Naturally. the stimulating role of the Incentive funds Is revealed not only and not so much at the time of their formation• as In the process of spending them. The scheme of spending the fund of material Incentive Is presented in Flg.4, Illustrating the material Interest of the development engineers of new machinery In creating these funds and, consequently, Introducing their achievements Into the practice of Industrial production, In accelerating scientific-technical progress In the national economy. The baste direction of spending FMI Is current rewarding fo the development engineers with a premium at the receipt of the respective means. At least 601 of these are paid directly to participants of the given concrete development, depending on their personal contribution to this concrete ahclevement. It Is clear that the greater the economic effect of this development• the more the respective development engineer received. Material encouragement for fulfilment of the quarterly thematic plans by the organization proper Is envisaged by the self-supporting system to raise the material Interest of the respective functional departments In the general result. Up to 101 of the fund of material Incentive Is spent for these purposes, as wei I as for rewarding the administration and management. Situations may arise when It Is necessary to do some thing operatively In order to accelerate sharply some research• development, mastering, Introduction etc. The system envisages the spending of a part of this fund tor rewarding the fulfilment of maJor assignments. Usual ly• from 5 to 101 of the FMI Is spent to this end. Premiums for the results of the year are of major signficance tor the retention of cadres In production, which Is a problem that arises only under conditions of complete absence of unemployment and at a shortage of cadres. Certain sums are 
**Analysis**
The text appears to be discussing the management and allocation of funds within an industrial organization, with a focus on motivating employees and encouraging innovation. The language used is technical and formal, suggesting a context related to business or industry. The concepts mentioned, such as "development engineers," "material Incentive," and "scientific-technical progress," further support this hypothesis.

**Category**
Industry, Employment