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Management article
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Reference no. 90611
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1990

Abstract

The biggest impediment to successful joint ventures with the Soviet Union is Western ignorance of the Soviet management system. The core of Soviet hierarchy -- the structural task unit (STU) -- explains the interaction between Soviet management and workers. The largest STU is the enterprise itself; the smallest is the work brigade. This system produces excellent vertical integration, but its inner solidarity tends to inhibit horizontal communication.

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Abstract

The biggest impediment to successful joint ventures with the Soviet Union is Western ignorance of the Soviet management system. The core of Soviet hierarchy -- the structural task unit (STU) -- explains the interaction between Soviet management and workers. The largest STU is the enterprise itself; the smallest is the work brigade. This system produces excellent vertical integration, but its inner solidarity tends to inhibit horizontal communication.

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