If sustainable competitive advantage depends on work force skills, American firms have a problem. Human resource management is not traditionally seen as
21 to the competitive survival of the firm in the United States. Labor is simply another factor of production to be hired or
22 at the lowest possible cost—much
23 one buys raw materials or equipment.
The lack of importance
24 to human resource management can be seen in the corporation hierarchy. In an American firm the chief financial officer is almost always second
25 command. The
26 of head of human resource managements is usually a specialized job, off at the edge of the corporate hierarchy. The executive who
27 it is never consulted on major strategic decisions and has no chance to
28 to Chief Executive Officer (CEO).
29 , in Japan the head of human resource management is central—usually the second most important executive, after the CEO, in the firm's ______.
As a
30 , problems
31 when new breakthrough technologies arrive. If American workers, for example, take much longer to learn
32 to operate new flexible manufacturing stations than workers in Germany (as they do), the effective cost of those stations is
33 in Germany than it is in the United Stated. More time is required before equipment is up and running at capacity, and the need for
34 retraining
35 costs and creates bottlenecks that
36 the speed with
37 new equipment can be employed. The result is a slower pace of technological
38 . And in the end the skills of the bottom half of the population
39 the wages of the top half. If the bottom half can't effectively staff the processes that have to be operated, the management and professional jobs that go with these processes will disappear.