impact of each type of organizational commitment on the productivity of organizations in Serbia, as well as the impact of the overall commitment. The aim of the paper was to identify the types of organizational commitment that have the greatest impact on the performance of organizations in Serbia and to propose measures to HR managers whose implementation can improve the operations of domestic organizations. The starting point of the paper was that employees' commitment has a statistically significant effect on organizational performance. To verify the validity of this assumption, a primary survey was conducted. 169 employees of 17 organizations in Serbia were surveyed. By applying correlation and regression analysis methods, it has been proven that overall organizational commitment, as well as its certain types, have a positive impact on the productivity of organizations in Serbia, with the impact of normative commitment on performance greater than other types of commitment. At the same time, the contribution of continuous commitment to the performance of organizations in Serbia is negligible (statistically insignificant). In line with the obtained results, recommendations for human resources managers in Serbia are proposed. The theoretical implications of the paper are reflected in filling the gap in the national literature in the field of organizational commitment, while the empirical implications are reflected in the mechanisms and measures that are proposed at the end of the paper.

Section: Discussion and Implications For Human Resources Managersmentioning

confidence: 99%

The impact of employees' commitment on organizational performances

Đorđević

Ivanović-Đukić

Lepojević

et al. 2020

“…If we analyse the median gross hourly earnings in 2016 (Eurostat 2016), the position of Croatia is even worse as Croatian employees earn only 10 EUR hourly, which is 4.3 times less than in Denmark, and 3 times less than gross hourly earnings in EU-28 countries. Only Bulgaria (4.4 EUR), Romania (5.5 EUR) (Chivu, Ciutacu & Georgescu, 2015), Latvia (7.5 EUR), Lithuania (8 EUR) and Poland (8.4 EUR) have lower gross hourly earnings than Croatia. Ireland, which has been attracting increasing numbers of young people from Croatia, has almost three times higher gross hourly earnings (29.3 EUR) and 3.7 times higher average annual earnings than Croatia.…”

Section: Comparative Analysis Of Reward Strategy and Practice Betweenmentioning

confidence: 99%

Reward strategy and practice as a tool to retain employees: Case of Croatia

Galetić¹

2020

This paper explores the differences in reward strategy and practice between Croatia and EU countries. Reward is one of the key tools for attracting, retaining and motivating employees. Croatian and European companies have already started competing for the best human resources and the figures for 2016 reveal that Croatia is currently experiencing negative net migration rates (Croatian Bureau of Statistics, 2019). Since the trend is discouraging for Croatian companies, we find it necessary to examine the state of reward strategy and practice in Croatia. Our empirical research was conducted on a sample of 61 middle and large-sized Croatian companies. Research results revealed that there is a very large gap between the annual earnings of Croatian employees and average annual earnings in EU companies. However, the differences in incentive pay practices, benefits and non-monetary incentives between Croatia and other countries were not so great.

“…One of the key issues in these countries today is the dramatic increase in labor shortages, which has been influenced by a variety of factors, namely outbound labor migration after the change of regime, unfavorable demographic factors, the economic downturn as well as wage differences within the EU (Brixiova, Li & Yousef, 2009). Chivu, Ciutacu and Georgescu (2015) underline that statistic data seem to indicate that the trend in household income, particularly in the new member states, does not argue for a growth of economic and social cohesion.…”

Section: The Labour Market Of Central and Eastern Europementioning

confidence: 99%

The managerial implications of the labor market and workplace shortage in Central Eastern Europe

Poór¹,

Slavić²,

Nikolić³

et al. 2021

In the recent years the labor market of the Central and Eastern European (CEE) countries has changed a lot. One of the main business challenges in the CEE region is the worker shortage. The possible reasons of this phenomenon are the emigration of the labor force from the countries of the former Eastern Bloc to the Western countries, the negative demographic tendencies in the region, the effects of economic crisis and the significant wage differences in the countries of European Union. This paper presents the first results of an international research conducted in six countries from the CEE region (Austria, Czech Republic, Hungary, Romania, Serbia and Slovakia) on the reasons and managerial implications of the current labor force shortage. The research questionnaire was filled out in 797 companies and institutions in the CEE region. In our paper we will show the size, ownership and the sectoral distribution of our sample, as well as the average turnover rate, the average time to fill a position in, the positions hard to fill in, the possible reasons of labor shortage and the successful organizational and governmental programs to deal with labor market shortage. The obtained results may be a useful input for the formulation of human resource management programs in the organizations facing with labor market shortage in Serbia and other CEE countries.