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Procedia Computer Science 138 (2018) 829–834

CENTERIS - International Conference on ENTERprise Information Systems /

ProjMAN - International
CENTERIS Conference
- International on Project
Conference MANagement
on ENTERprise / HCist - International
Information Systems /
ProjMAN - International Conference on Project MANagement /and
Conference on Health and Social Care Information Systems Technologies,
HCist - International
Conference on Health CENTERIS/ProjMAN/HCist 2018 and Technologies,
and Social Care Information Systems
CENTERIS/ProjMAN/HCist 2018
Remuneration in small and middle-sized enterprises with project
Remuneration in small andmanagement
middle-sized enterprises with project
management
a
Petr Řehoř *, Jaroslav Vrchota
a

a Petr Řehoř
Department of Management, Faculty of Economics, University *,
a
Jaroslav
of South Bohemia Vrchota
a
in Č. Budějovice, Studentská 15, České Budějovice, 370 05,
Czech Republic
a
Department of Management, Faculty of Economics, University of South Bohemia in Č. Budějovice, Studentská 15, České Budějovice, 370 05,
Czech Republic

Abstract
Abstract
Currently, it is of no importance if the enterprise is large or small, they both have to struggle for the same – the have happy and
motivated workers who work in an efficient way. Every enterprise wants to employ such workers, who share the same aims as
Currently, it is of no importance if the enterprise is large or small, they both have to struggle for the same – the have happy and
the organization. It is possible to achieve such goal by the enterprise if it sets up a system for the remuneration of employees
motivated workers who work in an efficient way. Every enterprise wants to employ such workers, who share the same aims as
according to the requirements of the present time and according to its employees. Reward is one of the important elements to
the organization. It is possible to achieve such goal by the enterprise if it sets up a system for the remuneration of employees
motivate employees for contributing their best effort to generate innovation ideas that lead to better business functionality and
according to the requirements of the present time and according to its employees. Reward is one of the important elements to
further improve company performance both financial and non-financially. Besides employee remuneration, it is necessary for the
motivate employees for contributing their best effort to generate innovation ideas that lead to better business functionality and
managers to use modern tools of project managers as the classic approach to management processes based on regulation of
further improve company performance both financial and non-financially. Besides employee remuneration, it is necessary for the
current deviations in not sufficient in current time of turbulent changes. The approach has been developed in many areas of life
managers to use modern tools of project managers as the classic approach to management processes based on regulation of
and project attitude to dealing with problems is more desired in enterprises. The paper deals with an analysis of remuneration in
current deviations in not sufficient in current time of turbulent changes. The approach has been developed in many areas of life
small and middle-sized enterprises with project management in the Czech Republic. In addition to the definitions of the most
and project attitude to dealing with problems is more desired in enterprises. The paper deals with an analysis of remuneration in
important terms, the hypothesis is tested in the paper, revealing that the managers of organizations with project management
small and middle-sized enterprises with project management in the Czech Republic. In addition to the definitions of the most
assess the system of remuneration (motivation) better compared to those who do not use project. The data were obtained through
important terms, the hypothesis is tested in the paper, revealing that the managers of organizations with project management
personal survey with 358 SME managers.
assess the system of remuneration (motivation) better compared to those who do not use project. The data were obtained through
personal
© 2018 Thesurvey with 358
Authors. SME managers.
Published by Elsevier Ltd.
© 2018 The Authors. Published by Elsevier Ltd.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
This is an open
Selection and access articleunder
peer-review under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
© 2018 The Authors. Published byresponsibility
Elsevier Ltd. of the scientific committee of the CENTERIS - International Conference on
ENTERprise Information Systems / ProjMAN - International
This is an open access article under the CC BY-NC-ND license Conference on Project MANagement / HCist - International Conference
(https://creativecommons.org/licenses/by-nc-nd/4.0/ )
on Health and Social Care Information Systems and Technologies.

* Corresponding author. Tel.: +420-387-772-495.

E-mail address: rehor@ef.jcu.cz
* Corresponding author. Tel.: +420-387-772-495.
E-mail address: rehor@ef.jcu.cz
1877-0509 © 2018 The Authors. Published by Elsevier Ltd.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
1877-0509 © 2018
Selection and The Authors.
peer-review Published by Elsevier
under responsibility Ltd. committee of the CENTERIS - International Conference on ENTERprise
of the scientific
This is an open
Information access/ article
Systems ProjMAN under the CC BY-NC-ND
- International license
Conference (https://creativecommons.org/licenses/by-nc-nd/4.0/)
on Project MANagement / HCist - International Conference on Health and Social
Selection and peer-review under responsibility
Care Information Systems and Technologies. of the scientific committee of the CENTERIS - International Conference on ENTERprise
Information©Systems
1877-0509 2018 The/ ProjMAN
Authors. - International
Published by Conference on Project MANagement / HCist - International Conference on Health and Social
Elsevier Ltd.
Care Information
This Systems
is an open access and Technologies.
article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Selection and peer-review under responsibility of the scientific committee of the CENTERIS - International Conference on ENTERprise
Information Systems / ProjMAN - International Conference on Project MANagement / HCist - International Conference on Health and
Social Care Information Systems and Technologies.
10.1016/j.procs.2018.10.108
2 Petr Řehoř, Jaroslav Vrchota/ Procedia Computer Science 00 (2018) 000–000

Selection and peer-review under responsibility of the scientific committee of the CENTERIS - International Conference on
ENTERprise
830 Information Systems / ProjMAN - International
Petr Řehoř et al. / ProcediaConference on Project
Computer Science MANagement
138 (2018) 829–834 / HCist - International
Conference on Health and Social Care Information Systems and Technologies.

Keywords: Project management; rewards; motivation; SMEs

1. Introduction

The wage policy, in general, should be different in every organization; on the other hand, it is necessary that this
area is given sufficient attention and care in all organizations, the set parameters of the remuneration system must be
regularly adjusted and adapted to changes [1]. A properly designed remuneration policy has a significant impact on
the ability of organizations to attract and retain quality and key employees who are critical to organization’s
competitiveness in the market [2]. The area of remuneration is a challenging HR area that must follow trends [3]. A
reward system shows the benefits an employee may get in return of performance of his/her job [4]. It also plays a
critical role in employee satisfaction [5]. The adequate reward system is critical for employee motivation both for
high achievers and low achievers [6]. One of the most important factors in rewarding employees for organization
performance is through recognition and appreciation [7]. For an organization is need to carefully set reward system
that fairly appraises the performance of employees at all levels and in return provides them rewards in accordance
with their needs and expectations [8]. The main objective of rewards is to attract and retain employees, by
motivating them to pursue higher performance levels [9]. Reward is the compensation which an employee receives
from an organization for exchanging for the service offered by the employee or as the return for work done [10].
Rewards are all forms of financial return, tangible services and benefits an employee receives as part of an
employment relationship [11]. The effective reward system and adequate recognition of performance in an
organisation creates favourable working conditions for employees and serve as key motivator for employees to
maximise productivity [12]. It is a relationship between remuneration and profitability of an organisation [13].
Remuneration and benefits are the factors influencing job satisfaction [14]. It is the significant relationship between
reward system and performance recognition, as well as with motivation and job satisfaction [15] and relationship
between rewards and employee performance and relationship between extrinsic and intrinsic rewards [16]. Projects
are more schedule-intensive than most of the activities that general managers handle [17]. Project also faces
resources constraints. That means that, there is always a limited resource which requires maximum management
effort to achieve efficiency in results [18]. The definition of a project has been the subject of considerable debate
over the years among the practitioners of project management and the goal of developing a comprehensive definition
of what a project is has remained elusive over the years [19] and [20]. A successfully completed project would finish
on time, within the estimated budget and having achieved all of the quality requirements [21]. No research has ever
discussed the relation of remuneration and organizations with (or without) project management.

2. Methodology

The aim of the paper is to compare if the enterprises with project management see the system of remuneration as
better and more efficient compared to the enterprise without project management. The data are based on a
questionnaire survey among small and medium enterprises, which was realized in the autumn of 2017. Students of
the Faculty of Economics at České Budějovice personally asked the managers of SMEs. The managers were asked if
they see the current system of remuneration in their organization as efficient enough, motivating to increase and
improve labour performance. They rated from one (as the best) to five (as the worst). The total sample consisted of
358 enterprises from the Czech Republic. Data were tested using two-sample Wilcoxon test and his asymptotic
variant. This test is a non-parametrical two-sample test, which is most frequently used, when the condition of data
normality is not met. Let X1, ..., Xn and Y1, ..., Ym be two independent random samples from two continuous
distributions, whose distribution functions can only differ in displacement. X 0,50, Y 0,50 states for the median of the
first and second distribution. The hypothesis that the distribution functions of the two distributions are the same is
always tested, in other words, the medians are tested for equality. The result of test is compared to the alternative
 Petr Řehoř et al. / Procedia Computer Science 138 (2018) 829–834 831
Author name / Procedia Computer Science 00 (2018) 000–000 3

hypothesis (the first of medians x0,50 of companies which use project management, is greater than the latter) [22] and
[23]. H0 = x0,50 – y0.50 = 0 is compared to H A= x0.50 > y0.50. In the first stage, all (n + m) values X 1, ..., Xn and
Y1, ..., Ym are arranged in ascending order by size. The entire process takes place electronically using test statistics
software and this step is not described in the article, because it is a lapidary operation. Furthermore, the totals of
orders X1, ..., Xn are identified and stated as T1. The sum of the values in the order of companies which have not
project management Y1, ..., Ym will be stated as T2. The next step was to calculate the test statistics for U1 and U2,
while applies that U1 + U2 = mn [24]: U1=mn*n(n+1)/2-T1, U2=mn*m(m+1)/2-T2.
If statistics min {U1, U2} ≥ tabulated critical value, for the selected ranges of both selections and chosen level of
significance, then than we may reject the null hypothesis of the identity of the compared groups on the significance
level α = 0.05. Since for both samples in all test cases applies that n, m are greater than 30 the asymptotic variant
of the Wilcoxon test (Mann-Whitney test) is undertaken, which is used for n and m higher than thirty [25]: U0= (U1-
mn/2)/√(mn(m+n+1)/12). Critical codomain for right-side alternative id W=<K2,n>. Non-negative values k1 a k2 are
strictly defined in critical literature. H0 is rejected on the level of significance α, if U 0∈W [22].

3. Results and discussion

In the sample, there were 358 small and middle-sized enterprises, 205 of which use project management,
compared to 153 that do not use it in the Czech Republic. Project management is known for detailed investigation of
all aspects of the project, their detailed planning, resulting into implementation of a change or innovation. In brief,
project management might be defined as a tool of efficient implementation of changes. In both samples, the system
of motivation was analysed, particularly remuneration of employees, rated from one to five. One was the best
situation possible and five was the worst. Regarding general analysis of data, both samples revealed the same median
of 2. Similarly, two was the most common rating, scored by 58 enterprises without project management and 95
enterprises with project management. The minimum and the maximum were also the same for both samples, based
on the rating. A detailed description of the statistics is revealed in the table 1. Interestingly, both groups differ in
location and distribution of lower quartile – its value is 2 and 1.

Table 1. Description of the sample of 358 SMEs

Variable Company with n Average Lower Upper Variance Standard
project management quartile quartile deviation
Level of No
motivation 153 2.3725 2.0000 3.0000 0.8800 0.9381
system
Level of Yes
motivation 205 2.0878 1.0000 3.0000 0.8942 0.9456
system
Level of Total
motivation 358 2.2094 2.0000 3.0000 0.9055 0.9516
system

Data distribution regarding the level of motivation system is seen in the table 2. The rows reveal the rating and
there are the enterprises with and without project management in the columns. As shown by the table. There are 67%
of the enterprises with project management that rated their system of motivation as 1, compared to 33% without
project management. The most common rating of 2 was scored by 46% of the enterprises with project management.
Rating of 5 was scored by seven enterprises of the whole sample only, with almost the same distribution – 3 and 4
enterprises. Similarly, to rating of 5, rating of 4 was more common in enterprises with project management, although
the difference was in tenths of per cent. The second most significant difference was found in the rating of 2 – there
were 62% of the enterprise with project management compared to 38% of the enterprises without project
management.
832 Petr Řehoř et al. / Procedia Computer Science 138 (2018) 829–834
4 Petr Řehoř, Jaroslav Vrchota/ Procedia Computer Science 00 (2018) 000–000

Table 2. Data distribution regarding the system of motivation and SMEs

Level of Company with Company with Total sum of
motivation project project rows
system management management
No Yes
Frequency 28 57 85
Column frequency 18.30% 27.80%
1
Row frequency 32.94% 67.06%
Total frequency 7.82% 15.92% 23.74%
Frequency 2 58 95 153
Column frequency 37.91% 46.34%
Row frequency 37.91% 62.09%
Total frequency 16.20% 26.54% 42.74%
Frequency 3 52 35 87
Column frequency 33.99% 17.07%
Row frequency 59.77% 40.23%
Total frequency 14.53% 9.78% 24.30%
Frequency 4 12 14 26
Column frequency 7.84% 6.83%
Row frequency 46.15% 53.85%
Total frequency 3.35% 3.91% 7.26%
Frequency 5 3 4 7
Column frequency 1.96% 1.95%
Row frequency 42.86% 57.14%
Total frequency 0.84% 1.12% 1.96%
Frequency 153 205 358
Total frequency 42.74% 57.26%

Using two-sample Wilcoxon test (Mann-Whitney U-test) at the significance level of α = 0.05; with X = the
enterprises without project management and = Y the enterprises with project management, the following hypotheses
were tested: H0 = x0.50 – y0.50 = 0; HA= x0.50 > y0.50. As shown in the table 3, p-value (0.00251) is close to zero
and it is lower than the chosen α, so that it is possible to reject the null hypothesis at the level of significance of 0.05.
Also, as Z value is positive, left-side hypothesis is confirmed – the enterprises without project management rated
higher score compared to the enterprises with project management.

Table 3. Mann-Whitney U-test for the level of motivation system of SMEs

n n
U Z p-value
No Yes
Level of motivation system 12755.0 3.02164 0.00251 153 205

Notice that the scale specifies 1 as very good and 5 as very bad. That means that the research revealed that the
enterprises with project management have better systems of motivation and remuneration compared to the
enterprises without project management. Such finding is seen in the figure 1 below. The peak of the curve for the
enterprises without project management is 2.4, compared to 2.1 for the enterprises with project management. On the
recommendation of the opponent was paper extended by comparing the results with respect to the size of SMEs in
terms of number of employees. Below (Table 4) is a brief description of enterprises due to the number of their
employees. It is interesting that most businesses there are 250 enterprises in 60 cases, which we assume is directly
related to the upper limit of SMEs and to the associated support from European subsidies.

Table 4. Basic characteristics of SMEs (n=358)

Average Minimum Maximum Dispersion Standard deviation
Number of employess 79.84 34 250 8143.18 90.23
 Petr Řehoř et al. / Procedia Computer Science 138 (2018) 829–834 833
Author name / Procedia Computer Science 00 (2018) 000–000 5

Fig. 1 Level of motivation system at companies with or without project management

The most satisfied and least satisfied are most often employees of small companies from the point of view of the
motivation system. The results of the correlation - there is a relationship between the motivation and project
management systems as well as between project-managed SMEs and the number of employees. Unfortunately, we
have not been able to demonstrate a correlation between the number of SME employees and the motivation system.
On the basis of the correlation analysis was determined the hypothesis. Project management companies vary
according to the number of employees. The Wilcoxon test results say that the project-managed enterprises generally
have more staff (see table 5).

Table 5. Mann-Whitney U-test for the number of employees

n n
U Z p-value
No Yes
Number of Employees 9545.5 -6.33493 0.0000 153 205

4. Conclusion

People are the most important part of a proper fully functional, prospering enterprise, being able to achieve its
goals. Each of the managers should know that the employees make a decisive contribution to business prosperity,
efficient project implementation, reputation and an important competitive advance. It is vitally important to be
interested in the employees and motivate, assess and remunerate them to do their best. Only such employees who are
properly motivated and who work in a well-adjusted team are able to correct any deficiency of the enterprise. That is
why it is important to design systems of remuneration based on needs of employees and their behaviour at work and
results [26] and [273]. The ability of managers to obtain employee satisfaction with rewards is a complex process.
Indeed, it is a function of several related factors which any manager who intends to achieve it must critically study to
be able to positively implement. A total rewards program should be structured so that it attracts the right people to
the organisation and the benefit’s the organisation as they use that employee in order to drive organisational success.
Reward and recognition programmes must provide equal treatment for equal accomplishments [28]. In the paper, the
authors confirmed the hypothesis that the SMEs with project management are much more satisfied with the system
of remuneration in their organization compared to the enterprises without project management. It is evident that
people can earn more by working on the projects in the organizations with project management and they are more
satisfied with the project management. The average monthly wage in small and medium-sized enterprises reached
23.564 CZK in 2016 and increased by 2,2% compared to 2015. Management function related to the project helps to
make work effort more efficient. It is possible to identify the beginning and the end of each issue, divide it into
different parts and plan different activities and pay better attention to them. A more detailed research of the problem
834 Petr Řehoř et al. / Procedia Computer Science 138 (2018) 829–834
6 Petr Řehoř, Jaroslav Vrchota/ Procedia Computer Science 00 (2018) 000–000

helps identifying potential shortcomings quickly and efficiently and allows finding and implementing improvements
in all areas. By the research, 57% of the enterprises take part in project management in the Czech Republic.
However, in Western countries, project management is a standard way of work of successful businesses and is
knowledge is a necessary part of abilities of both the managers and the regular workers. Project management has
become crucial in the management of organizations, be it profit or non-profit oriented. Today, many organizations
largely depend on projects to achieve their strategic objectives. However, the success of these projects is to a large
extent depends on the knowledge, skills, tools and techniques apply by the project manager and people. That is why
it is necessary to provide better and greater remuneration to such managers and workers.

Acknowledgements

This paper was supported by GAJU 053/2016/S.

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