TEXT E If sustainable competitive
advantage depends on work force, skills, American firms have a problem.
Human-resource management is not traditionally seen as central to the
competitive survival of the firm in the United States. Skill acquisition is
considered an individual responsibility. Labor is simply another factor of
production to be hired—rented at the lowest possible cost—much as one buys raw
materials or equipment. The hack of importance attached to
human-resource management can be seen in the corporate hierarchy. In an American
firm the chief financial officer is almost always second in command. The post of
head of human-resource management is usually a specialized job, off at the edge
of the corporate hierarchy. The executive who holds it is never consulted on
major strategic decisions and has no chance to move up to Chief Executive
Officer (CEO). By way of contrast, in Japan the head of
human-resource management is central—usually the second most important
executive, after the CEO, in the firm’s hierarchy. While
American firms often talk about the vast amounts spent on training their work
forces, in fact they invest less in the skills of their employees than do either
Japanese or German firms. The money they do invest is also more highly
concentrated on professional and managerial employees. And the limited
investments that are made in training workers are also much more narrowly
focused on the specific skills necessary to do the next job rather than on the
basic background skills that make it possible to absorb new
technologies. As a result, problems emerge when new breakthrough
technologies arrive. If American workers, for example, take much longer to learn
how to operate new flexible manufacturing stations than workers in Germany (as
they do), the effective cost of those stations is lower in Germany than it is in
the United States. More time is required before equipment is up and running at
capacity, and the need for extensive retraining generates costs and creates
bottlenecks that limit the speed with which new equipment can be employed.
The result is a slower pace of technological change. And in the end the
skills of the bottom half of the population affect 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. What is the main idea of the passage
A.American firms are different from Japanese and German firms in human-resource management. B.Extensive retraining is indispensable to effective human-resource management. C.The head of human-resource management must be in the central position in a firm’s hierarchy. D.The human-resource management strategies of American firms affect their competitive capacity.