ABSTRACT

The September (1965) Plenum of the Central Committee of the CPSU made a detailed examination of the state of affairs in USSR industry. It was noted that the organizational structure of management existing at that time and the methods of planning and of economic incentive in industry were not in keeping with present conditions and with the level of development of the productive forces. The Joint Commission under USSR Gosplan elaborated guidelines for the conversion of individual industrial enterprises to the new system and, on this basis, a great deal of preparatory work was carried out at many enterprises. his work began with a careful analysis of production potential. In the process, new and higher plans—compared with those previously confirmed—were determined with respect to both sales volume and profit and profitability of enterprises. The increase in the effectiveness of production is genuinely becoming the common goal for one and all.