MOTIVATION AND MANAGEMENT’S EFFECTIVENESS – HOW TO INCREASE EFFECTIVENESS THROUGH DEVELOPING MANAGERS’ AND EMPLOYEES’ MOTIVATION IN BOSNIA AND HERZEGOVINA

Sa？etak Today’s turbulent environment demands from the companies to constantly seek for possibilities how to improve their position and competitiveness. Organizational effectiveness is under influence of many different factors and one of them is management. In this research motivation is treated as a process that pervades and directs activities toward satisfying individual and corporate goals. The inevitable question that emerges is: Is there a correlation between motivation and management’s effectiveness? This research tried to isolate different material and non-material forms of motivation that can influence and increase management’s effectiveness. In this paper management’s effectiveness is measured through stakeholder approach and this is a big difference from all other researches that measured it based on company’s financial results only. The research is conducted on 72 companies from Bosnia and Herzegovina. Questionnaire is created with the purpose of determining the association, direction and intensity of the correlation between motivation and management’s effectiveness. Data processing includes descriptive analysis for determining basic indicators and methods of multivariate statistics for determining the degree and the intensity of correlation between employees’ and managers’ motivation and management’s effectiveness