Managerial structures and practices in manufacturing enterprises : a Yugoslavia case study

Managerial Structures and Practices in Manufacturing Enterprises: A Yugoslav Case Study SWP455 May 1981 World Bank Staff Working Paper No. 455 May 1981 Prepared ky Martin Schrenk Office of the Regional Vice President East Asia and Pacific 1981 3an k et, N9W , DC 20433, USA Ind interpretations in this document are those of the author not be attributed to the World Bank, to its affiliated 3nrs or to any individual acting in their behalf  The views and interpretations in this document are those of the author and should not be attributed to the World Bank, to its affiliated organizations, or to any individual acting on their behalf. WORLD BANK Staff Working Paper No. 455 May 1981 MANAGERIAL STRUCTURES AND PRACTICES IN MANUFACTURING ENTERPRISES: A YUGOSLAV CASE STUDY The purpose of this paper is to explore what managerial procedures and practices have evolved in Yugoslavia's manufacturing industries under the Yugoslav system of "Self-Management Socialism," what inferences can be drawn from these observations regarding economic efficiency, and what - if any - lessons can be drawn which might be applicable elsewhere. After an overview of the principal findings, the paper first sketches the main features of Yugoslavia's socio-political system that are relevant in this context. Thereafter it concentrates on the pluralistic framework of management and decision-making (combining elected workers' bodies, union representatives, professional managers and political bodies, cooperating under a system of multiple mutual checks and balances), and on the corresponding complex features of the objective function of the Yugoslav enterprise. The paper concludes with some observations on the strengths and weaknesses of this particular pluralistic system. This paper rests on extended discussions held during October 1978 with four enterprises of the metal processing industry located in Slovenia, the most northern republic of the Yugoslav Federation. The inexhaustible patience of their staff and the generosity with which they sacrificed long hours of their tight regular work schedules for the interviews were instru- mental in arriving at a coherent understanding. We are greatly indebted to the "International Center for Public Enterprises in Developing Countries" in Ljubljana for organizing the discussion program and for commenting on the findings. The advice of the Yugoslav consultants to the survey, - Professors Bogdan Kaucic and Ivan Turk (Ljubljana University) - was invaluable for the interpretation of many observations. Errors of interpretation are of course errors of the author. Prepared by: Martin Schrenk Office of the Regional Vice President East Asia and Pacific kCopyright