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Separation of Ownership from Control and Discretionary Managerial Behaviour in a Transition Economy
This study was the final stage of a four-year study of managerial behaviour and company performance in Bulgaria and examined the influence of changing ownership and control structures of companies on managerial behaviour and initiative. It provides a theoretical summary of the specific types of ownership, control, governance structures and managerial strategies in the Bulgarian transitional economy during 1992-1996. It combines two theoretical approaches, the property-rights approach to show concentrated property-rights structure and private and majority types of control as determinants of efficient enterprise risk bearing and constrained managerial discretion, and the agency theory approach to reveal the efficient role of direct non-market governance mechanisms over managers. Mr. Peev also used empirical information collected from the Central Statistical office in Bulgaria, three different enterprise investigations of corporatised state-owned enterprises between 1992 and 1994, and his own data base of privatised and private de novo industrial companies in 1996-1996.
The project gives a detailed description of the main property-rights structures in Bulgaria at the present time and of the various control structures related to these. It found that there is a strong owner type of control in private and privatised firms, although, contrary to expectations, 100% state -owned enterprises tended to be characterised by a separation of ownership from control, leaving scope for managerial discretion. Mr. Peev predicts that after the forthcoming mass privatisation, many companies will acquire a dispersed ownership structure and there will be a greater separation of ownership from control and potential or inefficient managerial behaviour. The next aspect considered in detail was governance structures and the influence of the generally unstable macroeconomic environment in the country during the period in question.
In examining managerial strategies, Mr. Peev divided the years since 1990 into 3 periods. Even in the first period (1990-1992) there were some signs of a more efficient role for managers and between 1992 and 1994 the picture of control structures and different managerial behaviour in state-owned companies became more diversified. Managerial strategies identified included managerial initiatives for privatisation, where managers took initiative in resolving problems of property rights and introducing restructuring measures and privatisation proposals, managerial initiatives for restructuring without privatisation, and passive adjustment and passive management, where managers seek outside services for marketing, finance management, etc. in order to adjust to the new environment. During 1995-1996 some similarities and differences between the managerial behaviour of privatised and state-owned firms emerged. Firstly, the former have undergone many changes in investment and technology, while managers of state-owned companies have changed little in this field, indicating that the private property-rights structure is more efficient for the long-term adaptation of enterprises. In the area of strategies relating to product quality, marketing, and pricing policy there was little difference between managers of private, privatised and state-owned firms. The most passive managerial behaviour was found in non-incorporated state-owned firms, although these have only an insignificant stake in the economy
Social Representations of Politics
Cezary Trutkowski (Poland). Social representations of Politics. Mr. Trutkowski is an assistant in the Institute for Social Research of the University of Warsaw and worked on this research from August 1997 to July 1999.
Research into social representations requires the use of various methods to show the phenomenon from different angles. In contrast with the contemporary trend towards the measurement of attitudes in opinion surveys, Trutkowski examined social representations of politics in order to study the problem of political participation. He thus aimed to study a problem which he sees as social in nature from a really sociological perspective.
His research revealed a very distinctive difference between the social representations of politics shared by politicians and by the general public. The former consider politics in general as struggle for power which can be used to pursue their own vision of social order. They perceive political activity as a kind of homage to be paid to the greater idea that they pursue. At the same time, politicians admitted that politics is very often treated by political actors as a means of gaining personal profit, becoming purely a fight for the power to rule. According to voters, politicians should be treated as employees on a contract, the duration of which depends on their performance. Politics is therefore not a homage to an idea but a service to citizens. They did however admit that this is wishful thinking in Poland today. A content analysis of electoral campaigns confirmed the dark side of the representation of politics: politicians spend the campaign making promises and presenting visions on television, and quarrelling and fighting in everyday activities that were reported by the press.
Trutkowski sees his research as a contribution to the foundations of a new approach to studying mass phenomena. By reviving some forgotten ideas of Durkheim and the Chicago School and incorporating the theory of social representations with a new methodological programme, he believes that it is possible to build a more social social psychology and sociology
Family Anomie and Juvenile Deliquency in Post-Communist Romania
The sensitivity of crime rates to social, economic and political influences has long aroused the interest of sociologists who have attempted to explain what kind of relationships might be associated with variations in crime rates between different social groups at different times. The earliest views were put forward by Emil Durkheim, and while later writers have developed (R.K. Merton, L. Srole, A, K. Cohen, etc.) have developed some aspects of his ideas further, his basic ideas of the divorce of the individual from normative standards and the lack of social integration are still valid. Ms. Voicu-Minea looked at the theoretical background in detail but then limited it to a specific social group, the family, asking first why certain individual within vulnerable families and/or negative social influences commit offences while others do not.
In modern times the family has undergone massive structural and functional changes. Its former economic function, which once endowed it with a great capacity for social inclusion, has generally vanished, while its formerly crucial role in children's education has been massively reduced. These changes, which are still not complete, can lead to dysfunction and in certain social contexts such as that in post-communist Romanian society, this risk of dysfunction is still greater as unfavourably social circumstances more easily affect such families. The number of cases of juvenile delinquency in Romania has increased sharply ever since the end of the communist system and in 1996 reached the level of 18,317 cases.
The sample examined included 1012 juvenile delinquents aged between 14 and 18, taken from all areas of Bucharest. Over 80% of charges related to theft, with more serious offences being relatively rare. The children underwent a series of psychological tests, accompanied by a questionnaire relating to family situation. The results showed that juvenile delinquency in Romania is overwhelmingly male, with 91.8% of offences being committed by boys. Two thirds of the research group were under the age of 16 and only just over one third attended school, with over half having left school before the legal age. While the majority of subjects had a lower than average level of education, they did not always recognise this, with two thirds seeing their level of education as being as good as or better than average.
Nearly half the children (43%) did not live with both natural parents and majority came from families with three or more children. This applied both to their original families and to the families in which they were living at the time of the survey. The overwhelming majority of families were living in or around Bucharest, but under one third originated from there. Almost 25% of parents were under-schooled and around one third were unqualified workers. At least 30% of families lived in inadequate accommodation and family incomes were generally low. Ms. Voicu-Minea does however point out that over half the minors from the sample saw their family income as satisfactory or even more than satisfactory. When factors such as bad relationships between parents, corporal punishment, alcohol consumption and criminal records of family members were taken into account, the picture was bleak, making it understandable why over 36% of subjects had run away from home at least once, and in many cases repeatedly and for longer periods. The overwhelming majority of offences (80.8%) were committed in groups of between 2 and 11 persons, usually "friends" but in about 10% of cases member's of the family.
IQ tests put about 75% of the sample at slightly under average, the difference being too slight to account for the behaviour problems of the majority. Personality tests, however, showed a different picture. Over 70% of those tested manifested an acute need of tenderness and a similar number a high level of potential aggressiveness. Almost half of the minors expressed such feelings as intolerance or a desire for revenge, and Ms. Voicu-Minea found a clear weakness of the Self. Around half the sample expressed sentiments of abandonment, renunciation and solitude
Industrial Restructuring in the Budapest agglomeration
The major 'motor' of the recent Hungarian industrial development has been foreign direct investment, particularly by multinational companies. This has stimulated the development process, as shown by the dynamism of production, exports and profitability of industry in Budapest. On the other hand, this has also led to a split of the industrial sphere into its foreign and domestic sections, or into foreign-owned companies and domestic SMEs. The major question asked in this project is where is Hungarian industry heading and will the gap between the contracting domestic part and the foreign multinationals continue to widen or will they be joined in a much more favourable scenario. Barta sees this as a question of whether Hungary can avoid the 'dead-end street' of South Asian industrialising countries, and instead move towards a new Eastern European or Hungarian model. He concludes that Budapest industry does not follow any given model and indeed its development probably cannot be seen as a 'model' proper in itself, but is, or will be, a mixture of different elements. This would be a welcome fusion of Hungary's rich human resources of accumulated knowledge with foreign direct investment. Budapest would play an exceptional role in such a process, as the gateway for foreign output to the rest of the country. The share of industry in the Budapest economy will continue to decrease, but it will become a more modern and profitable sector. It will also fulfil a technological transfer role between the developed world and the Hungarian countryside (or even a larger region of central and eastern Europe). Barta predicts that Budapest industry will develop a special structure, with a large subcontractor network supporting the large foreign enterprises, and alongside this industrial districts formed by SMEs
Drug-Use Amongst Teenagers in Romania and the Republic of Moldavia"
Drug-use among teenagers in two ex-communist countries, Romania and the Republic of Moldova, was studied both in isolation and on a comparative basis. The group carried out a psycho-social study, gaining data from two representative samples of teenagers (N=713 in Romania and N=760 in Moldova). Teachers, parents and experts were also interviewed, using focus groups, questionnaires and 3 individual interviews. Aspects of the phenomenon investigated were the extent of drug use (frequency of consumption, kinds of drugs used, and categories of teenage consumers, by age, gender, residential areas, occupational status, marketplaces and traffickers); internal and external stimulating and inhibiting factors, the attitude of all four categories of subjects to drug abuse in teenagers, and strategies for combating this and other such problems
A Sociological Study of the Political Subsystem in Yugoslavia
In this critical analysis of sociological studies of the political subsystem in Yugoslavia since the fall of communism Mr. Ilic examined the work of the majority of leading researchers of politics in the country between 1990 and 1996. Where the question of continuity was important, he also looked at previous research by the writers in question. His aim was to demonstrate the overall extent of existing research and at the same time to identify its limits and the social conditions which defined it. Particular areas examined included the problems of defining basic concepts and selecting the theoretically most relevant indicators; the sources of data including the types of authentic materials exploited; problems of research work (contacts, field control, etc.); problems of analysisl and finally the problems arising from different relations with the people who commission the research.
In the first stage of the research, looking at methods of defining key terms, special attention was paid to the analysis of the most frequently used terms such as democracy, totalitarianism, the political left and right, and populism. Numerous weaknesses were noted in the analytic application of these terms. In studies of the possibilities of creating a democratic political system in Serbia and its possible forms (democracy of the majority or consensual democracy), the profound social division of Serbian society was neglected. The left-right distinction tends to be identified with the government-opposition relation, in the way of practical politics. The idea of populism was used to pass responsibility for the policy of war from the manipulator to the manipulated, while the concept of totalitarianism is used in a rather old-fashioned way, with echoes of the cold war. In general, the terminology used in the majority of recent research on the political subsystem in Yugoslavia is characterised by a special ideological style and by practical political material, rather than by developed theoretical effort.
The second section of analysis considered the wider theoretical background of the research and focused on studies of the processes of transformation and transition in Yugoslav society, particularly the work of Mladen Lazic and Silvano Bolcic, who he sees as representing the most important and influential contemporary Yugoslav sociologists. Here Mr. Ilic showed that the meaning of empirical data is closely connected with the stratification schemes towards which they are oriented, so that the same data can have different meanings in shown through different schemes. He went on to show the observed theoretical frames in the context of wider ideological understanding of the authors' ideas and research. Here the emphasis was on the formalistic character of such notions as command economy and command work which were used in analysing the functioning and the collapse of communist society, although Mr. Ilic passed favourable judgement on the Lazic's critique of political over-determination in its various attempts to explain the disintegration of the communist political (sub)system.
The next stage of the analysis was devoted to the problem of empirical identification of the observed phenomena. Here again the notions of the political left and right were of key importance. He sees two specific problems in using these notion in talking about Yugoslavia, the first being that the process of transition in the FR Yugoslavia has hardly begun. The communist government has in effect remained in power continuously since 1945, despite the introduction of a multi-party system in 1990. The process of privatisation of public property was interrupted at a very early stage and the results of this are evident on the structural level in the continuous weakening of the social status of the middle class and on the political level because the social structure and dominant form of property direct the majority of votes towards to communists in power. This has been combined with strong chauvinist confusion associated with the wars in Croatia and Bosnia, and these ideas were incorporated by all the relevant Yugoslav political parties, making it more difficult to differentiate between them empirically. In this context he quotes the situation of the stream of political scientists who emerged in the Faculty of Political Science in Belgrade. During the time of the one-party regime, this faculty functioned as ideological support for official communist policy and its teachers were unable to develop views which differed from the official line, but rather treated all contrasting ideas in the same way, neglecting their differences. Following the introduction of a multi-party system, these authors changed their idea of a public enemy, but still retained an undifferentiated and theoretically undeveloped approach to the issue of the identification of political ideas.
The fourth section of the work looked at problems of explanation in studying the political subsystem and the attempts at an adequate causal explanation of the triumph of Slobodan Milosevic's communists at four subsequent elections was identified as the key methodological problem. The main problem Mr. Ilic isolated here was the neglect of structural factors in explaining the voters' choice. He then went on to look at the way empirical evidence is collected and studied, pointing out many mistakes in planning and determining the samples used in surveys as well as in the scientifically incorrect use of results. He found these weaknesses particularly noticeable in the works of representatives of the so-called nationalistic orientation in Yugoslav sociology of politics, and he pointed out the practical political abuses which these methodological weaknesses made possible. He also identified similar types of mistakes in research by Serbian political parties made on the basis of party documentation and using methods of content analysis. He found various none-sided applications of survey data and looked at attempts to apply other sources of data (statistics, official party documents, various research results).
Mr. Ilic concluded that there are two main sets of characteristics in modern Yugoslav sociological studies of political subsystems. There are a considerable number of surveys with ambitious aspirations to explain political phenomena, but at the same time there is a clear lack of a developed sociological theory of political (sub)systems. He feels that, in the absence of such theory, most researcher are over-ready to accept the theoretical solutions found for interpretation of political phenomena in other countries. He sees a need for a stronger methodological bases for future research, either 1) in complementary usage of different sources and ways of collecting data, or 2) in including more of a historical dimension in different attempts to explain the political subsystem in Yugoslavia
Meanings of Citizenship: Czech Citizen in a Comparative Perspective
This was an interdisciplinary cross-cultural project which subjected Czech citizens to theoretical analysis and empirical examination. In the first, theoretical, part of the work a typology of post-totalitarian citizenship was proposed containing five types of citizens: responsible democratic, social materialistic, passive asocial, hedonistic consuming, and predatory antisocial. While democratic citizenship stems from preserved civic virtues, the deficient types of citizenship are partially caused by the post-totalitarian syndrome.
In the concrete empirical studies of the international context the most significant aspects of citizenship were examined. Czech citizens (students) displayed an encouraging level of political civic culture when they loaded more often than six other national samples on the factor of democratic citizenship (based on a questionnaire and Q-sort by Feierabend, Q-factor analysis), but their level of loyalty and low critical rebelliousness can also be seen as reason for concern. The Czech population provided contrasting results in measures of civility; although chronically complaining about interpersonal relations, they passed relatively well in a series of situational field experiments even in the international comparison (Levine's helping measures. Czech nationalism is primarily "cultural nationalism", which is less favourable for democratic citizenship than the "civic nationalism" of Americans
Democratic Transition and Political Patronage
Mr. Korosenyi begins by analysing the particular relationship holding between politics and administration in different countries. Within Europe three major patterns have emerged in the 20th century. Firstly there is the politically neutral British Civil Service, secondly the German and French state bureaucracies, which traditionally are supposed to embody the "common good", and thirdly there is the patronage system of the so-called consociate democracies, e.g. Austria. In general Mr. Korosenyi believes that, though politics do not penetrate into the Hungarian administration to the extent they do in Belgium and Austria, nevertheless, there is a stronger fusion than there is in the traditional British pattern. He is particularly interested in this relationship with regard to its effect on democratic institution building and the stabilisation of the new regime in Hungary, now the old "nomenklatura" system has been abolished.
The structure of the Hungarian government was a result of the constitutional amendments of 1989 and 1990. Analysing this period, it becomes clear that for all the political actors who initiated and supported the democratic transition to democracy, the underlying assumption was a radical depoliticisation of the administration in order to maintain its stability.
The political leadership of the executive is a cabinet government. The government is structured along ministries, each headed by a politician, i.e. the minister, who is a member of the cabinet. The minister's political secretary is not a cabinet member, but he or she is a politician, usually a member of the parliament. The head of the administration of the ministry is the administrative state secretary, who is a civil servant. He or she usually has four deputies, also civil servants. Naturally it is assumed that there should be a clear separation between politicians and civil servants. However in practice, the borders can be blurred, giving rise to a hybrid known as the "political civil servant". Mr. Korosenyi analyses the different faces of these hybrids.
They are civil servants for the following reasons. They need special educational qualifications, working experience, a civil service exam etc., they are not allowed to do anything which is incompatible with their impartial role, and they cannot occupy political office nor may they appear in the name of any political party. On the other hand, the accepted political dimension to their function is revealed by the following facts. The state secretary (a civil servant) may participate in cabinet meetings instead of the minister. The state secretary is employed by the minister. A state secretary or any of their deputies can be dismissed at any time by the minister or the prime minister.
In practice then, ministers appoint to these senior administrative positions civil servants whose personal and political loyaties are strong.
To the second level of political patronage in ministries belong the ministerial cabinet, press office and public relation office. The ministerial cabinet includes the private advisors and members of the personal staff of the minister. The press office and the PR office, if they exist, are not adjusted to the administrative hierarchy of the ministry, but under the direct control of the minister. In the beginning of the 1990s, such offices were exceptions; in the second half of the 90s they are accepted and to be found in most ministries. Mr. Korosenyi's work, a 92-page manuscript of a book in Hungarian, marks the first piece of literature within the field of political science which analyses the structure of the Hungarian government in the 1990s and the relationship between the political leadership and the public administration