Managing transitions: The reorganization of two clothing manufacturing firms in Hungary

The emergence of market-oriented economies in eastern and central Europe ha s produced an extensive debate on institutional transfer. Whilst it is gene rally recognized that new regulatory systems are being created out of a ne facto consensus between unions, employers and government, less is known abo ut the firm-specific organizational ramifications of such changes. This cas e study examines the interplay between institutional constraints and manage ment decision making in the organization of production and work in two rece ntly privatized Hungarian clothing manufacturing firms. We focus upon manag erial action and the implementation of strategy; specifically on how manage rs have sought to re-shape the organization of production in an attempt to meet the market exigencies of a changing global production system in appare l. We show contrasting ways in which firms have sought to introduce new pro duction paradigms that emphasize quality, cost and productive efficiencies, arguing that even where firms have more resources than others, efforts to restructure time discipline amongst workers are not necessarily successful.