ABSTRACT
The principle of harmony of social, collective, and personal interests is inherent in the very essence of the socialist system. Society is just as concerned with observing the interests of each collective and of each working person as are collectives with the overall prosperity of social production. The task of satisfying the social, collective, and personal needs of the working people is in turn divided into: the task of producing high-quality products required for personal and productive consumption, and the task of securing high production effectiveness in the process. This chapter examines how this task is subdivided in the course of the production process and how economic incentives are effected. It examines which is more advantageous for an enterprise: to adopt an unduly low plan; or to adopt an intensive, realistic plan and risk losing part of the reward for the underfulfillment of the plan.
