The Soviet enterprise director: an important resource before and after the coup

Abstract

Executive Overview Privatization, eliminating monopolies and the vestiges of central planning, deregulating prices, introducing currency convertibility, establishing a modern financial infrastructure, and recovering from a failed three-day coup attempt are all intimidating tasks for policy-makers in the Soviet Union. However, in the long-run perhaps the most troubling circumstance facing the Soviet Union is preparing managers for a Soviet-style market-driven economy that can eventually compete in word markets. This article discusses some facts about Soviet managers, the historical fabric of Soviet and Russian cultures in which they must operate, as well as some of the attitudes and concerns of Soviet enterprise directors. Overthrowing Marxist-Leninist doctrine and overcoming a bungled attempt to take over the government may be the easiest parts of the new social experiment originally called perestroika. After seven decades of indoctrination to a centrally controlled system, it's not hard to understand shy Soviet enterprise directors may lack the knowledge and skills to deal with workers who do not believe in the work ethic. Given the current instability in the political, social, and economic systems in the Soviet Union, this article concludes that a unique set of Soviet managerial behaviors that incorporates and adapts some Western and Japanese management principles and practices will have to emerge in Soviet enterprises.