The Brigade-managed Enterprise

Hans Aage
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Hans Aage: Institute of Economics, University of Copenhagen

No 89-05, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: In recent years small autonomous work teams have been increasingly revived as a means of iproving Soviet production efficiency. Empirical evidence suggests that decreasing the size of brigades for a given total workforce entails changes in remuneration and decision making: internal remuneration becomes less equal and more in proportion to effort; distribution between brigades becomes less related to final results because of measurements problems; brigademembers decisions become more collective. Then it follows that workers' suppply of effort is maximised in brigades of intermediate size. So far the brigade system has only been partially implemented, with minor effects.

Pages: 22 pages
Date: 1989-02
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