ABSTRACT
One of the major shifts in economic activity across the globe in the last decade has been the transition from state-owned enterprises (SOE) to private enterprises. No region has felt the effects of this transition more acutely than the nations of Central and Eastern Europe and the former Soviet Union. Under the command system, decision making was carried out through the “Bermuda triangle” of ministry, workers’ council, and trade union council; even operating decisions were made in government offices and transmitted to those responsible for day-to-day operations. Formulating of goals is part of the planning process. Goals outline activities that are necessary to achieve the objectives of the company. In order to measure performance a company must be able to compare actual performance with standards. The preparation of the budget is a planning function; its administration is a controlling function. Te objective of state officials was full employment for the people of the region where the SOE was located.
