Rate setting and productivity of labour in Russia

Low labour productivity of workers in Russia is one of the factors hampering development of the country within the ongoing modernization. The author stresses a close connection between the rate setting and labour productivity in an industrial society, as well as the importance of a correct choice of the object for setting rates. He provides analysis of the rate setting and labour productivity at enterprises with different types of management. The object of rate setting in an industrial economy is worker, while the objects of rate setting in a post-industrial economy cannot be clearly determined, and in view of this, setting rates for them may entail serious difficulties. Therefore, improvement of the normative planning and setting rational rates should become an integral part of the modernization process.