The Transformation of Work Processes in Emergent Capitalism: The Case of Hungary'

The removal of state support for enterprises and the intensification of competition following the liberalisation of markets in the former state socialist societies of Eastern Europe were expected to result in the major rationalization of employment and work organisation, especially where ownership and control had changed. This study of 271 production workers in 13 Hungarian enterprises shows that the state-owned enterprises (SOEs) in the most severe financial difficulties had reduced total employment the most in the early 1990s, and that both this group of companies and those now privately controlled had reduced the proportion of indirect support workers more than had SOEs in better financial conditions and/or which were still being supported by the state. Production workers in the private firms also had more varied jobs, especially skilled ones, and more task discretion than most of those in SOEs. In general, both the crisis SOEs and the private firms distinguished more strongly between skilled workers and team leaders and less-skilled workers in terms of the jobs they had, their discretion over task performance, supervisor control and involvement than did the more financially stable SOEs. Most workers in this last group of companies were still organised in the `quasi-Taylorised' work systems with substantial delegated autonomy from supervisors characteristic of state socialism.