and management shapes were inadequate in coping with 

 complex problems of advancing technology. They faced 

 many of the same pressures and design problems that 

 preoccupy the Kremlin today. Similarly, interest in 

 the design of strategic planning systems mushroomed 

 as ways were sought to free top executives from oper- 

 ational worries. Differentiation and integration 

 concepts were applied to structural design to achieve 

 greater organizational flexibility and management ef- 

 fectiveness. Additional managerial roles were creat- 

 ed to provide horizontal coordination across function- 

 al lines and vertical flows of authority. Among the 

 most important structural innovations to emerge out 

 of the 1960s were project management and matrix or- 

 ganization. 



Significantly, these same two concepts lay at the 

 basis of Soviet structural refinements and managerial 

 reforms in the 1970s. According to Milner, they pro- 

 vide for "a flexible and dynamic system of interfunc- 

 tional coordination and subordination of diverse ef- 

 forts of individual links for accomplishing set ob- 

 jectives.""" "Project teams overcome intraorganiza- 

 tional barriers and therefore avoid the basic contra- 

 dictions of a functional structure," writes Taksir."' 

 N. E. Drogichinsky notes, "In the matrix structure 

 are optimally combined vertical and horizontal flows 

 of leadership, the management of current production 

 and scientific research, the development of new tech- 

 nology and retooling for manufacturing new products 

 without violating the rhythm of production. ""° The 

 main advantage of matrix organization, Gavrilov ex- 

 plains, is that it makes possible the transfer of 

 operational management to lower levels and thus per- 

 mits top management to step out of day-to-day deci- 

 sion making and to concentrate on strategy develop- 

 ment .69 



Accordingly, the concepts of project and matrix 

 management are beginning to find application in the 

 development and introduction of new technology in the 

 civilian sector. Science-production associations in 

 particular have become crucibles for experimentation 



279 



