Dynamics of management practices in eastern europe: The case of Bulgaria

Abstract

This article provides a critical review of the Socialist Management System with a profile of management practices in the centrally planned economies in Eastern Europe. It draws on the work by Kornai and Chavance, exploring the economic reforms in Eastern Europe pre-1989 and the typical management behaviour in response to administrative changes in that time. The profile of the Socialist Management System is compared with the changes in management practices in the construction industry in Bulgaria in 1994-95. The comparative analysis includes two case studies-one state firm ‘Metal Design’, and one private firm ‘Apolos’-representing the changes in management under the pressure of market reforms.