ABSTRACT
The privatization of large-scale state enterprises began in 1992 and allowed for the setting up of joint-stock companies, investment companies and co-operatives. State owned enterprises were divided into two categories for the purposes of privatization. In the first half of 1993, individual shareholders received their shares. In spite of some initial problems following the partition of Czechoslovakia into two independent states, in both republics the shares were also allocated to the citizens of the other republic. National economic strategy directed 60 to 70 per cent of Czech and Slovak foreign trade to comecon countries. The organization structures of Czech and Slovak enterprises under the old regime were shaped by the economic system in which they operated. Middle managers are responsible for financial results and, as divisional heads, they are involved in strategy formulation processes. Under the former regime, trade unions functioned as transmission belts for the economic plans of the Communist Party.
