UNIVERSITY OF VAASA 

SCHOOL OF MANAGEMENT 

Alena Pochernina 

MOTIVATION: A CASE STUY APPROACH 

 

 

 

 

Master’s thesis in 

International Business 

 

 

 

 

 

 

 

 

 

Vaasa 2019  



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TABLE OF CONTENTS 
LIST OF ABBREVIATIONS. .......................................................................................................... 7 

LIST OF TABLES AND FIGURES. ............................................................................................... 9 

1. INTRODUCTION. .................................................................................................................. 13 

1.1. Background of the study. ................................................................................................ 13 

1.2. Research gap. ................................................................................................................... 15 

1.3. Research question and objectives of the study. ............................................................ 16 

1.4. Delimitations of the study. .............................................................................................. 16 

1.5. Structure of the thesis. .................................................................................................... 17 

2. THEORETICAL PART. ........................................................................................................ 19 

2.1. Motivation theories. ........................................................................................................ 19 

2.2. Definition and characteristics of motivation. ................................................................ 22 

2.3. Motivation in Russia. ...................................................................................................... 26 

2.4. Motivation methods......................................................................................................... 28 

2.5. Tangible and intangible incentives. ............................................................................... 30 

3. METHODOLOGY PART. ..................................................................................................... 34 

3.1. Research philosophy and approach. .............................................................................. 34 

3.2. Research design. .............................................................................................................. 35 

3.3. Data collection and sample. ............................................................................................ 37 

3.4. Background of the company. .......................................................................................... 37 

3.5. Type of an interview. ....................................................................................................... 39 

3.6. Reliability and validity. ................................................................................................... 41 

4. RESULTS AND ANALYSIS. ................................................................................................. 43 

4.1. Attitude towards motivation system. ............................................................................. 43 

4.2. Compensation system. ..................................................................................................... 48 

4.3. Evaluation system. ........................................................................................................... 51 

5. CONCLUSION. ....................................................................................................................... 57 

5.1. Key findings. ................................................................................................................ 57 

5.2. Summary. ..................................................................................................................... 58 

5.3. Limitations of the study. ............................................................................................. 59 



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REFERENCES. ............................................................................................................................... 61 

APPENDIX 1. LIST OF QUESTIONS FOR THE INTERVIEW (ENGLISH). ....................... 66 

APPENDIX 2. LIST OF QUESTIONS FOR THE INTERVIEW (RUSSIAN). ........................ 69 

 

  



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LIST OF ABBREVIATIONS. 

HR  Human Resources. 

HRM  Human Resources Management. 

USSR  the Union of Soviet Socialist Republics. 

  



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LIST OF TABLES AND FIGURES. 

Table 1. Structure of the study – Page 16 

Table 2. Policy of the researched company – Page 37 

Table 3. Summary of the company’s branch in Russia – Page 38 

Table 4. Summary of main findings – Page 46 

Table 5. Summary of main findings – Page 50 

Table 6. Summary of main findings – Page 54 

 

 

Figure 1. Distribution of educational level – Page 45 

  



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UNIVERSITY OF VAASA  
School of Management  

Author:  Alena Pochernina  

Topic of the Thesis:  Motivation: a case study approach  

Name of the Supervisor:  Jennie Sumelius 

Degree:  Master of Science in Economics and 

Business Administration  

Master’s Programme:  Master’s Degree Programme in International 

Business  

Year of Entering the University:  2015  

Year of Completing the Thesis:  2019                                        Pages: 72 

ABSTRACT 

The thesis studies motivation as an integral part of the Human Resources Management 

system. The author reveals the essence of the main topic in accordance with the opinion of 

company’s employees. The theoretical research consists of motivation theories and 

motivation characteristics. The author identifies motivation methods and material and non-

material incentives which can be utilized by companies in their work with employees. The 

thesis reviews features of motivation in Russian Federation. The purpose of the study is to 

provide explanations regarding motivation of employees on the example of a river transport 

company in the Russian Federation. 

The relevance of the chosen topic is due to the high importance of employees as the most 

important strategic resource of any company in the current market conditions of economic 

development. The ability of a commercial company to achieve its goals, maintain its 

position in the market, and remain competitive in long-term periods depends on a properly 

designed Human Resources Management system. This thesis represents qualitative method 

with a following case study. Empirical data was collected by 6 face-to-face structured 

interviews with managers and 12 questionnaires with maritime workers. In particular, the 

analysis of the thesis shows reasons to manage employee's motivation as well as a number 

of steps to improve the current situation in the company. Findings shed light on motivation 

as a part of employee's professional activity and reasons of its coordination by the 

company. 

 _________________________________________________________________________ 

KEYWORDS: motivation, human resources, tangible and intangible incentives, 

motivation methods, remuneration. 

  



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1. INTRODUCTION.  

The aim of this chapter is to present the background of the study and the research gap. Then 

the research question as well as research objectives would be formulated and connected to 

the more specific research analyses. Finally, the structure of the thesis and necessary 

definitions would be introduced. 

1.1. Background of the study.  

Motivation has received significant attention from European and Russian scholars (e.g. 

Belding 2004, Diamond et al 2010, Forsyth 2012, Jensen & McMullen & Stark 2007, 

Shields 2007, Dickmann 2008, Crandall 2003, Kibanov 2005, Artamonov & Nikiforova 

2005, Barusheva & Kikteva 2014). According to Kibanov (2005), the main objective of the 

motivation process is obtaining maximum benefits by using available human resources, 

which improves the overall performance and profitability of the enterprise. Employee’s 

motivation is associated with the amount of productivity which is assigned to perform a 

particular job or tasks. The modern level of the company’s productivity cannot be 

developed without the effective motivational systems. They should be constantly improved 

due to the influence of the international world which includes economic, social and political 

conditions. This concept can be referred to different definitions studied by scientists. 

Previous studies related to motivation treat it and incentives as synonymous and as a part of 

HRM department job. At the same time, employees understand the reason to be motivated 

only by an idea of earning more money. Irvine (2009) suspects that in order to motivate 

employees, management can use both financial and nonfinancial incentives.  

Prior researches has shown that the concept of motivation is not fully certain not only 

between HR managers and practitioners, but between management theorists. So both 

parties suggest that the research of motivation process leads to the success of the company 

and to the increase of its competitiveness. (Artamonov & Nikiforova 2005:4). 

Diamond et al (2010) suggests that it is sufficient not to overestimate the influence of the 

motivation on labor productivity. The urgency of the motivation research in HRM is 



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characterized by the globalization of the economy and the penetration of the information 

technologies in the majority of production spheres. There are many problems associated 

with the motivational policies such as problems of relationship with the leadership, 

dissatisfaction with the size of wages, discrimination, and absence of privacy, unhealthy 

and unsafe working conditions. The main obstacle to solve these problems is the reluctance 

of HRM to reflect on life conditions and people’s work which is directly creates the 

corporation’s profit.  

Kibanov (2015) states that the foundation of the contemporary theoretical approaches of 

motivation are concepts which flow out of psychological science that studies types, kinds 

and results of a target minded human behavior. In this perspective it is possible to describe 

motivation as the key issue of a human behavior which consists of relationships and private 

targets. Motivation methods which can be used in HRM are diverse and depend on the 

elaboration of incentive systems and the overall control system of the company. It is widely 

known that classification of motivation techniques can be performed on the organizational, 

administrative, economic and socio-psychological levels. This classification is based on the 

motivational orientation of the corporation's management.  

Dickmann et al (2008) states that general description of motivational process includes 

requirements, motives, purpose of the motivational concept and values orientation. 

Requirements are the state of the employee who is experiencing the need for the facility 

necessary for his existence. Requirements are sources of human activities and the cause of 

the deliberate actions. Motives urge staff to aimed actions. Goal is a desired object of the 

employee or his condition. Values orientation is a type of personal guidelines which 

regulates the level of company’s work engagement.  

Crandall (2003) believes that the structured concept of motivation provides assistance to 

management in avoiding conflict situations among employee groups in relation to the 

leadership and work process in general. Motivation provides organization with the right 

business-objective direction not only for employees but for the entire company when 

management uses the relevant theories of motivation and incentives.  



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According to Barusheva et al (2014), "company should not exactly copy motivational 

technologies and wait for a motivation increase". Scientists see that management practices 

tend to simultaneously apply different techniques and combinations of motivation and 

incentives. The utilization of diversity types of motives causes advantages and 

disadvantages of their usage simultaneously. This is a result of active practical process and 

connecting it to the theory. McMullen et al (2007) considers that there are no models of 

rewards which can be used without any improvements or changes due to distinct human 

necessities. That is why the company should adjusted compensation system in terms of 

distinct employee needs. Thus, this process should be controlled and coordinated. The key 

point of this is that the company itself can improve selected theories of motivation in order 

to adapt them and to make them useful for themselves. 

1.2. Research gap. 

The academic research of motivation has been conducted during last decades. Multi-

cultural studies have been presented where motivation was shown in different perspectives 

such as social, psychological, administrative and economic.  

Since XX century motivation has become close intertwined with human needs. Foreign 

motivational theories represented motivation from the decision making point of view. 

Russian scientists believed that motivation depends on desires, struggle of motives and 

decision making. Motivation started to be considered as an independent scientific problem 

of psychology. (Kibanov 2005). In this respect, the current paper aims to provide a new 

insight to the research topic. 

The goal of the study in terms of motivation is to describe a detailed theoretical framework 

in order to get necessary information which can be used in the empirical part of the thesis.  

The purpose of the study is to fill the gap in the analysis of motivation from the employee's 

point of view using Russian river transport company as an example. 

 



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1.3. Research question and objectives of the study.  

The aim of the thesis is to find out what can influence employee’s motivation and how 

would they like to be rewarded. Moreover, the thesis will analyze what can be meant by 

motivation and incentives. Furthermore, the cultural differences of employees will be taken 

into consideration. 

Therefore, the corresponding research question of the Master thesis is:  

What can motivate employees in the international Russian river transport company? 

In order to answer the specific research question the following research objectives have 

been set up: 

 To review existing literature this includes theories and methods of motivation. 

 To review tangible and intangible ways of remuneration. 

 To investigate a concrete case company and its employees. 

1.4. Delimitations of the study.  

Delimitations are placed in order to point out the reader to a certain field of research by 

clarifying the boundaries for the analysis. Due to the fact that the author was an employee 

of the company that is being analyzed in the process of thesis writing, it is easier to get 

access to the necessary information and to organize interviews with employees. The 

concept of motivation is widely discussed in a scientific world. The purpose of the thesis is 

to study the topic with its further usage in the HRM system of the company. The author 

decided to present several opinions on the main problem for a deeper analysis utilizing the 

appropriate questionnaires. The sample for the empirical part of the study is small but 

sufficient for the research, namely 6 personal interviews and 12 questionnaires. 

Additionally, the research is based on the present theoretical notions. The author has 

surveyed and applied determinations and apprehensions from theoretical papers in the field 

of Human Resources Management. In order to describe the structure of the research, the 



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author fulfills thorough study for the specific research area. Finally, the research is 

concentrated on the original findings of motivation concepts. 

1.5. Structure of the thesis. 

The thesis is divided into five chapters (see Table 1). The first chapter is an introduction 

part which consists of background of the study, research question and objectives, 

delimitations of the study, as well as the research structure of the thesis.  

The second chapter explains theoretical bases and methods of motivation. Here theories and 

definition of motivation are defined. This part reveals the advantages and disadvantages of 

motivational models. Theoretical part includes the background of motivation in Russian 

Federation. The part of motivation methods describes diverse motivation strategies which 

can be used by company in practice. At the same time, this chapter includes detailed 

analysis of incentive systems of staff management as it shows distinct forms and types of 

material and non-material incentives.  

The third methodology chapter includes the research philosophy of the study and the 

research approach. This chapter determines the research design of the whole thesis and 

explains all used research methods and techniques. This chapter presents the type of chosen 

interview and validity and reliability of obtained results. 

The fourth chapter is accountant for general discussion and findings of the Master thesis. It 

presents data obtained from structured interviews. Results of interviews are presented in a 

case study which includes motivation, evaluation system of en employee as well as a 

compensation package. Furthermore, case determines main findings which are resumed in 

tables.  

Finally, the last chapter presents key results of the study from previous chapters, their 

theoretical framework and managerial meaning. The final part ends with a main study 

limitations. 

Table 1. Structure of the study. 



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Introduction part  Background information. 

 Research question and objectives. 

 Delimitations. 

 Structure of the thesis. 

Theoretical part  Motivation: 

 Theories 

 Methods and strategies 

 Incentives and rewards. 

Methodological part  Research methodology 

Findings part  The analysis of interviews and questionnaires data 

Conclusion part  Summary of results 

  



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2. THEORETICAL PART. 

2.1. Motivation theories. 

The topic of motivation is not new and it became famous due to sufficient endow to the 

science since 1940s (e.g. Maslow 1943, Hertzberg 1950, McGregor 1950, Vroom 1964). 

However, there is no one exact definition of motivation. Their theories of motivation are 

based on the fact that person’s motivation depends on his own needs. Therefore, each 

person has his individual factors that contribute to motivation to perform his work. (Forsyth 

2012:17-24). 

Theories of motivation at the stage of implementation of professional activity are divided 

into substantive and procedural. Substantial motivation theories emphasize human needs 

that underlie the practice of a profession and the structure motivation, including a variety of 

coexisting motives acting with varying force and resistance. Procedural theories of 

motivation analyze person, his efforts to achieve a goal and his behavior. So they are 

oriented on the obtaining of a target. (Artamonov & Nikiforova 2005:11) 

Maslow “hierarchy of needs” (1954) belongs to substantial theory. Maslow adheres to the 

division of human needs into primary (inborn, biologically predetermined) and secondary 

(socially acquired). The essence of this theory is that person’s needs have different levels of 

importance for him, and some primitive things come first. The scientist states that a person 

can experience needs of a higher degree only when basic needs are already met. Thus, 

Maslow's pyramid has 5 levels: physiological needs (primary); security needs (primary); 

social needs (secondary); prestigious needs (secondary); spiritual needs (secondary). The 

main advantage of this theory is that the scientist introduced person systemically. The 

disadvantage is the lack of an individual approach, because each person is unique and he 

can form a completely different pyramid of needs. At the same time this model is quite fair 

so it can be widely used. Maslow's theory became basis of many famous theories in the 

field of motivation and one of them is a Hertzberg’s "motivation-hygiene theory". 



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Substantial "motivation-hygiene theory" of Hertzberg (1993) studies human satisfaction 

with their work. According to this theory, there are two groups of factors that influence 

satisfaction of working activity. First are hygiene factors associated with the process and 

outcome of the labor (company’s policy, salary, working conditions, employee’s status, 

material benefits). Second are motivators which contribute significantly to the increase of 

job satisfaction and productivity (the ability to succeed in the work, the presence of a 

promotion’s chance, recognition of the results and public endorsement, the possibility of 

raising the level of professional competence, the presence of a high degree of 

responsibility, complexity, diversity, interesting work content). If these factors are negative, 

then it leads to a person's job dissatisfaction. If these factors are present, it does not mean 

that an employee is satisfied with his work. Thus, according to Hertzberg (1993), 

dissatisfaction depends on hygiene factors and job satisfaction depends on motivators.  

One of the procedural motivational theories belongs to Douglas McGregor (1967). 

According to his research, "theory X" opposes to the "theory of the Y" in the nature of 

professional activity. In “theory X" people tend to an innate sense of dislike for work, it 

does not act as motivator and staff tries to avoid it. As a result, people should be forced to 

work, controlled, and kept under threat of punishment. In addition, people are motivated 

mainly by economic needs and guided by material benefits. Scientist believes that people 

are initially passive, and they need to be stimulated to work. On the contrary, "theory Y» 

lies in the fact that people are inherently need to realize mental and physical effort to 

perform any work. In other words, it means the greater self-control and self-leadership than 

external control and threat. Motivators of activities are the work maintenance and interest in 

it. 

According to the theory of Victor Vroom (2008), «waiting» defined as the evaluation of the 

individual probabilities of certain events and active intention to achieve in this situation a 

particular purpose depends on three variables (factors). Firstly, it is the expectation 

(estimated probability) that the alleged efforts will yield the desired results. If there is no 

connection between expended effort and the result, then motivation weakens or disappears 

altogether. The lack of relationship is possible for various reasons, for example, due to poor 



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employee preparedness and poor organization of labor. Secondly, it is the expectation that 

results would entail an expected reward. The absence or non-connection between the result 

and reward reduces motivation. Third, it is the valence (estimated value) of remuneration 

received by the specific person. That is the result which is significant for a person. All three 

elements are important to choose one instead of another. Vroom (2008) proves an idea that 

even if the company suggests that it has provided all possible motivation options, some of 

the employees will necessarily decide that such methods do not work for them. This theory 

is applicable to situations where a person believes that putting more effort into the task will 

cause greater reward. Thus, from the employee point of view, the company will receive 

higher labor productivity and therefore will be able to raise the level of wages and bonuses. 

However, this theory cannot exactly say which reward has a greater value for a person. 

Among Russian scientists, Lev Vygotsky (1995) achieved greatest success in motivation 

studies as he introduced "Concept of parallel motivation". It must be said that his theory 

investigated pedagogical activity but not production and companies. Despite this, the 

provisions of this theory are applicable for employees. The scientist claims that person has 

high and low levels of development. These levels determine person's needs and develop in 

parallel, as well as control the behavior of a person and his activity. Scientist considers that 

it is impossible to satisfy needs of one level using needs of another level. Vygodsky 

believes that if at first person needs to satisfy his lower needs, then material incentives can 

work. Therefore, high human needs can be met only in an intangible way. This theory is the 

most progressive among other Russian theories.  

One of Lev Vygotsky's students, Boris Lomov (1984), went further into the theory of 

motivation. The scientist presented his theory called "Orientation of the individual." Here 

"orientation" is the characteristic of an individual and determines his goals and motives as 

well as reflects to his opinion of the environment. In a detailed plan, Lomov presented 

"orientation" as a person’s attitude toward material and non-material benefits. The scientist 

believed that problems of motivation and goal-setting are essential in psychological 

researchers.  



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2.2. Definition and characteristics of motivation. 

Motivation is the creation of an internal desire which makes employees to do their work 

with maximum efficiency. Shields (2007) states that motivation is an integral part of the 

corporate culture of each company. While selecting individual incentives for different 

categories of staff, management can control the productivity and results of the team as a 

whole. Motivation in HRM should be connected with the organization's strategic goals, 

especially corporate culture and long-term development plans. All these factors affect the 

construction and timely adjustment of motivation system in the company. The purpose of 

motivation should be detailed in accordance with the quality of objectives set for the 

various levels of management.  

Motivation contributes to the productive activities of the company's employees and 

improves the efficiency of the company as a whole and increases its competitiveness. One 

feature of HRM in the current global economic environment is the growing role of the 

employee as an individual. A narrow definition of motivation can be determined as a 

process where employee induces him and colleagues or subordinates to action. (Artamonov 

& Nikiforova 2005:5). Reasons for such impulsion can be distinct, for example, a personal 

target or a new business experience. At the same time, motivation explains causes of a 

concrete staff member who has a long working experience in a particular company or 

business field and the reason of his specialization.  

Employees should be encouraged by the intermediate achievements without waiting for the 

completion of the whole work process, as great success is difficult to achieve and it is rare. 

Therefore, it is desirable to reinforce the positive motivation through not too long intervals. 

It is important to give staff members feel confident as required by an inner need for self-

affirmation. Thomas (2003) suggests that the most effective system of motivation of 

employees is the "motivation for the result." The results of the staff are determined by the 

KPI. KPI and motivation of employees can significantly improve the efficiency and 

productivity of the enterprise. Most scientists have come to the conclusion that motivation 

of the result is the perfect system because it substantiates the business of remuneration 



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payment. Remuneration according to dictionary definition is “a pay for service rendered; … 

etc”. (Australian Concise Oxford Dictionary 1987: 935). This gives an opportunity for 

employees to receive and to increase an income in the clear relationship to the effort. 

According to Bruce (2003:25-26) in order to be successful, staff motivation should be 

applied at all levels of management and organization of work at all fields of company's 

units: employees, teams and staff throughout the company. This procedure includes few 

steps. The first step is motivation of all employees of the organization. At this stage, the 

change provides a common corporate culture and it should be linked with the objectives in 

the field of enterprise-class quality. The second step is the goal to motivate employee’s 

groups of distinct company’s units. This level provides a change in the quality of work in 

areas of activity. If the company operates a small number of staff members, the purpose of 

the motivation and motivational goals of employee's can be combined. Qualitative 

objectives should be clear and well-structured. In this way management can set clear goals 

for employee’s motivation. In addition to the relationship with the qualitative objectives, 

motivation of staff is associated with areas of impact on employees at each level.  

Forsyth (2012) believes that the stated goal of motivation of the whole team works on such 

areas as working conditions and acknowledgment, resources and relationships, 

responsibility and recognition. Motivation of employees on the individual group level 

should be interconnected with the objectives in the field of quality for products and 

processes. It is important to note that the purpose of motivating teams of employees must 

be precisely connected with the objectives of processes and products rather than goals of 

individual units. This is because the motivation provides interaction of staff involved in the 

same process or in the production of a single product. The third step affects the level of 

change in the quality of certain operations and activities of an employee. At this level 

motivation of an individual should be linked with the objectives of units of the company.  

To consider motivation in terms of the resulting benefits, there are two types of HR 

motivation which are tangible and intangible. Both of these types are used for the 

successful maintenance of motivation. Irvine (2009) states that generally, these types of 



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motivation are utilized together depending on the control level of motivation and the set of 

goals. Tangible motivation provides certain wealth, which can be expressed in terms of 

money, material objects or services. This type of motivation is applied at the level of 

motivation of the employee as an individual or groups of employees. It is rarely used at the 

level of motivation of the whole team of the company due to ineffectiveness. According to 

McMullen et al (2007), intangible motivation of employees aimed to obtain emotional 

benefits. These benefits may take various forms, such as increased self-esteem, 

psychological comfort and pride of the job position. This type of motivation is used at all 

levels of HR motivation. Most often it is used at the level of motivation of the whole team 

of the corporation as it allows management to involve every employee into the enterprise.  

Davis et al (2011) suggests that in terms of the impact caused by motivation it can be 

external and internal. External motivation involves providing specific impact on staff 

(positive or negative), which will produce a result. In order to get a result an employee gets 

profit or fine. Internal motivation involves independent commitment of staff to perform 

certain actions. The working process brings employee satisfaction or pleasure. However, 

internal motivation does not mean that staff will not seek for benefits as when external 

incentives of internal motivation are not enough and the staff wants to get the desired 

benefits. The challenge of external motivation is stimulating and developing the internal 

motivation of staff. This can be achieved by regular evaluation of staff motivation and by 

the utilization of methods corresponding to the level of motivation. In the course of 

implementation of motivation system employees can change their attitude to the process of 

work and other factors. So some employees would enhance their motivation and some 

would decrease.  

Martin (2006) considers that structure of motivation includes two components. The first is 

directly a work process. It includes social character motivations (awareness of the need to 

contribute to society, the desire to help other people, the need for a public installation) as 

well as receiving certain material goods (earning money to meet needs). Finally, the first 

component includes needs for self-actualization, self-expression, self-realization, as well as 

public recognition and respect from others. The second component is the motive of choice 



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of employment. This includes an assessment of the positive and negative factors of 

production (the value of wages, benefits provided by the company, proximity to home, the 

convenience of transportation, the aesthetics of the workplace and the presence of harmful 

production, the presence of a solid or a free work schedule, reliability and prestige of the 

company, the measure of responsibility, the ability to simultaneously work and study at the 

university, the psychological climate in the team, the system of rewards and punishments). 

First component involves the evaluation of employee's own capabilities (health, the 

availability of skills related to this work, professionally important qualities, level of 

education, tendency to work without stress). At the same time, the second component 

covers self-interest conformity assessment features (opportunity for advancement in the 

enterprise or career ladder through ranks, management experience, professional 

development, manifestations of individual initiative and imagination). Thus, Martin (2006) 

concludes that motivation has a complex structure, suggesting the coexistence and 

interaction of a number of different motives, such as external and internal, positive and 

negative. 

In order to have an effective HRM system company should apply necessary motivation 

methods. Mathis et al (2008) considers that the process of managing the staff motivation is 

a flexible tool. Methods of motivation should be constantly changing due to altering 

environment. The algorithm which controls the staff motivation includes several stages. 

The first stage is the formulation of organization's objectives which are based on goals 

setting. First of all, management and leadership need to clearly define the set of goals and 

objectives. Objectives should be detailed at the level of company's units, individual 

products and processes. The second stage is an evaluation of the level of staff motivation. 

Thornton III et al (2006) suspects that basing on the level of motivation, HR department 

can define the most problematic elements of managing employees. The third stage is setting 

goals of employee's motivation. These goals should be installed so that they are consistent 

with the company's goals. The fourth stage is the development and application of methods 

of motivation. Mahapatra (2009) suggests that motivation techniques in order to achieve 

distinct objectives should be various. The fifth stage is the evaluation of objectives. At 



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certain intervals of time it is necessary to carry out the reevaluation of the level of staff 

motivation. This provides an opportunity to get feedback on the applied methods and to 

make necessary changes. On the basis of evaluation, the achievement of the objectives of 

staff motivation can be determined. 

According to Forsyth (2012), it should be noted that motivation is a process which takes 

time and cannot be done in a minute. If the process is well-structured and detailed than it 

can lead to positive results, dependable and coherent performance.  

2.3. Motivation in Russia. 

Motivation is an integral part of the work process. Due to cultural characteristics and other 

factors, definition of motivation may differ from country to country. Since the author of a 

thesis studies a Russian company, it will be advisable to consider motivation features of 

this country. 

Motivation as a part of HRM began to emerge in the USSR. The Soviet government 

propagated that the main thing is to work for the "idea". There were very popular slogans: 

“Five-Year Plan in Three Years!”, “I worked this much, I earned this much” and others. 

Thus, intangible motivation prevailed in USSR. 90s of the last century was a turning point 

in the history of Russia. Everything changed including the HRM system to which everyone 

was accustomed. In contrast to 80s, in 90s people began to change jobs more often. This 

contributed to the fact that now employee and employer became partners. This trend 

continued until the beginning of the XXI century. (Kibanov 2005: 24-26). 

Russian companies often use foreign methods of management in matters of motivation. 

This does not always give a positive result, since it does not take into account cultural 

differences, as well as the mentality of Russian employees. One of the peculiarities of HRM 

in Russia is that motivation depends on state legislative acts as well as local documents of 

the enterprise and any deviation is considered as violation. (Barusheva et al 2014: 29-30). 

This can not accurately assess the complexity of the performed work. So it leads to the fact 

that employees become less interested in work. Russian manager's way of motivation 



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sometimes is based on his own ideas about what is good and what is bad. For example, 

some managers believe that giving an employee a difficult, interesting task is the best way 

to motivate. As a result an employee becomes stressful and unmotivated as not everybody 

is born to be leader. 

The main problem and priority of motivation in Russia is the development of non-material 

motivation methods. One of them is a social package which can include health insurance of 

the employee and his family members, supplementary pension insurance, flexible schedule, 

as well as meals in the office. Employees who work in a company with additional social 

benefits feel care from management. Therefore they treat their work with responsibility. 

One of the main intangible motivational methods is a career growth, both vertical and 

horizontal. In large Russian companies a popular form of motivation is free education and 

internships. Especially this "works" with young professionals. (Kibanov 2015: 88-89). 

According to Barusheva et al (2014), motivation is a part of the employee's loyalty aspect. 

Due to the unstable economic situation in Russia many companies decreased the number of 

staff members. This leads to an increase in a working load but rewards remain unchanged. 

In this situation employees become less motivated and committed to work. Companies are 

looking for solutions of this problem without significant material costs. 

Russian person has gone the long way of becoming a protected person who is remunerated 

for his work. Russian society begins to understand that it is impossible to work 

productively only for money. Human needs are growing, so spiritual needs become just as 

important as material needs. Nowadays companies are gaining experience and trying to 

create working motivational systems. Employers realize that an employee should be given 

something else besides salary and bonuses for successful and effective work. This 

contributes to the psychological comfort of the whole enterprise. (Artamonov & Nikiforova 

2005: 63-64). In conclusion, it should be said that the main feature of Russian motivation 

policy is the process of abandoning harsh influence methods which were used in USSR. 

Modern companies should use both tangible and intangible methods which make possible 

to evaluate personality of the employee. 



28 

 

2.4. Motivation methods. 

Good management system pays attention to its employees and encourages them constantly. 

In the past, the honor rolls were very popular in Russian Federation but now such things 

almost make no effect and require other methods. The HRM science should take into 

account techniques of motivation. In order to guide staff without conflict and problems, it is 

necessary to understand meaning of the motivation and all its basic methods. Methods of 

motivation have their own complexity. Crandall (2003) believes that every manager should 

think how to encourage employees, but without the high cost and at the same time leading 

to high results. The corporation should have a system of incentives, which can be adapted 

to all the changing conditions. It is necessary to define the optimal combination of 

stimulation methods that do not require large expenditures on the part of management.  

Nowadays the purpose of any business is to find and retain talented employees and 

competent specialists. The right motivation system for employees is the opportunity to get 

the full commitment from them and as a result to increase their productivity and efficiency. 

According to Dickmann et al (2008), the formation of effective strategies of motivation 

currently requires a fundamental review of traditionally prevailing labor relations between 

workers and employers in organizations. HRM department can chose distinct motivational 

strategies. For example, organizational-administrative methods which are based on a policy 

guidance. These methods are grounded on the level of motivation, on the subordination of 

the law and its rules, on senior positions and on the capacity of control. Administrative 

techniques cover the organizational planning, rationing, coaching and coordination. In of 

motivation management these methods have an important role. It consists not only of the 

indisputable compliance to the laws and regulations accepted on the state level, but on a 

clear determination of rights and responsibilities of managers and employees. This means 

motivation builds necessary conditions for the company. In addition to the first technique, 

corporation can utilize socio-psychological methods which are used to increase the social 

activity of staff members. These methods affect principally on the conscience of 

employees, their social, aesthetic, religious and other interests. Socio-psychological 

methods carry out social promotion of employment. This class of techniques involves 



29 

 

diverse facilities of methods developed by sociology, psychology and other sciences that 

study a human being. To reach the maximum efficiency it is important to use different 

methods. 

Management practices tend to simultaneously apply different methods and their 

combinations. Larsen et al (2006) suggests that for effective results of motivation, 

management should use all classes of methods. This means that the usage of only one way 

of motivation does not allow mobilizing employee's creative activity to achieve necessary 

objectives.  

The above classification of motivation methods is a classic model. In modern management 

it is possible to utilize other groups of stimulation. Mahapatra (2009) states that motivation 

methods should make an impact on the staff's behavior and meet business requirements. 

Modern methods are distinct, but they can be divided into groups. First group is the 

individual motivation aimed to the narrow circles of employees with the same motives and 

needs. The second group is diagnostic which is utilized to assess a particular employee and 

shows ways for motivation. The third group is organizational which is used to create an 

enabling system in the firm such as the development and implementation of the grading 

system. Motivation may include other sections, defined by the specifics of the company. In 

particular, many of today's businesses use in their offices non-traditional services (e.g. 

shower, tennis table, a cocktail bar, swimming pool), designed to increase the level of 

motivation and to facilitate the removal of nervous tension and physical fatigue of a person.  

According to McMullen et al (2007), motivation brings results when employees feel the 

recognition of their contribution to the work which leads to results that have deserved a 

status. A lot of issues can underline the position of an employee in the eyes of colleagues 

and outsiders, for example, furniture and cabinet size, participation in prestigious 

presentations, representative function in significant negotiations of the company, overseas 

business trips and other things. Positive reinforcement is more productive than a negative 

one. Reinforcements should be urgent, resulting in an immediate and fair response to the 

actions of employees. They begin to realize that their extraordinary achievements are not 



30 

 

only seen but significantly rewarded. Execution of works and unexpected rewards should 

not have too much time in between. The longer the time gap, the smaller the effect. 

However, the rewards of leadership must be implemented eventually, rather than remain in 

the form of pledges. This means that unexpected, unpredictable and irregular promotion 

which motivates employees is better than predictable as they almost become a constant part 

of the wage.  

2.5. Tangible and intangible incentives. 

According to Shields (2007), nowadays in the situation of global market conditions, 

economic methods of management should be inevitably developed. This would increase the 

efficiency and effectiveness of economic incentives that would place every employee in 

such economic conditions that give possibility to combine personal interests with the 

working objectives. However, the focus on economic stimulation techniques often leads to 

a decrease in attention to the social and psychological aspects of motivation that determines 

the internal motivation of employees.   

Incentives are grouped into different following types. Economic incentives which are 

salaries in all its varieties, including contract, bonuses, benefits, insurance, interest-free 

loans. This method is popular among Russian employees (Kibanov 2015). The success of 

their impact depends on how an employee understands principles of the HRM system and 

recognizes its fairness. Stimulation by objectives management (Larsen et al 2006) is a 

system is widely used in Europe and provides the setting for individual or group circuit 

purposes, contributing to the solution of main objectives of the enterprise (the achievement 

of certain quantitative or qualitative targets, increasing employee training). The process of 

reaching each goal automatically means higher level of the salary or other form of 

promotion.  

Enrichment of labor is the type of incentive which mainly refers to non-economic methods. 

It provides people with meaningful future work, considerable autonomy in determining the 

mode of work and the presence of resources. Sometimes management adds the growth of 

wages and new social status for this technique. (Kibanov 2015). Ulrich (1996) presumes 



31 

 

system of participation as a stimulation type. It currently exists in diverse forms, for 

example, from the wide involvement of employees in decision-making process and 

management (Russia) to the participation in the ownership by buying shares of their own 

companies on favorable terms (Europe). An important type of incentive is conditions for 

the self-realization of employee’s potentials. Self-realization covers the life success 

strategies leading to the career advancement and conquest of "peaks". In this case 

professional work takes central place in a life of an employee as it forms his skills and 

abilities, career and personal growth and, as a consequence, a person achieves a certain 

social status. 

Communication is an incentive which helps to develop active management process. The 

level of efficiency of interpersonal communication depends on two main socially 

significant functions of interaction and influence. McMullen et al (2007) figures out that 

these functions rely on basic conditions such as types of communicative personalities, 

perception sense and valuation information and deliberate action and interaction with each 

other. To fulfill the above conditions in order to improve interpersonal communication, it is 

necessary to adhere to the principles of compatibility of staff members as communicative 

personalities, adequate perception of the semantic and evaluative information as well as 

exposure through persuasion.  

The prospect of career growth reflects on the working process of employees. Wood et al 

(2004) states that research of Elton Mayo (1927) in the Hawthorne showed that 

productivity of psychological factors causes a significant effect on the employee’s 

motivation. Eventually, there were distinct psychological theories of motivational concepts 

which were able to define the determining factors and the structure of the motivational 

process. As a result, the so-called policy of "carrot and stick" was replaced by the 

elaboration of more complex systems to stimulate employee’s motivation to work, based on 

the results of this theoretical study. For each company it is very important that employees 

would not have evolved by "stick" but independently strive to become first-class 

professionals. In this case employee makes considerable efforts to carry out his work's 



32 

 

responsibilities and tries to achieve the career growth in the company. As a result, the 

organization receives a qualitative work and excellent results. 

Relationships in the company contribute to the free communication of employees of various 

departments to strengthen "horizontal relations" (field for the generation of new ideas). 

According to Silber et al (2010), the company's management at all levels (top-management, 

middle and lower levels) should support those who make proposals and contribute to the 

implementation of the most interesting and important ideas. Well-organized process of 

evaluation, selection, implementation and performance monitoring can encourage the 

initiators. This principle works and leads to the result if staff wants to participate in useful 

and the creative process of decision making. The HR department should be able to find 

problems in workflows, analyze and develop solutions, plan and implement the necessary 

changes. According to Kibanov (2015), moral and psychological climate in the team is an 

incentive which is determined by the moral values accepted by the organization. It defines 

the system of team member’s relations to each other, to work, to the surrounding events and 

the organization as a whole on the basis of individual, personal values and attitudes.  

According to Bruce (2003), studies have shown the great impact on the willingness of 

employees to improve their skills. It can be proved by several factors. First factor is a 

particular benefit of work training and the expected results matching. Employees show 

great interests in training if understand that new knowledge and skills would help them do 

the job. The second factor is the organizational culture of the firm which promotes usage of 

the obtained knowledge during the training in a workplace. Encouraged employees want to 

learn and apply new skills in the work. This would improve corporate culture which 

contributes to the immediate application of newly acquired knowledge. The third factor is 

the support of the leadership. It significantly increases the psychological, financial, 

organizational motivation and the management support. Companies where employees 

desire to learn new things can implement modern ways of doing business and work 

effectively than their competitors. Irvine (2009) believes that emotional rise of staff 

members is the best intangible motivational method in the organization for quality results. 

Under current conditions, it is often necessary to save money and reduce costs. Intangible 



33 

 

motivational system in the company is possible and important as it increases the loyalty of 

employees and strengthens the team spirit. At the same time, it can be inexpensive and 

quickly pays off as employees start to enjoy their work. 

So the main diversity of motivation from the incentive is that motivation requires an 

internal motive for which the staff member will be seeking to work well. Stimulating makes 

an effect on the employee from outside. In other words, if an employee wants to improve 

the efficiency of his work it is a motivation, but if it is stimulation this means that 

management makes him to do it. 

To conclude, the main recommendations to improve motivational process and prevent 

demotivation are: 

 providing of maximum realistic information in the selection process 

 formation of realistic expectations 

 setting realistic goals and targets 

 the division of complex goals into short-term steps 

 the active utilization of additional employee's skills 

 attention to the ideas and staff's proposals 

 the formation of the organizational culture 

 the development of the employees sense of belonging to the enterprise 

 promotion and evaluation of employee's achievements  

 career management system. 

  



34 

 

3. METHODOLOGY PART. 

Thesis includes qualitative methodology which is based on the analysis of appropriate 

questions related to the main theme and the research question. In the process of analyzing, 

the respective literature has been revealed. Utilized literature sources have a great 

importance in the field of Human Resource Management. The detailed analysis is based on 

the corresponding theoretical aspects that are related to motivation and, at the same time, 

may affect it. In order to answer the main research question, the thesis presents suitable 

methods that reflect the essence of the study. Firstly, it shows the analysis of the problem 

and, secondly, it presents methods of data collection, sampling and interviews. This is done 

in order to include the logic component into the direct data collection process. Thus, this 

chapter shows the quality of conducted research. 

3.1. Research philosophy and approach.  

While selecting the research philosophy, researchers depend on the determining 

development of knowledge. The literature is dominated by two perspectives of the research 

process: positivism and interpretivism. They are different but not mutually exclusive and 

both play important roles in the management field. In the positivism area public world 

exists externally and its properties to be measured by objective yardstick. In this case, the 

role of an objective analyst is assumed. According to Gill et al (1997), the focus of highly 

structured methodology promotes good repeatability, monitoring and quantifiable, which 

themselves lead to an analysis. In terms of specific methodology, positivism rejects to 

speculations and demands that every scientific position can be verified empirically. In other 

words, science is based on facts, and the fact is something that can be directly tested and 

can be seen in practice. In an effort to describe the accuracy of facts and reliability 

predictions, positive science attaches great importance to the measurement. This research 

philosophy suggests that the researcher is independent and does not affect the subject of 

investigation and, at the same time, is not under the influence of the research subject. 

Littlejohn (2009) states that interpretivism includes biased reality of the world that does not 

exist externally. They are socially constructed and people are investing the meaning in 



35 

 

them. An interpretivism study examines and describes the life experiences of individuals 

with respect to certain social phenomenon. Situations in business are not only difficult but 

unique. They are derived from the totality of the circumstances and individual participants. 

This immediately raises the question of generalization of the study, which aims to capture 

the full complexity of social situations. However, the proponent of interpretivism says that 

the generalization is not so important. Thus, positivism is closer to common sense than to 

science. However, in pursuit of the methodological rigor, positivists approach is a narrow 

scope of science, so phenomenology can be attributed to the scientific methodology. 

This thesis refers to the interpretivism approach. According to Pizam and Mansfeld (2009), 

this model analyzes person’s opinion and to research their problems. This approach focuses 

on the unique angles of the research. Theory plays a major role in the characteristics of 

empirical phenomena. The aim of the thesis is to describe motivation of the employee and 

to identify ways for its development. This approach ensures the full picture of the test 

subject. 

3.2. Research design. 

The research design of the study determines the structure of the research question. Thus, it 

presents the aims and objectives arising from the issue of research, as well as sources for 

data collection and reveals the essence of the analysis of the question (Saunders et al: 

2012). One of the problems of the research methodology can be a choice between 

qualitative and quantitative analysis, so between non-numerical and numerical data. The 

first type of analysis suggests non-numerical data obtained by techniques such as 

interviews. The second type of analysis is linked to the collection and analysis of numerical 

data obtained from the graphs and statistical summaries. 

This thesis presents a qualitative method. The main purpose of the work is to examine the 

results obtained through interviews. In case of motivation, which is a reflection of the 

employee's immediate work process, it is difficult to use a quantitative method, because it 

does not reveal the essence of the problem. This kind of analysis makes easier to formulate 

questions that make up the interviewing process. Besides, the thesis does not only explain 



36 

 

the existing approaches related to the main theme of the study but offers new ideas for the 

development of motivation. Open-ended questions were utilized in the interview process in 

order to be able to explore the diametrically opposite viewpoints associated primarily to the 

research question. 

The main technique of this study is a research method, but at the same time, some aspects 

of the work reflect the essence of such method as a comparative approach. In this case, it 

allows to explore the motivation and connected to it themes of pertaining of staff 

management. 

According to Saunders et al: (2012), this thesis represents the research strategy which is a 

set-up of steps to achieve the main target and namely to formulate the answer to the main 

question of the study. Based on the fact that the main issue of research is the study of 

motivation of employees, the research strategy explores international company based in 

Russian Federation. The study involves the examination of a large context and related 

processes. 

This thesis uses case studies to understand whether the results can be obtained through 

them. In each such case employee can present to the interviewer similar and sometimes 

identical answers and, at the same time, completely different ones. Such strategy allows 

analyzing each response separately using a comparative approach. Thus, it means that 

results can be represented as general findings. 

Finally, the last method of research is the opposition of cross-sectional and longitudinal 

studies. Both theories use the supervisory approach. This approach assumes that during the 

study the investigator does not affect the environment, but only records the information he 

needs. Cross-sectional research is the study of the problem in a specific point in time, 

whereas a longitudinal study extends over time. Thus, the longitudinal method carries out 

several studies of the same problems in a certain time range. This thesis uses the 

longitudinal method in order to study the process of motivation and to identify 

improvements and changes related to the main research question. 



37 

 

3.3. Data collection and sample. 

The underlying data for the study were obtained through interviews with different groups of 

employees. Secondary data were analyzed in order to have consistent study results. The 

major step was work with an international Russian company. Based on the aspects of the 

topic and age of the firm, it was decided to analyze the attitude towards motivation of the 

employees who work in this company for more than 4 years.  

The first contact with the Russian company was done by sending a message by e-mail. 

After, it was contacted by telephone call. The researcher revealed the essence of the study, 

formulated goals and demonstrated interest in interviewing employees. Head of HR 

department got a questionnaire (Appendix 1 and 2), which was utilized during the 

interview, and the company gave a positive response to work with their employees. Then 

the schedule for interviews was approved. The usage of Skype and e-mail as a means of 

negotiation was the most convenient way. Each interview lasted no more than 40 minutes. 

The author conducted 6 face-to-face interviews and also received 12 written responses from 

employees who were sailing at that time. Based on the rules and regulations of the 

interview process, interviewer asked respondents for the permission to record their answers 

in compliance with the anonymity and confidentiality. At the same time, head of HR 

department, from behalf of the CEO, asked the author of the thesis to express the name of 

the company anonymously. Company has employees from different countries so interviews 

were conducted in Russian and English languages. Due to the fact that the interviewer’s 

native language is Russian, then there might be a form of bias in the results of European 

interviews. 

Thus, the company, which is studied in the thesis, is briefly described hereinafter. 

3.4. Background of the company. 

The company was created in 1997 by Swiss and Russian shareholders. It is registered in 

Russia and technically located in Saint-Petersburg, but its main office located in Los-

Angeles, USA. It is a first branch of a world known brand. It is a stable, dynamic company 



38 

 

created mainly for English-speaking couples beyond 60 years old strongly interested in 

traveling abroad.  

The highest leadership board is the CEO. The company refers to the transport sector. The 

focuses of the company are river cruises on the high-end ships from Saint-Petersburg to 

Moscow and back with five stops between them. Vessels were made in the Scandinavian 

style in Germany. The total number of vessels in Russia is 5 which can include 196 

passengers and 100 cabin crew members each. Cabin crew is divided into several 

departments: staff that is responsible for the ship (only Russians due to law regulations) and 

staff that is responsible for tourists (Germans, Austrians, Portuguese, Bulgarians, Filipinos, 

Russians, Romanians). So there are two main leaderships on board: Captain and the Hotel 

Manager.  

The company remains the number one on the river and sea cruises due to excellent service, 

route and the absolute quality of the tourist services. Its strategy initially lies at the basis of 

the dominant position in the European and Chinese markets of river, sea and ocean cruises 

through investments into new vessels which are better adapted to the highest category of 

hotel level (for example 4-5 stars), and through the consolidation of many smaller 

operators. The main target in the field of quality is customer satisfaction by ensuring the 

high quality of service. It is the line №1 in river cruises estimated by tour agents.  

This company establishes the following mission, policies, as well as the following goals 

which are reflected in Table 2. 

Table 2. Policy of the researched company. 

Mission: Explore the world in comfort. 

Goals: Policy: 

The security of ships operation, environment 

protection and safe working conditions. 

Implementation of national rules and 

regulations aimed to ensure the security on 

inland waterways. 

Continuous skills improvement of coastal, 

marine and administrative employees in the 

Ensuring of the safety of navigation on 

inland waterways, preventing possible 



39 

 

management of safety. accidents, as well as the preservation of 

human life and health. 

Preparedness for emergencies related to the 

ships operation. 

The absolute ban on the usage of alcoholic 

beverages and all kinds of drugs. 

The implementation of main objectives is guaranteed by constant attention to the training 

and development of all types of employees (seafarers, hotel and office staff) and avoiding 

conflicts of interest. During a certain period, the company carried out the strategy of 

movement marketing, primarily through the summer, and has developed quite a substantial 

database of both existing and potential customers. Swiss corporation’s growth related to the 

new routes in Eastern and Southern Asia, Europe, Egypt and Russia. At the same time it is 

upgrading its ships, improves the ability of the existing capacities and, thus, increases its 

profits. The leadership studies synergistic opportunities that match the company's core 

competencies.  

The usage of the USA direct marketing system gives opportunity to reduce marketing costs 

and to find more families suitable as clients. The marketing world-class database allows 

investing in the creation of a new database that contains the data of all customers, including 

contact history and email addresses. Automatic report allows company's management to see 

what is happening on a daily basis and to invest into the highest segments of investments. 

Table 3. Summary of company’s branch in Russia.  

Main features  Company 

Sector Transport sector, river cruisers 

Legal entity  Limited liability company 

Main financial indicator  €350 million sales in 2018 

Number of employees 550 

Main operations type  Services 

Target country  United States of America, United Kingdom, Canada, Australia, 

New Zealand  

Sector of target country  Tourism 

3.5. Type of an interview. 

In order to reveal the essence of the research topic, a case study is the most convenient 

option. This method able to analyze problems that intersects with the main research 



40 

 

question. That is why the interview is a need of this thesis. The purpose of the interview 

with open questions is to analyze complex answers of sophisticated questions. 

According to Saunders et al: (2012), there are several types of interviews, the choice of 

which occurs depending on the task. These interviews are structured interviews, semi-

structured interviews, unstructured and in-depth interviews. The first type of interview is 

held at certain designated time and involves questionnaires with the approved standard 

similar issues. The second and third types of interviews are somewhat distinct from the 

first. Firstly, questions of the second type are not standard, and, secondly, respondents may 

have diverse questions and topics. This means that the interviewer can adjust the interview 

process. The third type is not formal as previous and covers the study of a wide range of 

questions. Interviewee can freely express his opinion on the delivered topic. 

Finally, the most preferred mode of interview for this thesis is a structured interview. 

During this interview, the interviewer is most attentive to the respondent. At the same time, 

it is comfortable for the respondent when there is a list of questions and topics. Thus, 

structured interviews have the opportunity to obtain the necessary data for this study. 

Russian branch’s leadership has agreed with an author about meetings. Interviewees were 

acquainted with the topic of the study and possible interview themes in order to obtain 

productive results. The Head of HRM department sent out questionnaires to maritime 

workers as well. Russian and English languages were used. Answers were received via e-

mail. The survey involved 12 people who work on board as ship and hotel crew. Answers, 

received from the maritime workers, gave an author more precise information on the 

research topic. This helped to grasp clearly the HRM system as well as its drawbacks. 

Questionnaires made possible to test the theoretical approaches in practice from utilized 

literary sources. 

The interview was divided into several parts: introduction, company’s overview, career 

advancement, motivation system, incentives, and job satisfaction. The purpose was to 

obtain data for the research topic. This helps to gain information about company's 

implemented methods as well as to identify their shortcomings. Answers of respondents 



41 

 

were closely related to their experience in the relevant field, the level of education, their 

own history at the company and their current job position.  

3.6. Reliability and validity.  

Such canons of study as reliability and validity help to evaluate the thesis in terms of 

quality. Saunders et al: (2012) believes that reliability displays the results of analytical 

procedures which may be performed for other studies and respectively for other researcher.  

Robson (2002:176) states that there several reliability errors. The first type of threat takes 

place when the respondent cannot answer the question, leaves the question or keeps 

neutrality. There are situations when the respondent is told beforehand how to answer. So 

he is under someone's influence and pressure, and this is the second kind of threat which 

can cause serious damage to the study. The third type depends on the interviewer, namely, 

on possible incorrect or poorly formulated questions. The fourth type is subjectivity 

associated with the interviewer, his own interpretations of answers. 

The validity means exactly what is the data. Saunders et al: (2012) proves an idea, that the 

qualitative research is related to the validity of the right choice of data collection methods, 

analysis and other research processes. Thus, the methodology must include the search 

process of results and findings in order to be valid. 

Qualitative research depends on the reliability and validity. In order to meet all necessary 

criteria, thesis should utilize a sufficient number of test methods. Therefore, it is possible 

that another qualitative researcher may adjust the analysis process. Such methods monitor 

the checking process of the study, namely, when it is necessary to change something or to 

stop the work. This check ensures the validity and reliability of the thesis. (Newman et al 

1998). 

Interview questions have been formulated in advance in order to ensure that they comply 

with the study and research questions, so to confirm that this thesis is reliable and valid. To 

make the process of interview more comfortable for respondents, the study objectives were 

explained to them. The list of issues was presented to respondents a few days before the 



42 

 

interview. This contributed the fact that they had time to think and to develop their answers. 

Selection of respondents depended on fact that their job responsibilities are associated with 

a large amount of responsibility for a river vessel. Such choice meets the reliability of 

research principles. 

The validity of the thesis is linked with several methods, for example, a combination of 

data through various means of evidence. In this case, the theoretical data derived from the 

HRM literature were merged with data from interviews and secondary data from Internet 

web-sites. 

In conclusion it should be said that due to resource limits the data for the current study 

cannot be collected until its saturation. Moreover, the author accepts the fact that collected 

results might not present he full picture of the research topic and that it might need further 

examination.   



43 

 

4. RESULTS AND ANALYSIS. 

This chapter presents data obtained during interviews and from write questionnaires. In 

accordance with the theme and research question, the section is divided into several 

paragraphs. These parts reveal the essence of problems raised in the study, such as concepts 

of motivation, compensation, rewards and employee evaluation system. Staff’s motivation 

is inextricably linked to these questions. Interviews are presented in a narrative story form 

with some quotes of interviewees. The questionnaire is available in Appendix 1 and 2. 

During a structured interview, interviewer and interviewee affected diverse angles of raised 

questions. Summary tables of basic data are presented briefly at the end of the each 

paragraph. 

The first part of the questionnaire determines employees, their ideas and opinions about the 

company as well as their perspective on what motivates them. The second part reveals 

information related to motivation, satisfaction with the job, preferred incentives and 

connected topics. Here problems of motivation of different groups of employees were 

discussed. Both two parts are presented into the following study. The final score of this 

HRM method shows how an employee is interested in his work or reveals the opposite 

view. 

4.1. Attitude towards motivation system. 

The system of HR motivation allows company to achieve significant goals in the process of 

HRM. The main goal of such system is the opportunity to improve the efficiency and 

effectiveness of employees who will be motivated to reach firm's goals. (Artamonov & 

Nikiforova 2005:3). One of the vessel's captains argues that such system should be 

developed in accordance with the features of each employee group. The Head of the 

Engineer Department, who is one of the highest leadership at the company, agrees with this 

opinion. However, HR department still does not have a proper system of motivation and so 

most of employees do not fully understand the meaning of such a term.  



44 

 

Our system of HRM includes not only material bonuses. We encourage our 

employees to get new qualifications, so that they can grow in their 

professional field. Some employees may be interchanged with each other.  

(Interviewee 1). 

This quote belongs to the HR Manager. Employees depend on the well-designed 

management system and can give the commercial enterprise the ability to achieve business 

goals, to hold a position in the market and to remain competitive in the long term period. 

The main purpose of the system of motivation is the opportunity to study the information 

database, which contains of full information of the qualitative and quantitative evaluation 

of work of all employees. It allows to take correct management decisions in a right time.  

Shields (2007) suspects that the result of motivation system can reduce an employee 

turnover and increase their engagement in the performance of duties, as well as proposing 

changes in the organization of their work. From the author’s point of view, this result 

would be reflected positively on the image of the company. 

Due to the company’s size, the members of the senior crew do not change 

over the years. The main employee turnover depends on younger crew 

composition. From year to year there are no changes in chief positions. 

(Interviewee 3). 

Diamond et al (2010) suggests that motivation allows an employee to work with 

enthusiasm and to compete with counterparts. The company's management should 

encourage their ship crew not only by material goods; but should listen to their opinions 

and suggestions, as well as to develop the spirit of competition. Such measures can make a 

positive effect on the work of junior staff. In this case the ship can get an established staff 

team. 

One of the interviewee was a Sales Manager Assistant. His motivation is directly linked 

with the professional activity. The profit of the company depends on the work process of 



45 

 

Sales department, especially in today's market conditions. In the past few years Russian 

Federation faced a reduction in tours sales, so the presence of passengers on board is 

affected by well structured job of a Sales Manager. 

Incentives include only the amount of premiums, which depend on the 

performance of personal plan and the overall success of the department. 

This involves the number and quality of transactions. The company is 

medium-sized so there are few opportunities for the career growth. In order 

to try to grow to the Head of the Department, the previous should resign. 

That is why most of employees feel dissatisfaction of professional ambitions. 

(Interviewee 2). 

This statement is confirmed by the fact that non-fulfillment of the department plan reduces 

the premium part of the salary, influences the cut in sales and a decrease in profits. While 

the execution (or excess) of plan increases the amount of remuneration and ensures the 

maximum bonus for each employee. The right and detailed system of motivation affects the 

work results and company's profits.  

Currently the company has five ships. There was a time when only 2 of 

them could go on cruise. Thus, the company had five cabin crews, which 

should have a job, but they cannot operate their official duties constantly. 

Fortunately, there was a surprising increase in a number of passengers on 

board over 2 last years. We do hope that the situation would be more 

pleasant during the next navigation period. Passengers make profit. 

(Interviewee 1). 

Numerous and sometimes adverse internal and external factors of the environment 

influence the results of river transport. Today there is an important issue of renovation the 

obsolete fleet, because it affects the profitability of cruisers and makes it possible to 

increase the production and financial performance indicators of river transport companies. 

The complicated and sometimes impressive size of the organizational structure, which is a 



46 

 

common characteristic of river transport enterprises, often leads to a lack of horizontal 

interaction of employees, lack of authority’s clarity and responsibility. 

Ship-owner challenges remain stable, despite of the large number of problems and risks 

associated with the operation of river transport. The way out is formed by a company's 

strategy, which is able to secure the competitiveness and survival, normal functioning and 

development of river transport in a long-term period.  

Company makes demands on the high qualification of crew members but only a senior 

crew has it. Junior crew has basic professional education, but the proportion of such 

workers is significantly small. To obtain certificates of a sailor it is enough to have a 

secondary education, which can be obtained at school or college. Thus, the biggest part of 

junior crew does not focus on higher education over ages. This is depicted in Figure 1. 

 

Figure 1. Distribution of educational level. 

An important role in this case is played by the economic condition of the 

river and sea transport companies. The senior crew rarely changes and 

juniors are not motivated to get higher qualification.  

(Interviewee 4). 

17% 

20% 

20% 

43% 

Distribution of eductional level 

Higher education 

(Master's) 

Higher education 

(Bachelor's) 

Secondary 

professional 

education 



47 

 

In some cases, when employees get a job and receive necessary documents, they settle in 

another firm with higher wages. The level of staff retirement requires actions in terms of 

employee replenishment. The level of preparedness of junior crew is rather high, because 

the ship's staff regularly undergoes a corresponding re-training in special educational 

institutions to obtain the relevant certificates. Modern vessels are equipped with upgraded 

equipment and employees should be able to use it. 

The discrepancy between the objective increases of today’s HRM practices 

in river transport companies confirms the relevance and feasibility of this 

situation’s analysis. It is necessary to identify effective ways to resolve 

problems in this area. It should be noted that the current problems are 

related to inappropriate use of available skilled seafarers, which reduces the 

effectiveness of command staff. 

(Interviewee 5). 

The level of the staff turnover as a traditional indicator of the effectiveness of the HR 

department is held in the range of 7-10%, while the company does not carry out a lot of 

motivational events and the compensation package does not satisfy different categories of 

employees.  

In Russia, motivation has an "intuitive" nature, so there is no proper 

theoretical definition. Most companies work only with material motivation. 

Usually non-material motivation presented in a limited form or does not 

exist at all. 

(Interviewee 12). 

This quote belongs to Head of HR department who concludes that the premium part is the 

main factor of the existing motivation system. 

Table 4. Summary of the main findings. 

Main findings. 



48 

 

Main motives for motivation   Career growth. 

 Professional growth. 

 Satisfaction of professional ambitions. 

Main employee’s problems   Lack of positions due to economic situation. 

 Ambiguous bonus system. 

 Absence of non-material incentives. 

Main focus of the leadership  Sales activities. 

 Profit increase. 

Increase in number of foreign passengers. 

 Presence of the customary senior crew. 

Lessons learned   Well-designed and structured system of 

motivation. 

 Desire to listen to employees. 

 

4.2. Compensation system. 

According to McMullen et al (2007), it is necessary for managers to understand ways of the 

reward system. Managers of he researched company consider their compensation systems 

as “dead”. Leadership is not sure that such a system can lead to a positive effect. The author 

of the thesis believes that the structured and controlled compensation helps to gain 

necessary business results but do not causes the fulfillment of official duties.  

Nowadays, main problems of motivation system in Russian Federation are undeveloped 

methods of non-material motivation. Employees who work on water are provided with 

medical insurance, food, uniforms and accommodation on the ship automatically. 

Therefore, the staff does not consider these as compensation. McMullen et al (2007) states 

that there is no one and the best compensation model for everybody. At the same time, 

company can use an existing system but it has to be adopted and supported with a corporate 

culture.  

In the formation of the compensation package, HRM department should take 

into account the financial position of the company, as well as the 



49 

 

characteristics and needs of the staff. For the river transport company, it is 

recommended to create a comprehensive compensation package. 

(Interviewee 6). 

Based on the type of company, the analysis concludes that the development of the 

compensation package should serve several objectives. It should improve company's image 

in the labor market, develop a corporate culture and optimize costs that are spent on 

employees. 

In case of seafarers, it is better to provide the compensation package at the 

expiration of the probationary period. The information related to the 

compensation package can be communicated to candidates during the 

interviews in order to enhance the attractiveness of the firm. 

(Interviewee 7). 

This quote is the opinion of the Chief Housekeeper from one of the ships. According to 

Shields (2007), it is necessary to implement and to manage compensations to maintain a 

favorable climate in the company and to prevent so-called "empty promises", which can be 

negatively perceived by the team. It is advisable to introduce compensation package that 

would be of interest to each group of staff. Each employee will be able to receive such 

compensation which is preferable to him. Therefore, it is necessary to examine the 

relevance of proposed package by ascertain needs of company's staff. 

We are ready to help our employees within their working tasks. Everything 

should be balanced so we want our staff to be able to work without heads of 

their departments. In this case the responsibility issue will be fully 

understandable. 

(Interviewee 8). 

Company developed the mentoring system as a part of compensation package, where at any 

time of day or night a junior employee can ask for help from his supervisor. He necessarily 



50 

 

gives an employee the required advice related to the situation. This kind of dialogue helps 

to cope with possible risks, prevents accidents and increases the safety management system. 

Mentors can be both present employees and employees who have retired. If necessary, 

mentors can be called to work and asked to sort out prevailing complicated situation. The 

experience of such employees is priceless, so the leadership devotes time to this issue. It is 

unique that mentoring is presented as a part of compensation policy. So there are still some 

problems which are not solved by management.   

The process of training takes place within the boundaries of a certain time 

as some mentors continuously work on vessels. This type of training is 

intergraded in everyday vessel’s operation during cruises.  

(Interviewee 4). 

In accordance with employees who have worked in the company since its inception, 

mentoring is an effective way to transfer knowledge to junior crew. Today, this process is 

done for a "check mark", so mentors are afraid of losing influence in this matter. At the 

same time, newcomers do not fully understand the reason of mentoring to be included into 

compensation package. Such an attitude was evolved due to lack of time and large list of 

duties of the highest crew. On this basis, it is virtually impossible to allocate few minutes to 

train juniors, despite the fact that the size of the crews of all five river ships is not so big. In 

this case the biggest problem is the volumetric hierarchy of the ship. This means that the 

company's administration should reconsider some of the duties of employees who are 

assigned as mentors. For example, filling a large number of documents can be divided 

among other employees, capable to perform this task. In the meantime, mentors would be 

able to devote themselves to train junior crew. 

According to Shields (2007), there should be balance between material ad non-material 

rewards which managers can use in their work to reward employees. Satisfaction of social, 

development and financial rewards can attract and motivate people. Scientist believes that a 

proper reward system should be valuable, fair, legal, affordable and effective for employee 

and employer. 



51 

 

Table 5. Summary of the main findings. 

Main findings. 

Advantages of the compensation  For company: 

 Positive company’s image. 

 Well-designed corporate structure. 

 Achievement of the desired result. 

 Administrative efficiency and simplicity. 

 Control and coordination of labor costs. 

 Maintaining of staff loyalty. 

For employee: 

 Auspicious working climate. 

 Existence of a sense of confidence and 

security. 

 Reward due to success. 

 Certificate of employee’s recognition by the 

company. 

Disadvantages of the compensation  For company: 

 Deterioration of the economic viability of the 

enterprise and its competitiveness. 

 Current activities of employees are consistent 

to the development objectives of the firm. 

For employee: 

 Subjectivity of the leadership in determining 

remuneration levels. 

Lessons learned   Attraction of a new staff. 

 Conservation with present staff. 

 Optimization of HRM costs. 

 Promotion of professional achievements of the 

staff. 

4.3. Evaluation system. 

Evaluation system is one of the main parts in HRM. It is focused on the decision-making 

process related to the changes of the compensation package with concrete material 

modifications for workers. At the same time, this system depends on decisions related to 

the development of the company (correspondence of HR to the organization's plans). Such 

system is connected with the assessment of the current activities of the entire organization 

and the identification of operational problems. The result of the procedure can be 



52 

 

subjective. This means that it bears the imprint of the person who certifies; otherwise it 

wouldn't be an evaluation, but simply the measurement parameters. (McMullen et al 2007: 

24-25).  

The current evaluation system of the crew does not meet certain 

requirements, so it should be modern. Such system should take into account 

and reflect a number of factors such as strategic goals of the company, state 

of the environment, organizational culture and structure and characteristics 

of labor force. 

(Interviewee 10). 

This quote of Guest Services Manager confirms the fact that the introduction of an adequate 

evaluation system would result positive outcomes. The introduction of a multi-level 

evaluation system, which is designed to achieve a number of objectives, can evaluate the 

activities of the seafarers, as well as the office staff. This can determine the potential of 

employees and can give opportunity to make right management decisions concerning the 

administration and seafarers. One of the main objectives of this process is the ability to 

identify potential employee's capabilities. Based on the necessity, an employee can be sent 

to additional training, or he can be encouraged and motivated. 

According to Bruce (2003), one of the main errors of such system can occur in choosing its 

targets. If the system is carried out only in order to reduce employees or to get rid of 

unwanted individual staff, system advantages are reduced to nothing. At the same time, the 

mistake can be the disuse of evaluation results in further HRM work (training, job rotation, 

and work with the employee reserve). The evaluation system should not be carried out as a 

final event in the certification procedure. The results of this process can and should be used 

to improve the quality of such resource as staff.  

It is worth to recall that the assessment should not be carried out for the sake of the 

procedure. It can be effective and objective only if it is devoid of signs of formalities, and 

the process outcome would result specific activities. The most important thing is that real 



53 

 

actions should be done in accordance with the objectives that were announced before the 

start of the certification. 

The selection of evaluation methods for each organization is a unique 

challenge, which can be only decided by the leadership. Our company has a 

stable hierarchical structure, so traditional methods can be effectively used. 

When choosing an evaluation system, it is necessary to pay attention to its 

consistency with other management procedures such as compensation, 

career planning and training, in order to achieve synergies and to avoid 

conflicts and contradictions. 

(Interviewee 11). 

Due to certain circumstances, the current system is carried out only in the case of junior 

staff. It is recommended to enter a multi-level evaluation system, which would be 

distributed to office staff. When the company ignores necessary aspects of the evaluation 

system (objectivity of the evaluation or ensuring the confidentiality of the results, and 

unable to perform them) this procedure can bring a negative result for the company in the 

form of unnecessary conflicts and time expenditure. 

In our company, management periodically evaluates employees in order to 

check their effectiveness. Regular evaluation of the staff makes a positive 

impact on the motivation of employees, their professional development and 

growth. Meanwhile, the results show management the full picture 

concerning employees. 

(Interviewee 3). 

Thus, with a clear system of employee evaluation, the head of the organization is able to 

take into account the recommendations of evaluation committees and to encourage staff in 

the established order. 



54 

 

The evaluation system is the basis for position transfers, promotions, awards, wage 

determination, as well as a demotion and dismissal. Company aims to improve the quality 

of employees and the level of their workload. Such system measures the amount of increase 

in productivity and employee's interest in the results of their work and the entire 

organization. Based on the evaluation results, HRM department optimally uses economic 

incentives and social guarantees, and creates conditions for a more dynamic and 

comprehensive development of the employee’s motivation. 

Such system is relevant for the correction of the activities and behavior of 

employees, as well as to identify areas of work process which needs a high 

control. 

(Interviewee 5). 

Machado et al (2014) suggests that the efficiency of the evaluation system depends on a 

high degree of firm's technological procedures and the ownership level of its experts who 

carry out the procedure. At the same time, the great attention is paid to the leadership 

installations related to employees, to the level of administrative competence and principles 

of the staff management policy. 

With the evaluation system the company can introduce new motivational approaches which 

are utilized to work with the staff and improve communications within a firm. 

Evaluation system is one of the most effective ways to create and maintain a 

talent employee reserve. It allows our company to identify the most 

promising staff for their subsequent transfer to higher positions. In 

particular, the employee reserve allows firm to have enough experienced 

employees every navigation season who know the specifics of ship 

operations. Thus, HR department can minimize the process of hiring using 

external sources. 

(Interviewee 6). 



55 

 

For many today's companies, this system has become one of the basic elements of a 

corporate culture. It is necessary to clearly define the frequency of the evaluation activities. 

Firstly, it is required to ensure that measures are effective. Secondly, a clear allocation will 

not overload employee’s work. 

Our company conducts the staff certification. The audit reports include 

relevant reports and ratings. The leadership evaluates the employee's 

performance in terms of company's standards.  

(Interviewee 4). 

According to Shields (2007), it can be said that goals of the evaluation system may be 

divided into three groups. The first group is the administrative goals which include the 

increase or decrease in career, transfer from one work position to another and the 

termination of the employment contract. The second group is informational goals. 

Employees are informed of their performance and quality of the work. The third group is 

motivational goals which include the rewards in the form of bonuses, acknowledgment and 

finding reserves for performance reasons. At the same time, this group affects motivation of 

employees and their interest in the results of their activities and the company as a whole. 

Table 6. Summary of the main findings. 

Main findings. 

Main motives of the evaluation system   Allows further study of staff, improves their 

selection, placement and use. 

 The possibility to form solutions based on the 

evaluation. 

 Stimulates the development of employee’s 

creativity and their initiative. 

Main objectives  For company: 

 Obtains information for management decisions. 

 Obtains information for the ongoing work with 

employees.  

 Affects the level of employee's commitment and 

loyalty to the company and their involvement in 

the overall strategy.  



56 

 

 Determination of the right wages system. 

For employees: 

 Identifies gaps in the work of the staff for their 

further removal. 

 An opportunity to prove the employer that the 

employee is a competent specialist, possessing 

necessary skills and a high level of 

professionalism. 

 To get promotion through the hierarchy. 

Lessons learned   Formation and change of the system of staff 

motivation and stimulation. 

 Allows the usage of accumulated material in 

subsequent evaluation processes. 

 Improves the culture of management and 

democratic principles of the HRM policy. 

 Ensures the social protection of the employee in 

market conditions and the increased living costs 

by wage differentiation. 

 Properly carried out evaluation system has a 

positive effect on all aspects of the activities of 

managers and specialists.  

 The employee behavior change in connection 

with the new objectives of the enterprise. 

As a result of evaluation and motivation system as well as the compensation package, the 

author obtained possible results for the company which may include: 

 Growth in labor productivity. 

 Increase in the proportion of employees with higher education (it is expected that 

40% of employees must undergo higher education diploma). 

 Discipline and responsibility strength. 

 Introduction of employees’ proposals. The material interest of staff increases the 

possibility to benefit the company. New and unique ideas would lead to additional 

bonuses due to the performance of the fruitful work. 

Each of the suggested methods of motivation in this chapter is fairly easy to implement in a 

daily management practice. Implementation of these methods do not require serious means, 

however may lead to increased job satisfaction among employees in the company.  



57 

 

5. CONCLUSION. 

This chapter represents key findings of the main topic based on the literature review 

(theory) and interview (practice) parts of the study. The research question and objectives 

are examined. Finally, last part of the chapter considers study limitations. 

5.1. Key findings. 

The relevance of the thesis is the creation of a new management technique within a market-

oriented economy which helps enterprises to find modern ways of doing business and 

building trust among employees. The task was to review motivation in an international 

corporation to answer the main research question. Due to the fact that the topic is not new, 

there was a certain amount of theory which was suitable for the research. The author 

presented the most famous motivation theories from international and Russian scholars. 

Therefore, the Russian context of motivation was integrated to the thesis. 

The most important and difficult factor in the efficiency of activity on the part of 

motivation is the employee's satisfaction with his work. Chandler (2008) considers that the 

feeling of the "work done" and satisfaction from this contribute to the improvement of labor 

productivity. Consequently, not only work satisfaction increases the efficiency of activity, 

but efficiency of work increases the degree of work activity. So there is interdep