accelerate the innovation process. A discussion of 

 the pressures generating the conversion to matrix 

 management is found in chapter 12. The deficiencies 

 and limitations of traditional hierarchical forms of 

 administration are thus being increasingly felt, and 

 efforts are underway to develop new and more dynamic 

 structural designs to cope with the problems of ad- 

 vancing technology and complexity. 



As regards methods of conflict resolution the ex- 

 perience of modernizing production operations at ZIL 

 is instructive. Whenever delays or deviations in 

 program development arose, a meeting was convened of 

 representatives from ZIL, organizations participating 

 in the project, local organs, and pertinent minis- 

 tries. Problems were settled through joint agree- 

 ments of the interested parties with the formulation 

 of the appropriate protocol. Any conflicts between 

 organizations subordinate to the Ministry of the Au- 

 tomobile Industry which they could not settle them- 

 selves were resolved by the leadership of the min- , 

 istry. The solution was binding for both sides. If 

 disagreements arose between organizations of differ- 

 ent ministries, the matter was examined by the appro- 

 priate ministerial authorities. Sometimes a joint 

 decision by the interested ministries resolved the 

 issue. Disagreements over questions of planning were 

 examined by Gosplan, supply problems were handled by 

 Gossnab, and S&T problems were mediated by the GKNT. 22 



The formality and rigidity of these procedures to 

 resolve conflict prevent rapid application of correc- 

 tive measures. Such procedures also breed conserva- 

 tism in the performer at the time of plan formulation 

 and, in a sense, frustrate central control by insula- 

 ting the performer with layers of paper and delays. 23 



Conflicts are inevitable in any project. Coordi- 

 nation is the process of managing conflict. Conflict 

 management practices keep different units together as 

 they work toward integrated goals. In the Soviet 

 Union organizational separation and administrative 

 fragmentation of the innovation process complicate 

 greatly the task of coordination and necessitate cum- 



188 



