Correlation of the level of salaries of employees in medium-sized agricultural enterprises and individual farms and the impact on top management

Abstract

Business management can be improved in different ways. One of the key options for managing agricultural enterprises is monitoring the level of wages, because they directly affect the results of the company, or the results of the top management work. The authors conducted the research by analyzing medium-sized agricultural enterprises and individual farms regarding the level of wages in the period 2017-2019 in the Republic of Serbia. We have come to the basic conclusion that there is a statistically significant relationship between the level of wages in both forms of organization of agricultural production and the realization of profit, that is, the performance of the business on the market. In addition, there is a significant correlation between the level of wages and the achieved profit in the positive direction only for 2017 (at the level p <.05), while for the remaining two years there is no significant connection. The latest conclusion from the study suggests that in 2019 there was an increase in wages and a simultaneous occurrence of a decline in profit.