Abstract

The aim of this paper is to analyze the cause of the sluggish growth in the labor productivity of the shipbuilding industry of the German Democratic Republic-GDR-during the decade immediately following World War II. Particular attention will be placed on the quality of laborers and its management.From 1945 to 1955 the shipyards of the GDR in the Baltic seaport of Mecklenburgs employed some 35, 000 new laborers. Although some of these individuals had been skilled workers, most of the others had been not. So it was necessary to train these laborers, but the vocational training had many problems. To further complicate matters, a number of the skilled workers there began leaving the industry in search of improved working conditions and better wages. Consequently, the GDR's shipbuilding industry was crippled the shortage of the skilled workers.In terms production management, most of the middle management personnel lacked the ability to manage well. Foreman lacked the authority to avoid having their leadership usurped by the organization of labor interest groups-called “Brigade”. In addition to management's inability to lead, socialist competition was not sufficiently regulated. This caused poor production. Furthermore, there was little rationality in setting up wage rate and norm for piece-work wages. These critical factors combined brought about laxity of production.It is true the post-war condition was a cause of the difficulties of the shipbuilding industry after the war, but the defects in production planning, delayed supplies and the poor quality of materials, and a seller's market of labor and goods were important and determining cause of the negative ramifications in both labor and management.

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