Abstract
During the three years since the author reported the developments at Dynavac, very significant changes have occurred even though the support by the principal shareholders of the company has ensured that self-management will evolve unchecked by considerations of ownership. The character and operation of the Group has changed and the Salary Review Group has been discontinued. Compulsory participation in the Group has been abandoned in favour of voluntary participation and a Personnel Performance Review body was intro duced early in 1978. There are, however, areas of continued concern: there are still problems of adjustment to collective and self-management and more problems have occurred in the area of pay fixation. The conclusion is that the past three years has witnessed a period of achievement and consolidation for Dynavac but the next few years will provide a test of whether, under the new voluntary system, a management elite will develop within the company structure.

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