THE PREMIUM SYSTEM FOR PUBLIC ADMINISTRATION EMPLOYEES IN CZECHOSLOVAKIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600400542-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2011
• Sequence Number: 542
• Publication Date: August 2, 1951
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400542-5
UUNN O t li I Ir-L
CLASSIFICATION CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY REPORT 50X1-HUM
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY Czechoslovakia
SUBJECT Economic - Wage policy
HOW
PUBLISHED Weekly periodical
WHERE
PUBLISHED Prague
LANGUAGE
DATE
PUBLISHED 12 Jan 1951
THIS DOCUNCNT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF TN! UNITED STATES WITHIN TNS MEANING OF ESPIONAGE ACT SO
U. S. C.. SI AND S!,'AS AMENDED. ITS TRANSMISSION OR THE REVELATION
Of ITS CONTENTS IN ANT MANNER TO AN UNAUTHORIZED PERSON IS PRO
HIBITEbSY LAW. REPRODUCTION Of THIS FORM IS PROHIBITED.
DATE OF
INFORMATION
SUPPLEMENT TO
REPORT NO.
THE PREMIUM SYSTEM FOR PUBLIC ADMINISTRATION EMPLOYEES IN CZECHOSLOVAKIA
The compensation of clerical, administrative, and public employees in gen-
eral for superior efforts in the performance of their duties is still poorly
handled in many enterprises.
By the Government Decree of 14 July 1950, provisional regulations for
the compensation of public ciployees for superior working efforts were issued.
The purpose of the regulations, which are an integral part of the new govern-
ment-employee salary system, is, as in the economic sectors, to make employees
more interested in their work, to encourage them to greater efforts, and thus
to secure a higher degree of fulfillment of government administration objec-
tives.
Odborar, Vol IV, No 2.
The rewards are granted for above-average working effort, for superior-
quality work, and for savings effected in the consumption of materials and in
personnel expenses. The size of the reward depends on the ascertained degree
of superior effort. The compensation may equal up to 35 percent of the basic
salary'of the particular job group. The amount of compensation is unlimited
in the cases of persons working according to norms or persons for whom specific
plans have been established.
It should be stressed, however, that the introduction of premiums for admin-
istrative employees is by no means a simple task. For measuring superior work-
ing effort, the following criteria are recommended- (a).degree of fulfillment
of individual-output norms, (b) degree of fulfillment of planned objectives, and
(c) personal efficiency.
Incentive systems give flexibility to labor plans, and stimulate competi-
tion and ambition.. Experience has shown that when incentive systems have been
introduced, working results have increased 25 percent compared with the pre-
vious level, and sometimes even more. In 1949, the State Statistical Office
introduced individual-output norms to increase individual effort, particularly
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in the machine-accounting division, since several women had. resigned from that,
divi.sio.i to take jobs in industry Result, were immediately apparent-, Comrade
Mandysova fulfilled her monthly norm by an average of 150 percent, Comrade
Bures by 150 percent, etc, They earned an average of 700-1,000 crowns more per
month,
The effort: premium, however, will not accomplish its purpose if it is con-
sidered a regular part of the salary,, It must represent a flexible reward, cal-
culated on the basis of actual results achieved over the individual output norm.
Nor will it attain its purpose in cases where the employees decide to di-
vide their premiums into equal shares The better results and the higher quality
of work not only should he reflected in the size of the premium, but also should
be taken into consideration in the n_cig:ment of workers to higher and more re-
sponsible positions
A definite plan is necessary in any kind of work,. In those sectors where
individual-output norms have not yet been introduced, the planning of work is
much more difficult and less precise, since only subjective estimates can be
used in calculating productivity; of course, even this planning is preferable
to a complete lack of plan which leaves the conduct of all operations without
any control whatsoever, and entirely to chance, A working plan cannot be cor-
rect unless it shows not only the number of workers who will take part in a
given task, but also the time limit, i.e , the number of hours within which the
job must be finished Ti the job is completed ahead of time, i.e.., if time is
saved, the worker is e-,ititled to a premium..
In all public-administration working units, the trade-union representatives
should pay more attention than ever to premium systems They must concentrate
on improving labor planning and. norm -*etting so that these plans and norms may
be used to measure every worker s effort correctly from qualitative and quanti-
tative viewpoints, so that he may be granted the compensation he deserves.
The Government Decree of lb July 1950 indicates the method of calculating such
premiums,
Another index of superior effort is the 'personal efficiency of the em-
ployee" in those fields of work where concrete achievement cannot be measured
anti the efficiency of the employee can be determined only by a comparison of
the efforts of all employees in the same or a related field of activity,
It is somewhat dangerous to use this index for estimating superior effort,
even if it is handled in cooperation with the trade-union representatives of
an enterprise.
In measuring superior effort, not only should the quantity and quality of
work be taken into consideration, but primarily the socialist pledges and em-
ployees' contracts regarding the planned increase of productivity in given di-
visions of a certain branch of the trade union, and the realization of certain
unplanned but essential tasks. Also to he taken into consideration is the com-
petition among the best individual employees in a trade union, or the best
group of employees, Not only should the fulfillment of these pledges be fol-
lowed, but it is of primary importance that their economic results be evaluated,
since these will be decisive in determining the amount of the premiur given for
superior effort.
In estimating the productivity of labor it is also necessary to consider
the accuracy and conscientiousness of the employee, his cooperativeness with
other workers, his willingness to work, his attitude toward his work, his ini-
tiative, his sense of order and work organization, economy in his use of office
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C DEffFIDE TuuL
machines and equipment, his perseverance, assiduousness, intelligence and quick-
ness in work, and how fully he utilizes.his working time. It was wise, there-
fore, that daily efficiency reports were instituted in many public administra-
tion units, that norms were set for certain types of work, and that other tasks
have been put on a planned basis.
Through such practice, not only is a just reward for above-average effort
ensured, but also greater employee efficiency in public administration in gen-
eral.
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