Management announced a policy of guaranteed employment for all workers. It asked its production workers how they could be made more productive in their jobs. It urged its marketing division to discover new markets for the companies products. It asked its engineers to improve production quality and efficiency. The problems of Russian industry can be traced back to management decisions and practices over many years.
Companies fail and become bankrupt even when the economy is healthy and growing.
In 1981 America's third largest car manufacturer, Chrysler Corporation, was on the verge of bankruptcy. Its manufactured poor quality, high priced, out-dated cars that were no match for Japanese imports. The company had 100,000 cars unsold cars which no customer wanted to buy. Labor discipline and morale were very poor. Lee Iacocca courageously agreed to become Chief Executive of the company, leaving a safe job at Ford Motors, and announced he would not even take a salary until the company becomes profitable.