| Problem | Components |
|---|---|
| Policy issue area: | Economics |
| Policy issue: | Management |
| Description: | Decline of the industrial sector caused in part by mismanagement. |
| Symptoms: | Business management that is characterized by short time horizons (lack of strategic thinking for their organizations); adversarial labor relations; lack of coordination with rest of society; underinvestment in R&D; poor management of cost and quality; inability to compete internationally; corporate and financial giantism and concentration. |
| Causes: | Management education; tax system and legislation that provides wrong incentives. |
| Cost of problem: | - |
| Solution | Components |
| Resources: | Educational and research institutions. |
| Goal: | 1. Provide tax incentives to corporations to encourage forward looking, strategically
thinking management practices 2. Create a framework of economic rules and incentives that discourage corporate/financial giantism and concentration (with its economic inefficiencies and alienation-producing bureaucracies), and encourage small- and medium-sized independent enterprises, and employee-owned businesses 3. Promote constructive labor-management cooperation and negotiations, including the equitable sharing of risks and rewards, worker productivity, quality of work, employee participation in decision-making, and more employee stake/ownership. |
| Program area: | Economic development |
| Program-remedy: | 1. Tax reform, with incentives that reward competent management 2. Labor legislation that encourages constructive labor-management cooperation. |
| Program-prevent: | National economic planning program, which encourages the long-range, strategic view of economic development and international competition. |
| Cost of program: | - |
| Beneficiaries: | Business and industry; stockholders; workers. |