Editing Economy of North Korea (section)

====Taean work system====
The [[Industrial organization|industrial management system]] developed in three distinct stages. The first was a period of enterprise autonomy that lasted until December 1946. The second stage was a transitional system based on local autonomy, with each enterprise managed by the enterprise management committee under the direction of the local people's committee. This system was replaced by the "one-man management system" ({{lang|ko|지배인 단독 책임제}}), with management patterned along Soviet lines as large enterprises were nationalized and came under central control. The third stage, the ''Taean'' Work System ({{lang|ko|대안의 사업체계}}, ''Taeanŭi saŏpch'e''), was introduced in December 1961 as an application and refinement of agricultural management techniques to industry. The Taean industrial management system grew out of the ''Ch'ŏngsan-ni'' Method.<ref name="Savada1994"/>{{rp|123–127}}

The highest managerial authority under the Taean system is the party committee. Each committee has approximately 25 to 35 members elected from the ranks of managers, workers, engineers, and the leadership of "working people's organizations" at the factory. A smaller "executive committee", about one-quarter the size of the regular committee, has practical responsibility for day-to-day plant operations and major factory decisions. The most important staff members, including the party committee secretary, factory manager, and chief engineer, make up its membership. The system focuses on co-operation among workers, technicians, and party functionaries at the factory level.<ref name="Savada1994"/>{{rp|123–127}}

Each factory has two major lines of administration, one headed by the manager, the other by the party committee secretary. A chief engineer and his or her assistants direct a general staff in charge of all aspects of production, planning, and technical guidance. Depending on the size of the factory, varying numbers of deputies oversee factory logistics, marketing, and workers' services. The supply of materials includes securing, storing, and distributing all materials for factory use, as well as storing finished products and shipping them from the factory.<ref name="Savada1994"/>{{rp|123–127}}

Deputies are assigned workers to their units and handle factory accounts and payroll. Providing workers' services requires directing any farming done on factory lands, stocking factory retail shops, and taking care of all staff amenities. Deputies in charge of workers' services are encouraged to meet as many of the factory's needs as possible using nearby agricultural cooperatives and local industries.<ref name="Savada1994"/>{{rp|123–127}}

The secretary of the party committee organizes all political activities in each of the factory party cells and attempts to ensure loyalty to the party's production targets and management goals. According to official claims, all management decisions are arrived at by consensus among the members of the party committee. Given the overwhelming importance of the party in the country's affairs, it seems likely that the party secretary has the last say in any major factory disputes.<ref name="Savada1994"/>{{rp|123–127}}

The Taean system heralded a more rational approach to industrial management than that practised previously. Although party functionaries and workers became more important to management under the new system, engineers and technical staff received more responsibility in areas where their expertise could contribute the most. The system recognizes the importance of material as well as "politico-moral" incentives for managing the factory workers. The "internal accounting system", a spin-off of the "independent accounting system", grants bonuses to work teams and workshops that use raw materials and equipment most efficiently. These financial rewards come out of enterprise profits.<ref name="Savada1994"/>{{rp|123–127}}

A measure of the success of the Taean work system is its longevity and its continued endorsement by the leadership.<ref name="Savada1994"/>{{rp|123–127}} In his 1991 New Year's address marking the 13th anniversary of the creation of the system, Kim Il Sung said that the
<blockquote>
Taean work system is the best system of economic management. It enables the producer masses to fulfill their responsibility and role as masters and to manage the economy in a scientific and rational manner by implementing the mass line in economic management, and by combining party leadership organically with administrative, economic, and technical guidance.<ref name="Savada1994"/>{{rp|123–127}}</blockquote>