This book is the result of extensive studies by the authors in the fields of research in. and analysis and design of. the system of management of production organizations under a socialist econ omy. The management of the national economy in the USSR is developed on a planned basis. This work is part of the general state-sponsored strategy of economic development which is dis cussed and laid down by the Congresses of the CPSU (Communist Party of the Soviet Union) and is then translated into concrete decisions of the government and other bodies of economic and regional management. The general policies on management improvement are closely scrutinized by these bodies. the leaders of the Party and the State. and the Soviet press. In the recent years this work has acquired special importance. The party and economic management of all levels. scientists. and experts are faced with the task of introducing. in a short period of time. radical changes in the plan ning and operating. creating thereby a holistic management sys tem based on scientific recommendations and effective practical experience.

This book, first published in 1984, is the first systematic attempt in English to produce an analytical as well as a descriptive outline of the operations, management and role of the Soviet industrial enterprise. The microeconomics of central planning is a relatively neglected area of analysis with most effort being directed towards the theory of economic incentives. This book fills that gap by presenting an integrated view of the theory of the socialist firm. It concentrates on the day-to-day activities of the Soviet enterprise, and uses a wealth of unused Soviet data to project its findings.