R&D subdivisions at industrial establishments in the 

 early 1970s actually conducted scientific R&D. The 

 remainder were engaged in servicing the needs of pro- 

 duction or in making minor improvements in the tech- 

 nological base. 12 



In the new associational forms linking research 

 with production, the status of the R&D center varies. 

 In a science-production association (NPO) , a research 

 institute or design bureau is ordinarily the lead or- 

 ganization, while in a production association a re- 

 search institute, design bureau, or general R&D de- 

 partment is generally subordinate to production man- 

 agement. In these new complexes and integrated struc- 

 tures, management must be concerned, in varying de- 

 grees, with both production and R&D, and functional 

 departments typically service performers of both ac- 

 tivities. Because these organizations are heavily 

 concerned with the application of results in produc- 

 tion and use, we consider them further in that con- 

 text later in this chapter. 



Recently, Soviets have become more interested in 

 the organizational problems of R&D and production fa- 

 cilities. The drive to create an optimal system of 

 interrelationships between individuals and groups is 

 termed "scientific organization of labor," and it may 

 be recalled that a section of the S&T plan is devoted 

 to this subject. For the most part, this concern de- 

 volves into "time and motion" studies and analyses of 

 material flows on the shop floor, but there is also 

 mounting concern with organizational structure and 

 the management process. The Soviet regime has long 

 formulated standard organization tables for estab- 

 lishments by function and by size of labor force. 

 However, these have generally not been scientifically 

 substantiated and have been characterized by extreme 

 specialization of functions with emphasis on vertical 

 lines of command. The lack of organizational flexi- 

 bility has indeed been one important obstacle to in- 

 novation. Scientific work has been organized like 

 industrial activity. Little attention was given to 

 the optimal size and structure of personnel and oper- 

 ations. As a rule, leaders of R&D units have demand- 



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