Bonus Systems and Enterprise Behaviour
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Bonus Systems and Enterprise Behaviour book
This chapter examines various bonus schemes developed by both Soviet and western authors. As this has become something of a growth area for research, especially in the west, the survey had to be by necessity very selective in two senses. Firstly, the aim is to present schemes of increasing order of complexity building towards the actual Soviet practice in the late 1970s. Secondly, Soviet and western analytical work of a purely normative nature has been omitted in favour of building up a theoretical and empirical picture of the Soviet system as it actually is and operates. Dynamic planning and optimum control methods can offer a further insight into the operations of the Soviet enterprise especially on the ratchet effect of planning and its interaction. The parametric control of enterprise behaviour via the bonus system coefficients appear to be a far more promising way of establishing a method whereby greater information can be obtained of the productive capacity of the enterprise.