1.1 Research background and problem statement
1.1.1 Research background
The motivation of the enterprises directly influences the performance of the staff, and thereby determines the final production and operation results of the enterprises. If the motivation of the staff does not go well, the staff will not have passion to work, and not care about the development of the company. As the staff cannot satisfy themselves by working for the company and solve their problems, they will consider working for another company, which are unstable factors for the company. If the turnover of a company is too bigand the company is not intentional to do it, the company must find reasons on itself and consider changing its motivational schemes, because they are designed with lots of problems. Different companies with different nature must have done motivation to the staff, because only the motivation work is done well, can the company develop well.
In recent years, bilateral trade and economic relations between Russia and China has been on the rise, which is reflected in high rates of turnover growth, expansion of investment cooperation, intensification of inter-regional and cross-border ties, noticeable increase in interest in Russian and Chinese businessmen to cooperate with each other, at the same time increased the number of Russian students wishing to study in China. After several years spent abroad, many are wondering what's next. They wonder working in China or back to Russia. To choose the work place, a better understanding of the working environment in China and Russia is important. SINOPEC and ROSNEFT are the largest company in China and Russia. Two of them are petroleum companies and have a great influence on the country. We can think that, these two companies can represent the working environment in both countries. Precisely this question initiated the beginning of the study and development for this research. Through a comparative analysis of motivational or incentive schemes, the legal environment and the profitability of SINOPEC and ROSNEFT, we can acquire knowledge about the relationship between motivation, staff and the company and the differences between China and Russia. The Law environments is needed because it outlines the minimum requirements that the workers in any level of the company should be getting, and due to the lack of information available from the companies, it help us to have a better understanding of the minimum motivational schemes that are required to be used. The motivational schemes themselves are also important to be identified from the information that the company gives. Finally the financial key aspects of each company are also vital to this research because in there will be found any clue as to if the motivational schemes being used have become a considerable expense.
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1.2 Research objectives and significance
1.2.1 Research objective
Due to both SINOPEC and ROSNEFT being own in most part and run by its respective countries Government in China and Russia, it creates a very interesting case of study. Cultural background has had a very influential presence; on both Chinese and Russian cultures even being neighbors to each other have had the opportunity to develop deep rooted differences, as an example one of this being its quite distinct languages. Both are run and greatly owned by the government, and so it?s the purpose of this study to find the benefits that workers are receiving in general are being influenced by what and if those benefits, or in other words motivational schemes, are having what kind of visible influence in the profitability of the companies.
The objective of this study is to find if the motivational schemes used by SINOPEC and ROSNEFT are a considerable expense using the interview results and the information that has been made public by both companies. I have selected several workers in both companies to ask them questions by telephone. The aim is to find out the motivational schemes in both countries and the differences between them and the influence on the staff and then on the company.
1.2.2 Research significance
Many relatable studies focus in the way the subject of study is managed, or if the schemes in itself are important to the company and its workers. Those have been already proved many times over and over again, specially the last one. For any small or big business in this world, be past or present, it has been and it is of paramount importance to give an incentive to the labor force, even if this force is composed of human beings or any other living creature, they need a reason to be compelled to do what is being asked of them.
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Chapter 2 Motivational schemes of SINOPEC
2.1 Introduction to SINOPEC
2.1.1 Information about SINOPEC
China Petroleum and Chemical Corporation (SINOPEC) - integrated Petrochemical Corporation, is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fiber, fertilizer and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information. SINOPEC officially has stated that they strive to adhere to its corporate mission of “promoting enterprise development, contributions to the country, creation of shareholder value, social responsibility and employee well being”
China Petrochemical Corporation (SINOPEC Group) is a super-large petroleum and petrochemical enterprise group, established in July 1998 on the basis of the former China Petrochemical Corporation. SINOPEC Group is a state-owned company solely invested by the state, functioning as a state-authorized investment organization in which the state holds the controlling share. Headquartered in Beijing, SINOPEC Group has a registered capital of RMB 231.6 billion. The board chairman of SINOPEC Group is its legal representative. SINOPEC Group executes the investor rights over related state assets owned by its full subsidiaries, controlled companies and share-holding companies. Those rights include receiving returns on assets, making major decisions and appointing management teams. The Group operates, manages and supervises state assets according to related laws, and shoulders the corresponding responsibility of maintaining and increasing the value of state assets. China Petroleum and Chemical Company (SINOPEC Corp.), controlled by SINOPEC Group, issued H-shares and A-shares at overseas and home respectively in October 2000 and August 2001 and was listed on stock markets in Hong Kong, New York, London and Shanghai
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2.2 Overview of the legal environment in The Peoples Republic of China
In order to have a better understanding of SINOPEC?s decisions about the base benefits given to its workers, it is of paramount importance to have a solid reference of the Labor laws in China, such laws are the foundation on which the company benefits have been established. A second important reason to include information about this laws is to compensate for the lack of public information about the structure for benefits and salary levels in SINOPEC.
Basic contents of Labor Law[43] of China include thirteen different chapters and one hundred seven articles. It starts with the chapter of general provisions which includes nine articles that gives an idea about basic rules. Next goes the chapter about promotion of employment in six articles, which talk about employment assistance to various segments of society. The third chapter includes all the details related to labor and collective contracts, and there are also a chapter about working hours, rests and leaves. Then there are chapters about wages, labor safety and sanitation, special protection for female staff and workers, vocational training, social insurance and welfare, labor disputes, inspection and supervision, legal responsibilities, and finally supplementary provisions.
The Labor Law of China was developed and adopted in accordance with the Constitution in order to protect the legitimate rights and interests of workers; regulation of labor relations; creation and labor protection system that meets the needs of the socialist market economy; promote economic development and social progress. SINOPEC expresses adamantly that they carefully puts Labor Law of China, Labor Contract Law of China and other relative laws and regulations into practice, regulates employment management and actively builds a harmonious and stable employment relationship within their workers in any level.
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Chapter 3 Motivational schemes of ROSNEFT ............ 27
3.1 Introduction to ROSNEFT .................. 27
3.1.1 Information about ROSNEFT ............. 27
Chapter 4 Comparison and discussion ............................ 37
4.1 Comparison .......................... 37
4.1.1 Cash incentives ................ 37
4.1.2 Special benefits ........................ 38
Chapter 4 Comparison and discussion
4.1 Comparison
Based on the research above, information of motivational schemes used in SINOPEC and ROSNEFT is almost the same, but differences still exist to reveal distinction between the two companies and which is influenced by the two different background of the two countries.
In accordance with the information given in SINOPEC?s publications called “China petrochemical corporation Annual Report 2013”, “2013 Communication Progress for Sustainable Development”, “2013 Corporate Social Responsibility Report” and “2013 Annual Report and Accounts” and from ROSNEFTs publications called “Rosneft Sustainability Report 2013” and “Rosneft Social Programmes” the following information was condensed in useful manner that suits our purposes. This information will be shared being organized by the different kinds of motivational schemes that we have selected to be used. Interview results are also used here to compare.
According to the interview results and information about the two companies, the differences between SINOPEC and ROSNEFT
in motivational schemes and some reasons are given below. Some specific information is get from interviewees.
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Conclusions
This paper did researches on the motivational schemes of SINOPEC and ROSNEFT, the differences between them and the
influence on the employees and the two companies by gathering information of the two companies and interviewing employees of the two companies. This research has obtained following findings:
(1) For SINOPEC, the main motivational schemes can be divided into cash incentive, welfare, promotion and recognition. The motivational schemes in SINOPEC can play a role in motivating employees. However, like fairness and others, SINOPEC does not give a proper way to solve, which leads to the effect of motivation not so good.
(2) Same like SINOPEC, ROSNEFT mainly uses salary, welfare, promotion and recognition as the motivational schemes for the staff. The effects of these motivation methods seems to work well and do a positive influence on the staff. More paid vacation and other welfare make the staff feel satisfied.
(3) By comparison can be seen, both of SINOPEC and ROSNEFT make efforts to motivate employees by different ways. The two companies both use similar methods, such as cash, welfare promotion, etc, to give their employees motivation. The biggest difference between SINOPEC and ROSNEFT is that ROSNEFT provided more welfare, such as paid vacation, for the employees, which can give full rest to employees to make them more energetic when working. Motivation in both companies works and have a good influence on both employees and the companies.
For future research, to give a better comparison of the two companies, it would be of great value for both companies to be more transparent about their general data.
reference(omitted)