ABSTRACT
The structure of industrial production is undergoing substantial changes in accordance with present-day demands. The fact that administrative methods have prevailed at the expense of economic methods constitutes a serious shortcoming of industrial management. The economic incentives for raising the productivity of social labor are a powerful means of advancing the socialist economy toward communism. The system of material encouragement of industrial personnel provides little incentive for enhancing the results of the work of the enterprises, raising the profitability of production, and improving the quality of industrial products. The possibilities of the new system of management should be used fully for the further development of production and the material encouragement of efficient enterprises. The entire system of planning, production management, and material incentives must be directed toward ensuring high rates of development of social production and enhancement of its efficiency. Improvement of planned guidance of the economy and enhancement of the scientific level of state planning acquire great importance.
