After the welfare state proved to be too expensive, and its services too ineffective and uneconomical, the reforms have been implemented that have led to the emergence of an entrepreneurial model in the public affairs management. The new entrepreneurial role of local self-government is reflected in the creation of partnerships between the central and local authorities, the introduction of public-private partnerships, and the increased participation of citizens in the adoption and implementation of public policies. For local self-government to respond to the challenges of contemporary society, it is necessary to provide qualified personnel that will improve the quality of administrative services. In this process, the employees and their willingness to work efficiently and provide high quality administrative work play a crucial role. One of prerequisites for the productive work of employees is that they are properly motivated.
The subject of the Master’s thesis is to determine the main motivators that contribute to the increased productivity of the employees in local self-governments. For that purpose, a survey was conducted in the municipalities of Ivanjica, Kosjerić and Ćuprija. The results have shown that most of the employees are not motivated in the workplace, money being singled out as the most important motivational factor for the employees. In order to improve the employee motivation, a relation should be established between the individual success of the employees and the material or immaterial rewards in accordance with the needs of the employees. Since the incentives regulated by the law are offered solely in the form of material compensation, the superiors should focus on immaterial motivators as well because of the financial limitations and different needs of the employees. The employee performance evaluation would be carried out on the basis of regular assessment, which should reflect the real results and provide the basis for a just motivation of employees.
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